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Tucson Electric Power Net Metering Policy

How Tucson Electric Power compensates solar customers for excess energy in Arizona.

Full Retail
Net Metering Policy
$0.128
Rate per kWh
125% of annual consumption
Capacity Limit
Excellent

Policy Rating

You are credited at the full retail rate for every kWh you export. This maximizes your solar ROI.

How Net Metering Affects Your Solar Payback

With Full Retail net metering at Tucson Electric Power, here's how your solar economics look for a typical $150/month bill:

System Size
6 kW
Annual Production
11,406 kWh
Annual Savings
$1,460
Payback Period
7.1 yrs

Note: With avoided-cost net metering, savings may be 20–30% lower than shown since exported power is credited below retail rate.

Understanding Net Metering

What is net metering? Net metering is a billing mechanism that credits solar owners for electricity exported to the grid. When your panels produce more than you use, the excess flows to the grid and your meter runs backward.

Compensation: Full retail rate. The credit rate determines how quickly you recover your investment.

Capacity limit: 125% of annual consumption. Systems larger than the capacity limit may be subject to different rules.

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