Best 5 Solar Companies in Chattanooga, TN

How To Choose the Best Solar Company in Chattanooga

Choosing a company is the first step toward a well-oiled and valuable solar energy system. Consider each of these factors in your contractor search.

Licensing and Training

Tennessee requires any solar energy project valued at $25,000 or higher to be overseen by a licensed "prime contractor." The prime contractor is responsible for hiring licensed subcontractors as the project demands. Even if a project doesn't cross the $25,000 value threshold, you will still need a master electrician or electrical journeyman to pull permits. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar industry's most respected trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.

Cost of Solar Panels in Chattanooga

Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options and generally have the highest quality. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.

Additional system add-ons, such as battery storage and electric vehicle (EV) chargers, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar providers include these extras, so look for a provider that sells them if it's a priority for you.

Most Chattanooga homeowners opt for solar systems sized for five kilowatts (kW) of electrical capacity. These systems cost about $17,900 to set up, considering both materials and labor. You can see more specific solar cost information in the table.

Financing Solar Energy in Chattanooga

There are numerous ways to pay for new solar panels, and the right one will lower your costs. A few of the most common options include power purchase agreements (PPAs), leases, cash payments, and loans. We advise making a cash payment or using a solar loan for the best return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also own your system and can apply for solar panel incentives to reduce your total costs. Solar loans are another solid option if you don’t want to make a big initial investment. You can pay for your system in monthly installments while still benefiting from energy bill savings and solar incentives. However, you’ll pay more in total due to accruing interest. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate based only on the energy you use, as with an electric bill. We usually don’t recommend these two options because you won't own the system and cannot use solar incentives. We suggest working with a provider that offers multiple financing options. Speak with each salesperson about what's available, and obtain more than one estimate for the best odds of staying within your financial plan.

The table below lists the average payback periods for different capacities of solar systems in Chattanooga.

The IRS allows you to claim a 26% federal solar tax credit on your new solar panels, so long as you purchase it before 2032. Local governments and utilities might also offer their own incentives, financing programs, and rebates that could save you more money.