Despite TEP’s Reduction, Arizona Solar Rebate is Still A Great Deal

Citing an overwhelming number of applications for its solarphotovoltaic (PV) rebate program in Arizona, Tucson Electric Power (TEP) in July filed a request with state regulators to reduce the per-wattamount on offer. On August 25, the Arizona Corporation Commission (ACC)approved the request, making the rebate reduction effectiveretroactively from August 11.

The idea behind the reduction is two-fold. First, a lower per-wattsolar rebate will enable TEP to keep the incentive program fundedthrough the end of the year. Originally, the rebate program for PVresidential systems stood at $3.00 per watt. After the reduction, therebate now stands at $2.00 per watt. The rebate for PV commercialsystems when the program began was $2.50 per watt. Now, the rebate forsuch systems is $1.75 per watt, and will soon be reduced to $1.50 perwatt.

Second, the cost of installing solar PV in Arizona has come downconsiderably over the past 18 months. Because home solar electricsystems cost relatively less, so the logic goes, the amount of incentive dollars available to promote the adoption of solar power shouldlikewise be brought down.

It bears noting that, even at the new level, TEP’s solar rebatesstill represent a great deal when compared to rebate programs in manyother parts of the country.

It also bears noting that there is a maximum incentive for TEPrebate. When it comes to residential solar power systems, for instance,the rebates only apply to the first 20 kilowatts (kW). You can find allthe information about Arizona solar rebates and related program on our Arizona solar energy incentives page.

Arizona Solar Rebate Still a Great Deal After TEP’s Reduction


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