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 (515 days left).
Gross Cost
$18,900
7kW system
Annual Savings
$1,303
$109/month
Payback Period
14.5 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 $2.70/W and utility rate of $0.12/kWh.
| System | Cost | Savings/yr | Payback |
|---|---|---|---|
| 4 kW | $10,800 | $745 | 14.5 yrs |
| 5 kW | $13,500 | $931 | 14.5 yrs |
| 6 kW | $16,200 | $1,117 | 14.5 yrs |
| 7 kW(typical) | $18,900 | $1,303 | 14.5 yrs |
| 8 kW | $21,600 | $1,489 | 14.5 yrs |
| 10 kW | $27,000 | $1,862 | 14.5 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
$0.12/kWh
Moderate rates — solar still provides solid returns
Cost Per Watt in TN
$2.70/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 $18,900 before any incentives. This works out to about $2.70 per watt installed. Smaller systems start around $10,800, while larger 10kW systems can cost up to $27,000.
How long is the solar payback period in Memphis?
The average solar payback period in Memphis, TN is approximately 14.5 years for a 7kW system. With estimated annual savings of $1,303, 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 $109 per month or $1,303 per year with a standard 7kW solar system. Over 25 years, total savings can exceed $32,575, 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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