Solar Rebates in Tucson, Arizona (2026)

Tucson — in TEP (Tucson Electric Power) service territory — has the highest solar resource in Arizona (~6.6 kWh/m²/day insolation, even slightly higher than Phoenix). TEP transitioned from 1:1 net metering to avoided-cost export rates in 2017 (~$0.04/kWh export). Despite the lower export rate, TEP solar economics are strong because of self-consumption value (TEP residential rates average $0.13/kWh), strong production, and Arizona's state and federal credit stack. TEP also caps system size at 100% of prior-year usage. Tucson residential battery storage benefits from federal 25D 30% on standalone batteries.

Tucson solar programs available

Federal 25D (30%)
Arizona Solar Tax Credit (25%, $1,000 cap)
AZ Property Tax Exemption
AZ Sales Tax Exemption
TEP Avoided-Cost Net Metering (~$0.04/kWh export)

Full program details, dollar amounts, and stacking math: Arizona solar rebates.

Tucson-specific FAQ

TEP vs APS for solar? +

TEP slightly better economics for Tucson — 1:1 NEM ended but production resource is highest in Arizona. APS export rate (~$0.087) is higher but APS solar in Phoenix is still strong.

TEP system size cap? +

100% of prior-year usage. New homes have a default cap based on home size. Larger systems require commercial track.

Federal pathway

The federal 25D 25D Credit (30% of cost, no cap) applies to Tucson solar installations regardless of city or state. See the 25D guide for filing instructions and forms.