Benefits of Solar Energy
Solar energy provides multiple advantages that will enhance your home for years to come.
- Lowered energy bills: With solar energy systems, you create power without paying the tacked-on costs of grid-connected power. You can eliminate your bills completely if you go off-grid.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
- Better energy independence: Adding a battery backup lets you have trustworthy energy during grid outages and storms.
What Solar Incentives Are Available to Memphis Homeowners?
Tennessee's public agencies and power companies offer a variety of solar incentives to help minimize your solar system costs. Here's a breakdown of applicable solar programs where you live.
Incentive Type: Property Tax Incentive
Depends upon sector
Incentive Type: Personal Tax CreditWebsite: ecowatch.com
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Memphis
Choosing a company is the first step toward a well-oiled and valuable solar system. Make your choice based on the following important considerations.
Licensing and Training
Tennessee requires any solar energy project valued at $25,000 or higher to be overseen by a licensed "prime contractor." The prime contractor is responsible for hiring licensed subcontractors as the job requires. Even if a project doesn't cross the $25,000 value threshold, you will still need an electrical journeyman or master electrician to handle permit work. You should also visit a company's website to learn about its private certifications. Two of the most recognized are the PV Installation Professional and Solar Heating Installer certificates, awarded by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Cost of Solar Panels in Memphis
Your solar modules' type will impact how much power you can generate. Monocrystalline panels cost the most but perform the best. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
Additional system add-ons, such as battery storage and electric vehicle (EV) chargers, will raise your overall costs. However, they might make your solar system more efficient and convenient to use. Not every solar provider includes these additional features, so look for a company that sells them if it's crucial for you.
Generally speaking, it will cost about $17,900 for a five-kilowatt solar array in Memphis. This table lists more specific prices for different solar panel types and system components in your area.
|Solar Panel Cost
|Solar Home EV Charger
Financing Solar Energy in Memphis
Choosing the correct financing option will influence your overall solar system cost and potential savings. Common payment options include cash payments, power purchase agreements, leases, and loans. We suggest making a cash payment or using a solar loan for the best return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also own your system and can apply for solar incentives to reduce your total costs. Solar loans are another solid option if you don’t want to make a big initial investment. You can pay for your system in monthly installments while still enjoying energy bill savings and solar incentives. However, you’ll spend more in total due to accruing interest. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate determined by the energy you use, like an electric bill. We generally don’t recommend these two options because you won't own the panels and are disqualified from using solar incentives. We advise working with an installer that offers multiple financing options. Talk to each salesperson about what's available, and secure more than one estimate for the best odds of keeping within your spending limits.
The table below lists the average payback periods for different capacities of solar systems in Memphis.
A 26% federal tax credit applies to new home solar systems purchased through 2032. Extra incentives may be available through city and state governments, usually in the form of rebates and special financing programs.
|Solar System Capacity
|Estimated Payback period
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Frequently Asked Questions About Solar in Memphis
How much money could I save by going solar in Memphis?
How widespread is solar energy in Memphis?
Should I expect a property value increase after adopting solar power?
What if I live in a dark or rainy
What upkeep do my solar panels need, and how frequently do they need it?
What is the average payback period for Memphis solar panels?
What are the signs I shouldn't use a particular solar company for my job?
- High-pressure sales tactics
- Being evasive about cost, warranties, training and credentials and references
- "One-size-fits-all" approach
- Rushing through the site assessment
- Limited online information
What's the difference between a PPA and traditional financing?
You might consider a PPA if you don’t want to be responsible for maintenance and don’t want to invest in a system, but keep in mind you won’t be paying toward ownership or be able to access any solar financial incentives. Many solar experts don’t recommend PPAs. Our guide covers other payment options above.
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