Photovoltaic (PV) panels convert energy from the sun into electricity. Arizona is an ideal location to install solar systems since we receive a relatively high amount of annual sunshine.
The decision to install a photovoltaic system on your property should be made after you consider a variety of factors. Local building codes, availability of sunlight, maintenance requirements and the cost of other alternative energy options such as wind, should all enter into your decision to install solar generation. In most populated areas of Arizona, a solar generator is more cost effective than other forms of renewable generation, such as wind. This is especially true if your business has a south facing roof slope that is free of shade for the majority of the day.
TEP no longer provides commercial solar incentives.
Customers may qualify for federal and state tax benefits 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.
One kilowatt of solar power will produce approximately 1,700 kWh per year. Your system size will depend on how much of your power you would like to generate with solar and on the availability of unshaded space on your rooftop. A field visit with a qualified installer will help determine an appropriate system size.
The contractor installing your system must have a license from the Arizona Registrar of Contractors (AZROC) that authorizes them to install the kind of system that you purchase. TEP does not endorse any contractor/installer. A customer may hire any qualified, licensed contractor of their choice. TEP does require the installer to also possess an Arizona business license that is active and in good standing.
Contractors are required to pass a solar trade exam with the AZROC in order to obtain the proper license classification. Some license classifications can be confusing and a contractor's license status may change at any given time. Please refer to the Arizona Registrar of Contractors website for the most up to date information and for appropriate licensing guidelines at AZROC.
In the Tucson area, solar systems typically produce 1,700 kilowatt hours annually per 1 kilowatt of PV installed:
The typical Tucson household uses 11,000 kWh per year. The average system size in Tucson is 4 kW and produces 6,800 kWh/year, 212 kWh/month or 6.9 kWh/day.
Real payback depends on several factors including usage, system size, ability to take tax credits, your actual installed system cost, type of PV technology used in the system, and others. The installer will be able to assist with running these calculations when you contact them.
Consult 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.
Customers opting for solar PV systems materially impact the environment for the better. As customers use the energy from their solar PV systems, they use less power from the utility. This allows us to reduce the amount of fuel used at our power plants, thus reducing emissions. Together, we are working today for a bright tomorrow.