Is Now a Good Time to Go Solar in Tucson, Arizona?
Tucson, Arizona — TEP service area
Is Now a Good Time to Go Solar in Tucson?
Several factors make 2026 a meaningful decision point for Tucson homeowners considering solar.
+ Rates still rising
Tucson Electric Power rates have increased 29% (2014-2024). Locking in solar production now protects against future hikes.
- Incentive uncertainty
Federal and state incentives shift with policy changes. The residential ITC (Section 25D) already expired Dec 31 2025.
+ Panel costs stable
Panel prices have plateaued after years of drops. Waiting is unlikely to yield meaningfully cheaper systems.
- NEM 3.0 already in effect
Arizona utilities shifted to NEM 3.0 in April 2023. Export credits are lower, but self-consumption savings are still significant at 15.0¢/kWh.
Bottom Line
For most Tucson homeowners on Tucson Electric Power, the math favors acting in 2026 over waiting. The savings compounding from locked-in production rates, combined with any remaining incentives, tend to outweigh the benefit of holding off. Get at least 3 quotes from licensed Arizona installers to find the best deal.
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Estimates on this page are based on local averages. A licensed installer will give you exact numbers for your home.
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