TVA Solar Buyback in Tennessee: Why DPP Is Not Retail Net Metering

If a Tennessee solar proposal says the utility will “buy back” electricity, ask for the program name and the actual purchase agreement. The phrase does not establish that exported power earns the same price you pay for power at home.

This article addresses TVA's Dispersed Power Production program, or DPP, for customers whose arrangements use it. It does not claim that every Tennessee utility or local distributor offers identical solar terms.

Identify the purchaser and the arrangement

TVA's current DPP guidance describes selling all or excess generation at TVA's avoided cost. Participation requires coordination with the local power company. That is a separate purchase arrangement, rather than a statewide promise of retail net metering.

Ask whether your system is configured and approved to sell all production or only excess. A model that counts the same electricity as both household savings and purchased output can overstate the benefit. Have the seller explain the energy flows using the arrangement you actually signed.

The DPP guidelines require qualified-facility status, a power-purchase agreement and the relevant interconnection arrangements. They also address responsibility for interconnection and metering costs. A completed installation alone is not the full documentation for a purchase relationship.

Use the dated schedule, not an overview price

TVA's October 1–31, 2026 CSPP schedule lists 3.112 cents per kWh under Part A, with separate time-differentiated prices under Part B. The October notice explains that prices can change with avoided-cost projections.

At that Part A price, an illustrative 500 kWh purchased would have an energy value of $15.56, before considering applicable account costs or other terms. That is an arithmetic example for one schedule and month, not a household savings forecast.

As checked on October 15, the program overview still displayed a different approximate price. The dated monthly schedule is the better source for this example. Ask which schedule and month were used in your proposal, and whether the forecast wrongly holds that price constant for the entire financing term.

Local programs can differ

Nashville Electric Service publishes its own NESolar Savings and NESolar Connect programs with separate purchase and interconnection agreements. That is a concrete reason to identify the local program rather than automatically inserting the TVA DPP price into every Tennessee estimate.

Ask the local power company which program is available to the existing system, which agreement governs and which metering arrangement is required. Do not switch programs or assume a transfer is harmless based only on a seller's comparison chart. Existing approvals and agreements need to be reviewed together.

Likewise, an installer referral, verification service or renewable-energy marketing program is not itself proof of export compensation. Request the actual purchase terms rather than inferring them from a program logo.

Separate household use from sales revenue

For a household using solar directly, review how much production reduces purchases and how much is available to sell. The annual output total alone does not answer that question. Compare production and utility records for matching dates, and preserve the original assumptions about daytime use.

Then put the utility result beside the solar payment. Even a correctly paid export can be smaller than the seller forecast, and a good production month may not represent the year. If another purchase is proposed to fix the shortfall, request a separate calculation that includes its cost.

Solar Exit's billing-review path and contract review can help organize the purchase agreement, interconnection approval, sales promises and bills. No particular shortfall automatically establishes fraud or a cancellation right.

General consumer information, not legal, tax or electrical advice. Program eligibility, compensation and remedies depend on the applicable agreements.