Utility Energy Efficiency Programs

Updated: October 2014


Arizona has seen a population growth rate of 1.20% per year on average from 2008 to 2012, while the consumption of electricity has increased an average of 0.09% per year over the same period. In 2012 energy expenditures per capita was $3,474, which ranked Arizona 48th among all U.S. states.

Summer peak demand in Arizona reached its high point in 2006, at 19,588 MW.  Since 2006, summer peak demand has fluctuated between 19,000 and 19,500 MW per year.

The state is served by two investor-owned utilities: Arizona Public Service Company (APS) and Tucson Electric Power Company (TEP). APS is the largest electric utility with over two million customers in 11 of the 15 counties in the state. TEP serves nearly 400,000 customers in southern Arizona. Salt River Project (SRP) is a private corporation serving about 950,000 customers in the metro Phoenix and nearby areas. Thirteen electric cooperatives serve the remaining electric customers in Arizona. Natural gas is provided by Southwest Gas and UniSource Energy Services.

Over the last several years Arizona's utilities have significantly expanded their energy conservation program offerings. Below is a list of the programs offered by each utility:

Electricity Demand-Side Management

Natural Gas Demand-Side Management



Complete and current descriptions of all APS energy saving programs can be accessed through the APS Energy Efficiency web page.

Residential Energy Saving Rebates & Programs
APS offers a variety of incentives and programs to help their residential customers save energy, including:

  • Rebates for the purchase of efficient products and light bulbs,
  • Rebates for improving home heating and cooling systems,
  • Rebates whole house retrofits for new and existing homes,
  • Rebates for recycling secondary refrigerators, and
  • Rebates for planting shade trees to assist with home cooling
  • APS also offers online tools to help residential customers manage their energy use and decide which improvements maximize energy savings and improve home comfort.

Energy Efficiency Solutions for Business Program
APS offers a variety of incentives, training, and energy information services to business customers to improve energy efficiency.

  • Prescriptive, custom and energy study incentives are available to business customers for both retrofit and new construction projects. Incentive levels for specific qualifying measures vary depending on business size and the technology. APS also provides incentives for the partial reimbursement of feasibility studies, design assistance, commissioning, and retro-commissioning services intended to improve the energy efficiency of a new or existing facility.
  • Multifamily Energy Efficiency Program, promoting energy efficiency by providing high quality energy efficiency components to retrofit each multifamily unit and per unit rebates for new construction or major renovation projects.
  • APS offers Energy Information Services (EIS) for medium to large business customers. With a meter upgrade, EIS creates a detailed, easy to read load profile of actual energy consumption that can be compared against a backdrop of relevant variables.
  • Financing for energy efficiency improvements is available through the National Bank of Arizona.
  • Specialized training and tuition financing are available to improve buildings operations and to save energy.

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TEP offers a variety of energy efficiency and conservation programs for business and residential customers, including:

  • Residential Rebate Programs
    Offering rebates on home heating and cooling equipment, Energy StarĀ® rated appliances, home lighting, shade trees and whole home retrofits.
  • Low-Income Weatherization Program
    The TEP Weatherization program's aim is to reduce low-income customers' energy use, reduce their electric and gas bills and improve comfort.
  • Time-of-Use Rates (TOU) or PowerShift 
    Available to both business and residential customers, the TOU program offers customers a reduced electric rate for shifting their energy use from peak periods (Monday through Friday from 9am - 5pm) to off-peak hours.

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Residential efficiency programs

  • Appliance Recycling
    SRP provides free pickup and a $30 check for recycling extra fridges and freezers. Nearly 95% of the unit's materials are recycled.
  • Home Energy Manager
    This online tool provides customers with personalized recommendations for saving energy and reducing utility costs.
  • PowerWise Homes Program
    SRP's  PowerWise program provides participating homebuilders significant market exposure; increases consumer awareness of energy-efficient homebuilding techniques, materials, and appliances; and spurs demand for energy-efficient homes.
  • Compact fluorescent light (CFLs) and Light Emitting Diode (LEDs) Discount
    The CFL and LED programs offer discounts on energy efficient light bulbs at participating stores in its service area.

 Business efficiency programs 

  • Rebates for Lighting, HVAC, motors and refrigeration equipment
  • Rebates for Custom energy efficiency projects
  • Retrocommissioning rebates for existing major mechanical and electrical systems
  • New-construction design assistance
  • Small business lighting audit

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This cooperative offers rebates for efficient electric heat pumps, electric water heaters, or dual fuel heating and cooling to replace less efficient equipment or in new home construction. Service rebates are also available.

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NEC offers Time-of-Use rates to members willing to change their lifestyle by using much of their electricity during off-peak times. Members receive a discounted rate during off-peak hours to encourage them to use their electricity then. A service charge is applied.

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SSVEC offers a suite of  residential rebate programs  through the Touchstone Energy Home Program.

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Southwest Gas offers rebates for the installation of solar water heaters and commercial equipment.

For information about Southwest Gas DSM programs, visit:

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