TucsonSolar Incentives 2026: Rebates, Tax Credits & Net Metering
Tucson homeowners stack the 30% federal tax credit with the 25% Arizona state credit and TEP net metering. With 6.6 peak sun hours a day and bills averaging $145/month, the typical Tucson system pays back in about 6.4 years.
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.
TEP Net Metering in Tucson
TEP credits excess solar generation from Tucson homes under Arizona's net metering rules, at roughly ~70–90% of retail of the retail rate. 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, a typical 8 kW system in Tucson runs about $21,200 before incentives. After the 30% federal credit and the Arizona state credit, the net cost drops to roughly $13,840 — the real out-of-pocket number for most Tucson homeowners.
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Frequently Asked Questions
Solar Incentives in Other Arizona Cities
See your exact Tucson solar savings
Enter your TEP bill and we'll apply every Arizona and federal incentive to your real numbers — system size, net cost, payback, and 25-year savings.