Arizona Net Metering Policy Explained: What Homeowners Need to Know in 2025
- May 6, 2025
- 4 min read
Are you consider
Considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.
When homeowners in Arizona consider installing solar panels, one of the most important topics to understand is net metering — or, more accurately today, net billing. Although Arizona’s policy has changed over the years, it still plays a major role in how much money you can save with solar.
Here’s everything you need to know about the Arizona net metering policy in 2025 and how it affects your solar investment.
1. What Is Net Metering (or Net Billing)?
Net metering is a system where homeowners who generate solar power can send any unused electricity back to the grid in exchange for credits. Traditionally, under full net metering, you would earn a one-to-one credit: every kilowatt-hour (kWh) you sent back to the grid would offset a kilowatt-hour you later pulled from the grid.
However, Arizona moved from full net metering to net billing a few years ago. Under net billing:
You still earn credits for excess solar energy sent back to the grid.
Credits are valued slightly lower than the retail electricity rate.
You use these credits to offset your future electric bills.
Although it is not as generous as older net metering programs, Arizona’s current structure still provides strong financial benefits.
2. How Net Billing Works in Arizona Today
When your solar system produces more electricity than your home uses, the extra energy flows back into the utility grid. You then receive credits on your bill at the utility’s export rate.
Key points:
Export rates are lower than the retail price you pay for electricity.
Rates are typically adjusted annually.
Each utility company (such as APS, SRP, or TEP) sets its own export rate based on market conditions.
Most Arizona homeowners with solar still save thousands over time, but it is important to design your system to maximize self-consumption — meaning using as much of your solar energy directly in your home as possible.
3. Why Arizona’s Net Billing Still Makes Solar Worth It
Despite the move away from full net metering, solar is still absolutely worth it in Arizona. Here’s why:
Arizona receives some of the highest amounts of sunlight in the country.
Electricity rates continue to rise.
Solar panel prices have dropped significantly.
State and federal incentives further reduce installation costs.
When properly designed, a solar system in Arizona still provides an excellent solar panel ROI, often allowing homeowners to break even in just 6 to 8 years.
4. How Solar Battery Storage Can Improve Your Savings
Adding solar battery storage to your system can further protect you against lower export rates.
With a home solar battery, you can:
Store your extra solar power during the day.
Use it at night or during peak utility rate periods.
Reduce your reliance on the grid and maximize your self-consumption.
Installing a solar plus battery system makes even more sense under today’s Arizona net metering policy because it allows you to keep and use more of your energy at full value.
5. What Homeowners Should Watch for in 2025 and Beyond
Arizona’s net billing structure is expected to stay in place, but export rates may continue to adjust annually. Before installing a system, it is important to:
Understand your utility’s specific solar export rate.
Design a system that matches your energy consumption habits.
Consider future electricity needs (such as electric vehicle charging).
At Phoenix Valley Solar, we help homeowners design solar systems that maximize savings under current and future net billing rules.
Final Thoughts: Understanding Net Billing Maximizes Your Solar Investment
While Arizona’s net metering policy has evolved, solar energy remains one of the smartest financial moves homeowners can make.
With strong Arizona solar incentives, the Arizona solar tax credit, falling equipment costs, and smart system design, most homeowners still see strong returns and major long-term savings.
By working with a trusted local installer, you can be sure your system is optimized for Arizona’s current policies — and for your long-term success.
Get the Right Solar System for Arizona’s Net Billing Rules
At Phoenix Valley Solar, we specialize in helping Arizona homeowners:
Maximize self-consumption.
Navigate utility export rates.
Maximize incentives and long-term savings.
Contact us today for a free, personalized consultation and let us show you how solar can still deliver huge financial benefits under Arizona’s evolving net billing structure.
Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.
Comments