Net Metering in Arizona (2026)
Arizona uses Net billing. Arizona replaced retail net metering with net billing in 2017; exports earn a lower export rate that steps down annually, though excellent sun keeps payback strong.
| Policy type | Net billing |
|---|---|
| Export compensation | Below-retail export credit set by tariff |
| Retail electricity rate | ~16¢/kWh |
| Est. annual production per kW | ~1,650 kWh/kW/yr |
Policy status reflects the statewide standard as of 2026. Actual export rates and program caps vary by utility — confirm with your provider.
What this means for your payback
Since Arizona pays less than retail for exports, self-consumption is where the money is. Every kWh you use in your home is worth the full ~16¢/kWh, while exported kWh earn less — so a home battery that shifts midday production into evening use materially improves payback here, unlike in full retail net-metering states.
2026 reality check: the 30% federal tax credit for purchased home solar ended Dec 31, 2025. With that gone, net metering policy and any Arizona state incentives are now the main levers on your solar ROI. Run the numbers on your actual utility bill before signing anything.
See full solar costs & payback for Arizona
Solar panel cost in Arizona →Arizona net metering FAQ
Does Arizona have net metering?
Not in the traditional 1:1 sense. Arizona uses net billing, crediting exported solar below the retail rate. Arizona replaced retail net metering with net billing in 2017; exports earn a lower export rate that steps down annually, though excellent sun keeps payback strong.
What is Arizona's solar export rate?
Below retail. Arizona replaced retail net metering with net billing in 2017; exports earn a lower export rate that steps down annually, though excellent sun keeps payback strong. As a rule, plan your system around using power on-site rather than banking exports at 16¢/kWh.
Do I need a battery to make solar worth it in Arizona?
A battery helps a lot here. Because Arizona pays less than retail for exports, storing midday solar and using it at night captures far more value than exporting it, shortening payback.
Is solar still worth it in Arizona now that the federal tax credit is gone?
Often, yes. The 30% federal credit for purchased systems ended Dec 31, 2025, so Arizona's net billing plus any state incentives are now the main drivers of payback. At ~16¢/kWh and about 1,650 kWh produced per kW each year, run the numbers on your own bill before deciding.