Tucson Electric Power

What are the benefits of solar power?

Sunlight is a clean renewable energy resource that has been used for many years. Photovoltaic panels convert energy from the sun into electricity. Some benefits of solar power are:

• Produces no emissions and is replenished naturally
• Reduces greenhouse gases
• Saves the release of 2 lbs. of carbon dioxide (CO₂) for each kilowatt-hour (kWh) produced
• Saves the use of one-half gallon of water for each kWh of solar energy produced
• Saves the release of other emissions that result from the burning of fossil fuels such as nitrogen oxides, sulfur dioxide or mercury
• Makes use of one of Arizona’s greatest natural resources - sunshine
• Provides customers with options to reduce their electric bills. For every kWh produced by your solar system, you will avoid about 10 cents (including taxes) on your electric bill.
• Improves energy security

What rebates are available to TEP customers?

TEP provides residential and small commercial solar electric customers with the following rebates:

(1) Up-Front Incentive (UFI) provides customers a one-time payment based on their system size, which is in watts per DC (direct current). In turn the customer would sign a credit purchase agreement assigning TEP the Renewable Energy Credits (REC) for 20 years. To qualify for the UFI your photovoltaic system must have at least a 20-year manufacturer’s warranty, otherwise your system would qualify for the Performance Based Incentive (PBI). Residential Systems greater than 20 kWac will receive rebates on the first 20 kWac only.

(2) Performance Based Incentive (PBI) provides customers with a long-term payment stream of from 10 to 20 years based upon customer selection. In turn the customer would sign a credit purchase agreement assigning TEP the Renewable Energy Credits (REC) for the same number of years.

Customers may qualify for federal and state tax benefits to further reduce the cost of the system. Talk with a tax professional about current incentives available to you for a renewable energy system. You can also view federal and state incentives at dsireusa.org.

Note: Projects receiving a UFI can receive no more than 60% of the system cost in the total incentive payout. Also, TEP incentives in combination with all federal and state incentives can be no more than 85% of total project costs. A customer must cover at least 15% of total project costs.

Who is eligible for the rebates?

Grid-Tied

• You must be a Tucson Electric Power customer.
• The photovoltaic system must be installed at a Tucson Electric Power service address.
• You must purchase and install a qualifying photovoltaic system for this rebate.

Off-Grid

• You must purchase and install a qualifying photovoltaic system for this rebate.
• The solar generator must be located within the TEP certificated service territory.

Please review Tucson Electric Power’s technical requirements and qualifications in full detail. Click here.

How do I get started?

Applicant’s Responsibility	TEP Responsibility
1) Contact a solar installer for an estimate. Click here for a list of solar installers.
2) Fill out and submit the appropriate application for your system.	3) TEP will review your application to ensure it conforms to program requirements.
	4) TEP will respond with reservation confirmation within 30 days (residential) or 90 days (commercial) within receipt of request.
5) Customer provides copies of City/County inspection permits within 60 days of reservation confirmation date.
6) Customer notifies TEP that installation is complete	7) TEP performs acceptance test to verify system performance.
8) Customer receives UFI payment within 30 days of acceptance test.	9) TEP is assigned exclusive rights to all RECs associated with project for 20 years.

*Reservations will be cancelled if all program requirements haven’t been met within 180 days of reservation confirmation date.