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?

For most owners, yes. At 6.6 peak sun hours, a 6.5 kW system in Tucson produces about 12,527 kWh a year, pays back in roughly 5.9 years, and returns around $48,731 over 25 years after the $11,058 net cost — driven by the 30% federal credit and Arizona's state incentives.

::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. After the 30% federal credit and the 25% Arizona credit, the net cost is roughly $11,058. Use the calculator on this page with your actual TEP bill for an exact figure.

Updated June 2026 · TEP · Arizona

Tucson homeowners stack the 30% federal tax credit with 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 5.9 years.

Federal Credit

30%

AZ State Credit

25%

Local Utility

TEP

Net Metering

Active

Est. System Size

6.5 kW

Annual Production

12.5k kWh

Net Cost (after credits)

$11,058

Est. Payback

5.9 yrs

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::INPUT_PARAMETERS

Monthly Electric Bill (USD)

State

Roof (sq ft, optional)

Solar Incentives Available in Tucson

Solar incentives in Tucson come in three layers. First, every homeowner qualifies for the 30% federal Residential Clean Energy Credit on the full installed cost, claimed on IRS Form 5695. Second, Arizona adds a 25% state income tax credit (up to $1,000) that stacks on top. Third, 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 30% federal credit takes off $5,168, and the Arizona state credit another $1,000 — landing the net cost near $11,058, with payback around 5.9 years.

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Frequently Asked Questions

Tucson homeowners can claim the 30% federal Residential Clean Energy Credit, the 25% Arizona state tax credit (up to $1,000), and net metering through TEP. Tucson Electric Power credits exported solar at an export rate set annually, so sizing the system to self-consume matters more here.