Is solar worth it in Memphis, Tennessee?

Memphis solar is economically challenging due to MLGW/TVA's very low rates ($0.09-0.11/kWh). Despite excellent sunshine (4.8 peak sun hours), expect 16-22+ year payback periods. Best for those prioritizing energy independence or environmental impact.

How much do solar panels cost in Memphis?

Memphis solar systems cost $2,700-3,000 per kW installed, or $13,500-30,000 for typical 5-10 kW systems. With weak purchase economics and no federal credit, PPA/lease options may offer better value in TVA territory.

Does MLGW offer net metering in Memphis?

Yes, Memphis Light, Gas & Water (MLGW) offers net metering through TVA programs. However, MLGW's extremely low rates ($0.09-0.11/kWh) mean each kWh of solar saves less money compared to high-rate states.

How much sun does Memphis get for solar panels?

Memphis averages 4.8 peak sun hours daily according to NREL data, which is excellent for solar production. A typical 7 kW system produces approximately 8,800 kWh annually, saving $700-900/year at current MLGW rates.

How long does solar installation take in Memphis?

The full process from signing a contract to flipping the switch typically takes 2-4 months in Memphis. The actual roof installation is usually 1-3 days, but permitting and utility interconnection add weeks. Local permit processing times vary by jurisdiction.

Can I go solar if I have an HOA in Memphis?

Yes. Most states have solar access laws that prevent HOAs from banning solar panels outright. Your HOA may have aesthetic guidelines about placement, but they generally cannot deny your right to install solar. Check your state's solar access law for specifics.

Memphis Solar Guide 2026 | MLGW & TVA Territory

Quick Answer

Memphis receives excellent sunshine with 4.8 peak sun hours daily (NREL), but MLGW/TVA electricity rates of $0.09-0.11/kWh (EIA) are among the nation's lowest. This creates 16-22+ year payback periods. Great production meets weak economics.

Memphis Solar Overview

Memphis is served by MLGW (Memphis Light, Gas & Water), the nation's largest three-service municipal utility. Like Nashville, Memphis is in TVA territory with low electricity rates that make solar economics challenging but not impossible.

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From my experience:Memphis is a tough solar market—I won't sugarcoat it. MLGW rates at $0.09-0.11/kWh are so low that even with nearly 5 peak sun hours, the savings per kWh just aren't that big. 16-22 year payback periods are real. If you're evaluating solar in Memphis purely on ROI, there are better investments. But if you want energy independence, care about the environment, or expect rates to rise significantly over the next two decades, it can still make sense. Just go in with eyes open.

Memphis Solar Stats

Memphis averages about 4.8 peak sun hours daily—excellent sunshine. A typical 7 kW system produces approximately 8,800 kWh/year. MLGW/TVA rates average $0.09-0.11/kWh— among the lowest in the nation. (Source: NREL Solar Resource Data)

[Editor's Note, Jan 2026]:Local utility rates, incentive programs, and installer availability verified for current accuracy.

MLGW & TVA Programs

Memphis Light, Gas & Water

MLGW purchases power from TVA and provides local distribution:

Net metering: Available through TVA programs
Credit rate: Varies by program structure
System limits: Residential caps apply
Interconnection: Through MLGW process

TVA Territory Economics

Factor	Memphis/MLGW
Electricity Rate	~$0.09-0.11/kWh (very low)
Solar Production	~1,260 kWh/kW/year (good)
Net Metering	Available
State Incentives	Minimal

Tennessee Solar Incentives

Available Incentives

TVA programs: Distributed generation options
Property tax exemption: Solar exempt from property tax increase
No state tax credit: Tennessee has no income tax
No SRECs: No SREC market in Tennessee

Federal Tax Credit (2026 Update)

Purchase Type	Federal Credit	Notes
Cash/Loan Purchase	None (25D expired)	Ended Dec 31, 2025
PPA/Lease	30% (48E)	Through Dec 2027

Sunshine vs. Rates

Memphis has excellent sunshine—nearly 5 peak sun hours. But the very low MLGW rates ($0.09-0.11/kWh) mean each kWh saves less money. Great production meets weak economics. (Source: NREL Solar Resource Data)

Costs & Savings in Memphis

Typical System Costs

System Size	Gross Cost	Annual Savings
5 kW	$13,500-15,000	$500-650
7 kW	$19,000-21,000	$700-900
10 kW	$27,000-30,000	$1,000-1,300

Savings Estimates

Annual production: ~1,260 kWh per kW installed
Annual savings: $100-130 per kW
Payback period: 16-22+ years
25-year savings: $6,000-12,000

The Bottom Line

Memphis solar faces the same TVA territory challenges as Nashville.Excellent sunshine is offset by very low electricity rates. Payback periods of 16-22+ years mean solar is primarily for those who value energy independence or environmental benefits over financial returns.

Best candidates: High-usage homes, those prioritizing environmental impact, or homeowners planning 20+ year ownership. Electric vehicle owners adding significant load may see improved economics.

Consider alternatives: With weak purchase economics, PPA/lease options or community solar (if available) may provide better value in Memphis.

Questions About Memphis Solar?

Our AI can help you evaluate whether solar makes sense given Memphis's low MLGW rates.

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Tennessee Solar Guide

Statewide TVA policies

Nashville Solar

Comparison city

Is Solar Worth It?

Evaluating economics

Written by

Lincoln Panasy

Founder, SolarQuest AI • Solar Expert Since 2018

Lincoln created SolarQuest AI after seeing too many homeowners get burned by pushy solar salespeople. With 8 years of experience in the solar industry since 2018, he writes and reviews all content on this site—combining his real-world expertise with AI tools to deliver accurate, unbiased solar education.

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