Solar Payback Period in Tucson, Arizona: When Does It Pay Off?
Tucson, Arizona — TEP service area
When Does Solar Pay Off in Tucson?
A 7kW system in Tucson costs approximately $21,000 at $3/watt. With annual savings of $1,824 (based on Tucson Electric Power's 12.0¢/15.0¢ rate tiers), the break-even point is approximately 11.5 years.
Without Solar: Projected Tucson Electric Power Bills
Tucson Electric Power rates have increased 29% (2014-2024). If that trend continues, the average Tucson bill looks like this:
| Year | Est. Monthly Bill (no solar) | With Solar |
|---|---|---|
| 2026 (today) | $170/mo | ~$9/mo |
| 2031 (5 years) | $193/mo | ~$9/mo |
| 2036 (10 years) | $219/mo | ~$9/mo |
| 2041 (15 years) | $249/mo | ~$9/mo |
Projections use the 29% (2014-2024) 10-year CAGR as a straight-line estimate. Actual rate changes vary. Solar bill estimates assume fixed system output.
The Compounding Advantage
The payback period calculation above uses today's rates. In reality, as Tucson Electric Power rates rise each year, your solar savings grow too — because every kWh your panels produce is worth more. This means the effective payback period is typically shorter than the static calculation suggests, and the 25-year savings figure grows significantly with each rate increase.
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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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