Arizona net metering explained

{ "title": "Arizona Net Metering Explained: How Homeowners Get Credit for Solar Energy", "metaDescription": "Learn how Arizona net metering works, what credits you earn for excess solar power, and how to maximize savings on your electric bill.", "body": "# Arizona Net Metering Explained: How Homeowners Get Credit for Solar Energy\n\nIf you're thinking about going solar in Arizona, you've probably heard the term net metering. It sounds technical, but the core idea is simple: when your solar panels produce more electricity than your home uses, the extra power flows back to the grid — and you get credit for it. Those credits reduce your future electric bills.\n\nArizona has its own rules around how this works, and they've changed in recent years. This guide breaks down everything a homeowner needs to know before signing a solar contract.\n\n---\n\n## What Is Net Metering and How Does It Work?\n\nNet metering is a billing arrangement between you and your utility company. Your electric meter tracks two things:\n\n1. How much power you pull from the grid (when your panels aren't producing enough)\n2. How much power you send back to the grid (when your panels produce more than you need)\n\nAt the end of each billing period, your utility subtracts what you sent from what you used — that's the "net." If you sent more than you used, you carry a credit forward. If you used more, you pay only for the difference.\n\nThe result: your solar system keeps working for you even at night or on cloudy days, because you're drawing on credits you built up during sunny hours.\n\n---\n\n## Arizona's Current Net Metering Rules\n\nArizona's net metering landscape shifted significantly after the Arizona Corporation Commission (ACC) made changes in 2017. Here's what that means for residential customers today:\n\n- Credit rate: Most customers no longer receive full retail-rate credit for exported energy. Instead, utilities compensate exported solar at a lower rate — called an export rate or avoided-cost rate — which is less than what you pay to buy power from the grid.\n- Grandfathering: Customers who enrolled in net metering before the 2017 changes were grandfathered under the old rules for a set period. If you're a new customer, the current export rates apply.\n- Utility differences: Arizona's two largest investor-owned utilities — APS (Arizona Public Service) and TEP (Tucson Electric Power) — each have their own specific export compensation rates approved by the ACC. Those rates can change, so always confirm the current rate directly with your utility before finalizing a solar contract.\n- No expiration on credits (generally): Credits typically roll forward month to month, but policies on annual true-ups vary by utility. Ask your installer how your specific utility handles unused credits at year-end.\n\nBecause rates vary and continue to evolve, connecting with a knowledgeable solar advisor before you buy is important. Chat with our team to learn what rates apply in your area →\n\n---\n\n## How to Maximize Your Net Metering Credits\n\nEven with lower export rates, smart solar owners can still see significant savings. Here are practical ways to get more value:\n\n- Right-size your system. If you generate far more power than you use, excess energy earns credits at a lower rate. A well-sized system maximizes self-consumption first.\n- Shift energy use to daytime. Running dishwashers, laundry, and EV chargers during peak production hours reduces how much you pull from the grid.\n- Add battery storage. A home battery lets you store excess solar for evening use instead of exporting it at a low rate. This is increasingly popular under Arizona's current export compensation structure.\n- Monitor your production. Most modern inverters come with apps that show real-time output. Tracking your system helps you catch underperformance early.\n\n---\n\n## What to Ask Before You Sign a Solar Contract\n\nNot all solar proposals are created equal. Before you commit, ask your installer these questions:\n\n- What export rate will I receive under my utility's current tariff?\n- How is my system sized relative to my annual usage?\n- Does this proposal include battery storage, and what's the ROI difference?\n- What happens to unused annual credits?\n- Are there any interconnection fees or grid access charges I should know about?\n\nIf an installer can't answer these clearly, that's a red flag. Our intake process can help you compare proposals and spot gaps — start here for free →\n\n---\n\n## Frequently Asked Questions About Arizona Net Metering\n\n### H3: Does Arizona still have net metering?\n\nArizona still has a form of net metering, but it's changed. Most new residential customers receive a below-retail export rate for power sent to the grid rather than a full retail credit. The exact rate depends on your utility (APS, TEP, or a co-op) and is set by the Arizona Corporation Commission.\n\n### H3: How much money can I save with solar in Arizona?\n\nSavings vary based on your system size, energy usage, utility rates, and the current export compensation rate. Arizona's abundant sunshine typically means high production, which can translate to meaningful bill reductions — but we can't promise specific dollar amounts. A personalized quote from a licensed installer is the best way to get real numbers.\n\n### H3: Is net metering the same for APS and TEP customers?\n\nNo. APS and TEP each have their own export rates approved by the ACC, and those rates are different. Always ask your installer to show you the specific tariff that applies to your address and utility.\n\n### H3: What happens if I produce more solar than I use in a year?\n\nPolicies vary by utility. Some utilities provide a small payment for large annual surpluses; others may simply zero out the balance. Confirm your utility's annual true-up policy before sizing your system.\n\n### H3: Should I get battery storage in Arizona?\n\nBattery storage has become more attractive in Arizona since export rates dropped. By storing excess solar instead of exporting it, you can use that power in the evening at full value rather than selling it back at a lower rate. Whether it's right for you depends on your budget and energy goals — this is worth discussing with a qualified installer.\n\n---\n\n## Ready to See If Solar Makes Sense for Your Home?\n\nArizona's strong sun and evolving net metering rules make solar a real option for many homeowners — but the details matter. The right system size, the right utility tariff knowledge, and the right contract terms all affect your return.\n\nTalk to our 24/7 AI to see if you have a strong case for going solar — free, no obligation. → Start free intake" }