Commercial Energy in Tucson, AZ

Commercial electricity in Tucson averages approximately 10.5¢/kWh based on Arizona state data (EIA 2025 commercial sector averages). Your actual rate depends on your utility rate schedule, demand charges, power factor, and in deregulated markets, your chosen retail supplier. Contact TEP or a licensed energy broker for current quotes.

The primary commercial electric utility in Tucson is TEP (Tucson Electric Power). Tucson operates under a regulated utility structure — TEP supplies electricity at rates approved by the state public utilities commission.

Tucson businesses are eligible for federal incentives including the 30% Investment Tax Credit (ITC) for solar and battery storage, the 179D tax deduction (up to $5.36/sqft for energy-efficient commercial buildings), and the 40% bonus depreciation for qualifying equipment in 2026. Arizona state incentives through DSIRE apply. Your utility — TEP — may also offer direct rebates for qualifying commercial efficiency upgrades. Use our Incentive Finder for a personalized list.

Commercial solar ROI in Tucson depends on your utility rate, available roof space, local solar irradiance, and federal + Arizona incentives. AZ has High solar potential, meaning commercial solar projects in Tucson typically achieve payback periods of 5–8 years after federal ITC and bonus depreciation. Get a free energy audit for a site-specific analysis.

Yes. C-PACE (Commercial Property Assessed Clean Energy) financing is available in Arizona. C-PACE allows Tucson commercial property owners to finance energy efficiency, solar, storage, and resiliency improvements with repayment attached to the property via a special assessment — enabling 100% upfront financing with repayment spread over 10–30 years.