APS Solar Policy & Net Metering Guide (2026)

Complete solar policy guide for APS customers in Arizona. Review net metering rates, export compensation, interconnection fees, and available solar programs.

avoided_cost Net Metering Type
$0.03/kWh Export Compensation
$50 Interconnection Fee
1,300,000 Customers Served
$0.24/kWh Peak Rate (TOU)
$0.06/kWh Off-Peak Rate (TOU)
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Solar Policy Details for APS

PolicyDetails
Net Meteringavoided_cost
Export Compensation$0.03/kWh
Interconnection Fee$50
Time-of-Use RatesYes (Peak: $0.24, Off-Peak: $0.06)
Net Metering CapNot yet reached
Renewable ProgramAvailable
Battery IncentiveAvailable
EV Rate ProgramAvailable

Maximizing Solar Savings with APS

Time-of-Use Rate Optimization

APS uses time-of-use rates with peak pricing at $0.24/kWh and off-peak at $0.06/kWh. Solar panels produce the most energy during peak afternoon hours when rates are highest, maximizing your bill savings. Adding battery storage lets you store excess solar energy and use it during expensive peak periods.

Export Compensation

When your solar system produces more electricity than you use, the excess is exported to the grid. APS compensates you at $0.03/kWh for exported energy under their avoided_cost policy.

Battery Storage Benefits

APS offers battery storage incentives. A home battery system can store excess solar energy for use during peak rate periods or grid outages, improving your return on investment and energy independence.

State Incentives in Arizona

In addition to APS's policies, Arizona homeowners can access:

  • Federal ITC: 30% tax credit on solar installation
  • State Tax Credit: 25% additional state credit
  • State Rebate: $1,000 direct rebate
  • Property Tax Exemption: Solar increases home value without raising property taxes
See All Arizona Incentives

Frequently Asked Questions

APS offers net metering with a "avoided_cost" rate structure. Export compensation is approximately $0.03/kWh.
The interconnection fee for APS is approximately $50. This is a one-time fee to connect your solar system to the grid.
APS offers time-of-use (TOU) rates. Peak rate: $0.24/kWh. Off-peak rate: $0.06/kWh. Battery storage can help you shift usage to off-peak hours.
Yes, APS offers battery storage incentives. Pairing solar with battery storage can maximize your savings by storing excess energy for use during peak rate periods.
APS serves approximately 1,300,000 customers in Arizona.

SolarSavingsAI Research Team

Solar Energy Analysts

Our team analyzes solar incentive data from federal (DOE, IRS), state (DSIRE), and utility sources to provide accurate savings estimates. Data is reviewed quarterly and cross-referenced with NREL benchmarks.

Sources: DOE, IRS, DSIRE, NREL, EIA Updated: 2026 Full Methodology Editorial Standards

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