Grid & off-grid

Net metering calculator, Tennessee

Enter your exact usage, system size, and rate details to see how Tennessee's net metering policy affects your solar bill, with precise controls for season, tiered rates, and fixed fees.

Your numbers

1 Project details Optional
Shown on your exported report. Leave blank to skip.
2 Your usage and system
Find this on a recent utility bill, usually labeled kWh used.
Use your quoted or planned system size. Panel count times panel wattage divided by 1,000 gives a rough figure.
Solar production swings seasonally; pick a specific month type to see how your bill shifts.
Most utilities charge a flat customer or connection fee regardless of usage.
3 Your location and rate
Defaulted to Tennessee's average peak sun hours. Adjust if you know your local figure.
Defaulted to Tennessee's current average residential rate. Your utility's actual rate may differ.
Tennessee typically credits exports around 30% of retail. TVA distributors credit exports at a dispersed generation rate below retail.
Some utilities charge progressively higher per-kWh rates as monthly usage climbs into higher tiers.
Accounts for inverter loss, wiring loss, dust, and temperature derate combined.
Informational only. A monthly cycle means unused export credit does not carry to the next bill; annual and rolling cycles do.

How it works

Three steps to your Tennessee solar bill estimate

Step 1

Enter your usage, system size, and season

Pull your monthly kWh from a recent bill and enter your planned or quoted system size in kW. If you only know your panel count, multiply it by each panel's wattage and divide by 1,000 to get a kW figure first. Select a season to model a specific month rather than only an annual average.

Step 2

Confirm your rate, tier, and export credit

Tennessee's typical residential rate and export credit level are filled in by default. Swap in your utility's actual tariff numbers, tier bracket, and fixed monthly fee if you have a recent bill or interconnection agreement showing them.

Step 3

Compare the result to a full retail scenario

Run the net billing vs net metering comparison tool to see exactly how much Tennessee's current export credit rate costs you compared to full 1:1 retail crediting.

How net metering works in Tennessee

Tennessee has no net metering law; TVA runs something different

Tennessee has never had a statewide net metering statute, largely because nearly all Tennessee homes buy power through a local power company supplied by the Tennessee Valley Authority, a federal utility that sets its own rates. Instead of net metering, TVA runs its Dispersed Power Production (DPP) program, which pays its own avoided-cost rate for excess solar generation rather than a retail-based credit.

DPP payments fluctuate and often run very low

TVA sets its DPP avoided-cost rate monthly, and reported schedules have run roughly 3.6 to 4.4 cents per kWh (3.635 cents in September 2025 and 4.41 cents in January 2026), far below the roughly 14.5 cent retail rate you pay for grid power. TVA states in its solar FAQ that it buys qualifying facility output at avoided cost only. Fees for connecting and enrolling are set by your local power company rather than TVA, so check them before you commit; Tennessee's tax credit and rebate estimator is worth reviewing at the same time.

Memphis faces an additional structural obstacle

Memphis Light, Gas & Water buys its power from TVA under a long-term wholesale contract, which has been cited as a structural barrier to local solar buyback in the Memphis area, beyond the general challenges DPP presents statewide. Check MLGW's current program terms directly before planning around any export credit there. Run the tax credit and rebate estimator with your own numbers before you decide.

Self-consumption is the whole strategy in Tennessee

Given how little exported power is worth under DPP, and any local fees that can eat into even that small credit, Tennessee solar systems are typically sized around maximizing self-consumption rate rather than exporting surplus.

Interconnection and the off-grid comparison

Connecting a system still requires your local power company's standard interconnection approval, even with DPP's modest compensation, and the grid interconnection cost estimator covers what that process typically costs. Given Tennessee's weak export compensation, comparing grid-tied against a fully off-grid system is worth doing carefully here, and the grid tie vs off grid comparison tool can help you weigh both paths.

Questions The credit rate only matters once it becomes a payback period. The levelized cost of energy calculator in our Savings & Payback section can help you work out how long the system takes to pay for itself.

Frequently asked

Tennessee has no net metering law. TVA's Dispersed Power Production program instead pays an avoided-cost rate for exports, which has run roughly 3.6 to 4.4 cents per kWh in recent schedules against a roughly 14.5 cent retail rate. A home exporting 300 kWh a month earns roughly $11 to $13 in credit before any local fees.

The average residential rate in Tennessee was about 14.5 cents per kWh as of May 2026, per EIA data. No statewide net metering exists; TVA's Dispersed Power Production program credits exports at avoided cost, well below retail.

Because nearly all Tennessee homes buy power through a local power company supplied by TVA, a federal utility that sets its own rates, there is no statewide net metering law. TVA runs its own Dispersed Power Production program instead, paying an avoided-cost rate rather than a retail-based net metering credit.

It can. Fees are set by your local power company rather than TVA, so confirm any interconnection or enrollment charges before you sign up, since they can eat into the modest credit a typical residential system earns from avoided-cost payments.

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