Calculate how much you can save on your TEP bill with solar panels

Average 25 year solar savings for a TEP customer: $36,438

Average solar panel cost: $15,009 - $18,344*

Estimate solar panel cost and savings based on your location, roof and power use.

*Solar panel cost varies by location, solar panel mqanufacturer, system size and the amount of electricity your home uses.

Adding solar panels and switching rate plans can lower your Tucson Electric Power (TEP) electric bill

Updated: October 22, 2020

There are three ways you can reduce your TEP bill: changing your habits, switching your rate plan, and adding solar panels.

You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.

The second thing you can do is switch your rate plan. TEP offers time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, and there may be other options for you as well.

Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.

Solar panel cost calculator

How much can I reduce my Tucson Electric Power (TEP) bill by switching to a different rate plan

For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to Tucson Electric Power (TEP) each year for no reason.

Finding out what's available to you is as simple as a phone call or email to Tucson Electric Power (TEP). Even a small savings can be worth it.

Are solar panels worth it for Tucson Electric Power (TEP) customers?

Yes, with the $1,000 Arizona tax credit, and solar property and sales tax exemptions, solar panels make a lot of sense for Tucson Electric Power customers. TEP net billing also allows you to at least get some credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits, while at a lower rate than you pay for electricity, roll over to the next month’s bill.

Does Tucson Electric Power (TEP) offer full 1 for 1 net metering credits for exported solar power

No, Tucson Electric Power (TEP) does not offer full 1 for 1 net metering. This means that when you export surplus power from your solar panels, you will be paid less by the utility than what you are charged to buy the equivalent amount of power from the grid.

The amount you are paid by the utility is known as a feed-in tariff. In the case of Tucson Electric Power (TEP), this feed-in rate is $0.09 per kWh.

What incentives, tax credits and rebates are available to TEP customers for installing solar?

The major financial incentive currently available until the end of 2022 is the 26% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.

Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.

Here is every incentive you may be eligible for as a TEP customer:

Table 1: Incentives
Upfront Incentives Value*
Residential Renewable Energy Tax Credit (Federal) -$5,599
Net BIlling (State)

Customers will be credited at a specific rate for net excess generation but they don't have to receive the full retail amount.

Solar and Wind Equipment Sales Tax Exemption (State)

State sales tax will not be applied on qualified solar systems. Exempts sales tax from being applied to RECs

Energy Equipment Property Tax Exemption (State)

Solar system adds no value to property for tax assessment purposes.

Residential Solar and Wind Energy Systems State Tax Credit (State) -$1,000
TOTAL -$6,599

*Based on 8.33 kW system, average installation cost $22,536

Who are the best solar installers near you?


How much does installing solar panels save the average Tucson Electric Power (TEP) residential customer?

If you input the details for a TEP customer with a power bill of $190 per month into the best online solar panels calculator, it tells you that you need a 8.33 kW solar system that will produce 14,141 kWh per year and that this system will return the owner a $36,438 profit after repaying the cost of the system.

The solar savings possible for you as a TEP customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.

Here is a monthly and lifetime solar savings estimate for the same relatively typical TEP customer with a $190 per month electric bill prior to solar and who installs a 8.33 kW solar system.

How much do residential solar panels cost for TEP customers?

Showing data for:

Prices based on a 8.2kW system, after 26% federal tax credit

Solar prices near you

Cost range of local prices


Net profit (savings less system cost)


Payback period

6.9-8.4 years

Recommended size for the selected utility bill


Solar panel cost calculator

Detailed information about your estimate

Table 2: Estimate details

System Size (for 100% usage offset)

8.33 kW

Annual Power Generation

14,141 kWh

Pay-back time (assuming Cash purchase)

9.7 Years

Internal Rate of Return (IRR) on Investment


Gross cost


Total Upfront Incentives and Rebates


Net Cost of System after rebates and incentives


Total Cost of Utility Power Avoided over 25 years


Please note that the investment return figures do not include the possible increase in property value.

What are the environmental impacts of Tucson Electric Power (TEP) customers installing solar panels?

While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Tucson Electric Power (TEP) customer installing a 8.33 kW solar system on their property:

A solar system generating 14,141 kWh per year will save you money AND make the world a nicer place

Saves you


on average per year

Reduces CO2 emissions


tons per year

Equivalent to planting

49 trees

per year

Equivalent to driving

15,485 mi

less per year

CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.

What factors affect the price of solar panels for Tucson Electric Power (TEP) customers?

The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.

It is common to see really good systems, using quality brands of equipment, being sold for around $2.71 per watt or $15,675 for a standard 8.33 kW solar system after the customer claims the 26% federal solar tax credit.

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