Energy Rebates in Tennessee

Tennessee residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in Tennessee, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.

Federal Programs Available in Tennessee

• 25C Energy Efficient Home Improvement Credit: Up to $3,200/year for heat pumps, insulation, windows, doors, electrical panels, and home energy audits. Covers 30% of costs.
• 25D Residential Clean Energy Credit: 30% tax credit for solar panels and battery storage with no dollar cap. Available through 2032.
• HOMES & HEAR Rebates: Income-qualified point-of-sale rebates up to $14,000 for heat pumps, water heaters, electrical panels, and other electrification upgrades.
• 30C EV Charger Credit: Up to $1,000 for home EV charging equipment in eligible census tracts.
• Weatherization Assistance Program (WAP): Free weatherization services for low-income households at or below 200% of the federal poverty level.

Tennessee Energy Rebate Overview

Tennessee households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. Tennessee has not yet launched the HOMES and HEAR rebate programs under the Inflation Reduction Act, but federal tax credits are available now to all homeowners regardless of state program status. The Tennessee Department of Environment and Conservation (TDEC) - Office of Energy Programs coordinates state-level energy programs and can provide the latest information on available incentives.

HOMES & HEAR Program Status in Tennessee

Tennessee has not yet launched its HOMES or HEAR rebate programs under the Inflation Reduction Act. The Tennessee Department of Environment and Conservation (TDEC) - Office of Energy Programs is the designated state entity coordinating with the U.S. Department of Energy on program design.

Income Eligibility for Tennessee Rebates

For Tennessee, 80% of Area Median Income varies by county. In Davidson County (Nashville), 80% AMI for a family of four is approximately $64,750. In Shelby County (Memphis), it is approximately $56,200.

For Tennessee, 150% of Area Median Income varies by county. In Davidson County (Nashville), 150% AMI for a family of four is approximately $121,400. In Shelby County (Memphis), it is approximately $105,350.

Tennessee State Rebate Programs

Solar Net Metering in Tennessee

Tennessee does not have a statewide net metering mandate. The Tennessee Valley Authority (TVA) sets distributed generation policies for its local power companies. TVA's current program offers credits for excess solar generation at a rate that varies but is generally below the retail rate.

Utility Rebate Programs in Tennessee

Tennessee residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:

Nashville Electric Service (NES)

Memphis Light, Gas and Water (MLGW)

Knoxville Utilities Board (KUB)

Get Personalized Tennessee Rebate Guidance

Enter your ZIP code below to chat with our AI about rebates specific to your area in Tennessee. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.

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Frequently Asked Questions About Tennessee Rebates

What energy rebates are available in Tennessee?

Tennessee residents can access federal tax credits including the 25C Energy Efficient Home Improvement Credit (up to $3,200/year) and the 25D Residential Clean Energy Credit (30% for solar and battery storage). State-level programs include TVA EnergyRight Residential Services, Weatherization Assistance Program.

Has Tennessee launched the HOMES and HEAR rebate programs?

Tennessee has not yet launched its HOMES or HEAR rebate programs under the Inflation Reduction Act. The Tennessee Department of Environment and Conservation (TDEC) - Office of Energy Programs is the designated state entity coordinating with the U.S. Department of Energy on program design.

What are the income limits for energy rebates in Tennessee?

For Tennessee, 80% of Area Median Income varies by county. In Davidson County (Nashville), 80% AMI for a family of four is approximately $64,750. In Shelby County (Memphis), it is approximately $56,200. For Tennessee, 150% of Area Median Income varies by county. In Davidson County (Nashville), 150% AMI for a family of four is approximately $121,400. In Shelby County (Memphis), it is approximately $105,350.

Does Tennessee have net metering for solar panels?

Tennessee does not have a statewide net metering mandate. The Tennessee Valley Authority (TVA) sets distributed generation policies for its local power companies. TVA's current program offers credits for excess solar generation at a rate that varies but is generally below the retail rate.

How do I apply for energy rebates in Tennessee?

Start by entering your ZIP code on Rebate Atlas to get personalized guidance. For federal tax credits (25C and 25D), you claim them when you file your federal income tax return using IRS Form 5695. For state programs, contact the Tennessee Department of Environment and Conservation (TDEC) - Office of Energy Programs. For utility rebates, check with your local utility provider directly.

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