Solar Panel Cost in Memphis, TN
Average solar installation in Memphis costs $24,127 before tax credits ($16,889 after 30% ITC). Memphis gets 4.8 peak sun hours/day.
Memphis 7kW System
$24,127
$16,889 after 30% ITC
Peak Sun Hours
4.8 hrs/day
Good solar potential
Est. Payback Period
9 years
at avg electricity rates
Solar Panel Cost in Memphis by System Size — 2026
| System Size | Before ITC | After 30% ITC |
|---|---|---|
| 5 kW (small home) up to 600 kWh/mo | $17,130 | $11,991 |
| 7 kW (average home) 700–900 kWh/mo | $24,127 | $16,889 |
| 10 kW (large home) 900–1,200 kWh/mo | $34,502 | $24,151 |
| 12 kW (very large) 1,200+ kWh/mo | $41,257 | $28,880 |
Prices include equipment, installation, and permitting for Memphis. ITC applies as a dollar-for-dollar federal tax credit.
Is Solar Worth It in Memphis? A 2026 Analysis
Memphis Solar Resource
Memphis receives 4.8 peak sun hours per day on average. This is good solar potential. The average US city gets 4.5–5.0 hours, so Memphis is a solid market for solar investment.
Tennessee Net Metering
Net metering policy determines how much your utility pays for excess solar power. Tennessee's net metering rules directly affect your financial return in Memphis. Full retail credit (what you pay per kWh = what you receive for exports) maximizes savings. Some utilities have reduced or eliminated net metering — check with your local utility before purchasing.
Financial Projections for Memphis
A typical 7 kW solar system in Memphis at $16,889 (after ITC) saves approximately $1,800/year at average electricity rates. That's a 9-year payback period. Over 25 years, the system generates roughly $28,111 in net savings above system cost.
Get Free Solar Quotes in Memphis
Compare Memphis solar installers and save an average of $3,000–$8,000 by getting competing bids.
FAQs — Solar Panels in Memphis
The average solar panel installation in Memphis, Tennessee costs $24,127 for a typical 7 kW system. After the 30% federal Investment Tax Credit (ITC), the net cost is $16,889. With 4.8 average peak sun hours per day, Memphis has good solar potential.
Solar is a solid investment in Memphis with 4.8 peak sun hours/day. At average electricity rates, a properly sized system typically pays back in 9 years and generates savings over a 25-year lifespan. Check Tennessee's net metering policy — full retail credit makes solar significantly more valuable.
Memphis solar owners can access: 1) Federal 30% Investment Tax Credit (through 2032) — saves $7,238 on a typical system; 2) Tennessee state incentives — check your state's database for additional credits and rebates; 3) Local utility rebates — contact Memphis's utility provider; 4) Net metering — get credit for excess power sent to the grid.
In Memphis with 4.8 peak sun hours/day, a home using 900 kWh/month needs approximately 8 solar panels (400W each) — about a 3.2 kW system. Your solar installer will size the system based on your actual utility bills and roof conditions.
To find a trustworthy solar installer in Memphis: verify TN contractor licensing, check NABCEP certification (the gold standard for solar installers), read Google and BBB reviews, get at least 3 quotes, and use EnergySage's marketplace — it connects you with pre-screened Memphis installers competing for your business, which typically saves $3,000–$8,000 vs. going direct.