Commercial Energy in Memphis, TN

Commercial electricity in Memphis averages approximately 9.4¢/kWh based on Tennessee state data (EIA 2025 commercial sector averages). Your actual rate depends on your utility rate schedule, demand charges, power factor, and in deregulated markets, your chosen retail supplier. Contact MLGW or a licensed energy broker for current quotes.

The primary commercial electric utility in Memphis is MLGW (Memphis Light, Gas and Water, municipal utility). Memphis operates under a regulated utility structure — MLGW supplies electricity at rates approved by the state public utilities commission.

Memphis businesses are eligible for federal incentives including the 30% Investment Tax Credit (ITC) for solar and battery storage, the 179D tax deduction (up to $5.36/sqft for energy-efficient commercial buildings), and the 40% bonus depreciation for qualifying equipment in 2026. Tennessee state incentives through DSIRE apply. Your utility — MLGW — may also offer direct rebates for qualifying commercial efficiency upgrades. Use our Incentive Finder for a personalized list.

Commercial solar ROI in Memphis depends on your utility rate, available roof space, local solar irradiance, and federal + Tennessee incentives. TN has Moderate solar potential. Commercial solar projects often achieve payback periods of 7–10 years with federal incentives applied. Get a free energy audit for a site-specific analysis.

C-PACE financing is not yet broadly available in Tennessee as of 2026. Check with your county assessor or the PACENation database for updated availability. Alternative financing options include PACE loans from private lenders, equipment financing, and utility on-bill financing programs.