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
Visit the official program page

How Arizona compares to the U.S. average

Why this incentive matters more (or less) here - Arizona's solar fundamentals against the national average.

Irradiance
Arizona: 6.5 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Arizona: 13.5¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Arizona: 10.3 yr
U.S. avg: 14.2 yr

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.

-2000 MW0 MW2.0 GW4.0 GW6.0 GW 19972001200520092013201720212024 5.3 GW
Arizona now has about 5.3 GW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Arizona's solar incentive stack

How this net metering sits among Arizona's 4 tracked programs, by type

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.

Source DSIRE incentives registry As of 2024

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.

Frequently asked questions

What is the AZ Net Energy Metering?
The AZ Net Energy Metering is a net metering available to residential solar customers in Arizona. The stated benefit is Retail rate credit.
How does the AZ Net Energy Metering work?
Customers receive bill credits at retail rate for excess solar generation exported to grid.
Who is eligible for the AZ Net Energy Metering?
The program is available to residential customers in Arizona. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Arizona?
Arizona has an estimated 10.3-year payback for a 6 kW system before incentives, with about $1,537/year in modeled savings. A net metering like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Arizona?
Yes - Arizona has 5 solar incentive programs tracked in DSIRE, including AZ Solar Property Tax Exemption, APS Renewable Energy Incentive Program, AZ Residential Solar Tax Credit. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

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.