Arizona Incentives for Renewable Energy





TEP - SunShare PV Buydown

Last DSIRE Review: 05/01/2001  

Incentive Type:  Utility Rebate Program
Eligible Technologies:   Photovoltaics,
Applicable Sectors:   Commercial, Residential,
Rebate:  $2,000/AC KW for third party system; $2,000 for 1 kW TEP system and $10,000 for 5 kW TEP system
Effective Date:  5/01 or 6/01

    Tuscon Electric Power (TEP) created the SunShare hardware buydown program to encourage residential and business customers to install new photovoltaic equipment. Under the SunShare hardware buydown program, systems of 1 kW and larger are eligible. The customer may either purchase a qualifying system 1 kW or larger from a third party or may purchase a 1 kW or 5 kW system kit from TEP. The Sunshare program began in 2001 and will continue through at least 2003, and possibly until 2012.  
Under the third party option, TEP will pay the customer $2,000 per AC kW of installed solar generating capacity. Under the TEP kit option, TEP will pay the customer $2,000 for the 1 kW system and $10,000 for the 5 kW system. The kit includes panels, inverter, supports, meter, and meter socket.  
To qualify for the buydown program, participants must: 1) be a customer of TEP; 2) have at least 250-sq. ft. of unobstructed space; 3) have a roof facing true south; 4) be within 100 ft of where tying to the grid; and 5) have a roof that can accommodate panels at a 32-degree angle. Intallations must have been made after January 1, 1997. Annual inspections and maintenance labor for repairs will be provided by TEP.  
The photovoltaic equipment must meet TEP and Arizona Corporation Commission requirements for self-generation equipment.   
TEP offers a net metering option which credits the customer with the energy sent into the grid on a kWh basis.  
The program has received over 755 inquiries and over 75 applications. About 30 sites have been inspected and over 75% of those sites were eligible. Of the eligible sites, about half the customers wanted 1 kW systems and the other half wanted 5 kW systems.  
In additon to financial assistance from TEP, state tax benefits are available up to $1,000.  
Marketing for the program has included bill inserts, newspaper ads, TV stories, and the website.

Chuck DeCorse
Tucson Electric Power
P.O. Box 711
Mailstop RC116
Tucson, AZ 85702
Phone: (520) 745-3251
Fax: (520) 571-4014
Web site:

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