Arizona Public Service (APS): how it credits the solar power you send to the grid
6.17 cents per kWh for applications from September 1, 2025 through August 31, 2026, locked for 10 years. The rate is reset for new applicants every September 1 and has fallen every year since 2017.
Checked November 12, 2026. Utilities change these rules; check the current tariff before you sign.
How it works
Arizona Public Service (APS) credits exported power at 6.17 cents per kWh, about 40% of Arizona's average electricity price.
APS buys every kWh your system sends out at its Resource Comparison Proxy rate, while you pay full price for what you take from the grid.
The rate you get is fixed for 10 years from your application, so applying before a September 1 reset locks in the higher number.
Since exports earn far less than APS's retail prices, using power while the sun is up is worth more than sending it out.
Tip: Submit the interconnection application before September 1 if a quote assumes this year's rate.
What it means for a typical Arizona home
An average Arizona home uses about 12,360 kWh a year. A 6.5 kW system costs about $16,705 at the 2026 median price and makes about 11,408 kWh in its first year, of which we assume about 6,845 kWh goes out to the grid because no one is home to use it.
| First-year savings | Payback | 25-year savings, after the price | |
|---|---|---|---|
| With Arizona Public Service (APS)'s credit | $1,119 | 16 years | $16,443 |
| If every exported kWh earned the full price | $1,741 | 9 years | $36,340 |
The difference, about $19,896 over 25 years, is what Arizona Public Service (APS)'s rules cost a typical system compared with full net metering. Using more of the power at home, while the sun is up, closes some of that gap. Uses Arizona's average electricity price; Arizona Public Service (APS)'s own prices may be higher or lower. Paid in cash, no federal credit, prices rising 2.5% a year, one inverter replacement.
Also in Arizona: Tucson Electric Power (TEP) (5.1¢), Salt River Project (SRP) (3.45¢).
All 55 utilities · Solar in Arizona · Lease and PPA terms by company
Sources: Palmetto: Arizona utility guide; U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); EnergySage: median quoted price, first half of 2026.