Typical home: Not worth it

Solar in Memphis, TN

With Entergy Arkansas's electricity at about 13.9¢ per kWh and 1,439 kWh of sun per kW, solar is not worth it for a typical Memphis home today: about a 20.5-year payback.

Payback, typical home
20.5 yrsTennessee: 24 yrs
25-year net
$11,701after paying $41,320
Sun
1,439kWh per kW per year
Electricity
13.9¢23% below U.S. average

A typical Memphis home, by the numbers

UtilityEntergy Arkansas
Electricity use2,917 kWh a month
Best-value system12.2 kW, about 28 panels, 17,552 kWh a year (50% of use)
Cost$41,320
First-year savings$1,941
Payback20.5 years
Exported powerAvoided-cost export credit (Entergy Arkansas)

Cash purchase, no federal credit, 2.5% yearly rate increases. Run it with your own numbers.

Solar production per kW in Memphis

kWh per kW each month, south-facing at 20° tilt. PVWatts v8 with local typical-year weather.

Show as a table
PeriodValue
Jan88
Feb92
Mar120
Apr130
May150
Jun145
Jul148
Aug139
Sep130
Oct115
Nov98
Dec84

Homes in Memphis

Owner-occupied homes
45%
Single-family detached
60%
Median home value
$169k
Median year built
1970
Population
618,980
Roofs suitable for solar†
72%

Census ACS 2020–2024. †Share of 158,507 buildings Google Project Sunroof rated technically suitable (2019 snapshot).

Older housing stock. Many homes here were built before 1975. Have the roof and electrical panel checked before signing; a roof or panel upgrade can add thousands. Roof first?

Installers working in Memphis

Public installation records for Tennessee don't name installers, so we can't rank local companies here. Browse installers in Tennessee.

Always verify the license and get at least three quotes. Compare quotes side by side.

Questions about solar in Memphis

Is solar worth it in Memphis, TN?

For a typical home in Memphis, solar is not worth it at 2026 prices: a 12.2 kW system costs about $41,320 after state incentives, saves about $1,941 in year one and pays back in about 20.5 years. Enter your address for an estimate based on your roof and bill.

How much solar power does a system produce in Memphis?

About 1,439 kWh per year for each kW of panels on a south-facing roof, based on PVWatts and local weather. That's 5% more than the Tennessee average. East- or west-facing roofs produce roughly 10–20% less.

Who is the electric utility in Memphis?

Most homes in Memphis are served by Entergy Arkansas, at about 13.9¢ per kWh on average. Some areas are served by City of Memphis.

How much do solar panels cost in Memphis?

A fair cash price is around $3.60 per watt before incentives, so about $41,320 for a 12.2 kW system. There's no federal tax credit for homeowners who buy in 2026.

Nearby

Data: PVWatts (National Laboratory of the Rockies), EIA-861 2025 adjusted to 2026, U.S. Census ACS, LBNL Tracking the Sun, state policy research as of October 2026.