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HB 2463

Energy - As introduced, enacts the "Bring Your Own Generation Act." - Amends TCA Section 39-17-1002; Section 67-6-102 and Title 68.

114th Regular Session (2025-2026) Introduced by Justin Pearson

Tennessee bill authorizes consumer-owned distributed electricity generation systems while amending utility regulation and tax codes to accommodate private power production.

Action Def. in s/c Agriculture and Natural Resources Subcommittee to Final Calendar 2
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Bill Summary · HB 2463

Legislative bill overview

HB 2463, the "Bring Your Own Generation Act," amends Tennessee's energy code to allow consumers to install and operate their own distributed generation systems (such as solar panels or small wind turbines). The bill modifies sections of the Tennessee Code Annotated related to utility regulation, tax treatment, and energy policy to facilitate private energy generation.

Why is this important

This legislation affects how Tennesseans can generate their own electricity and potentially reduce dependence on grid power. It has implications for utility business models, consumer energy costs, state tax revenue, and the transition toward distributed renewable energy sources. The outcome could reshape energy choices available to residential and commercial customers across the state.

Potential points of contention

  • Utility revenue impact: Electric utilities may face reduced sales and revenue if customers generate their own power, potentially leading to rate increases for remaining grid-dependent consumers
  • Grid stability and reliability: Widespread distributed generation raises questions about maintaining stable electricity distribution, backup power requirements, and who bears infrastructure costs
  • Tax and regulatory clarity: Amendments to tax code sections suggest potential changes to how distributed generation is taxed and compensated, which could benefit or burden different consumer groups differently
  • Equity concerns: Private generation systems require upfront capital investment, potentially widening energy access gaps between affluent and low-income households

Compiled from official sources — confirm details with the bill’s official record.

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