Arizona · Net metering · Deep-stack program

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
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Deep-stack program · mid directory

Arizona runs a 5-program DSIRE stack; this net metering is one layer on a 10.3-year modeled baseline, not the whole story.

  • Stack5 programs
  • In-state #2/4
  • Type #2/46
  • Baseline10.3 yr

In-state directory place #2 of 4 (mid alphabet). National net metering directory #2 of 46. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.

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

Solar's trajectory in Arizona

The market this incentive operates in: total installed solar capacity in Arizona reported to the EIA.

0 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 net metering layers inside Arizona's deep stack

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.

Arizona bundles a deep incentive stack, so this program rarely stands alone. 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.

Frequently asked questions

Where does the AZ Net Energy Metering sit in Arizona's deep program stack?
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 this net metering work beside Arizona's other programs?
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. In-state directory place #2 of 4 (mid alphabet).
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.
Which other Arizona programs stack with this one?
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 · Arizona solar data · ROI calculator · All incentives.