Tucson Electric Power (TEP)

Residential Incentive Program Information

NOTE: 2011 Residential UFI dollars are fully reserved. Please refer to ACC docket # E-01933A-10-0266 for current status and updates.

TEP’s Renewable Energy Credit Purchase Program offers incentive that help reduce the cost of residential photovoltaic (PV) arrays and solar water heaters.

Residential customers are able to take advantage of the up-front incentives (UFIs), which provide a single payment based on a system’s rated capacity.

TEP’s budget for residential UFIs for 2011 is approximately $14.3M.

Residential Solar PV

By reducing the cost of solar PV systems, these incentives make it easier to secure a source of clean renewable energy that can reduce your monthly electric bills while improving our environment. Most residential systems are tied to TEP’s local distribution grid through a net meter that provides customer with credit for any excess energy their systems may produce.

Terms & Conditions:

The current up-front incentive is up to $2 per DC watt for grid-tied systems, with a maximum incentive equaling 50% of the total system cost. To qualify for a UFI, the system must carry at least a 10-year warranty on the inverter and a 20-year warranty on the solar PV modules. All UFIs are provided in exchange for 20-years of Renewable Energy Credits (RECs).

Incentives may vary depending on the system’s horizontal tilt angle and orientation, as those factors affect energy production. Residential systems up to 20 kW AC (28 kW DC) are eligible for this incentive.

To apply for a TEP Residential Solar PV Incentive, visit http://tep.com/Green/home/Solar/electric.asp

Residential Solar Water/Space Heaters

Investing in a solar water system is a low-cost, high-impact way to harness the power of the sun. According to the U.S. Department of Energy, a solar water heater system can reduce your water heating bills by an average of 50 to 80 percent. Solar space heating systems, while less common, provide a clean, emission-free alternative to gas furnaces or other space heating solutions. TEP offers incentive that help reduce the up-front cost of both types of systems.

Terms & Conditions:

The current up-front incentive is $750 plus $0.25 per kWh of system-rated performance, up to a maximum of $1,750. The incentive cannot exceed 50% of the total system cost. To qualify for a UFI, systems must carry at least a 10-year manufacturer’s warranty. All UFIs are provide in exchange for 20-years of Renewable Energy Credits (RECs).

To apply for a TEP residential solar water/space heater incentive, visit http://tep.com/Green/home/Solar/spaceheating.asp

Other Non-Solar, Residential Incentives

TEP also provides incentives to reduce the up-front costs of residential wind turbines, geothermal space heating or cooling systems and other renewable energy technologies. For more information about these incentives, visit http://tep.com/Green/home/othertechnologies.asp.

Non-Residential Incentive Program Information

TEP offers incentives to help non-residential customer invest in a wide variety of solar energy systems, including photovoltaic (PV) arrays, water heaters, daylighting systems and pool heaters. Depending on the size and type of the system, TEP provides either up-front incentives (UFIs), which are based on system capacity, or performance-based incentives (PBIs), which are paid out over time based on actual energy production.

The budgets for 2011 are as follows:

Up-Front Incentives: $3.77M
Performance-Based Incentives: $5.75M total budget, $1.6M for new projects

Small and Large Scale Solar PV

By tapping into southern Arizona’s abundant sunshine, non-residential customer can generate significant savings while earning credibility with customers who appreciate environmental responsibility. TEP’s Renewable Energy Credit Purchase Program incentives can be combined with state and federal tax benefits to make PV systems much more affordable for businesses of any size.

Terms & Conditions:

Small Non-Residential UFIs
Systems with capacities 50 kW AC (71 kW DC) and smaller are only eligible for UFIs. The current UFI is up to $1.50 per DC watt for grid-tied systems, with a maximum incentive equaling 50% of the total system cost. To qualify for a UFI, the system must carry at least a 10-year warranty on the inverter and a 20-year warranty on the solar PV modules. All UFIs are provided in exchange for 20-years of Renewable Energy Credits (RECs).

Large Non-Residential PBIs

Systems with capacities greater than 50 kW AC (71 kW DC) are only eligible for PBIs. PBIs are paid out over a 10 to 20 year period, rather than one-time. The total incentive cannot exceed 50% of the total system cost. All PBIs are provided in exchange for the Renewable Energy Credits (RECs) during the term of the contract. Projects are awarded incentives through a competitive bid process.

2010 Incentive Payment Schedule

For more information and/or to apply for an incentive, visit http://TEP.com/Green/Business/Commercial.asp.

Commercial Solar Water/Space Heating Systems

Solar water heating systems offer a cost-effective way to tap into the sun’s energy to provide your employees and customers with hot water. Solar space heating systems, while less common, provide a clean, emission-free alternative to gas furnaces or other space heating solutions. TEP offers incentives that help reduce the initial cost of both types of systems.

Terms & Conditions:

Solar Daylighting

Daylighting systems employ skylights to capture and redirect natural light to illuminate building interiors, sometimes in combination with artificial light managed by automatic controls. These systems can generate significant energy savings, and TEP offers incentives to reduce initial system cost.

Terms & Conditions:

Commercial Solar Pool Heating Systems

Solar pool heater can generate significant energy savings for hotels, gyms, and other businesses that feature large swimming pools. These systems provide significant energy savings over traditional pool heaters, while still allowing your guests the enjoyment of a heated pool. TEP offers incentives that can help reduce the initial system cost.

Terms & Conditions:

Other Non-Solar, Non-Residential Incentive Programs

TEP also provides non-residential incentives to reduce the initial system costs of wind turbines, geothermal systems or other renewable power technologies. For more information about these programs, visit http://tep.com/Green/Home/OtherTechnologies.asp.