Does TEP offer net metering in Tucson?

Yes — TEP credits the solar you export to the grid in Tucson under Arizona's modified net metering, valued at ~70–90% of retail. That credit is what lets a well-sized system zero out most of your annual bill.

Is solar worth it in Tucson?

At 6.6 peak sun hours, a 6.5 kW system in Tucson produces about 12,527 kWh a year. With $0 federal credit, this model puts payback near 8.4 years and about $43,563 over 25 years after a $16,225 net cost, including Arizona's state incentive. It is a model, not a quote.

::TUCSON_INCENTIVES // 2026

TucsonSolar Incentives 2026: Rebates, Tax Credits & Net Metering

Q: How much do solar panels cost in Tucson?

The 6.5 kW system that fits a typical Tucson home (about a $145/month bill) costs around $17,225 before incentives. With $0 federal credit and the 25% Arizona credit, the net cost in this model is roughly $16,225. Use the calculator on this page with your actual TEP bill.

Updated October 2026 · TEP · Arizona

Tucson homeowners installing in 2026 cannot claim the federal residential credit. What remains is the 25% Arizona state credit and TEP net metering. At 6.6 peak sun hours a day, a home with a $145/month bill (about 1,036 kWh) needs roughly a 6.5 kW system — 17 panels — and pays back in about 8.4 years.

Federal residential credit

AZ State Credit

25%

Local Utility

TEP

Net Metering

Active

Est. System Size

6.5 kW

Annual Production

12.5k kWh

Net cost ($0 federal)

$16,225

Est. Payback

8.4 yrs

::TUCSON_CALCULATOR

::INPUT_PARAMETERS

Monthly Electric Bill (USD)

State

Roof (sq ft, optional)

Solar Incentives Available in Tucson

The federal residential credit does not apply to a Tucson system installed in 2026. Arizona still lists a 25% state income tax credit (up to $1,000). TEP sets the local rules for crediting the solar power you export.

Tucson Electric Power credits exported solar at an export rate set annually, so sizing the system to self-consume matters more here.

How Much Solar Tucson Homes Produce

Tucson gets 6.6 peak sun hours a day, so each 1 kW of panels produces about 1,927 kWh per year here. A 6.5 kW system — the size that fits a typical $145/month TEP bill — generates roughly 12,527 kWh annually, worth about $1,754 in avoided electricity in year one and more as rates rise.

TEP Net Metering in Tucson

TEP credits excess solar generation from Tucson homes under Arizona's modified net metering (~70–90% of retail). A right-sized system can bring net annual electricity costs close to zero. See full Arizona net metering rules →

How Much Do Solar Panels Cost in Tucson?

At Arizona's 2026 average of $2.65/watt, the 6.5 kW system most Tucson homes need runs about $17,225 before incentives. The federal residential credit is $0. The Arizona state credit in this model is $1,000. Net cost in this model is about $16,225, with payback around 8.4 years. Those figures use $0 federal credit.

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Frequently Asked Questions

Tucson homeowners installing in 2026 cannot claim the federal Residential Clean Energy Credit. This dataset still lists a 25% Arizona state tax credit (up to $1,000). TEP offers net metering. Tucson Electric Power credits exported solar at an export rate set annually, so sizing the system to self-consume matters more here.