Tennessee Energy Rebates & Tax Credits

7 state-level programs plus 15 federal programs available to Tennessee residents.

Key Takeaways

With 7 programs (rank #47 of 51), Tennessee offers fewer incentives than the national average of 12. Federal programs help fill the gap.
At 12.3¢/kWh (rank #40), electricity is 3.6¢ cheaper than the national average of 15.9¢/kWh. Lower rates mean longer payback periods for solar, but rebates can still make it worthwhile.
Tennessee was allocated $208M in IRA (Inflation Reduction Act) funding — above the state average of $194M. Programs cover HOMES rebates ($105M) and HEEHR electrification ($103M).
IRA HOMES rebate status: Planning. HEEHR status: Planning.

State Programs

Tax Credits

Rebates

Utility Programs

Tennessee Electricity Rates

12.30 ¢/kWh

Residential

9.84 ¢/kWh

Commercial

6.77 ¢/kWh

Industrial

National rank: #40 | Compare all states

IRA Rebate Status in Tennessee

HOMES Program

Status: Planning

Funding: $105M

ECD administering

HEEHR Program

Status: Planning

Funding: $103M

TVA coordination needed

Administered by: TN ECD | Total IRA allocation: $208M

View all states →

Electric Vehicles(1 programs)

TVA / Local Power Companies EV Charger Rebate

$250-$500Rebate

Financing(1 programs)

Tennessee Energy Efficiency Loan Program

$24,560Low-Interest Loan

HVAC / Heat Pumps(2 programs)

TVA / Local Power Companies Heat Pump Rebate

$500-$3,000Rebate

TVA / Local Power Companies Smart Thermostat Rebate

$50-$100Rebate

Solar(1 programs)

Tennessee Net Metering

VariesPolicy

Water Heating(1 programs)

Tennessee Water Heater Rebate

$1,474Rebate

Weatherization(1 programs)

TVA / Local Power Companies Insulation & Air Sealing Rebate

$200-$1,000Rebate

Federal Programs Available in Tennessee

All 15 federal programs apply to Tennessee residents and stack with state incentives.

Battery Storage Tax Credit30%ENERGY STAR Appliance Tax Credit30% up to $1,200 EV Charger Installation Credit (EVSE)30% up to $1,000 EV Tax Credit (New Clean Vehicle)Up to $7,500 Electric Panel Upgrade Credit30% up to $600 Energy-Efficient Commercial Building Deduction (179D)Up to $5.00/sq ft Energy-Efficient New Homes Credit (45L)Up to $5,000 Geothermal Heat Pump Tax Credit30%

View all federal programs →

Frequently Asked Questions

How many energy rebate programs are available in Tennessee?

Tennessee currently has 7 state-level energy incentive programs, plus all 15 federal programs that apply nationwide. These include tax credits, rebates, utility incentives, and financing programs.

Can Tennessee residents claim federal energy tax credits?

Yes. All Tennessee residents can claim federal energy tax credits including the 30% solar credit, up to $2,000 heat pump credit, and up to $7,500 EV credit, in addition to any Tennessee-specific programs.

What are the IRA rebate programs in Tennessee?

The IRA established two rebate programs: HOMES (for whole-home energy savings) and HEEHR (for electrification like heat pumps and appliances). Each state administers these programs independently. Check our Tennessee state page for current launch status and funding details.

How do I apply for Tennessee energy rebates?

Application processes vary by program. State tax credits are claimed on your state tax return. Utility rebates typically require submitting a form to your utility company. IRA rebates are applied at the point of sale through participating contractors.

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