REST Surcharge
What is the current REST charge?
In May 2024, the Arizona Corporation Commission approved a REST surcharge of $0.0189 per kilowatt-hour (kWh) beginning June 1, 2024. The commission also approved caps that limit the amount customers pay each month for this usage-based fee.
For residential customers, the monthly cap is $10.37. For Small and Medium General Service commercial customers, the monthly cap is $426. For Large General Service customers, the monthly cap is $1,895. For Large Power Service customers, the monthly cap is $32,000.
How is the REST calculated for customers with renewable power systems?
REST surcharges are based on billed electric usage for all customers who installed renewable power systems before 2012.
Customers who received incentives and installed renewable power systems in 2012 and thereafter pay a REST surcharge equal to the average paid by members of their customer class. Customers who received no incentives and installed renewable power systems interconnected to TEP’s electric system in February 2013 and thereafter also pay REST surcharges equal to the customer class average as listed here.
| Customer Group | Average Monthly Rate |
| Residential | $8.44 |
| Small and Medium General Service | $48.12 |
| Large General Service | $1,632.25 |
| Large Power Service | $32,000 |
| Lighting | $6.41 |
Are incentives available for solar photovoltaic systems??
Currently, TEP does not offer financial incentives to customers who install solar electric PV systems at their home or business. However customers may qualify for federal and state tax credits to 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.
Are incentives available for solar water heating systems?
Currently, TEP does not offer financial incentives to customers who install solar water heating systems. However customers may qualify for federal and state tax credits to reduce the cost of the system.
Can customers purchase renewable energy directly from TEP?
Yes. The GoSolar Shares program offers TEP customers an easy and affordable way to satisfy some or all of their electric needs with locally generated solar power. Customers can purchase 150 kWh “shares” of solar power, replacing an equivalent amount of conventionally generated power at a rate that adds about $1.50 apiece to their monthly bill. For more information, click here.
Why does TEP need extra money to pay for renewable energy?
TEP’s rates do not cover the cost of renewable energy, which remains more expensive than conventional power despite recent price reductions. Arizona also has a relative scarcity of hydroelectric, geothermal, wind and other renewable resources compared to many other states. Solar energy is abundant, of course, but solar power systems carry a significant up-front cost.