Solar Panel Savings in Memphis, TN
Calculate how much you can save with solar panels in Memphis, Tennessee. Based on 4.5 peak sun hours/day and 13.1¢/kWh average electricity rate.
4.5
Peak Sun Hours/Day
13.1¢
Avg Rate (¢/kWh)
11.4 yr
Payback Period
$14k
25-Year Savings
Memphis Solar Overview
Calculate Your Memphis Solar Savings
Memphis average: $152/mo
South-facing roofs produce the most energy
Add $8,000-$12,000 for whole-home battery backup
Annual Production
kWh/year
Annual Savings
per year
Net System Cost
after 30% ITC
Payback Period
break-even time
25-Year Total Savings
$35,285
Monthly Savings
$86
Federal Tax Credit
$5,040
Cumulative Savings vs System Cost
Cost Breakdown
| Item | Memphis | National Avg |
|---|---|---|
| Gross System Cost (6kW) | $16,800 | $17,100 |
| Federal Tax Credit (30%) | -$5,040 | -$5,130 |
| Net System Cost | $11,760 | $11,970 |
| Cost Per Watt | $2.80/W | $2.85/W |
Solar Potential in Memphis
Sun Hours vs National Average
Memphis gets exactly the national average sun hours.
Climate Advantages
- 208 sunny days per year
- Average temperature: 71°F — moderate climate with good solar conditions
- Average roof size: 1,906 sq ft — enough for a 105-panel system
Memphis Solar Incentives & Programs
Federal Investment Tax Credit (ITC)
30% of total system cost deducted from federal taxes. For a $16,800 system, that's a $5,040 credit. Valid through 2032.
Tennessee State Incentives
TVA Green Power Providers program; no state tax credit.
Net Metering — Memphis Light, Gas & Water
Memphis Light, Gas & Water does not currently offer standard net metering in Memphis. Alternative buyback programs may be available — contact them for details.
Environmental Impact in Memphis
3.3
Tons CO2 Offset/Year
54
Equivalent Trees Planted
0.7
Homes Worth of Energy
Based on 7,884 kWh annual production with a 6kW system. EPA average: 0.417 metric tons CO2 per MWh, 10,632 kWh per US home.
Solar Energy in Memphis, Tennessee
Memphis, Tennessee receives an average of 4.5 peak sun hours per day, providing excellent conditions for residential solar installations. With electricity rates averaging 13.1¢ per kWh from Memphis Light, Gas & Water, below the national average, but with rates rising 2-3% annually, the long-term savings are still meaningful.
A typical 6kW solar system in Memphis produces approximately 7,884 kWh per year, saving homeowners an estimated $1,033 annually. The system pays for itself in about 11.4 years, after which you enjoy essentially free electricity for the remaining 14+ years of the system's warranty life.
Memphis has a solar penetration rate of 3.6% — indicating early-stage solar adoption with tremendous growth potential as prices continue to fall. The cost of living index of 87 (national average: 100) reflects a lower cost of living, keeping installation costs competitive.
Other Cities in Tennessee
Frequently Asked Questions
How much do solar panels cost in Memphis, TN?
The average cost of a 6kW solar panel system in Memphis is approximately $16,800 before incentives ($2.80/watt). After the 30% federal Investment Tax Credit, the net cost is about $11,760. TVA Green Power Providers program; no state tax credit.
How many peak sun hours does Memphis get?
Memphis, TN receives an average of 4.5 peak sun hours per day and approximately 208 sunny days per year. This is near the national average, providing good conditions for residential solar panels.
What is the solar payback period in Memphis?
The average solar payback period in Memphis is approximately 11.4 years. After payback, your solar panels generate essentially free electricity for the remaining 15-20 years of their warranty. Over 25 years, total savings can reach $14,065.
Does Memphis have net metering?
Memphis does not currently have standard net metering. However, Memphis Light, Gas & Water may offer alternative solar buyback programs. Contact them for current rates and policies.
Is solar worth it in Memphis, TN?
Yes, solar is a solid investment in Memphis. While the 11.4-year payback is moderate, you'll still save $14,065 over 25 years. The 30% federal tax credit and local incentives help make solar financially attractive.