Solar in Memphis: What Homeowners Should Know
Memphis sees an average of 4.8 peak sun hours per day, which is what ultimately determines how much electricity a rooftop system produces here. A standard 8 kW system (about 20 panels) generates roughly 11,213 kWh each year in Memphis — and paired with Tennessee's local electricity rate of $0.119/kWh, that's where the savings come from.
At those numbers, a Memphis homeowner saves about $111/month ($1,334/year). Against a $22,800 system cost, that works out to a payback of about 17.1 years, after which the system produces essentially free power for two decades — an estimated $22,777 in lifetime savings. Note: the 30% federal tax credit expired at the end of 2025 for purchased systems, though a solar lease or PPA can still pass it through. The local grid is served by MLGW, whose net metering policy directly affects how much credit you earn for surplus power.
Cost & Savings Breakdown
Based on a standard 8 kW system in Memphis
25-Year Savings Projection
Utility & Net Metering
Available Incentives
Choosing a Solar Installer in Memphis
- 1.Get at least 3 quotes. Prices in Tennessee vary widely between installers — comparing bids on the same 8 kW system is the fastest way to avoid overpaying.
- 2.Confirm MLGW interconnection experience. An installer who regularly files with your local utility will move your permit and net-metering paperwork through faster.
- 3.Check licensing & the warranty. Look for NABCEP-certified installers and a workmanship warranty of 10+ years on top of the standard 25-year panel warranty.
- 4.Size for your actual usage. With 4.8 sun hours/day in Memphis, make sure the proposed system matches your kWh history — not just your roof space.
Common Questions
How much does solar cost in Memphis?
Solar in Memphis, Tennessee costs approximately $22,800 for a 8 kW system. The 30% federal tax credit expired December 31, 2025 for purchased systems, though solar leases and PPAs can still pass it through.
What is the solar payback period in Memphis?
The estimated payback period for solar in Memphis is 17.1 years for a standard 8 kW system, based on local sun hours of 4.8 hrs/day and a rate of $0.119/kWh.
Is solar worth it in Memphis?
For most Memphis homeowners, yes. With 4.8 peak sun hours per day and an electricity rate of $0.119/kWh, a typical system saves $1,334 per year and around $22,777 over 25 years after paying for itself in 17.1 years.
How many solar panels do I need in Memphis?
A standard 8 kW home solar system is about 20 panels, producing roughly 11,213 kWh per year in Memphis at 4.8 sun hours/day. Your exact size depends on your household's electricity use.
Does MLGW offer net metering?
MLGW offers Avoided Cost net metering. Check with your utility for current compensation rates..