Solar Panels in Memphis, Tennessee - Costs, Installation & Rebates

Reviewed October 2026 · How we research our guides

Solar Panel Installation in Memphis

Memphis, Tennessee's hot-humid climate with abundant sunshine makes it an excellent location for solar panel installations. With over 633,000 residents in Shelby County relying on Memphis Light, Gas & Water (MLGW) for electricity at rates of 10.6¢ per kWh, solar energy presents a compelling opportunity for homeowners to reduce their energy costs. The city receives approximately 213 sunny days per year, providing ample solar irradiance to generate substantial electricity savings through photovoltaic systems.

The hot-humid climate in Memphis actually benefits solar panel performance during cooler months, while the intense summer heat can slightly reduce efficiency. However, the high electricity consumption during Memphis's sweltering summers, when air conditioning systems work overtime, means solar panels can offset the most expensive portion of your MLGW bill. With MLGW's net metering program, excess solar energy produced during peak sun hours can be fed back into the grid, earning credits that offset evening and nighttime electricity usage.

Solar Panel Costs in Memphis

Solar Incentives in Memphis

Memphis residents have access to several solar incentives that can reduce installation costs. The federal solar Investment Tax Credit (ITC) ended for systems installed after December 31, 2025, so a homeowner installing a system now receives no federal tax credit. Tennessee offers support through the Tennessee Valley Authority's (TVA) programs, though MLGW customers should verify specific rebate availability. Property tax exemptions are also available in Tennessee for solar installations, meaning the added home value from solar panels won't increase your property tax burden. Incentives now come from Tennessee, TVA, and local utility programs, so it is worth checking what is currently offered in Memphis.

Best Solar Companies in Memphis

When selecting a solar installer in Memphis, prioritize companies with proper Tennessee licensing, NABCEP-certified installers, and extensive local experience with MLGW interconnection requirements. Look for installers who offer comprehensive warranties, including 25-year panel warranties, 10-year inverter warranties, and workmanship guarantees of at least 10 years. Reputable Memphis solar companies should provide detailed production estimates based on your specific roof orientation and local weather patterns, handle all MLGW net metering applications, and offer financing options including solar loans and power purchase agreements. Verify that installers carry proper insurance, maintain an A+ Better Business Bureau rating, and can provide local references from recent MLGW customers. The best installers will also conduct thorough roof assessments to ensure your home can support the system weight and provide detailed maintenance recommendations for Memphis's humid climate conditions.

Solar ROI in Memphis

Memphis homeowners can expect a solar payback period of roughly 20-21 years based on MLGW's current 10.6¢/kWh electricity rates, now that the federal tax credit has ended. A typical 6kW system could generate around $890 in annual savings, assuming 1,200 kWh monthly electricity usage. Over the 25-year warranty period, savings for Memphis homeowners could reach $22,250, though results vary from home to home. These calculations assume a modest 2% annual increase in MLGW electricity rates, which is conservative given historical utility rate trends. The hot Memphis summers that drive high air conditioning costs actually improve solar ROI, as peak production hours coincide with peak electricity usage. With MLGW's net metering program, excess production during optimal sun hours offsets expensive peak-rate electricity consumption, maximizing savings potential for Memphis solar customers.

Frequently Asked Questions