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Arizona – TEP – Renewable Energy Credit Purchase Program

Incentive Type  Utility Rebate Program
Eligible Technologies  Solar Water Heat, Solar Space Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps, Solar Pool Heating, Daylighting, Anaerobic Digestion, Small Hydroelectric, Geothermal Direct-Use
Applicable Sectors  Commercial, Residential
Incentive Amount  Up-front incentives for PV may be de-rated based on expected performance
Residential grid-tied PV: $0.50/W-DC
Non-Residential PV (70 kW or less): $0.50/Watt DC
Non-Residential grid-tied PV (more than 70 kW): production-based incentive
Wind (grid-tied, up to 1 MW): $1.25/W-AC
Daylighting (non-residential only): $0.18 per kWh savings for 5 years;
Residential Solar Water Heater: $0.50/kWh-equivalent
Non-Residential Solar Water Heater: $0.50/kWh-equivalent, plus $750
Non-Residential Solar Water Heater: performance base incentive;
Geothermal Heat Pumps: $500/ton
All other eligible technologies can receive performance based incentives which vary depending on the technology and the length of the contract. Contract options for performance-based incentives are 10, 15 and 20 years.
Maximum Incentive Residential PV systems greater than 20 kW AC will receive rebates on the first 20 kW AC only
TEP incentive for PV cannot exceed 60% of the total project cost.
TEP incentive for PV may be combined with other state and federal incentives, but combined they cannot pay for more than 85% of the total project cost
Eligible System Size(s) PV: Minimum size is 1.2 kW.
Equipment Standards Photovoltaic modules must be covered by a manufacturer’s warranty of at least 20 years to qualify for the up-front incentive.
SWH systems must be certified to SRCC OG-300 standards
Large solar water heaters and other solar thermal applications must use panels with SRCC OG-100 certification or laboratory documentation showing the panel energy output under controlled and replicable test conditions. Eligible small wind systems must be certified and nameplate rated by the CEC.
Wind systems must have at least a 10-year manufacturer’s warranty to qualify for the up-front incentive; wind systems must have at least a 5-year manufacturer’s warranty to qualify for the performance-based incentive
Installation Standards None Listed
Start Date  May 2008

More Information Contact:

Blanka Anderson
Tucson Electric Power
3950 E. Irvington Road
Mailstop RC 116
Tucson, AZ 85702
Phone: (520) 918-8296
Web Site:

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