TEP - Residential Solar Water Heating Incentive

April 07, 2015


Note: The Arizona Corporation Commission (ACC) recently approved modifications to this program. The 2014 budget includes $60,000 for solar water heating incentives. Solar PV incentives are no longer available. 

Tucson Electric Power (TEP) offers an incentive of $0.40 per kilowatt hour (kWh) saved for solar water heaters. The maximum incentive is $1,750. Applications for the 2014 program year will be accepted until available funds have been depleted. Systems must meet TEP's equipment qualifications to receive the incentive. See program website for more information.

Program History
Tucson Electric Power (TEP) created the SunShare Program in 2001 to encourage residential and business customers to install new photovoltaic (PV) equipment. TEP transitioned away from their original incentive structure for PV and added incentives for a variety of other technologies in May 2008 under the new Renewable Energy Credit Purchase Program (RECPP). The program was substantially changed again in 2013 by eliminating all commercial incentives and all incentives for non-solar renewable energy technologies, and again in 2014 by eliminating the solar PV incentives. TEP offers these incentives in exchange for the renewable energy certificates they generate.

Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: Arizona
Incentive Type: Rebate Program
Web Site: https://www.tep.com/Renewable/
Administrator: Tucson Electric Power
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
Incentive Amount: $0.40/kWh-equivalent
Maximum Incentive: $1,750
Equipment Requirements: Must be rated by SRCC and certified to OG-300 standards
Installation Requirements: See program website
Ownership of Renewable Energy Credits: TEP


Name: Blanka Anderson
Organization: Tucson Electric Power
Address: 3950 E. Irvington Road
Tucson AZ 85702
Phone: (520) 918-8296
Email: Banderson@tep.com

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.