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TEP · Tucson Electric Power

TEP rate increases and what they mean for solar

Tucson Electric Power rates run through the Arizona Corporation Commission, the same way APS rates do. We will keep the verified figures here as cases are decided. In the meantime, the logic is the same statewide: rising rates make owning your power the move that pays off.

We have not posted a TEP percentage yet because we will only publish a figure we can cite to the official filing. For the current case, check the Arizona Corporation Commission eDocket and TEP’s rates page directly.

TEP rate increase: 13%

pending ACC decision; requested for September 2026. Source: TEP 2026 rate case, Arizona Corporation Commission (Docket E-01933A-25-0103).View the filing.

What it looks like over 25 years

A rate increase does not happen once. It compounds. The line below shows the difference between staying on the TEP rate and locking your cost in with solar.

25-year cost: staying with the utility versus going solar A rising line shows utility costs climbing year over year as rates increase. A flatter line shows solar: a larger upfront cost that stays nearly level, so the two lines cross at roughly year 8 and the gap keeps widening after that. $0 $29k $57k $86k $115k Yr 0 Yr 5 Yr 10 Yr 15 Yr 20 Yr 25 Pays off around Yr 8
Stay with the utility (rates rising 5%/yr) Go solar (cost levels off)

Illustration of the two cost paths over 25 years, not a quote. Your real numbers come from the free savings review.

Cumulative cost over 25 years: staying with the utility vs going solar (illustrative)
Year Cumulative utility cost Cumulative solar cost
0 $0 $18,000
5 $13,262 $19,250
10 $30,187 $20,500
15 $51,789 $21,750
20 $79,358 $23,000
25 $114,545 $24,250

How solar caps your rate

Whatever a TEP rate case lands on, owning solar changes your exposure to it. The power your panels produce costs the same every year, so a rate increase only applies to what you still buy from TEP. Southern Arizona’s strong sunlight means a well-sized system can cover a large share of a home’s usage.

We serve homeowners across Arizona, Tucson and southern Arizona included. If you are a TEP customer, the first step is a quick conversation about your roof and your rate plan. Start with the savings calculator to see the shape of the numbers.

Estimate my savings How residential solar works

Rates are rising statewide. Run your numbers.

See what owning your power would do for your bill. Free, honest, and no pressure.