Solar Panel Cost in Memphis, TN
Estimated costs and savings for ZIP code 37501 — updated for 2026
Urgent tax credit deadlines
- Section 48E phase-out completes December 31, 2027 — projects must be placed in service by then (469 days left).
Gross Cost
$17,570
7kW system
Annual Savings
$1,571
$131/month
Payback Period
11.2 yrs
Break-even
Peak Sun Hours
5
hrs/day avg
Solar System Cost Breakdown — Memphis, TN
Estimated costs and savings for different residential solar system sizes in ZIP 37501. Costs based on TN average of $2.51/W and utility rate of $0.14/kWh.
| System | Cost | Savings/yr | Payback |
|---|---|---|---|
| 4 kW | $10,040 | $898 | 11.2 yrs |
| 5 kW | $12,550 | $1,122 | 11.2 yrs |
| 6 kW | $15,060 | $1,347 | 11.2 yrs |
| 7 kW(typical) | $17,570 | $1,571 | 11.2 yrs |
| 8 kW | $20,080 | $1,796 | 11.2 yrs |
| 10 kW | $25,100 | $2,245 | 11.2 yrs |
Solar Production in Memphis, Tennessee
Average Peak Sun Hours
5 hours/day
Above average — strong solar potential
Est. Annual Production (7kW)
10,859 kWh
Based on 5 PSH × 7kW × 365 days × 85% efficiency
Average Utility Rate
$0.14/kWh
Above-average rates — good solar savings potential
Cost Per Watt in TN
$2.51/W
Below national average — competitive market
Solar Panel FAQ — Memphis, TN
How much do solar panels cost in Memphis, TN?
A typical 7kW solar system in Memphis, TN (ZIP 37501) costs approximately $17,570 before any incentives. This works out to about $2.51 per watt installed. Smaller systems start around $10,040, while larger 10kW systems can cost up to $25,100.
How long is the solar payback period in Memphis?
The average solar payback period in Memphis, TN is approximately 11.2 years for a 7kW system. With estimated annual savings of $1,571, the system pays for itself and then generates free electricity for the remaining 15-20+ years of its lifespan.
How much can I save with solar panels in 37501?
Homeowners in Memphis, TN (ZIP 37501) can save approximately $131 per month or $1,571 per year with a standard 7kW solar system. Over 25 years, total savings can exceed $39,275, depending on utility rate increases.
How many peak sun hours does Memphis get?
Memphis, TN receives an average of 5 peak sun hours per day. This is above the national average, making solar highly effective in this area.
What size solar system do I need for my home in Memphis?
The average home in Memphis, TN needs a 7kW solar system to offset their electricity usage. The exact size depends on your monthly electric bill, roof orientation, and available space. A 7kW system would produce approximately 10,859 kWh annually in ZIP 37501.
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