7 Best Solar Companies in Tennessee

The Main Types of Residential Solar Systems

Today's solar options can accommodate different roof shapes, budgets and energy needs. Many of the contractors on our list use all three of the basic types of solar panels, and they'll guide you toward the best option during the estimate process.

Monocrystalline

In the hot summers of Tennessee, you'll get the best results from monocrystalline panels. Each black-hued cell has only one silicon crystal, meaning you can generate additional energy with a small array. Since they're more complex to produce, they come at a higher-than-average starting price point. However, they also have the longest lifespan and better ROI possibilities than the other options.

Polycrystalline

You can recognize polycrystalline panels by their navy blue color. Each cell in these panels uses a composite of multiple silicon fragments, which translates to less manufacturing waste and a lower upfront price point.

Despite the fact that you can design a fairly efficient system with polycrystalline panels, it'll have a greater physical footprint when compared to a monocrystalline array with the same capabilities.

Thin-film

Thin-film solar panels use different metal alloys instead of silicon crystals. Some homeowners choose them for their reduced weight or greater compatibility with unique roof shapes. Others pick them for their high heat resistance and low-light performance. Thin-film arrays are a great choice for value in more "partly sunny" areas of Tennessee. They maintain efficiency as temperatures fluctuate and work with many different roof shapes.

In spite of the fact that thin-film systems have the lowest cost per panel, they typically have a total cost on par with polycrystalline systems due to their significant space requirements.

Solar Purchase Options

Installing and using solar energy should never be a financial burden. After you decide on the panel type and brand you'd like, you can use one of the following options to help fund your system and get a faster return on investment:

• Solar leases: With a solar lease, you'll pay a monthly amount based on the energy your panels are likely to generate. Your lease company can include benefits such as no money down, covered regular maintenance, and a guarantee which allows refunds if your panels aren't reach their predicted target efficiency. Because the lease provider owns the panels, they can remove them if you decide to move. Your property's value won't increase with a lease, and you won't be able to take advantage of most state incentive programs.
• Power purchase agreements (PPAs): With a power purchase agreement, your contractor will sell you the power your solar installation generates for the length of the contract period. In exchange, they'll pay for the cost of the system. Before you sign a PPA, read the terms thoroughly and ask about what happens at the end of the contract. If you don't renew the agreement, transfer your system to a willing buyer, or buy the system from the contractor, they reserve the right to remove the panels.
• Solar loans: Most homeowners purchase their solar systems using a solar loan, whether through their contractor's financing partners or a local bank. It's usually quicker to repay a loan than to complete a PPA. Further, because you're purchasing rather than leasing, you can apply for incentives and special offers from your utility or local government. Keep in mind that the specific terms of a solar loan will often hinge on on your credit score.

Beyond the price of the system, your bill will also contain the cost of your installer's labor and preliminary work done by other contractors. An application fee may be required if you want to participate in net metering.

Residential Solar Incentives and Cost Support

If you decide to go solar, you can take advantage of a variety of incentive programs through your contractor, utility company and state government. A few of the most common incentive programs include:

• Rebates: Rebates can come from a manufacturer, power company, or government. Your solar contractor can help you apply for them during the planning phase of your project. In some cases, the money will go directly to the installer as compensation for installing your system or interconnecting the system. Other times, it will go directly to you, and you can use it for upfront costs.
• Tax credits: The IRS provides a 30% tax credit on the value of your new solar installation, so you should include Form 5695 with your federal returns for the year. Your state, county, or city could also provide similar income or property tax credits, or even exempt solar equipment for a period of time after installation.
• Net metering: Many homeowners have solar panels that output more electricity than their property needs. If you're enrolled in a net metering program, you'll send power you don't use back to the grid in exchange for credits on your energy bill. This saves you money and protects the security of the power grid for others in your neighborhood.
• Net billing: Some utilities and states are retiring net metering in favor of net billing schemes. Fundamentally speaking, both programs work the same. However, with net billing, you sell the power to your utility company instead of receiving credits for your excess solar generation. Compensation will usually be at a wholesale or avoided-cost rate, which is less than retail.

Solar Energy By the Numbers in Tennessee

The solar market in Tennessee is just as hot as the summer days there. Check out some interesting facts and figures about solar energy in your state:

• In Tennessee, the average new home solar array is rated for up to 9.8 kW and costs $24,463.
• Without solar, the average family spends about $1,946 per year on their energy bill.
• Tennessee generates 5 MW of residential solar energy, reaching 27,317 homes and counting.
• A 5 kW solar array in Tennessee has an average payback period of 12.1 years. However, you would also save $826.10 on your energy bill.
• Solar energy has enabled the creation of 4,194 jobs in Tennessee, with more added as companies grow and technology continues to improve.

Useful Resources

Check out these sources to go in-depth on solar policies, incentives, and viability in Tennessee:

• Best solar companies by city: If you're looking for tailored solar company recommendations in your area, Today's Homeowner has just what you need. We can recommend you the best companies in cities like NASHVILLE,TN, MEMPHIS,TN, KNOXVILLE,TN, CHATTANOOGA,TN and CLARKSVILLE,TN.
• DSIRE: One of the most comprehensive solar incentive databases available is DSIRE. You can find a tailored list of incentives based on your location, power company, and the type of solar system you're installing. Remember that these programs are subject to change as policymakers update their budgets and targets. Don't forget to ask your contractor about the incentive programs they participate in and which others you could qualify for.
• PVWatts: PVWatts is a handy online tool that lets you virtually try out different solar configuration ideas on your property. You can get high-quality predictions of how much energy your panels could yield and see which angles and locations would give you the best ROI.