Tucson Electric Power - Energy Storage Rewards Program in Arizona - EnergyBot

Tucson Electric Power - Energy Storage Rewards Program

July 14, 2025

Summary

Tucson Electric Power (TEP) provides an incentive for customers to enroll their battery system in the utility's Energy Storage Rewards Program. To receive compensation, customers agree to have their batteries charge and discharge at times that are optimal for the grid, including during on-peak and off-peak times, as well as any day of the week, including weekends and holidays. Participants will be notified before upcoming events, but all steps will be automated so they will not need to take any action unless they want to opt out or change their battery’s settings. Each event may last 1 to 4 hours. Participants will receive $120 per kilowatt (kW), averaged over all events during the season. Customers may receive an average of $360 per season. Actual compensation will vary based on battery storage system size and performance.

Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: Arizona
Incentive Type: Performance-Based Incentive
Web Site: https://www.tep.com/energy-storage-rewards/
Administrator:
Start Date:
Eligible Renewable/Other Technologies:
  • Lithium-ion
Incentive Amount: $120 per kilowatt (kW), averaged over all events during the season.

Contact

Name: TEP Energy Storage Rewards
Address:
Phone: (520) 623-7711
Email: tep-battery@energyhub.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.