What is the current REST charge?

The Arizona Corporation Commission has approved a REST surcharge of $0.013 per kilowatt-hour (kWh) for 2015. 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 $4.76. A residential customer with typical usage is expected to pay that maximum amount each month.

For small businesses (with loads that do not exceed 200 kilowatts (kW)), the monthly cap is $130. For large commercial customers (with loads between 200 kW and 3 megawatts (MW)), the monthly cap is $1,300. For industrial customers (with loads greater than 3 MW), the monthly cap is $15,000.00.

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 $4.17
Small General Service $30.32
Large General Service $1,092.76
Large Light & Power $15,000
Lighting $18.85

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 Bright Tucson Community Solar 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 “blocks” of solar power, replacing an equivalent amount of conventionally generated power at a rate that adds about $3 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.