Residential Solar

Tennessee has one statewide law that directly addresses solar development. During the 2022 legislative session, the Tennessee General Assembly established the “Decommissioning Law,” Tenn. Code Ann. § 66-9-207, which imposes requirements on solar power facilities regarding decommissioning obligations and the required removal of solar power facilities upon or prior to the expiration or termination of the solar power facility agreement. The Decommissioning Law includes requirements that must be present in agreements between landowners and owners or operators of solar power facilities entered into on or after June 1, 2022, the effective date of the legislation.

The original Decommissioning Law addressed solar-generating devices or structures at least 10 MW in size. However, effective July 1, 2024, the law was amended to apply to solar-generating devices or structures at least 5 MW in size. “Solar power facilities,” as defined in the Decommissioning Law, do not include solar-generating devices or structures less than 5 megawatts (MW) in size, measured at the point of interconnection; however, parties to a solar power facility agreement may elect to apply the requirements of the Decommissioning Law to smaller structures.

The 2024 legislation also tasks the TDEC Office of Energy Programs (OEP) with the responsibility of receiving and storing solar power facility agreements. Learn more about this process on the Statutory Requirements for Solar Facilities page. 

The Tennessee Solar Energy Industries Association, TenneSEIA, has a list of Frequently Asked Questions regarding this legislation.

Permitting solar development is treated similarly to permitting for other types of development in Tennessee. A solar construction site will require a National Pollutant Discharge Elimination System (NPDES) Stormwater Permit, sometimes called a construction general permit, from the Tennessee Department of Environment and Conservation (TDEC) Division of Water Resources. The site will also need an electrical permit, which can be purchased through the Tennessee Department of Commerce and Insurance. Additional permitting may be required by county or local municipalities; contact the local code or zoning office to learn more.

Additional requirements will be placed on any project that utilizes federal funding, including requirements pertaining to the National Environmental Policy Act (NEPA), such as a potential need to prepare an Environmental Assessment, which determines whether or not a federal action has the potential to cause significant environmental effects, or an Environmental Impact Statement (EIS), if a proposed action is determined to significantly affect the quality of the human environment. The EIS process requires the publishing of a notice of intent and an opportunity for the public to provide input, to be followed by the release of a draft EIS for public comment. As a federal agency, TVA regularly prepares NEPA environmental reviews. An example Environmental Assessment is available from TVA’s Adamsville Solar Project, and the TVA Solar and Battery Programmatic EIS provides an example of the documentation and requirements under the EIS process.  

Licensing

Solar installers are required to have a business license with the State, which would be acquired through the Secretary of State and be registered with the Tennessee Department of Revenue. Additional licensing requirements may exist from the local county or city municipalities.

The Tennessee Department of Commerce and Insurance requires a contractor’s license to complete any job over $25,000. Additional information is available on the Contractors and Home Improvements page, the License Requirements, and Licensing Steps pages. Contractor application documents can be found on the Forms and Documents page. Additionally, information on the various codes can be found on the Tennessee Fire Service and Codes Enforcement Academy’s Codes Program page. 

Solar Installation Certification

Currently, the State of TN does not require installers to be certified, though it is recommended. The North American Board of Certified Energy Practitioners (NABCEP) offers Solar Installation Certification. 

Electrical Code

The current, adopted electrical code for the State is the 2017 National Electrical Code (NEC). Article 110.3(B) of the 2017 NEC states that listed and labeled equipment shall be installed and used in accordance with any instructions included in the listing and labeling. For example, the installation instructions for Generac power cells state that Power cell batteries may be installed in dwelling units in the following locations only:

• Attached garages, separated from dwelling unit habitable spaces in accordance with local building code.
• Detached garages and accessory structures.
• Utility closets and storage or utility spaces.
• Basements.
•  Other locations not categorized as habitable space in a dwelling unit.

The U.S. Department of Energy (DOE) Solar Technologies Office has a Homeowner's Guide to Going Solar with basic information about residential solar, as well as a page dedicated to Understanding Your Rooftop Solar Energy Contract to provide basic information on solar energy contracts.

The Solar Energy Industries Association (SEIA) created the Consumer Guide to Home Solar to inform potential solar customers about the financing options available, contracting terms to be aware of, and other useful tips.

View TVA’s Local Power Company Partners and contact the local power company to obtain more information about solar options available for residential solar in your area.

The Tennessee Advisory Commission on Intergovernmental Relations (TACIR) released a report in 2023 on Managing Solar Energy Development to Balance Private Property Rights and Customer Protection with the Protection of Land and Communities to address common concerns about solar development in Tennessee.

The National Renewable Energy Laboratory released the report, Nova Analysis: Holistically Valuing the Contributions of Residential Efficiency, Solar and Storage to analyze the benefits that come from residential solar, storage, and energy efficiency.

Protecting Yourself from Fraud

Most of the fraud committed in the solar industry is happening in the residential solar market. According to the TACIR report on Managing Solar Energy Development to Balance Private Property Rights and Customer Protection with the Protection of Land and Communities, between 2020 and 2023, the Tennessee Attorney General's Office received 498 complaints against nine residential solar companies, with 477 complaints directed at two companies. Consumers who purchase residential solar systems are protected by Tennessee's Consumer Protection Act and Home Solicitations Sales Act.

The Solar Energy Industries Association published a Consumer Guide to Home Solar in 2023 that features a long list of questions to ask prospective solar installers, as well as financing companies.

The National Renewable Energy Laboratory (NREL) created a webpage on Solar Consumer Protection to outline the solar consumer protection landscape and provide resources on the topic. 

SolarReviews offers a tool to estimate the cost of installing solar panels on a home.

TVA also offers a Tennessee Valley Solar Calculator to help consumers make informed decisions on small-scale solar systems. The calculator provides information on the true cost and payback of installing solar in the Tennessee Valley.  

The Interstate Renewable Energy Council (IREC) created the Consumer Solar Checklist to assist residential consumers considering installing solar energy. 

A variety of Tennessee Valley Renewable Energy programs are offered by TVA, with an emphasis on solar opportunities. The Renewables for Residents webpage provides an overview of the programs available. TVA also offers dedicated pages about renewable resource opportunities for its Residential, Business, and Large Business and Industry customers.

Consumers may also consider subscribing to community solar programs available in their area to take advantage of the benefits of solar without installing panels directly on their homes. Community solar programs available in Tennessee include Nashville Electric Service’s Music City Solar, Middle Tennessee Electric’s Cooperative Solar, and Knoxville Utilities Board’s KUB Community Solar. 

Federal Residential Clean Energy Tax Credits can be claimed on federal income taxes for a percentage of the cost of a solar system purchased by the taxpayer. The tax credit must be requested for the tax year when the system was installed.  EnergyStar's Solar Energy Systems Tax Credit page provides additional detail on the tax credit eligibility and covered expenses. 

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides a catalog of available incentives for renewable energy and energy efficiency across the U.S.