In a medium skillet over medium heat, sauté chopped bacon until fat is rendered and bacon is cooked. Add diced peppers and zucchini to skillet. Sauté vegetables and bacon until vegetables are just beginning to wilt. Turn off heat.
Place tilapia on parchment or foil. Season fish with salt and pepper. Dividing bacon and pepper mixture, top each tilapia fillet. Fold parchment or foil over fish. Fold edges of parchment around open edges, seal tightly, creating a packet.
To bake in oven: Preheat oven to 425 degrees F. Place packets on a baking sheet before placing in oven. Bake 15 to 20 minutes until fish is cooked through an flakes easily. Open packet carefully, allowing steam to escape.
To grill: Heat grill. Place foil packets on grill over medium-hot coals. Cover grill and cook for 15-20 minutes or until fish flakes easily with a fork. Open foil carefully, allowing steam to escape.