Net Billing

Net Metering in Arizona

Current NEM policy, export rates, and impact on solar payback for Arizona homeowners.

NEM Export Rate

$0.058

per kWh

Avg Retail Rate

$0.134

per kWh

% of Retail

43%

compensation

Policy Status

Active

since 2017-07

System Limit

Up to 125% of load

max eligible

NEM Policy Details — Arizona

How Arizona compensates your excess solar generation

Net BillingActive

Arizona ended retail net metering in 2017; investor-owned utilities now use net billing with export rates set by the ACC. Current export rates: APS $0.0617/kWh, TEP $0.0513/kWh, UNSE $0.0612/kWh. The nemRate above is a ~0.058 weighted blend (APS is the largest utility). Rates step down annually on September 1 — APS decreases ~10%/year (ACC-authorized through 2032); TEP and UNSE also reset Sep 1. SRP runs a separate net-billing plan with a much lower export rate of ~$0.0187/kWh for new customers on standard plans — significantly below other AZ utilities.

NEM Rate$0.058/kWh
Retail Rate$0.134/kWh
Savings Gap-7.6c/kWh
Annual True-UpYes

Source: Arizona Corporation Commission; APS/TEP/UNSE rate schedules (2026) · Effective: 2017-07

Calculate Your NEM Savings in Arizona

$

NEM Rate Comparison

$0.00Arizona: $0.058$0.134 (retail)

Arizona's NEM rate is 43% of the retail electricity rate — significantly below retail, consider self-consumption or battery storage.

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Written & reviewed by

Jeremy Wolfe — Senior Solar Energy Analyst

Jeremy Wolfe is a solar energy analyst specializing in residential photovoltaic economics, federal and state incentive policy, and return-on-investment modeling for homeowners. He leads EnergyTools' solar research program and methodology.

  • 10+ years analyzing residential solar economics and payback modeling
  • Lead researcher for EnergyTools' 50-state solar cost-per-watt database
  • Author of 100+ solar ROI, payback, and incentive analyses

Methodology & data sources:NREL PVWatts, EPA FuelEconomy.gov, state utility commissions— updated 2026.