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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

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Incentives/Policies for Renewables & Efficiency

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TEP - Renewable Energy Credit Purchase Program   

Last DSIRE Review: 02/13/2013
Program Overview:
State: Arizona
Incentive Type: Utility Rebate Program
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics
Applicable Sectors: Residential
Amount:Incentives for PV may be de-rated based on expected performance
Residential grid-tied PV: $0.10/W-DC
Residential Solar Water Heating and Space Heating: $0.40/kWh-equivalent
Maximum Incentive:Residential PV: 50% of system cost. Systems greater than 30 kW DC will receive incentives on the first 30 kW DC only.
Residential Solar Water Heating and Space Heating: $1,750
Eligible System Size:PV: Minimum size is 1.2 kW.
Equipment Requirements:Photovoltaic modules must be covered by a manufacturer’s warranty of at least 20 years
Solar thermal systems must be certified to SRCC OG-300 standards
Ownership of Renewable Energy Credits:TEP
Funding Source:RES Surchage
Web Site:

Note: The Arizona Corporation Commission (ACC) recently approved modifications to this program. The up-front incentive for residential photovoltaics (PV) has been reduced to $0.10 per watt, all commercial incentives have been suspended, the incentive for solar water heating has been reduced to $0.40 per equivalent kilowatt-hour (kWh), and incentives for all non-solar renewable energy technologies have been suspended. 

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. TEP offers these incentives in exchange for the renewable energy certificates they generate. Available incentives as of February 2013 are as follows:

  • Residential PV (grid-tied): $0.10/W.  
  • Solar Domestic Water Heating and Solar Space Heating: $0.40/kWh equivalent, up to a maximum incentive of $1,750

See program web site for more information. 

  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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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.