TEP - Residential Solar Water Heating Incentive

The 2014 budget includes $60,000 for solar water heating incentives. Solar PV incentives are no longer available.  Tucson Electric Power (TEP) offers an incentive of $0.40 per kilowatt hour (kWh) saved for solar water heaters. The maximum incentive is $1,750. Applications for the 2014 program year will be accepted until available funds have been depleted. Systems must meet TEP's equipment qualifications to receive the incentive. See program website for more information. Program History 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, and again in 2014 by eliminating the solar PV incentives. TEP offers these incentives in exchange for the renewable energy certificates they generate.