Two of Arizona’s utilities — Arizona Public Service (APS) and Salt River Project (SRP) — have in recent weeks announced reductions in the per-watt rebate available to homeowners who install solar photovoltaic (PV) panels. Tucson Electric Power (TEP), however, is holding strong. Via its Green Energy program, TEP appears to still offer a solar rebate worth $3 per watt for grid-tied residential PV systems, up to 60 percent of total system costs.
What does this mean for Arizona homeowners who are TEP customers? If you’ve ever considered installing a solar home electric system, now is just about as perfect a time to pursue your project as ever. Solar installation costs have in the past year come down significantly across many parts of the state, while scores of Arizona homeowners have installed rooftop solar PV. Average solar install costs in Arizona are, according to a docket filed by APS in March, below $6.00 per watt. Other sources relay that, in some parts of the state, this number is closer to $5.00 per watt.
Put simply, in response to lower prices and surging demand, APS and SRP cut solar rebate levels. TEP may follow suit. But for the time being, the Tucson-area electricity provider appears to have the best show in town.
So if you’re a TEP customer, think about it: you’re in a position to potentially take advantage of record-low solar installation costs and Arizona’s strongest solar rebate.
This is homeowners best chance of obtaining solar panels at a good price. A $3 per watt of solar installed is extremely generous. When combined with the federal solar tax rebate, homeowners can save well over 50% of a solar system.