Tennessee Electricity Rates 2026 — Cost per kWh & Savings
The average electricity rate in Tennessee (TN) is $0.1175/kWh, ranking #8 among US states. The average monthly bill is $134 for 1140 kWh of usage.
Calculate Your Tennessee Electric Bill
Electricity Savings Tips for Tennessee
Tennessee is served entirely by TVA (Tennessee Valley Authority) through local distributors. Rates are low but usage is high. TVA offers a Green Power Providers program for solar installations with a generation credit.
Primary Utility: TVA distributors
Tennessee has a regulated electricity market served primarily by TVA distributors. Rates are set by the state public utility commission and cannot be changed by shopping for providers. Focus on reducing usage and investing in efficiency improvements to lower your bill.
Solar Energy in Tennessee
Tennessee receives an average of 4.5 peak sun hours per day. While not the sunniest state, solar panels still produce meaningful energy here. At $0.12/kWh, a solar system that produces 7884 kWh/year saves approximately $926/year. With the 30% federal tax credit, typical payback is 8-12 years.