Memphis · TN
Solar Companies in
Memphis, TN
Memphis homeowners pay $13,500–$20,000 for a typical 7 kW solar system in 2026. The federal 30% residential tax credit expired December 31, 2025; Tennessee's property tax and sales tax exemptions remain active. At Memphis Light, Gas and Water (MLGW)'s rate of $0.128/kWh, most systems pay back in 11–16 years.
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4.9 hrs/day
Peak Sun Hours
$1,050/yr
Avg. Annual Savings
11–16 yrs
Payback Period
$13,500–$20,000
Avg. System Cost
2026 update: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 cannot claim it. Solar leases and PPAs are the exception — the installer can still claim commercial credits and pass savings through in the monthly rate. Full 2026 ITC guide →
About Solar in Memphis
Why Memphis Homeowners Are Going Solar in 2026
Memphis has good solar potential at 4.9 peak sun hours per day. However, TVA's avoided-cost net metering structure (rather than full retail-rate) reduces the financial return compared to states with full retail net metering. Tennessee has no state income tax credit for solar. The property and sales tax exemptions provide meaningful savings, and TVA's Green Power Providers premium can improve economics.
Key solar facts for Memphis
- 4.9 peak sun hours per day
- Memphis Light, Gas and Water (MLGW) average rate: $0.128/kWh
- Average monthly bill: $150
- Popular system size: 7 kW
- Permit timeline: Memphis solar permits typically take 2–4 weeks through the City of Memphis Division of Planning and Development. Shelby County jurisdictions vary. HOA approval (if applicable) can add 2–6 weeks.
Active Incentives
Memphis Solar Incentives in 2026
Tennessee Property Tax Exemption
Property TaxSolar installations are exempt from Tennessee property tax assessment. The added home value is not taxed.
Value: Varies
Tennessee Sales Tax Exemption
Sales TaxSolar energy equipment is exempt from Tennessee's 7% sales tax, saving approximately $945–$1,400 on a typical system.
Value: Varies
TVA Green Power Providers
Utility ProgramTVA's Green Power Providers program pays a premium for excess solar generation above your own usage. Contact MLGW for current rates.
Value: Varies
Net Metering in Memphis
Tennessee Valley Authority (TVA) and MLGW operate a Dispersed Power Production program. Net metering credits are at a lower avoided-cost rate rather than full retail, making the economics less favorable than full retail-rate states.
Solar Leases & PPAs in Memphis
Solar loans and cash purchases are the most common financing options in this market. Lease/PPA availability varies by installer.
How much does solar cost in Memphis?
Detailed cost breakdown, financing options, and payback analysis for Memphis homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
Memphis Solar FAQ
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Memphis Solar at a Glance
Solar Installers Serving Memphis and Surrounding Areas
Our network of pre-vetted solar installers serves Memphis and these nearby communities:
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