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Tennessee Electric Vehicle Rebates, Tax Credits and EV Incentives
As one of the top states in the industry, Tennessee is leading the charge for electric vehicle (EV) manufacturing!
Beyond production, the state is also making significant strides in developing its public EV charging infrastructure, actively enabling EV drivers to charge conveniently at highway rest stops or when parked across the state.
Switching to an EV can not only help you save thousands on gas in the long-term, but also offers upfront savings with various rebates and incentives both at the state- and local-level and federally.
Rebates & Incentives For EVs In Tennessee
While there are currently no statewide incentives, rebates, or tax credits for purchasing or leasing EVs, you can save money when driving electric by taking advantage of local EV charger rebates and time-of-use charging rates.
Federal Tax Credits For Electric Vehicles
Because there is no state income tax in Tennessee there are also no state tax credits for EVs. However, it’s important to note that car buyers may qualify for federal tax credits like the clean vehicle tax credit of up to $7,500 for new vehicles, or the used clean vehicle tax credit for up to $4,000. Income restrictions as well as battery component and critical mineral restrictions may apply. Be sure to speak to a qualified CPA or tax professional to check your eligibility.
Tennessee EV Charger Rebates
Tennessee residents can claim rebates from local utilities for purchasing and installing Level 2 EV chargers, averaging $50 dollars per home, with even higher rebate amounts available for non-residential EV charging projects.
Here are some of the top utility rebates currently available for residents in Tennessee to save on buying or installing a charging station at home or in a public or commercial setting:
Chattanooga Electric Power Board
Chattanooga Electric Power Board customers can claim a $50 rebate for installing an at-home Level 2 EV charging station.
Middle Tennessee Electric
Those who get their energy from Middle Tennessee Electric can take advantage of the utility’s EV Ready incentive, earning a $50 credit when they install an at-home Level 2 EV charger.
Memphis Light, Gas, and Water Division
While this utility does not currently have residential rebates, it offers eligible Memphis businesses that qualify up to $2,000 in technical and consulting rebates for a workplace EV charging or public EV charging project.
EV Charging Rates in Tennessee
Several Tennessee utilities offer time-of-use (TOU) electricity plans, allowing customers to save on EV charging by taking advantage of lower rates during off-peak hours. This is an excellent way to save on EV charging costs by adjusting your charging schedule accordingly.
Appalachian Power Company
The Appalachian Power Company offers a TOU rate to customers with an Advanced Meter Infrastructure (AMI) meter.
If you enroll in the program, you’ll pay $0.14 per kWh during the on-peak period and $0.12 per kWh during the off-peak period. Off-peak hours last from 8 p.m. to 6 a.m. during weekdays and all day on weekends.
Chattanooga Electric Power Board
The Chattanooga Electric Power Board offers two flexible TOU plans. One option, the Night Shift plan, features a day rate of $0.13 per kWh from 5 a.m. to 11 p.m. and a reduced night rate of $0.09 per kWh during off-peak hours.
If you opt for the utility’s other option, the Time Shift plan, you’ll pay $0.11 per off-peak kWh and $0.20 per kWh during on-peak hours. In the summer, on-peak hours last from 3 p.m. to 7 p.m. and the off-peak rate applies the rest of the day and night. In the winter, on-peak hours begin at 6 a.m. and end at 10 a.m.
Knoxville Utilities Board (KUB)
With KUB’s TOU plan, customers can save by charging their EV outside of on-peak hours from 2 p.m. to 8 p.m. during the summer and 5 a.m. to 11 a.m. during the winter. The off-peak rate is $0.08 per kWh, while the on-peak rate is $0.22 per kWh.
Additionally, the utility offers special commercial TOU programs for businesses with EV charging.
Memphis Light, Gas, and Water Division
Memphis Light, Gas, and Water Division gives residential customers the option to enroll in a TOU plan with off-peak rates of a mere $0.05 per kWh. On-peak rates vary from $0.11 per kWh in the summer to $0.07 per kWh in the winter. On-peak hours last from 12 p.m. to 8 p.m. on summer weekdays and 4 a.m. to 10 a.m. on winter weekdays.
Middle Tennessee Electric
Middle Tennessee Electric’s NiteFlex rate allows customers to save by charging their EVs at night. Customers will pay only $0.05 per kWh from 10 p.m. to 4 a.m. and $0.09 per kWh from 4 a.m. to 10 p.m.
Tullahoma Utilities Authority
Tullahoma Utilities Authority customers are enrolled by default in the utility’s TOU rate. You can save by charging your EV outside of on-peak hours, which last from 1 p.m. to 7 p.m. in the summer and 4 a.m. to 10 a.m. in the winter. The on-peak rate is $0.10 per kWh while the off-peak rate outside of these time periods is only $0.06 per kWh.
Public EV Charging Stations in Tennessee
In partnership with the Tennessee Department of Environment and Conservation, the Tennessee Valley Authority is currently building an extensive public EV charging network. The goal is to have enough charging options to accommodate 200,000 EVs by 2028.
How Many Public EV Charging Stations Are in Tennessee?
As of January 2025, Tennessee has more than 950 public charging stations including over 780 Level 2 and 185 DC Fast stations. There are 31 Tesla Supercharger stations and 437 Tesla Supercharger ports in Tennessee.
As mentioned above, the state also has robust at-home EV charger installation and charging incentives that can help reduce the reliance of EV drivers on public charging, provide the convenience of at-home charging, and offer greater cost savings than utilizing public EV charging stations.
How Much Do Public EV Charging Stations Cost in Tennessee?
EV charging station operators set their own prices, so prices can vary from location to location and can be structured differently depending on the demand for charging in the area. For example, the Level 2 EV charging station located at the Visitor’s Center in Jonesborough costs $1 per hour of charging, while using the DC Fast charging station in the Cherry Street parking lot costs $0.42 per kWh.
Are There Free Electric Car Charging Stations in Tennessee?
Yes, you can find free EV charging stations in Tennessee, but access to free public charging shouldn’t be your primary charging strategy.
Free EV charging stations are available throughout Tennessee, with many located in convenient spots such as parking garages and hotels. Some examples include the free charging in the ETSU Gray Fossil Site and complimentary EV charging options at the Chattanooga Downtown Parking Garage.
Where Are Public Charging Stations Located for Electric Cars in Tennessee?
Tennessee’s public EV charging network is growing at a rapid pace along major highways and cities such as Memphis, Nashville, Murfreesboro, and Chattanooga.
Tesla has built a Supercharger network of fast charging stations throughout the state, with locations approximately 150 miles apart along I-24 and I-40.
Visit the U.S. Department of Energy’s Alternative Fuels Data Center Map of EV Charging Station Locations in Tennessee, which can be sorted and filtered based on public access, charger type (Level 1, Level 2, DC Fast), and connector type (NACS, J1772, CCS, CHAdeMO).
Home Electrification Incentives in Tennessee
Tennessee is offering home energy rebates funded through the Inflation Reduction Act, making $83.8 million for home efficiency rebates and $83.9 million for home electrification available for things like appliance rebates, insulation and air sealing, heat pumps for space and water heating, and upgrades to smart electrical panels necessary to enable those retrofits.
Combining EV ownership with other electrification projects, such as upgrading your home with solar panels & battery storage, or investing in a heat pump, will help you save even more while reducing your environmental impact.
You may qualify for home electrification incentives through your local electricity provider in addition to the U.S. federal government. Scroll down to read rebate and incentive details for specific home electrification technologies.
Battery Storage
Currently there are no state or utility incentives for battery storage in Tennessee. However, the 25D Residential Clean Energy Tax Credit provides a 30% federal tax credit on the cost of new battery storage systems size 3kWh and larger.
Electrical Panels
The 25C Energy Efficient Home Improvement Tax Credit provides a federal tax credit for electrical panel upgrades needed to complete electrification projects like heat pumps and heat pump water heaters (up to 30% of project costs, capped at $600). The 25C tax credit can be used by renters, and homeowners making upgrades to their primary or secondary home.
Qualifying electrical panels must meet the standards of the National Electric Code (NEC) and have a capacity of 200 Amps or more. This means that your new/upgraded panel must be able to serve a load of at least 200 Amps, but you don’t need 200 Amps of incoming utility service. Smart panels may qualify if they allow you to serve a load of 200 Amps.
If you’re claiming 25D for a residential solar or battery storage project and the installation required you to upgrade your main panel, you may be able to apply 25D to electrical panel costs as well.
Heat Pumps & Heat Pump Water Heaters
The 25C Energy Efficient Home Improvement Tax Credit also applies to heat pumps and heat pump water heaters. A 30% federal tax credit is available (capped at $2,000 dollars). Eligible technologies must meet certain energy efficiency requirements.
Solar Panels
The 25D Residential Clean Energy Tax Credit also provides a 30% federal tax credit on the cost of photovoltaic (PV) solar panel systems.
Recent Tennessee EV Charging News
Knoxville becomes Tennessee’s first Charging Smart city
Tennessee now has 2,000 public EV chargers
Why Qmerit is the #1 EV Charger Installer in Tennessee
Tennessee is supporting EV adoption with a fast-growing public charging network. Many local utilities also offer rebates and attractive TOU programs that can significantly reduce EV charging costs.
If you’re interested in exploring your at-home EV charging options or interested in taking advantage of commercial EV charging benefits to install chargers at your business, Qmerit can help.
As North America’s most trusted and largest network of certified EV charger installers, Qmerit is recommended by automakers, EV charger manufacturers, utilities, businesses, and homeowners alike. Rated #1 in customer satisfaction, our expert network has installed over 450,000 EV charging stations across the U.S. and Canada.
Discover how Qmerit is paving the way forward for residential EV charger installation and whole-home electrification solutions. Contact us today to find out how easy home electrification can be!