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Solar panels in Memphis, Tennessee: output, savings and payback

Solar panels in Memphis produce about 1,464 kWh a year for each kW installed, 4% less than the average of the 400 US cities in our data (1,517 kWh). Among the 7 Tennessee cities we cover, it ranks 1st of 7 for solar output, against an average there of 1,383 kWh.

Tennessee’s average residential electricity price for January to August 2026 was 13.80¢ per kWh, 4.39¢ below the US average of 18.19¢, according to the Energy Information Administration.

For a home using the US average of 899 kWh a month, a 7.4 kW system would cover a year’s use and save about $1,489 in its first year, or $50,753 over 25 years. With the average sunshine of the 400 US cities in our data, the same home would need a 7.1 kW system. Because Memphis gets less sun, it needs 4% more capacity to cover the same use, so at any price per watt the system costs 4% more and pays for itself later.

There is no verified US installed-price figure yet, so add the price per watt from your installer’s quote in the calculator below to see the payback period for Memphis.

A typical home in Memphis

System size
7.4 kW
Sized to cover 10,788 kWh a year
First-year generation
10,788 kWh
First-year savings
$1,489
At 13.80¢ per kWh
Savings over 25 years
$50,753
Prices rising 3% a year
Payback
Needs your quote
No verified US installed price yet: enter yours below

Assumes all the electricity the panels make is used at home, up to the home’s yearly use, and that panel output falls 0.5% a year. Power sent to the grid is counted at zero.

How Memphis compares

Memphis compared with the Tennessee and US averages
MemphisTennessee averageUS average
Solar output, kWh per kW a year1,4641,3831,517
Electricity price per kWh13.80¢13.80¢18.19¢
System size for a typical home7.4 kW7.8 kW7.1 kW
First-year savings$1,489$1,489$1,962

Averages are of the 7 places in Tennessee and the 400 US cities in our data, unweighted. The US column uses the US average price as well as the average sunshine.

Your home in Memphis

All amounts in US dollars.

Your home

Sets how much electricity each kW of panels makes in a year at your location.

kWh per month

Check your utility bill: most show monthly kWh. Average your last 12 months if you can.

cents per kWh

Starts at the Tennessee residential average for January to August 2026. Your bill shows your own rate.

Solar system
kW

Leave blank to size the panels to cover your yearly use, or enter the size on your quote.

Installed price
$per W

Enter the price from your installer quote to see cost, payback and return. Your quote divided by the system size in watts (for example, a 6 kW system is 6,000 W).

Assumptions you can change
% per year

Starts at 0.5%, the median of nearly 2,000 reported rates in an NREL review.

% per year

A scenario, not a forecast. Try 0% and 5% to see how much it matters.

%

Share of the panels’ output your home uses as it is made. 100% assumes all of it offsets power you would otherwise buy, up to your annual use.

A battery only adds savings when you use less than 100% of your solar power directly. Lower “Used directly at home” under assumptions to model that.

Results

Payback period

Add your installer’s quoted price to see payback

First-year savings
$1,489
Savings over 25 years
$50,753
System size
7.4 kW
Sized to cover your yearly use
First-year generation
10,788 kWh
Cumulative savings over 25 yearsAdd your quoted price to compare against the cost.
Year-by-year table
Generation and savings for each of the 25 years
YearGeneration (kWh)Price per kWhSaved that yearSaved so far
110,788$0.138$1,489$1,489
210,734$0.142$1,526$3,014
310,680$0.146$1,564$4,578
410,627$0.151$1,603$6,181
510,574$0.155$1,642$7,823
610,521$0.160$1,683$9,506
710,468$0.165$1,725$11,231
810,416$0.170$1,768$12,999
910,364$0.175$1,812$14,811
1010,312$0.180$1,857$16,667
1110,261$0.185$1,903$18,570
1210,209$0.191$1,950$20,521
1310,158$0.197$1,999$22,519
1410,107$0.203$2,048$24,568
1510,057$0.209$2,099$26,667
1610,007$0.215$2,151$28,818
179,957$0.221$2,205$31,023
189,907$0.228$2,260$33,283
199,857$0.235$2,316$35,599
209,808$0.242$2,373$37,972
219,759$0.249$2,432$40,404
229,710$0.257$2,493$42,897
239,662$0.264$2,555$45,452
249,613$0.272$2,618$48,070
259,565$0.281$2,683$50,753

Savings count only electricity your home no longer buys. Power sent to the grid is valued at zero. Grid emissions data has not been verified yet, so no carbon figure is shown. See the methodology for every formula and source.

Nearby cities

CityDistancekWh per kW a yearPrice per kWhSystem sizeFirst-year savings
Nashville, Tennessee193 miles1,36113.80¢7.9 kW$1,489
Louisville, Kentucky319 miles1,37314.20¢7.9 kW$1,532
Atlanta, Georgia329 miles1,43515.48¢7.5 kW$1,670
Tulsa, Oklahoma341 miles1,49913.81¢7.2 kW$1,490
Kansas City, Missouri375 miles1,48614.28¢7.3 kW$1,541

Solar panels in Memphis: questions

How much electricity do solar panels produce in Memphis, Tennessee?
About 1,464 kWh a year for each kW of panels, for a roof-mounted, south-facing array at a 30° tilt with 14% system losses (PVWatts). A 7.4 kW system would make about 10,788 kWh in its first year. Shade, a different roof angle or an east or west-facing roof will change this.
How much could solar panels save in Memphis, Tennessee?
At Tennessee’s average residential price of 13.80¢ per kWh, a 7.4 kW system sized for an average US home would save about $1,489 in its first year and $50,753 over 25 years. That assumes the home uses all the power the panels make, electricity prices rise 3% a year and panel output falls 0.5% a year. Power sent to the grid is counted at zero. At the US average price of 18.19¢, the first-year figure would be $1,962.
How long do solar panels take to pay back in Memphis, Tennessee?
It depends on the installed price on your quote, which varies by installer and system, and we do not have a verified US average to use. Enter your quote in the calculator on this page: Memphis’s solar output and Tennessee’s electricity price are already filled in. Every $0.10 per watt adds about $740 to the price of a 7.4 kW system.
What do homes in Memphis, Tennessee pay for electricity?
Tennessee’s average residential price for January to August 2026 was 13.80¢ per kWh, against 18.19¢ for the US as a whole (EIA Electric Power Monthly, Table 5.6.B). Your own rate depends on your utility and plan, so use the figure from your bill in the calculator if you can.
How does Memphis compare with nearby cities?
Of the 5 nearest cities we cover, Tulsa (341 miles away) gets the most sun at 1,499 kWh per kW, and Nashville (193 miles away) the least at 1,361 kWh. Memphis gets 1,464 kWh. Within Tennessee, it ranks 1st of the 7 cities we cover.
Where do these figures come from?
Solar output is from the PVWatts V8 tool for Memphis’s coordinates in the Census Bureau Gazetteer, checked on 2026-11-11. The electricity price is the EIA residential average for Tennessee for January to August 2026, and household use is the EIA average for US homes. Each figure is listed with its source link at the bottom of this page.

Sources for this page

  • Solar output for Memphis: developer.nlr.gov (checked 2026-11-11)PVWatts V8.5.0 outputs.ac_annual for a 1 kW system. Weather data: 849609.csv, station at 35.09000015258789, -89.9800033569336 (2,382 m away).
  • Tennessee electricity price: www.eia.gov (checked 2026-11-11)Tennessee, residential sector, year-to-date through August 2026. Published as 13.80 cents per kilowatthour.
  • US average price: www.eia.gov (checked 2026-11-11)U.S. Total, residential sector, year-to-date through August 2026. Published as 18.19 cents per kilowatthour.
  • Typical household use: www.eia.gov (checked 2026-11-10)Average annual electricity sold to a U.S. residential utility customer in 2022: 10,791 kWh ("an average of about 899 kWh per month").
  • Panel output loss: docs.nlr.gov (checked 2026-11-10)Median of nearly 2,000 reported degradation rates: "a median value of 0.5%/year" (average 0.8%/year).
  • Location: www2.census.gov (checked 2026-11-10)Census Gazetteer INTPTLAT/INTPTLONG (internal point) for GEOID 4748000, "Memphis city".

Methods and every other figure are on the methodology page.