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Solar by stateSeptember 2026

Solar in Arizona: how the rules work

How Arizona credits the power solar panels send back to the grid, what homes there pay for electricity, and what to check when a home with solar is bought or sold.

Export credit
Net billing
About 37% of retail
Largest utility
Arizona Public Service (APS)
Home electricity
15.4¢/kWh
Rising ~2.3%/yr over 10 years (EIA)
Typical installed price
$2.27/W
State average quote before incentives (EnergySage)

How exported power is credited

Power sent to the grid is credited at an export rate well below retail, often tied to the utility’s avoided cost.

Exports are credited at the Resource Comparison Proxy export rate, 5.554 cents/kWh for new APS customers from Sept 1, 2026 (down 10% from 6.171 cents, the seventh straight annual cut), locked for 10 years at installation, with new-customer rates able to fall up to 10% per year if the ACC approves (share assumes ~15 cents retail). Customers who applied before Sept 1, 2017 keep retail net metering for 20 years; SRP is separate and lower (~3.45 cents).

What changes for a home with solar

A savings estimate that assumes full retail credit for exported power overstates the value of that power for systems on the current rules. Power used in the home still offsets the full retail rate.

Older systems are often grandfathered on earlier, better terms for a set number of years. Which rules a particular system is on depends on its interconnection date, stated in the note above.

Electricity here costs about 15.4¢ per kWh (2026) and has risen about 2.3% a year over the last decade. A lease or PPA escalator above that pace makes the solar payment rise faster than utility rates have.

When a home with solar is sold in Arizona

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Sources

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