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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 in Tennessee for 2026
- Federal home energy tax credits (25C and 25D) ended after 2025: The 25C Energy Efficient Home Improvement Credit does not apply to property placed in service after December 31, 2025, and the 25D Residential Clean Energy Credit (solar, batteries, geothermal) does not apply to expenditures made after December 31, 2025 (IRS). Work completed in 2025 or earlier can still be claimed on IRS Form 5695.
- HOMES & HEAR Rebates: Tennessee had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. HEAR can provide up to $14,000 per income-qualified household; see our HEAR and HOMES guides.
- 30C EV Charger Credit (ended): Does not apply to chargers placed in service after June 30, 2026.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households, generally 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 had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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 had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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
TVA EnergyRight Residential Services
Administered by: Tennessee Valley Authority (TVA) and local power companies
Amount: Up to $1,500 for qualifying heat pumps, $500 for insulation, $75 for smart thermostats
Eligible items: Heat pumps, insulation, air sealing, duct sealing, ENERGY STAR appliances, smart thermostats
TVA's EnergyRight program offers energy efficiency rebates through local power companies across Tennessee. Includes home energy evaluations and rebates for qualifying improvements.
Weatherization Assistance Program
Administered by: Tennessee Housing Development Agency (THDA)
Amount: Average expenditure of approximately $7,000 per home
Eligible items: Insulation, air sealing, heating system repair or replacement, windows, doors
Federally funded program for income-qualifying households at or below 200% of federal poverty level. Administered through community action agencies and non-profit organizations.
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)
TVA EnergyRight Heat Pump Rebates
Amount: Up to $1,500 for qualifying heat pumps
Eligible items: ENERGY STAR certified heat pumps meeting minimum efficiency requirements
TVA EnergyRight Home Uplift
Amount: Free energy upgrades for income-qualifying customers (up to $5,000 in improvements)
Eligible items: Insulation, air sealing, HVAC repair or replacement, lighting upgrades
Memphis Light, Gas and Water (MLGW)
TVA EnergyRight Residential Rebates
Amount: Up to $1,500 for heat pumps, $500 for insulation
Eligible items: Heat pumps, insulation, air sealing, duct sealing, smart thermostats
Knoxville Utilities Board (KUB)
TVA EnergyRight Rebates
Amount: Up to $1,500 for heat pumps, $500 for insulation
Eligible items: Heat pumps, insulation, air sealing, duct sealing, smart thermostats, ENERGY STAR appliances
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.
Frequently Asked Questions About Tennessee Rebates
What energy rebates are available in Tennessee?
With the federal 25C and 25D tax credits ended after 2025, Tennessee residents should look to state, utility and HOMES/HEAR programs. State-level programs include TVA EnergyRight Residential Services, Weatherization Assistance Program.
Has Tennessee launched the HOMES and HEAR rebate programs?
Tennessee had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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. If you completed qualifying work in 2025 or earlier, claim the 25C or 25D credit on IRS Form 5695 for that tax year (both ended for 2026 work). 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.
Explore Nearby States
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