With intense sun and high summer cooling demand, going solar in Flowing Wells can significantly reduce your monthly bills from Tucson Electric Power (TEP). In 2026, the strategy for saving money with solar has evolved. It's no longer just about generating power, but about using as much of that power as possible yourself. TEP's current rules for new solar customers mean that storing your solar energy in a battery can provide a much bigger financial benefit than sending it back to the grid.
Run your scenario: the calculator uses this city’s utility and tariff data.
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Estimated Solar System Cost in Flowing Wells (2026)
The following costs are for a 7.6 kW system, sized to offset a typical Flowing Wells household bill of around $161. The net cost reflects Arizona's state-level incentives.
- Solar-Only System (7.6 kW): The estimated gross cost is $17,100. This becomes $16,100 after the $1,000 Arizona tax credit.
- Solar + Battery System (7.6 kW with a 10 kWh battery): The gross cost is estimated at $32,100, or $31,100 after the state credit.
While the upfront investment for a battery is higher, the increased annual savings and protection from outages often make it a worthwhile addition for TEP customers.
Incentives & Tax Credits
Key Arizona Solar Incentives in 2026
Even without a federal tax credit for new 2026 systems, Arizona homeowners have access to powerful local incentives that make solar more affordable.
- $1,000 State Tax Credit: A direct credit on your Arizona state income taxes, equal to 25% of the system cost up to $1,000.
- No Sales Tax: Solar equipment and installation are exempt from state sales tax, providing immediate savings on the upfront cost.
- No Property Tax Increase: The value your solar system adds to your home is exempt from property taxes. This tax benefit, combined with the fact that an owned solar system can enhance resale appeal, makes it a valuable home improvement.
Net Metering: Tucson Electric Power Co
TEP Reduced Compensation
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How TEP's Export Rate Affects Your Savings
Under Tucson Electric Power's current rules for new solar customers, the credit you receive for surplus energy sent to the grid is much lower than the retail price you pay for electricity. This analysis models the export rate at just $0.0514 per kWh, while the cost to buy that same kWh from TEP is about $0.1558.
This value gap is the primary reason a battery is recommended. By storing your excess solar power, you can use it in the evening instead of selling it to TEP for a low credit and then buying it back for a high price. This self-consumption strategy is the most effective way to maximize your solar investment.
Projected Savings
How Much Can You Save on Your TEP Bill?
Your total savings depend heavily on whether you can store your solar energy for later use. Storing energy in a battery allows you to avoid buying expensive electricity from TEP after the sun goes down. It also provides a buffer if utility rates continue to rise in the future.
- A solar-only system is modeled to save an estimated $1,202 annually, with a payback period of around 12.1 years.
- Adding a battery storage system increases those estimated annual savings to $1,695. The payback period is longer at 14.1 years, but this option delivers greater long-term value and control over your power.