TEP Residential Solar Program

March 16, 2015

Summary

Tucson Electric Power's (TEP's) Residential Solar Program will launch in Spring 2015 to 500-600 customers. TEP will install solar photovoltaic (PV) panels on the customer's rooftop, and will retain ownership, operation, and maintenance of the system. TEP has contracted with three local solar companies to install and maintain the systems. 

In exchange, customers will be charged a fixed fee for their electricity services, which will remain in place for 25 years. The monthly fee will be based on the customer's current average electricity usage and a traditional residential rate. The customer will continue to pay the fixed rate, even if standard rates rise, as long as the customer's annual energy usage remains within 15 percent of the current usage. The Arizona Corporation Commission does have authority to order changes to the monthly fee, but customers will have the ability to opt out of the program if such a change occurs. There is a one-time, $250 fee to participate. The program is open to all residential customers regardless of credit scores, though TEP will seek participation in areas where solar deployement will have the greatest benefits to reliability and grid operation. The contract is transferrable to new owners in the case of a home resale.