Tennessee vs Kentucky Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of Tennessee and Kentucky solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | TN · Tennessee | KY · Kentucky |
|---|---|---|
| Avg Monthly Bill | $165 | $145 |
| Peak Sun Hours / Day | 4.8 ◆ | 4.6 |
| Avg $/Watt Installed | $2.85 ◆ | $2.95 |
| State Tax Credit | None | None |
| Net Metering | None | retail |
| SREC Market | No | No |
| Property Tax Exempt | No | No |
| Sales Tax Exempt | No | No |
| Avg Payback (yrs) | 9.6 ◆ | 10.4 |
| Avg 25-Year Savings | $28,900 ◆ | $25,400 |
State Tax Credit Comparison
Tennessee offers no state income tax credit. Kentucky offers no state income tax credit.
Net Metering Policies
Tennessee: no statewide net metering mandate. Kentucky: retail rate net metering active.
Net metering is often the most economically significant solar policy because it determines how excess production is valued. Retail-rate states (where you receive full retail price for exported energy) have substantially better solar economics than avoided-cost or no-net-metering states.
Average 25-Year Savings
Tennessee: $28,900 over 25 years (avg payback 9.6 yrs). Kentucky: $25,400 over 25 years (avg payback 10.4 yrs).
Verdict: Which State Wins on Solar?
Tennessee edges out Kentucky on lifetime savings primarily due to higher solar irradiance.
Note: state averages mask significant within-state variation. Your specific utility, roof orientation, and household electricity profile drive your actual numbers — use the calculator to model your home directly.