Arizona Net Metering Explained: What APS and SRP Customers Need to Know in 2025

Net metering is one of the most important financial levers in your solar decision, and it is also one of the most misunderstood. If you are an APS or SRP customer in the Phoenix Valley and you are considering solar panels, understanding exactly how your utility credits excess production will determine how quickly your system pays for itself. The rules have changed significantly in recent years, and many homeowners in Goodyear, Sun City West, Scottsdale, Surprise, and Fountain Hills are making decisions based on outdated information.

Phoenix Valley Solar is an independent solar broker serving Maricopa County. We do not work for any utility or installer. Our job is to make sure you understand your utility's net metering rules before you commit to a system, and to match you with an installer and rate plan that maximizes your long-term savings. Visit our About page to learn how we work, or use our Arizona Solar Calculator to model your savings under current net metering rules.

What Is Net Metering and How Does It Work in Arizona?

Net metering is a billing arrangement between a solar homeowner and their utility that allows excess electricity generated by your solar panels to flow back into the grid in exchange for credits on your utility bill. When your panels produce more than your home is using, the surplus goes to the grid. When your home needs more than your panels produce, such as at night or on cloudy days, you draw from the grid. At the end of the billing period, you are billed only for the net difference.

In theory, a perfectly sized solar system with full net metering at retail rates would result in a zero electricity bill year-round. In practice, Arizona's two major utilities have made changes to their net metering programs that reduce the value of exported solar energy below the retail rate. Understanding these changes is essential before sizing your system or choosing a rate plan.

APS Net Metering in 2025: How Credits Work for Phoenix Homeowners

Arizona Public Service moved away from full retail net metering several years ago. Under the current APS Solar Export Credit (formerly the Resource Comparison Proxy or RCP), homeowners are compensated for exported solar at a rate that is below the retail electricity rate. As of 2025, APS customers with solar under the standard residential rate typically receive export credits in the range of 7 to 9 cents per kilowatt hour, while they pay 13 to 17 cents or more per kilowatt hour for electricity they draw from the grid.

This means an APS customer in Scottsdale, Goodyear, or Sun City West exporting excess solar production during the middle of the day is earning roughly half of what it costs them to buy electricity back at night. The practical implication is that the ideal solar system for an APS customer is sized to meet your actual consumption rather than to maximize export. Oversizing for export is counterproductive under current APS rules.

APS also offers time-of-use rate plans for solar customers, where the value of electricity varies by the time of day it is consumed or produced. Understanding whether a flat rate or time-of-use plan is better for your specific usage profile is one of the most valuable things a solar broker provides. We model both scenarios for every homeowner we work with.

SRP Net Metering for Solar Customers in the Phoenix East Valley

Salt River Project operates differently from APS. SRP serves much of the East Valley including parts of Scottsdale, Fountain Hills, Gilbert, Mesa, Chandler, and Queen Creek. SRP's solar billing structure requires new solar customers to enroll in its Customer Generation pricing plan, which includes both a solar fee and a different rate structure designed to account for distributed generation.

Under SRP's current Customer Generation plan, solar homeowners pay a monthly fee based on their peak demand plus a lower energy charge for grid electricity. Excess solar is credited at a reduced export rate similar to APS. The result is that SRP solar customers benefit most when they consume as much of their own solar production as possible during daytime hours, minimizing what they both export and import.

For SRP homeowners in Fountain Hills, Scottsdale, and the broader East Valley, a battery storage system paired with solar becomes even more financially compelling under these billing rules, because it allows you to store excess daytime production and use it at night rather than paying SRP for grid power. Read our post on solar lease vs buying solar in Arizona for more context on financing options that maximize your SRP savings.

Why Net Metering Rules Matter for System Sizing

Because APS and SRP pay less for exported solar than they charge for grid electricity, the financial optimization for Phoenix Valley homeowners is to size the system to offset consumption rather than to maximize production. A properly sized system generates roughly as much electricity over the year as your home uses, so you minimize both imports from the grid and low-value exports.

Unfortunately, many solar salespeople push oversized systems because they earn more commission on larger installations. An independent solar broker has no incentive to upsize your system beyond what is financially optimal. At Phoenix Valley Solar, every system we recommend is sized based on your 12-month utility bill history, your roof's actual production capacity, and your utility's current export credit rate.

Net Metering and the Prepaid Solar Lease: How Credits Pass Through

Homeowners who choose the prepaid solar lease model still benefit from net metering. Under the prepaid lease structure, you receive the full benefit of the solar production on your roof. Your utility account is still in your name, and any net metering credits from excess production still flow directly to your bill. The lease arrangement does not change your relationship with APS or SRP for billing purposes.

With the prepaid lease at a 30 percent discount, your effective cost per kilowatt hour of solar production is even lower than a purchased system because you paid less upfront. Combined with net metering credits for modest excess production, many Maricopa County homeowners in Surprise, Sun City, Sun Lakes, and Sun City West find that their net APS or SRP bill drops to near zero during the spring and fall shoulder seasons when solar production peaks and home energy usage is lower.

How to Choose the Right Solar Rate Plan Before You Install

Before a single panel goes on your roof, you should know exactly which rate plan you will be on after installation, how your exports will be credited, and what your projected annual bill will look like on that plan. This rate plan analysis is something every Phoenix Valley Solar client receives as part of our free broker consultation. We review your last 12 months of APS or SRP bills, model multiple rate plan scenarios, and make sure your system is designed around the plan that maximizes your savings.

To get started with a free consultation and rate plan review, visit our contact page. We serve homeowners across Maricopa County including Goodyear, Surprise, Sun City West, Scottsdale, Fountain Hills, Sun City, and Sun Lakes.

Frequently Asked Questions

Does Arizona have net metering for solar panels?

Yes, but the rules have changed. Both APS and SRP offer solar export credits, but at rates below retail. APS uses a Solar Export Credit and SRP uses a Customer Generation plan that prices exported solar at a reduced rate compared to what you pay for grid electricity.

How much does APS pay for excess solar in 2025?

APS currently pays approximately 7 to 9 cents per kilowatt hour for excess solar exported to the grid, while charging 13 to 17 cents or more for grid electricity. The exact rate depends on your rate plan and when the export credit was locked in.

Is net metering still worth it in Arizona?

Yes, net metering credits still meaningfully reduce your bill and improve solar ROI. The key is sizing your system correctly so you maximize self-consumption rather than over-exporting at reduced credit rates.

Does SRP have net metering for solar?

SRP offers solar billing through its Customer Generation plan rather than traditional net metering. Excess solar is credited at a reduced export rate and customers pay a monthly demand-based fee. Pairing solar with battery storage is especially effective for SRP customers.

Can a solar broker help me choose the best APS or SRP rate plan?

Yes. Phoenix Valley Solar reviews your 12-month utility bill history and models multiple rate plan scenarios before recommending a system. Choosing the right rate plan before installation is one of the most impactful financial decisions in your solar project.