Solar resource
Your solar production in Memphis
5.17 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Memphis, TN. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
MLGW / TVA electricity rate
$0.118/kWh residential
- Utility
- MLGW / TVA
- Residential rate
- $0.118/kWh (blended)
Memphis Light, Gas and Water operates under the TVA power framework. Tennessee does not offer a major state residential solar incentive stack, so the real local differentiator is TVA program structure: rooftop economics are driven mostly by self-consumption, while TVA Green Connect stands out as a flat-price clean-power option rather than a rich state rooftop incentive.
Affiliate slot
Ready to go solar?
Compare quotes from vetted Memphis solar installers — no obligation, no sign-up required to see prices.
Incentives
Available solar incentives in Memphis, TN
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| Tennessee — no major state residential solar incentive | Exemption | No broad statewide residential solar tax credit or rebate | State |
| TVA Green Connect / local TVA clean-power option | Rebate | TVA Green Connect functions as a flat-price clean-power differentiator, not a traditional rooftop-solar rebate | Utility |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $21760
- Federal ITC (30%)
- −$6528
- Net system cost
- $15,232
- Installed cost per watt
- $2.72/W
Southeast benchmark estimate for an 8 kW residential system in the Memphis market.
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $1,359
- Simple payback period
- 11.2 years
- 25-year net savings
- $28297
- Assumed annual rate increase
- 2.0%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.0% annual rate increases, lifetime savings increase substantially.
Affiliate slot
Shop solar equipment
Browse solar panels, inverters, and mounting hardware for DIY or installer supply purchases.
How it works
How solar savings work in Memphis
- Your panels capture West Tennessee sun NREL PVWatts modeling for Memphis shows about 5.17 peak sun hours per day and roughly 11514 kWh per year from a standard 8 kW roof-mount system.
- Self-consumption drives most of the rooftop value The main financial value comes from using the electricity in your home and reducing purchases from MLGW. Memphis is not a rich export-credit market.
- Tennessee does not give Memphis homeowners a big state solar incentive There is no major statewide Tennessee residential solar tax credit or rebate stack to shorten payback in the way stronger solar states do.
- TVA program structure is the real differentiator Because Memphis sits under the TVA power framework, TVA policy matters more than state incentives. Green Connect is the notable local clean-power differentiator and is best understood as a flat-price TVA option rather than a direct rooftop incentive.
- The federal ITC lowers the installed cost On a modeled $21,760 installed cost, the 30%% federal ITC is worth about $6,528, reducing net upfront cost to roughly $15,232 before financing effects.
- Memphis still supports solid long-run savings Even without a strong Tennessee incentive stack, Memphis has enough sun for a properly sized system to create meaningful long-run savings through bill offset over time.
FAQ
Common solar savings questions for Memphis, TN
How much can I save with solar in Memphis, TN?
An 8 kW Memphis system is modeled at about 11514 kWh/year. At an effective MLGW / TVA bill-impact rate of roughly $0.118/kWh, first-year savings are around $1,359 and simple payback is about 11.2 years after the federal tax credit.
Does Tennessee offer a state solar tax credit for Memphis homeowners?
No. Tennessee does not offer a major statewide residential solar tax credit or rebate stack, so the federal ITC is the primary direct rooftop-solar incentive.
Why does the Memphis page mention TVA Green Connect?
Because TVA program structure matters more in Memphis than state incentives do. Green Connect is the local clean-power differentiator and is best understood as a flat-price TVA option rather than a rich rooftop rebate or retail-rate net-metering benefit.
Is Memphis a strong solar market?
Memphis is a moderate solar market. The city gets good sun, but the lack of a major Tennessee incentive stack makes the economics more straightforward and less subsidy-driven than in top-tier incentive states.
How many solar panels does a Memphis home need?
Many Memphis homes land in the 6–9 kW range depending on annual usage and roof space. The local strategy should focus on matching your household load rather than chasing oversized exports.
Does MLGW handle solar interconnection?
MLGW is the local utility interface, but the broader power framework is tied to TVA. Homeowners should expect both local utility coordination and TVA-context policy considerations.
Do I need a permit for solar in Memphis?
Yes. Rooftop solar usually requires local permitting plus utility interconnection approval. If you are also building a deck, review the Memphis deck permit page so both scopes stay coordinated.
Sources
Data sources and freshness
- https://developer.nrel.gov/docs/solar/pvwatts/v8/
- https://www.memphistn.gov/buildings-and-zoning/
- https://www.mlgw.com/about/mlgwgreenpowerswitch
- https://green.mytva.com/
- https://programs.dsireusa.org/system/program/TN
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
Related tools
More free homeowner tools
Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-19.