TEP rate increases over time
Tucson Electric Power's average residential electricity price has risen from 11.51 cents per kWh in 2015 to 15.63 cents in 2024, an increase of about 36 percent, or roughly 3.5 percent per year. The chart shows TEP's average residential price by year. Hover any point for the exact figure.
What rising TEP rates could cost you
TEP rates have risen about 3.5% 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 (3.5% 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.
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.
Net metering and solar export: Net billing (RCP export rate, below retail)
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.
What it means for solar
TEP rates have risen about 3.5 percent per year over the past decade. Solar can offset that grid cost, every kWh you generate and use is a kWh you do not buy, but how much you save depends on your rate level and on how exported power is credited (Net billing (RCP export rate, below retail)). Where exports are worth little, using your own solar, often with a battery, matters more than selling surplus back. Whether solar makes sense depends on your usage, roof, and rate plan, so get a site-specific quote.
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 |
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
How much have TEP electricity rates gone up?
TEP's average residential price rose about 36 percent since 2015, roughly 3.5 percent per year, reaching about 15.63 cents per kWh in 2024.
Does TEP offer net metering for solar?
TEP uses Net billing (RCP export rate, below retail). See the net metering section above for exactly how exported solar is credited and what that means for your system.
Is solar worth it with TEP?
It depends on your electricity usage, roof, system size, and whether you add a battery. Higher rates and rate increases make solar more attractive, but the value of exported power depends on TEP's net metering rules. Get a site-specific quote rather than relying on a general estimate.
Where does this rate data come from?
The per-year prices come from the U.S. Energy Information Administration's Form 861, and the current rate structures come from the public Utility Rate Database. Both are public, free, and updated regularly.