Solar Panels Cost $16k-$28k in Memphis, TN | September, 2024

Electricity Costs in Memphis, TN & What that Means for Your Solar Panel Pricing

For Memphis energy consumers, the typical electric bill is $137.81 per month, with a usage of 1,171 kWh. Bear in mind that this figure encompasses apartments and smaller homes with generally reduced energy requirements.

The average rate for electricity in Memphis, TN during September, 2024 is 11.77¢ per kWh.

In Memphis, the average electricity consumer needs a solar power setup of 10 kW or larger to account for their entire power usage needs. The estimated cost for a 10 kW solar installation will be $40,000 before incentives, but with a 30% federal tax credit, it drops to $28,000.

Are solar panels worth it in Tennessee?

If you expect living in your home longer than the solar system's payback period, adding solar panels is an smart decision in Memphis. Installing a 5 kW solar system in Memphis, TN will, on average, save you $19,074.4 over 20 years, and you can expect to break even in about 8 years.

The cost of not having solar panels in Memphis, TN

The absence of solar panels or another backup power source results in missing out on the previously highlighted savings and full dependence on your electric utility for power. Recent news coverage has revealed that total dependence on your utility company isn't always the most favorable scenario.

The utilities in Memphis have averaged about 2.27 outages per customer per year recently. On average, the length of an outage is 411.6 minutes. Major events like thunderstorms, equipment failure, or vandalism can cause these durations to rise considerably.

A solar energy system could help mitigate the effects of future outages, with or without a backup battery.

What impacts the cost of solar panels in Memphis, TN?

Your Energy Needs - The cost per watt decreases with larger solar panel systems, even if the upfront cost is greater. Consumers often find that setting up a solar system that can offset their entire electric bill is useful, resulting in optimal savings.

Make & Model - There are a wide variety of makes and models of solar panels. Because the installer you select might have particular brand preferences, choosing a reputable contractor is even more important. Consumers who opt for better equipment usually enjoy a more favorable long-term experience.

Solar Panel Type - Monocrystalline panels have established themselves as the standard in the industry, and justifiably so. Even with a higher cost, this technology generate more energy. Many installers choose panels made using this material.

Your Property - Every home and property differs in its own way. Challenges like uneven land, trees, or additional challenges can increase the difficulty of installing solar panels. These days, the majority of solar installers are able to utilize satellite images to assess your home and incorporate these elements for the preliminary cost estimate.

Labor Rates - The pay employees get from their employers are different, and these expenses are transferred to the consumers. Businesses often get higher reviews for their services and customer service when they offer better wages.

Permitting & Interconnection - The final price of your installation will be affected by local permitting and utility interconnection fees, which vary by location. Quality local installers will include these figures in your first estimates to ensure transparency.