Claire WhitakerBy Claire Whitaker

Updated November 2026

TEP net metering rates determine how much your home solar system is credited for electricity you send back to the grid. This guide explains how Tucson Electric Power calculates those credits, what your monthly bill should show, and which settings to confirm before you sign off on a system. By the end, you will be able to read your net metering statement and spot errors.

Understand How TEP Credits Your Exports

Net metering works by running your meter forward when your panels produce more than your home uses and backward when you pull power from the grid. Tucson Electric Power nets your imports against your exports over each billing period. If you exported more than you imported, the surplus carries forward as a bank of credits rather than disappearing at month’s end.

Shopping for one? See our guide: LADWP Net Metering Rates (2026): Which Is Better for Your Home?.

The credit value depends on the rate schedule your account is on. Residential solar customers are generally placed on a time-of-use or flat rate plan, and the rate applied to exports can differ from the rate you pay for imports. Check your rate schedule number on the bill before assuming a credit value.

Check the Rate Schedule Assigned to Your Account

Your TEP net metering rates are tied to the rate plan you selected when you interconnected. Review that choice carefully, because switching later may be restricted or require paperwork. Confirm these details against your interconnection agreement:

  1. The rate schedule name and code printed on your bill.
  2. Whether the export credit is priced by time of day or by a flat amount per kWh.
  3. The billing period dates, since credits are calculated within those windows.
  4. Any monthly minimum or fixed service charge that applies regardless of solar output.

Calculate Your Solar Credit Each Month

You can estimate your monthly credit with a simple worksheet. Pull the kWh exported and kWh imported from your bill, then compare them. Use this sequence:

  1. Subtract total imported kWh from total exported kWh for the period.
  2. If the result is positive, multiply the surplus by the export rate for your schedule.
  3. If the result is negative, multiply the shortfall by the import rate and subtract that from any banked credit.
  4. Add any credit carried over from prior months and note the new balance.
Bill line What it means What to check
Energy exported (kWh) Power your panels sent to the grid Matches your inverter data roughly
Energy imported (kWh) Power you drew from the grid Higher in winter or cloudy months
Net credit balance Carried-forward value Does not reset unexpectedly
Fixed charges Service fees not offset by solar Matches your rate schedule

Owners often report that the largest surprises come from fixed charges and from months when imports spike. Compare the table line by line against each statement.

Common Mistakes to Avoid

  • Assuming exports are credited at the same rate as imports without checking your schedule.
  • Ignoring the billing period dates, which can split a sunny week across two cycles.
  • Letting a banked credit expire unnoticed. Confirm how your balance rolls over at year end.
  • Comparing your bill to a neighbor’s, since orientation, shading and rate plan all differ.
  • Skipping the inverter’s production log, which is the fastest way to catch a meter or export error.

A monitoring tool helps you check whether your utility statement matches what your system actually produced. A clamp-style energy meter lets you measure household loads so you can see how much solar you use directly versus export. View on Amazon tracks circuit-level production and consumption, which is useful when comparing against your bill. View on Amazon gives a quick plug-in check on individual appliances.

FAQ

Do unused TEP credits expire?

Credit treatment depends on the current tariff terms, so read the section of your agreement covering banked credits. Many utilities reset or pay out balances at a set point each year. Confirm the exact rule with TEP before relying on a large balance.

Why is my bill higher even though I have solar?

Fixed monthly charges and winter import periods can outweigh exports, especially on a time-of-use plan. Compare imported kWh across months to find the pattern. Contact TEP if the numbers do not match your production records.

Can I change my rate plan after installation?

Some plan changes are allowed, but they may have waiting periods or restrictions for solar customers. Ask TEP which options are available for your interconnection. Review the financial effect with a qualified solar installer or utility representative before switching.

Conclusion

TEP net metering rates set the value of every kilowatt-hour your panels send to the grid, so reading your statement carefully pays off. Confirm your rate schedule, run the monthly calculation, and watch for fixed charges and expiring balances. Consult TEP or a licensed solar professional if your numbers still do not add up.

Ready to choose one?

Claire Whitaker

About Claire Whitaker

Claire Whitaker is part of our editorial team and reviews and edits our home solar guides, checking product details against manufacturer specifications and owner feedback.