Solar Savings in Tucson, Arizona

Tucson homeowners on Tucson Electric Power pay an average of $172/month. At 12.0¢/kWh (Tier 1), here is what solar can realistically do for that bill.

$172

Avg Monthly Bill

$152

Est. Monthly Savings

$1,824

Est. Annual Savings

6.3 hrs/day

Peak Sun Hours

Tucson Electric Power Rates in Tucson

Tucson Electric Power charges 12.0¢/kWh for the first 400 kWh/month (Tier 1) and 15.0¢/kWh above that (Tier 2). The average Tucson household uses around 1150 kWh/month, putting most usage into the higher Tier 2 bracket, where solar saves the most per kWh.

Rate trajectory

Tucson Electric Power rates have increased 29% (2014-2024). At that pace, the average Tucson bill could reach $222/monthby 2036 without solar. A solar system locks in production at today's value and insulates you from future hikes.

Utility	Tucson Electric Power
Tier 1 rate	12.0¢/kWh (first 400 kWh/mo)
Tier 2 rate	15.0¢/kWh (above 400 kWh/mo)
Avg monthly bill	$170
Avg monthly usage	1150 kWh
Net metering	Net Metering — TEP Export Credit
Export credit	~$0.07/kWh
Rate increase (10yr)	29% (2014-2024)

Solar Production in Tucson

Tucson receives 6.3 peak sun hours per day. This is the key input that determines how much electricity your panels produce. More sun hours mean more kWh generated, which translates directly to a lower bill.

12,877 kWh

Annual Production (7kW system)

1,073 kWh

Monthly Production

6.3 hrs/day

Peak Sun Hours

Production estimates use a 7kW system at 80% efficiency (accounting for inverter losses, shading, and temperature derating). Actual output depends on roof orientation, tilt, and shading.

Real Savings Math for Tucson

At Tucson Electric Power's 12.0¢ and 15.0¢/kWh rates, the average Tucson homeowner pays ~$172/month. A 7kW system producing 1,073 kWh/month replaces most of that grid usage, cutting the bill to around $9/month.

Current bill

$172/mo

With solar

$9/mo

Monthly savings

$152/mo

Based on a 7kW system at $3/watt. Actual savings depend on your roof, usage pattern, and Tucson Electric Power rate plan. Export credits (~$0.07/kWh) apply to power sent to the grid.

System Cost and Payback in Tucson

A 7kW system in Tucson costs approximately $21,000 installed (at ~$3/watt, the current California market rate). With annual savings of $1,824, the estimated break-even point is 11.5 years. Systems carry 25-year manufacturer warranties, leaving 15+ years of essentially free electricity.

System size	7kW (typical for this usage level)
Installed cost (~$3/W)	$21,000
Est. monthly savings	$152
Est. annual savings	$1,824
Payback period	11.5 years
25-year savings	$45,600+
Peak sun hours	6.3 hrs/day
Annual production	12,877 kWh
Utility	Tucson Electric Power
County	Pima

Solar Incentives for Tucson Homeowners (2026)

✓Net metering: Net Metering - TEP Export Credit
✓Federal Section 48E credit (commercial/PPA structures only; residential Section 25D expired Dec 31 2025)
✓Arizona Residential Solar Energy Credit: 25% state tax credit up to $1,000
✓Arizona property tax exemption for added solar value
✓Arizona sales tax exemption on solar equipment purchases (~8% savings)

Incentive eligibility depends on your tax situation and installation timeline. Consult a licensed solar installer before making decisions.

Frequently Asked Questions: Solar in Tucson

How much can Tucson homeowners save on solar?

At Tucson Electric Power's current 12.0¢/kWh (Tier 1) and 15.0¢/kWh (Tier 2) rates, a typical Tucson household pays around $172/month. A 7kW solar system producing roughly 1,073 kWh/month can reduce that bill to approximately $9/month, saving around $1,824 per year.

What is the payback period for solar in Tucson?

A 7kW system in Tucson costs approximately $21,000 installed (at ~$3/watt). With annual savings of $1,824, the estimated payback period is 11.5 years. Systems typically last 25-30 years, so you can expect 15+ years of free electricity after payback.

How many peak sun hours does Tucson get?

Tucson averages 6.3 peak sun hours per day. This means a 7kW system produces approximately 12,877 kWh per year.

What net metering program does Tucson Electric Power offer in Tucson?

For Tucson Electric Power customers in Tucson, net metering works as follows: Net Metering - TEP Export Credit. Export credits for excess solar sent to the grid are ~$0.07/kWh. Confirm current program terms with Tucson Electric Power before signing a solar contract.

What incentives are available for solar in Tucson in 2026?

In 2026, Tucson homeowners may qualify for the following: Net metering: Net Metering - TEP Export Credit. Federal Section 48E credit (commercial/PPA structures only; residential Section 25D expired Dec 31 2025). Arizona Residential Solar Energy Credit: 25% state tax credit up to $1,000. Arizona property tax exemption for added solar value. Arizona sales tax exemption on solar equipment purchases (~8% savings). Eligibility depends on your tax situation and installation timeline, so confirm details with a licensed solar installer.

More Solar Guides for Tucson

Solar Savings

Solar Savings in Tucson: Rates and 2026 Math

Solar Cost

Solar Panel Cost in Tucson: 2026 Prices

Best Time to Go Solar

Is Now a Good Time to Go Solar in Tucson, Arizona?

Incentives

Tucson Solar Incentives 2026: What You Can Claim

Payback Timeline

Solar Payback in Tucson: 2026 Break-Even Math

Get a Real Quote for Tucson

These numbers are based on Tucson Electric Power rates and Tucson sun data. A local installer will give you exact figures based on your roof, shading, and actual usage.

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