Skip to main content

Tennessee

An arrow graphic shows that Alabama has no renewable portfolio standard.

Carve-out: None
Tracking system: PJM-Generation Attribute Tracking System (PJM-GATS)

Tennessee does not have a renewable portfolio standard or goal and does not offer net metering. However, Tennessee Valley Authority (TVA), which serves virtually all of the counties in Tennessee, offered a distributed solar program of 10 MW for projects 50 kW to 5 MW in 2016.

Net Metering

Tennessee does not have a statewide net metering program. TVA offers a dual-metering option for participants in its Green Power Providers program.

Interconnection

Tennessee dos not have standardized interconnection. TVA has a fast-track process for inverter-based systems up to 10 kW.

Third Party Ownership

The status of third party solar power purchase agreements in unclear in Tennessee.

Community Solar

There are currenty no statewide community solar policies or programs. Utilities and project developers may offer community solar projects.

State Incentive Programs

Program Administrator Incentive
Pathway Energy Efficiency Loan Program Pathway Lending Community Development Financial institution The program offers low-interest loans for businesses and non-profits for energy efficiency and renewable energy improvements, including the installation of solar photovoltaic.
Sales Tax Credit for Clean Energy Technology Tennessee Department of Revenue Commercial and industrial sector taxpayers are eligible for 100% of sales and use tax exemption. The system must be certified as a Green Energy Production Facility.
Green Energy Property Tax Assessment Tennessee Comptroller of the Treasury Commercial and industrial sector taxpayers qualify for special appraisal of property tax. The property value of the certified green energy production facility may not exceed 12.5% of the installed cost for solar.

Utility Incentive Programs

Prospective customers in the TVA service territory may be eligible for TVA incentives. Systems smaller than 50 kW may qualify for TVA's Green Power Providers program, which buys 100% of system output for the first 10 years of operation at $0.02/kWh above the retail rate, and an additional 10 years of output at the retail rate. Midsized projects (50 kW to 20 MW) may be eligible for TVA's Renewable Standard Offer program. The program buys midsized project output through 10-, 15-, or 20-year contracts at a rate that escalates 5% annually. In 2015, TVA began a pilot program, the Solar Solutions Initiative, that offers an additional $0.04/kWh for the first 10 years of solar projects. The program set aside 4 MW of program-eligible capacity for projects between 50 and 200 kW.

Resources

The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.

Net metering and Interconnection

Programs and Incentives