For residential renewable energy systems in Tennessee, the federal government currently offers an unlimited 30% tax credit toward the purchase price of a solar electric, solar hot water, or wind energy system. Most residents of Tennessee receive their electricity from the Tennessee Valley Authority (TVA). TVA has a unique program in place for owners of solar electric and wind energy systems, called the Green Power Providers. TVA incentives and capacity vary frequently, please visit their website to better understand incentives.
For businesses: Five-year Accelerated Depreciation, also known as Modified Accelerated Cost Recovery System (MACRS), is a method of depreciation in which a business’ investments in solar property are recovered (can total about 30% of total costs) over six years through annual deductions
Home Office: For example, if your home office is equal to 20% of your total home area, you may depreciate 20% of the cost of the system. Multiply the cost of the solar system (fewer rebates and other cash incentives) by 20% and depreciate the result over 5 years.
The state of Tennessee allows net metering — TVA will supply you with a special meter that will spin backward when you generate more … In the meantime, expect to see more PV solar panels installed on roofs, especially in areas with favorable solar conditions or with higher-than-average electricity rates.