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Incentives/Policies for Renewables & Efficiency

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TEP - Commercial Energy Efficiency Rebate Program   

Last DSIRE Review: 09/14/2012
Program Overview:
State: Arizona
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Refrigerators, Lighting, Lighting Controls/Sensors, Chillers , Heat pumps, Central Air conditioners, Compressed air, Motors, Motor VFDs, Comprehensive Measures/Whole Building, Custom/Others pending approval, Led Exit Signs, Vending Machine Controls, Commercial Refrigeration Equipment, Food Service Equipment, Design Assistance
Applicable Sectors: Commercial, Industrial, Nonprofit, Schools, Local Government, State Government, Fed. Government, Contractor
Amount:A/C and Heat Pumps: $25-$100/ton + $75/extra efficiency point/ton
Chillers: $5-$10/ton + $150-$200/extra efficiency point/ton
Fluorescent Lighting: $1.75-$6/lamp
De-lamping: $2.50/lamp or $12.50/reflector lamp
LED Exit Signs: $25/sign
Occupancy Sensors: $0.12/watt controlled
High Output HID Lighting: $75-$200/fixture
Refrigeration Strip Curtains/Night Covers: $10/ft.
Cooler Controls: $100-$200/unit
Ice Maker: $50/unit
Evaporator Fan Motors: $25-$50
Vending Machine Controls: $25 or $100
Motors: $1.50-$10/HP
Air Compressors: $50/HP
Custom: 50%
Maximum Incentive:Large Business: up to 50%-75% of a measure's incremental cost
New Construction: up to 50% of incremental cost of the energy efficient measures and up to $75,000 per project per year
New Construction Design Work: up to 50% of the cost of the additional fees required for the energy efficient design and up to $10,000 per design team per year
Web Site:

TEP offers three different energy efficiency rebate programs to fit the needs of their non-residential customers. TEP's Large and Small Business Programs are for making a variety of energy efficient improvements to already existing facilities. TEP's Commercial New Construction Program provides rebates for non-residential members for designing and constructing new energy efficient facilities.

TEP’s Large Business Program offers rebates to offset the initial costs of installing energy-efficient measures including lighting equipment and controls, air conditioning and heat pump equipment, motors and motor drives, compressed air and refrigeration. Customers may also propose other energy efficiency solutions through custom measures. Eligible customers (TEP Non-Residential customers on Rates 10, 13, 14 and 40) must submit a Pre-Notification Application to TEP.

TEP’s Small Business Program encourages contractors to install selected high-efficiency lighting, HVAC and refrigeration measures for TEP small business customers. All incentives are for upgrades in already existing buildings and will be paid directly to the contractor, who applies for the rebates on the customer's behalf. A list of eligible upgrades and program approved contractors can be found on the program website.

The TEP Commercial New Construction Program provides rebates to TEP’s non-residential customers for the installation of energy-efficient equipment in new construction. Additionally, rebates are available to help offset the costs of designing more energy efficient buildings. Rebate amounts are based on the estimated energy savings over a one year period.

  TEP Commercial Energy Solutions
Phone: (866) 324-5506
Fax: (866) 277-5604
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 2014 - 2015 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.