Tennessee residential solar energy incentives

Green power switch generation partners program – TVA:

-Tennessee Valley Authority offers a production incentive for installing solar photovoltaics, wind, low impact hydropower, and biomass to customers of participating TVA power companies.
-Green power switch is TVA’s green pricing program which provides technical support and incentives for installing renewable energy systems.
-Through this program, TVA purchases the solar energy output at $0.12 per kilowatt-hour and all other renewable energy at $0.03 per kilowatt-hour.
-Payments are made in the form of a credit on the local participating utility’s monthly bill.
-All new participants of the green power switch generation partners program will receive a $1000 incentive to help offset initial cost of the system.

Utility-sponsored loan and rebate programs:

-Many utility loan and rebate programs are available throughout the state of Tennessee provided by municipal cities and utility companies.
-Details and requirements for each program will vary.
-Loan and rebate programs are available for customers who install geothermal heat pumps and water heaters.
-Loans are given at low interest to help with the purchase and installation of geothermal and water heating technologies.
-Rebates are given as a one time set amount for the initial cost of heat pumps and water heaters.

Residential renewable energy tax credit:

-This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.
-Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.
-The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.
-This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion:

-This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.
-The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.
-Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages:

-This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.