Avoided Cost

Net Metering in Tennessee

Current NEM policy, export rates, and impact on solar payback for Tennessee homeowners.

NEM Export Rate

$0.040

per kWh

Avg Retail Rate

$0.108

per kWh

% of Retail

37%

compensation

Policy Status

Active

since 2019-01

System Limit

Up to 50 kW

max eligible

NEM Policy Details — Tennessee

How Tennessee compensates your excess solar generation

Avoided CostActive

Tennessee Valley Authority (TVA) offers Generation Partners program at avoided cost. No retail net metering. Very limited export compensation.

NEM Rate$0.040/kWh
Retail Rate$0.108/kWh
Savings Gap-6.8c/kWh
Annual True-UpYes

Source: TVA, DSIRE · Effective: 2019-01

Calculate Your NEM Savings in Tennessee

$

NEM Rate Comparison

$0.00Tennessee: $0.040$0.108 (retail)

Tennessee's NEM rate is 37% of the retail electricity rate — significantly below retail, consider self-consumption or battery storage.

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Written & reviewed by

EnergyTools Research Team — Solar Energy Research Group

The EnergyTools Research Team compiles and verifies residential solar data from NREL, EPA, and state utility commissions. Methodology is reviewed quarterly.

  • Source data: NREL PVWatts V8 + Utility Rates V3 APIs
  • Source data: EPA FuelEconomy.gov vehicle efficiency data
  • Methodology reviewed quarterly

Methodology & data sources:NREL PVWatts, EPA FuelEconomy.gov, state utility commissions— updated 2026.