Arizona · Net metering
AZ Net Energy Metering
Sets the billing terms for excess solar generation sent back to the grid by residential customers in Arizona -- see the credit rate and how it shapes payback below.
- Retail rate credit
- stated benefit
- Residential
- eligible customers
- 10.3 yr
- Arizona baseline payback
- 4
- other Arizona programs
What it means
In Arizona, a 6 kW system already pays back in about 10.3 years on ~$1,537/year of modeled savings, and the AZ Net Energy Metering stacks on top of that, on top of any federal credit.
- Retail rate cr…
- stated benefit
- 10.3 yr
- baseline payback (pre-incentive)
- 5
- Arizona programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Customers receive bill credits at retail rate for excess solar generation exported to grid.
Program at a glance
- Program type
- Net metering
- Eligible customers
- Residential
- Stated benefit
- Retail rate credit
- State electricity rate
- 13.5¢/kWh
- Arizona solar score
- 61/100
How Arizona compares to the U.S. average
Why this incentive matters more (or less) here - Arizona's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Arizona
The market this incentive operates in: total installed solar capacity in Arizona reported to the EIA.
Arizona's solar incentive stack
How this net metering sits among Arizona's 4 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- Rebate
Rebate
1 programs
- Tax credit
Tax credit
1 programs
What this shows Arizona tracks 4 incentive types; net metering (1 program) governs the billing side, while the state's other tracked types handle upfront cost or ongoing payments.
How this incentive fits Arizona's solar picture
The AZ Net Energy Metering governs how Arizona credits excess solar generation sent back to the grid, one of the state's DSIRE-tracked solar policies. Eligibility is scoped to residential customers, with a stated benefit of Retail rate credit. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Arizona averages 6.5 kWh/m²/day of usable sunlight and residential rates of 13.5¢/kWh, producing an estimated 11,388 kWh/year and $1,537 of annual utility offset on a typical 6 kW system costing $15,900. That baseline already implies a 10.3-year simple payback and a 25-year modeled net of roughly $22,525 before this incentive - every dollar this net metering delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. Arizona has 5 solar incentive programs indexed in DSIRE, including adjacent options like AZ Solar Property Tax Exemption, APS Renewable Energy Incentive Program, AZ Residential Solar Tax Credit. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See Arizona's full solar profile, score, irradiance, rates, payback, and every program you can claim. Arizona solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- See how net-metering credits are valued state by state. Net-metering guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other Arizona incentives
Frequently asked questions
What is the AZ Net Energy Metering?
How does the AZ Net Energy Metering work?
Who is eligible for the AZ Net Energy Metering?
How does this incentive affect solar ROI in Arizona?
Are there other solar incentives in Arizona?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.