Commercial Solar Incentives in Tennessee

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Tennessee Property Tax Exemption

Tennessee has a partial property tax exemption for solar power systems of 12.5% meaning the state will only count 12.5% of your project costs as taxable property value.

The Right to Sunlight in Tennessee

Luckily for solar owners, Tennessee protects your right to access sunlight, meaning that if a planned construction would block your access to sunlight, you can negotiate with the developer in exchange for payment.

Tennessee Sales Tax Exemption 

In Tennessee, businesses can avoid the 7% sales tax. On a $100k project, you're saving $7,000!

Business owners can leverage various federal solar incentives in combination with Tennessee's existing programs. Together, these incentives can substantially lower the cost of installing a solar system.

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Tennessee may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Tennessee business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Tennessee Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local Tennessee installer to see which incentives can contribute to your solar system. 

Get Started!