With more than 300 days of intense sunshine annually, rooftops in Flowing Wells are perfect for generating solar power. However, Tucson Electric Power (TEP)'s rate structure means the smartest way to go solar in 2026 involves more than just panels. To maximize your financial return and gain energy security, a solar-plus-battery system is now the standard recommendation for homeowners in the greater Tucson area.
Benchmark Cost Analysis
Solar + Battery System Costs in Flowing Wells (2026)
The upfront cost for a professionally installed solar panel and home battery system in Flowing Wells is approximately $23,500. This price point reflects a system designed to handle the typical energy needs of a local household. After claiming federal and state incentives, the final net investment drops to around $15,450.
It's important to contrast this with advertised 'solar-only' prices. While a system without a battery might seem tempting at roughly $7,050 net, its performance under TEP's Net Billing rules delivers significantly lower savings, extending the payback period by many years.
Incentives & Tax Credits
Current Tax Credits & Exemptions
Arizona provides some of the best solar incentives in the nation, which helps make the investment more manageable:
- 30% Federal ITC: This tax credit deducts 30% of the total system cost from your federal taxes. On a $23,500 system, that’s a $7,050 savings.
- $1,000 Arizona State Tax Credit: A direct credit on your state tax liability.
- No Sales Tax: You pay zero sales tax on the purchase of your solar equipment.
- No Property Tax Increase: Adding solar panels increases your home's value but won't increase your property taxes.
Net Metering: Tucson Electric Power (TEP)
Net Billing (2024)
Critical 🔋
How TEP's Net Billing Affects Your Solar ROI
TEP's program, known as Net Billing, has a crucial detail: the export rate. The price TEP pays you for your excess solar power (around 7-8¢/kWh) is significantly lower than the price you pay to buy electricity from them in the evening (13.5¢/kWh or more). A battery system creates energy independence by allowing you to store your solar power for personal use, effectively 'selling' it to yourself at the full retail value and sidestepping TEP's low buyback rate.
Projected Savings
Your Expected Yearly Savings with TEP
A solar-plus-battery system enables a Flowing Wells homeowner to save an average of $905 per year on their TEP bills. These savings come from producing your own power during the day and, critically, using your stored battery energy at night to avoid TEP's higher-priced electricity. Without a battery, your yearly savings would be slashed to around $641, as you'd be forced to sell your valuable midday solar power back to TEP for a fraction of its retail value.