Tucson Electric Power

What are the benefits of installing solar hot water/space heating systems?

Sunlight is a clean renewable energy resource that has been used for many years. Some benefits of solar water/space heating 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.
• Is very cost effective with payback periods of as little as five years

What incentives are available to TEP customers?

TEP provides the following residential solar hot water/space heating incentives:

(1) Up-Front Incentive (UFI) provides customers a one-time payment based on their system rating, which is in kWh savings. 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 system must have at least a 10-year manufacturer’s warranty, otherwise your system would qualify for the Performance Based Incentive (PBI). Click here to view Program Key Points for additional incentive payment qualification details.

(2) Performance Based Incentive (PBI) provides customers with a long-term payment stream 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 credits to further reduce the cost of the system. Talk with a tax professional about current tax credits available to you for a renewable energy system. You can also view federal and state tax credits at dsireusa.org.

Note: TEP incentives in combination with all federal and state tax credits 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 incentives?

• You must be a Tucson Electric Power customer.
• The solar hot water/space heating system must be installed at a Tucson Electric Power service address.
• You must purchase and install a qualifying solar hot water/space heating system for this incentive.
• The solar hot water/space heating system must be located within the TEP certificated service territory.

How do I get started?

• Contact a solar installer for an estimate. Click here for a list of solar hot water heating installers.
• Fill out and submit the appropriate application for your system (click on one of the links below).
• A TEP representative will review your application to ensure it conforms to program requirements.
• Following review of your application, TEP will notify you of the status of your reservation request.