Tucson's tiered baseline
Tucson Electric Power's average residential electricity price has risen from 11.51 cents per kWh in 2015 to 14.88 cents in 2025, an increase of about 29 percent, or roughly 2.6 percent per year. The chart shows TEP's average residential price by year. Hover any point for the exact figure.
Current residential rates
TEP residential rates are shown below, from the utility's published tariffs and the public Utility Rate Database. Rates vary by plan, season, and usage and change over time.
| Plan | Energy charge | Fixed / basic |
|---|---|---|
| Basic Residential (tiered, single-phase) | Summer (May-Sep): 13.04c up to 500 kWh, 15.01c for 501-1,000 kWh, 15.73c for 1,001+ kWh. Winter (Oct-Apr): 12.64c up to 500 kWh, 14.60c for 501-1,000 kWh, 15.32c for 1,001+ kWh | $15.00/mo Basic Service Charge (single-phase); $20.00/mo (three-phase) |
Rates from TEP's published Basic Residential Pricing Plan tariff (tep.com/basic), the standard non-time-of-use residential plan. TEP also offers several time-of-use plans (Time-of-Use, Demand TOU, Peak Demand); solar customers are required to enroll in a time-of-use plan. Energy charges shown are tiered by monthly usage and by season. Effective date not stamped on the plan page; reflects rates in effect as of mid-2026.
The requirement people miss
Going solar on TEP means changing rate plans
TEP requires solar customers to enroll in a time of use plan. That reshapes the whole bill, not just the export line: your grid power price now depends on the hour, which changes what self-consumed solar is worth and when a battery earns its keep. Model the TOU plan you will actually be on, not the flat tiered plan you are leaving.
What rising TEP rates could cost you
TEP rates have risen about 2.6% per year. Enter your bill to see what that pace of increase could compound to over time, and what you have likely already absorbed. This is an estimate, not a guarantee.
Estimate only. Projects your current bill forward at TEP's historical average rate increase (2.6% per year, from EIA data); it assumes your usage stays the same except for any add-ons you select. Actual rates depend on your usage, rate plan, and the utility's future filings, and are not guaranteed. This is general information, not financial advice.
Net billing at 5.7 cents
TEP no longer offers traditional retail net metering for new rooftop solar. Instead, under Arizona's net-billing framework, you are billed for all the grid power you consume at the full retail rate, and you are separately credited for any excess solar energy you export at TEP's Resource Comparison Proxy (RCP) export rate, currently about 5.7 cents/kWh, which is far below the roughly 15.6 cents/kWh retail rate. The RCP is set from TEP's average solar-energy costs over the prior five years and can fall up to 10% per year. The export rate you get when you interconnect is locked in for 10 years. Because exports earn so much less than the retail price you avoid by using your own power, the economics strongly favor consuming solar on-site, and pairing panels with a battery to store midday production for evening use.
The TOU switch changes the math
The economics rhyme with APS: exports at roughly 5.7 cents versus retail around 15.6, a rate derived from TEP's prior five years of solar costs, allowed to fall up to 10 percent annually, and locked for 10 years when you interconnect. The sooner an application lands, the richer the locked rate.
Because exports earn about a third of retail, on site consumption drives the value, and the mandatory time of use plan concentrates that value into off peak charging and peak avoidance. A battery pairs naturally with that shape. Get a site-specific quote on the actual TOU plan.
TEP service area
TEP serves Tucson metropolitan area and surrounding southern Arizona (Pima County and parts of adjacent counties), serving the city of Tucson..
To confirm whether a specific address is served by TEP, check your electricity bill. A ZIP lookup tool is coming to this site.
Full data and sources
Per-utility prices are computed from EIA Form 861 (bundled residential revenue divided by sales), which reconciles to the EIA's published figures. These are public-domain U.S. government data.
| Year | TEP (c/kWh) |
|---|---|
| 2015 | 11.51 |
| 2016 | 11.13 |
| 2017 | 12.05 |
| 2018 | 12.58 |
| 2019 | 12.19 |
| 2020 | 12.37 |
| 2021 | 13.4 |
| 2022 | 13.73 |
| 2023 | 14.97 |
| 2024 | 15.63 |
| 2025 | 14.88 |
Sources: EIA Form 861 Sales to Ultimate Customers files (2015-2024), utility-specific bundled residential · EIA Electric Sales, Revenue, and Average Price (Table 6, utility bundled residential, 2024) · TEP Basic Residential Pricing Plan (energy charges and Basic Service Charge) · TEP Resource Comparison Proxy (RCP) Export Rate · TEP Net Metering / net billing explanation · Utility Dive: Arizona regulators approve lower rooftop solar credits for TEP · TEP Service Territory and Service Area
FAQ
Does TEP offer net metering?
Not for new customers. Under Arizona's net billing framework you buy all grid power at retail and are separately credited about 5.7 cents per kWh for exports, far below the roughly 15.6 cent retail rate.
How is TEP's export rate set?
From TEP's average solar energy costs over the prior five years, under the Resource Comparison Proxy method. It can fall up to 10 percent per year, and the rate at your interconnection locks for 10 years.
Do I have to change rate plans for solar on TEP?
Yes. TEP requires solar customers to enroll in a time of use plan, where the price of grid power depends on the hour. Payback estimates should be modeled on the TOU plan, not the standard tiered residential plan.
Is a battery useful in TEP territory?
The structure favors one: exports earn little, retail is hour dependent, and storing midday production to avoid peak prices captures more value than exporting. Whether it pays off depends on system cost and your usage pattern.