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Solar Tax Credits

Solar Energy Incentives
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The Solar RoofersHelp You Achieve More Benefits of Solar Energy

If you live or run a business in Nashville, you’ve probably heard plenty of “free solar” pitches and one-line promises about tax credits. The reality in Middle Tennessee is more structured and more powerful than the marketing, but it only pays off if you understand how the different incentives fit together. Our job as The Solar Roofers is to design your roof, solar, and battery system so it fits your property and your tax picture, then work alongside your CPA and lenders to help you actually capture what’s available.

We work every week with Nashville families in Donelson, Inglewood, East Nashville, Green Hills, Franklin, Brentwood, and Gallatin who want two things at the same time: smaller long-term power costs and serious resilience when NES, Middle Tennessee Electric, or your local co-op has another outage. Incentives don’t change the weather or TVA rules, but they can move real money over the life of a project when the system is sized and documented correctly.

Learn about solar grants, tax credits, and incentives for your business

50% of Project Cost Offset by USDA REAP Grant*

The USDA Rural Energy for America Program (REAP) Grant helps agricultural producers and small rural businesses offset up to 50% of their total project costs for renewable energy installations. This program makes solar energy more accessible by providing substantial financial support for projects like solar panels, wind turbines, and energy efficiency improvements.

Eligibility and Application
Eligible applicants include agricultural producers and small businesses located in rural areas. Projects are scored on criteria such as energy savings, environmental impact, and their location within disadvantaged communities. Funding is awarded through a competitive process, and applications are managed by state USDA offices.

Program Updates
Recent changes under the Inflation Reduction Act have increased maximum grant sizes to $1 million for renewable energy systems. Additionally, the federal share of project costs has been raised to 50% for zero-emission projects, energy communities, and tribal submissions.

Learn More
Visit the USDA REAP page to understand eligibility requirements and explore application guidelines: https://www.rd.usda.gov/inflation-reduction-act/rural-energy-america-program-reap

30% Federal Tax Credit Against Total Project Cost*

The Federal Investment Tax Credit (ITC) provides a significant tax incentive for businesses, including farms, installing solar energy systems. By allowing a 30% deduction of the solar project costs from federal taxes, the ITC substantially lowers the financial barriers to solar adoption.

How It Works

The ITC applies to both the purchase and installation of solar equipment. The 30% rate is available until 2032, after which it will decrease in stages. This credit can be combined with other incentives such as state grants and depreciation options like MACRS, amplifying financial benefits.

Tax Filing and Support
Businesses should consult with tax professionals to correctly file and maximize the ITC benefits. This credit not only reduces the upfront investment but also enhances long-term financial savings.

Explore Further
For more detailed information on the ITC, including eligibility and application, visit: https://www.energy.gov/eere/solar/articles/solar-investment-tax-credit-what-changed

60% of Cost Can Be Depreciated in 2024*

IRS webpage titled Publication 946 (2023), How To Depreciate Property, listing sections like Future Developments and What's New for 2023.
The Modified Accelerated Cost Recovery System (MACRS) allows businesses, including those in agriculture, to depreciate 60% of solar project costs in the first year. This accelerated depreciation provides immediate tax benefits, reducing taxable income and enhancing the overall return on investment.

Depreciation Benefits
MACRS covers the cost of solar panels, installation, and associated expenses, significantly lowering the tax burden on businesses. This financial tool is especially advantageous when combined with other incentives like the ITC, offering a comprehensive financial strategy for solar investments.

Guidelines and Application
MACRS is filed through standard tax reporting, and businesses should work closely with tax advisors to ensure compliance and maximize benefits. Understanding the eligible costs and correctly applying them to tax filings is essential for leveraging this incentive fully.

Learn More
For a deeper dive into how MACRS can support your solar project, visit: https://www.irs.gov/credits-deductions/individuals/solar-tax-credit

Energy Community Tax Credit Bonus Map Overview*

The Energy Community Tax Credit Bonus map, provided by the U.S. Department of Energy, highlights areas eligible for additional tax credits under the Energy Community Tax Credit Bonus program. This program is designed to incentivize renewable energy projects in communities that have been impacted by the decline of fossil fuel industries, such as coal plant closures or regions with high unemployment rates related to fossil fuel employment.

Key Highlights of the Map:

2024 Coal Closure Energy Communities
: These areas are marked in green and represent census tracts directly impacted by coal plant closures or those adjacent to such tracts. Businesses in these areas can access enhanced tax credits when they invest in renewable energy projects, including solar installations.

2024 MSAs/Non-MSAs That Are Energy Communities: The pink-highlighted regions identify Metropolitan Statistical Areas (MSAs) and Non-Metropolitan Statistical Areas (Non-MSAs) that meet the specific criteria of being Energy Communities. These areas qualify for additional tax credits due to their historical reliance on fossil fuels and economic need for revitalization through clean energy investments.

Enhanced Tax Benefits: Projects located within these designated Energy Communities can receive additional tax credit bonuses, significantly boosting the financial viability of solar and other renewable energy projects. This bonus aims to support economic revitalization in regions transitioning away from fossil fuels, offering more attractive investment opportunities for businesses, including those in agriculture and rural areas.

How to Use This Map: The map helps businesses, including farms and rural solar project developers, identify if their location qualifies for these enhanced tax benefits. Understanding whether a project is in an eligible area can lead to substantial financial advantages, allowing businesses to plan solar investments strategically.

Explore More: For further details on eligibility, criteria, and how the Energy Community Tax Credit Bonus can support your solar project, visit: https://arcgis.netl.doe.gov/portal/apps/experiencebuilder/experience/?id=a2ce47d4721a477a8701bd0e08495e1d
Disclaimer: The information provided on this webpage, including details about USDA REAP Grants, Federal Investment Tax Credits (ITC), MACRS depreciation, and other financial incentives, is intended solely for general informational purposes. This content is not intended to serve as financial, legal, tax, or professional advice and should not be relied upon as such. While every effort has been made to ensure the accuracy and completeness of the information presented, it is provided "as is" without any representations or warranties, express or implied, regarding its accuracy, completeness, or applicability.

The laws and regulations governing grants, tax credits, and depreciation are subject to change, and the interpretation of these laws can vary based on individual circumstances. It is strongly recommended that you consult with qualified professionals, including but not limited to financial advisors, tax consultants, legal counsel, or other appropriate experts, to assess the applicability of the information to your specific situation. The Solar Roofers does not guarantee eligibility for any grant, tax credit, or financial incentive described on this site and is not responsible for any financial outcomes that may result from reliance on the provided information.

The information presented may reference third-party websites, governmental guidelines, or regulatory documents, and The Solar Roofers does not control or endorse the content or accuracy of these external sources. Links to external sites are provided for convenience only and do not constitute an endorsement of the views, information, or services offered by those sites. The Solar Roofers is not liable for any actions taken based on the information provided, nor for any errors or omissions, or any damages arising from the use or reliance on the information contained herein.

By accessing or using this information, you agree to indemnify, defend, and hold harmless The Solar Roofers, its affiliates, directors, officers, employees, and agents from and against any and all claims, liabilities, damages, losses, or expenses, including reasonable attorneys' fees, arising out of or in any way connected with your use of this information or your violation of this disclaimer. Use of this website and the information contained herein is at your own risk, and no warranty is made regarding the outcome of any actions taken based on the provided content.

Always consult with a licensed professional before making any financial decisions related to solar energy investments, tax planning, or grant applications. The Solar Roofers expressly disclaims any liability for actions taken or not taken based on the content of this site. This disclaimer is subject to change without notice, and it is your responsibility to review this disclaimer periodically for updates.
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Residential Solar Financing

There’s a reason why 2.5 million homeowners–and counting–have already installed solar in the US: it’s a great investment! Solar panel systems last for 25 years or more, offsetting most or all of your electricity bill every month. Those monthly savings add up quickly: if you spend $150 per month on electricity today, you’ll spend over $65,000 on electricity in the next 25 years. By investing in solar, you can avoid most or all of that future spending on electricity.

Solar financing is the option for homeowners to instruments like loans and leases to come up with the funds needed to purchase a solar system by paying in installments over time instead of out-of-pocket upfront at the time of purchase.

There are a number of financing partners available through EnergySage. Some loan providers include GreenBiz Financial and LightStream.

Electricity Spending
$50 monthly bill
$100 monthly bill
$150 monthly bill
$200 monthly bill
$250 monthly bill
10 year cost
$6,900
$13,800
$20,600
$27,500
$34,400
15 year cost
$11,200
$22,300
$33,500
$44,600
$55,800
20 year cost
$16,100
$32,200
$48,400
$64,500
$80,600
25 year cost
$21,900
$43,800
$65,600
$87,500
$109,400

But solar isn’t free - to get these levels of savings, you have to first pay for your solar panel system, with a typical solar panel system costs around $25,000 on EnergySage. Thankfully, there are a number of different ways to pay for your solar panel system, each with their own pros and cons.

Complete
Solar
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Energy
Solutions
Solar tax incentives for Nashville homeowners are designed to reduce the overall cost of a long-term energy project.

For a typical single-family home in Metro Nashville, the main incentive is a federal income-tax credit on qualified solar and battery investments. It works alongside your regular tax return, reducing what you owe for the year rather than sending you a separate rebate check from a utility. The key points for a homeowner in, say, Bellevue or Mt. Juliet are simple:

  • It is tied to ownership. You get the benefit when you own the system on your roof, not when you sign a long-term lease where a third party holds the asset.
  • It is tied to tax liability. Your ability to use the credit depends on what you actually owe in federal income taxes, and your CPA is the one who should confirm how that plays out for your household.
  • It is tied to qualified costs. Panels, inverters, racking, batteries, and the electrical work that makes it all operate as one system are generally treated as a single project for credit purposes.

When we build a system for a home in Donelson, Hermitage, or Madison, we break out a clear cost structure that your tax professional can plug into their own software. You don’t need a spreadsheet from a national sales office; you need straightforward documentation and someone local who will pick up the phone if your CPA has questions.

Solar incentives for Nashville businesses and farms are structured to reward ownership and long-term use.

On the commercial side, offices in Green Hills, shops in 12 South, warehouses in La Vergne, or farms outside Gallatin, the conversation widens beyond a single residential credit. Business owners can usually look at a mix of:

  • A federal investment tax credit on the project cost.
  • Accelerated depreciation that lets the business write down the value of the system over a shorter period.
  • Potential grant opportunities for qualifying rural businesses and agricultural operations.

All of that sits on top of your normal operating reality: demand charges, peak usage windows, and year-over-year rate changes from NES, MTE, or your local power company under TVA. When we design a system for a Franklin church, a Brentwood medical office, or a Lebanon light-industrial building, we’re looking at roofing, solar, and incentives as one integrated capital project—something your CPA, banker, and board can all understand.

Rural Middle Tennessee properties can often blend energy upgrades with agricultural or rural-business incentives.

Outside the core of Metro Nashville, many properties blur the line between home, farm, and small business. A cattle operation in Wilson County, a greenhouse in Robertson County, or a value-add food producer outside Murfreesboro might qualify for support aimed at rural businesses and ag producers.

In practice, that can mean stacking:

  • A solar project sized around your real power loads, well pumps, coolers, process equipment, barns, and the house itself.
  • Roofing and building-envelope work that tightens up the structure and lowers overall consumption.
  • A funding structure that pulls in both mainstream lending and dedicated rural-energy programs.

Our role is to design the roof and solar system with clean, auditable scopes of work, then coordinate with the grant writer or lender you choose. You get one set of drawings and numbers that everyone, banker, CPA, USDA contact, can work from without arguing over what was roof vs. solar vs. “everything else.”

TVA, NES, MTE, and local co-ops shape how incentives feel on your actual Nashville bill.

Nashville sits in TVA territory, which means our utilities, NES, Middle Tennessee Electric, and the surrounding co-ops, operate under TVA rules. That matters because:

  • We do not have classic one-for-one net metering the way some Western states do.
  • Exported power from your panels is treated under specific programs and tariffs, which affects how much value you get from “extra” production.
  • Efficiency programs and rebates for HVAC, insulation, and other upgrades can sit alongside solar, even if they are not “solar incentives” by name.

What this means in practical terms is that a well-designed Nashville system focuses first on offsetting your own usage and protecting you from outages, and only second on selling significant power back to the grid. Every proposal we build for an East Nashville bungalow, a Belle Meade estate, or a Bellevue ranch assumes current TVA-style rules, not idealized net metering from another state. Incentives are modeled against how the system will really behave on your NES or MTE bill, not on a national marketing template.

Incentives work best when the roof, solar, and battery system are designed as a single project.

Because we are The Metal Roofers and The Solar Roofers, we design the roof system and the solar system together. That matters for tax planning:

  • A new roof built with solar in mind can often be scoped so that energy-related portions are clearly associated with the solar project.
  • Attachments, structural upgrades, and electrical work are documented in a way that your CPA can classify cleanly.
  • You avoid “double work” where you replace a roof a few years after installing solar and pay to take everything down and put it back up.

For a homeowner in Donelson or Franklin, that might look like pairing a new metal roof with a right-sized solar array and a battery bank, all engineered in one set of plans. For a commercial building in Antioch or a small campus in Hendersonville, it can mean sequencing roof replacement, solar, and electrical upgrades in phases that make sense for both operations and tax years.

A Nashville-focused installer should guide you through incentives without pretending to be your tax professional.

Good incentive guidance is a balance: you shouldn’t be left to Google everything yourself, and you also shouldn’t be taking tax advice from a sales script. Our approach in Nashville, Brentwood, and the surrounding counties is straightforward:

  • We keep up with the major federal and regional programs that affect our projects.
  • We design systems and write proposals in a way that makes those programs easier to use, with clean cost breakdowns and supporting documentation.
  • We encourage every client, homeowners and businesses, to run the numbers with their CPA or tax preparer before they make a final decision.

During your design process, we’ll talk plainly about how the incentives tend to behave in situations like yours, and we’ll show you example payback models based on realistic Nashville production and billing. Then we hand you and your CPA everything you need to plug into your own situation.

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Your Industry Can Benefit from Solar

Solar Benefits for Agriculture

Farms and agricultural operations around Middle Tennessee can use solar to power wells, irrigation, barns, cold storage, and processing facilities on their own land instead of relying only on the grid. On cattle farms in Wilson County, row-crop operations near Springfield, or greenhouses outside Murfreesboro, daytime solar production lines up well with pumps, fans, lights, and equipment that already run hardest in the sun.

Because we’re in TVA territory, solar is usually about cutting the amount of power you buy each month, not selling a lot of extra back. That works well for farms that have steady daytime loads and rising electric bills. Many rural operations can also look at dedicated agricultural and rural-business funding programs alongside the federal tax credit. Our job is to size the system around your real NES, MTE, or co-op usage and give your lender and CPA clean paperwork so the project fits your farm’s long-term plan.
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Architecture, Engineering & Construction

Architecture, engineering, and construction firms across Nashville tend to run heavy office and shop loads during daylight hours—exactly when solar produces. Design studios in Germantown and The Gulch, survey and engineering offices in Brentwood, and contractor shops in La Vergne or Lebanon all spend real money cooling open offices, powering computers and plotters, and lighting big spaces.

Solar lets those daytime kWh come from your roof instead of only from NES or MTE, smoothing long-term operating costs on buildings you plan to occupy for years. For contractors with warehouses or fabrication shops, large, low-slope roofs are often ideal solar real estate, and batteries can keep core systems and small tools powered when storms knock out the grid. Because we are The Metal Roofers as well as The Solar Roofers, we can address roof age, penetrations, and future reroofing in the same plan, so you are not sending crews back up to pull arrays off a worn-out roof halfway through their life.

Solar Solutions for Auto Dealerships

Auto dealerships in Middle Tennessee are perfect candidates for solar because their biggest loads, showroom lighting, lot lights, shop equipment, and HVAC, are concentrated in long daylight hours and early evening. Stores on Murfreesboro Pike, Rivergate, Cool Springs, and along I-65 often have wide metal or membrane roofs and large car lots that see direct sun all day.

Solar can cover a meaningful portion of that daytime usage and take some of the sting out of lighting and cooling big glass showrooms. For dealerships leaning into EVs, rooftop or carport solar can pair with chargers so some of your charging load is supplied on site. Batteries can keep service-lane computers, network gear, and security systems running during NES or MTE outages without the noise and fuel of a generator. We design around your actual usage data and coordinate with your roofer—or handle the roof ourselves—so attachments, penetrations, and future reroofs are all accounted for before the first panel goes up.

Healthcare & Hospitality

Healthcare and hospitality properties in and around Nashville, medical offices, dental practices, surgery centers, hotels, and assisted-living facilities, have steady, non-negotiable power needs. Air conditioning, ventilation, medical equipment, laundry, kitchen loads, and 24/7 lighting all add up on NES and MTE bills in places like Midtown, Green Hills, Hendersonville, and Franklin.

Solar helps by taking a predictable share of those daytime kWh off the utility bill every month, year after year. Batteries add another layer: they can keep priority loads running during storms and outages, refrigeration for medications, critical IT, essential lighting, and certain HVAC or mini-split zones, without relying entirely on fuel-based generators. We design systems to work within healthcare regulations and hotel operating realities, and because we handle roofing as well, we can integrate the array into existing roof management plans instead of treating it as a separate, one-off project.

Cost Savings For Local Businesses

Local businesses across Nashville, from restaurants in East Nashville and Sylvan Park to salons, coffee shops, breweries, and small offices in Franklin, Mt. Juliet, and Gallatin, face the same problem: energy costs that never seem to move down. Most of those businesses use the bulk of their power during the day and early evening, which lines up well with solar production.

A right-sized system won’t erase your NES or MTE bill, but it can carve out a steady portion of your monthly usage and help insulate you from future rate increases. For owners who also own their building, solar becomes a long-term improvement to the property itself, not just a line item on the P&L. Batteries can keep key circuits alive during outages, POS systems, refrigeration, Wi-Fi, lighting, so you can stay open or at least protect inventory when the grid drops. We build systems around real meter data and roof conditions, so the array, the roof, and your business plan all line up.

Manufacturing, Distribution & Storage

Manufacturing plants, distribution centers, and warehouses in Middle Tennessee, especially along the I-24 and I-40 corridors in La Vergne, Smyrna, Lebanon, and Mt. Juliet, often have exactly what solar needs: large, unobstructed roofs and significant daytime electric bills. Process loads, conveyors, forklifts, lighting, compressors, and HVAC all add up to steady kWh consumption under TVA-based tariffs.

Solar can shoulder a substantial share of that daytime load and help reduce exposure to rising energy costs and certain demand-related charges, all while turning idle roof space into a productive asset. Cold storage and temperature-controlled warehouses benefit from pairing solar with carefully designed battery systems that can ride through short NES or co-op outages and support critical circuits. Because these facilities treat their roofs as critical infrastructure, our roofing background matters: we evaluate deck, membrane or metal condition, penetrations, and future reroofing plans so the solar investment and the roof life cycle are managed together, not in conflict.

Navigating Solar Grant Applications: A Step-by-Step Guide

Get clear, actionable advice on understanding eligibility, preparing your application, and submitting for the best chance of approval.

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Define your Nashville-area solar project clearly and match it to the right grant lane.


Before any paperwork, we start with what you’re actually trying to build in Middle Tennessee. Is this a small manufacturing shop in La Vergne adding rooftop solar, a cattle farm in Wilson County putting in a ground mount, or a rural food producer outside Gallatin tying solar into cold storage? Location (county and utility), business type (farm, rural business, commercial facility), and load profile (what’s running and when) determine which grant paths are realistic and which are noise.For farms and rural businesses, that usually means looking at USDA-style programs that support energy upgrades in TVA territory. For commercial and industrial buildings in Metro Nashville, Lebanon, Smyrna, or Columbia, it may mean pairing tax incentives and financing with occasional state or utility-backed programs. Our job at this stage is to treat your roof, solar, and batteries as one project, then put it in the right bucket so you’re not chasing a grant that your property or business can’t actually qualify for.

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Build a grant-ready design package using real NES, MTE, and co-op data instead of generic estimates.

Grant reviewers in Tennessee want to see a real project, not a marketing flyer. That means we pull at least 12–24 months of power bills from NES, Middle Tennessee Electric, or your local co-op and break out how much energy your operation actually uses by season and, when possible, by load type. We then design a roof-plus-solar system (and batteries if needed) that lines up with that usage: array size, inverter configuration, mounting method, structural assumptions, and basic single-line diagrams.For a greenhouse outside Murfreesboro, that may mean modeling fans, pumps, and winter heating. For a dairy or cattle operation in Robertson or Wilson County, it’s well pumps, barns, and cold storage. For a distribution warehouse in Mt. Juliet, it’s lighting, dock equipment, and HVAC. We convert that into the kind of documentation grant programs expect: load summaries, production estimates for our climate, before/after energy numbers, and clean cost breakdowns that separate roof work, solar equipment, batteries, and related electrical upgrades. This is the package your grant writer, CPA, banker, and the agency itself can all read without wondering how the numbers were pulled together.

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Coordinate your application, tax incentives, and financing on a Nashville timeline so the project can actually be built.

Once the design and numbers are set, the application is only part of the work. In Middle Tennessee, you’re dealing with TVA-based utilities, federal tax rules, and grant program calendars that don’t always line up neatly. We stay involved through the full cycle: answering technical questions from reviewers, providing revised drawings when they ask for clarification, and updating budgets when material prices or scope shift.At the same time, your CPA is mapping how the project interacts with federal tax credits and depreciation, and your lender is lining up bridge financing so you can sign contracts and schedule construction without waiting on every last reimbursement. For a farm on MTE service, that might mean timing the build so it lands between planting and harvest; for a small manufacturer in Lebanon or La Vergne, it might mean phasing roof work, solar install, and electrical shutdowns so production keeps running. The point is that the grant, the tax picture, the loan, and the construction schedule all have to agree. We keep the technical side organized so when the award letter arrives, your Nashville-area project is ready to move from “approved on paper” to panels on the roof and a system that actually turns sunlight into lower operating costs.

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