Tucson Electric Power - Energy Storage Rewards Program

Enroll your qualifying grid-connected battery system to earn $120 per kilowatt (kW) in compensation, with typical systems receiving around $360 per season or up to $720 annually. TEP will automatically signal your battery to charge and discharge during peak demand periods (mostly 1–4 hour events), but you'll be notified in advance and can opt out if needed—the process requires no action from you unless you choose to adjust settings. Apply through TEP's website by matching your battery and account information; TEP will respond within 2–4 weeks with acceptance or next steps.

This program creates customer value by providing bill credits for battery dispatch without customer effort or risk—batteries that don't perform in an event simply receive zero credit for that period, not penalties. You can enroll qualifying lithium-ion battery systems that meet interconnection standards and maintain reliable internet connectivity; ensure customer names and addresses match their TEP account at signup. TEP may call up to 100 events annually (maximum one per day, 1–4 hours each), with compensation issued twice yearly as bill credits approximately 2–3 billing cycles after each season.

This performance-based incentive compensates residential customers $120/kW averaged across all event hours within summer (May–September) and winter (October–April) seasons, capped at approximately $360/season. TEP controls dispatch automatically via battery manufacturer signals during anticipated peak demand (3–7 p.m. summer; 6–9 a.m. and 6–9 p.m. winter), with participants able to opt out of individual events; compensation is based on actual average kW delivered during event hours, prorated for non-participation. Funding is distributed as utility bill credits; eligibility requires TEP residential account ownership, grid-connected battery system, matching name/address records, and reliable internet connectivity.