The average residential electricity rate in Tennessee (TN) is $0.1212 per kWh as of April 2026, according to the US Energy Information Administration (EIA). This is far below the national average of $0.1805/kWh, ranking Tennessee #7 out of 51 (all 50 states plus Washington DC), where #1 is the cheapest and #51 is the most expensive. The average Tennessee household consumes 1,229 kWh per month, resulting in a monthly electric bill of approximately $149 and annual electricity costs of about $1,788.
Tennessee is entirely served by TVA, the largest public utility in the US. TVA operates three nuclear plants and 29 hydroelectric dams.
This comprehensive guide covers Tennessee electricity rates, historical trends, utility providers, bill calculation, solar savings potential, and actionable tips to reduce your electric bill. All rate data is sourced from the US EIA and updated monthly. Use our electricity cost calculator for personalized estimates.
Tennessee residential electricity rates have increased 13% over the past six years. The table below shows the trajectory compared against the national average.
| Year | Tennessee ($/kWh) | National Avg | Difference |
|---|---|---|---|
| 2020 | $0.1068 | $0.1322 | -19% |
| 2022 | $0.1140 | $0.1492 | -24% |
| 2024 | $0.1180 | $0.1680 | -30% |
| Apr 2026 | $0.1212 | $0.1805 | -33% |
Tennessee has a regulated electricity market. The primary providers are: TVA Distributors, Nashville Electric Service, Memphis Light Gas & Water.
Tennessee generates electricity from: Nuclear 39%, Natural gas 26%, Hydroelectric 12%, Coal 12%, Wind 3%, Solar 5%, Other 3%.
Your monthly electric bill = kWh Used × Rate per kWh. The average Tennessee household uses 1,229 kWh/month.
Tennessee electricity is provided entirely by TVA through local distributors. TVA sets wholesale rates and local distributors add a small margin.
Universal strategies: adjust thermostat 2-3 degrees (saves 5-10% on HVAC), switch to LEDs (see our LED savings calculator), unplug phantom loads (saves $100-200/year), and run major appliances during off-peak hours if your utility offers time-of-use pricing. For larger investments, consider a heat pump, better insulation, or a smart thermostat.
Tennessee receives 4.5 peak sun hours/day. A 6 kW system produces ~8,081 kWh/year, saving ~$979/year. With the 30% federal ITC, payback is typically 8-12 years. Use our solar panel calculator and solar ROI calculator for personalized estimates.
| State | Rate ($/kWh) | Avg Bill | Market |
|---|---|---|---|
| Tennessee (TN) | $0.1212 | $149 | Regulated |
| Alabama (AL) | $0.1588 | $178 | Regulated |
| Arkansas (AR) | $0.1148 | $133 | Regulated |
| Georgia (GA) | $0.1360 | $163 | Regulated |
| Kentucky (KY) | $0.1198 | $143 | Regulated |
| Mississippi (MS) | $0.1238 | $149 | Regulated |
| Missouri (MO) | $0.1228 | $139 | Regulated |
| North Carolina (NC) | $0.1288 | $141 | Regulated |
| Virginia (VA) | $0.1318 | $150 | Regulated |
Data source: US Energy Information Administration (EIA), Electric Power Monthly, April 2026. Rates shown are average residential rates and may differ from your specific utility tariff. Solar estimates assume a 6 kW system with 82% efficiency factor. Always verify current rates with your utility provider.