Solar Incentives Still Available in Tucson

The 30% federal residential tax credit (Section 25D) expired December 31, 2025. If you purchase a system with cash or a loan in 2026, there’s no federal credit — and any installer still advertising one is quoting expired law.

Here’s what Tucson homeowners can still use:

• Arizona state tax credit — 25% of your system cost, capped at $1,000, against your state income tax
• Sales tax exemption — no state sales tax on solar equipment
• Property tax exemption — your assessment doesn’t rise from the value solar adds to your home
• TEP net billing — credit for the excess power your system sends back to the grid
• Lease and PPA financing — the 30% federal credit still exists under Section 48E for third-party owned systems. The system’s owner claims it and passes the value through as a lower monthly payment. This is currently the only route to federal credit value on a residential system.

General information, not tax advice — confirm your situation with a tax professional.

Lower Summer Bills

Tucson summers push past 100°F, and air conditioning drives the bill. Solar directly offsets the power you’d otherwise buy during those months — and because Tucson averages more sun than almost anywhere in the country, your system is producing hardest exactly when your AC is working hardest.

Long-Term Savings

Every kilowatt-hour your panels produce is one you don’t buy from TEP. Over a 25-year system life, that adds up — and unlike a utility bill, it doesn’t go up every year. How much you save depends on your usage, your system size, and your rate plan, so we’ll model your actual bill rather than quote you an average.

Property Value

Homes with owned solar systems generally sell for more than comparable homes without them, and Arizona’s property tax exemption means the added value doesn’t raise your assessment.

Sustainable Energy

Solar production generates virtually no emissions. Going solar reduces your household’s fossil fuel dependence and supports Arizona’s long-term emissions goals.

No Upfront Cost

We offer financing options that require no money down. You can install a rooftop system and start offsetting your bill from day one, without a large upfront payment. Whether you’re a homeowner or a business owner, we’ll walk you through which structure — lease, loan, or purchase — actually costs you less over time.

How TEP Net Billing Works

When your panels produce more than your home is using, that surplus flows to the grid and TEP credits your account. Those credits offset power you draw at night or on cloudy days.

One thing worth understanding: TEP’s export credit is lower than the retail rate you pay to buy power. That means a kilowatt-hour you use directly from your panels is worth more than one you export. The practical implication is that system sizing and timing matter, and battery storage — which lets you use your own production at night instead of exporting it cheaply — often improves returns more than simply adding panels.

We’ll handle the TEP interconnection paperwork and walk you through what your credits will actually look like.