A Guide to Going Solar with Arizona Public Service (APS)

If you’re an APS customer planning to go solar, it helps to know what’s involved and what to expect. And with another reduction coming with APS solar buyback rates in September of 2025, as well as a new request to raise rates by 14% in 2026, we thought reviewing the current state of Arizona's largest utility would be wise. 

In this guide, we cover everything you need to know, including APS’s net billing program, solar rate plans, steps to going solar with APS, and more. 

Does APS Offer Net Metering?

APS no longer offers traditional net metering, but homeowners can still benefit from its net billing program. 

Net billing works similarly to net metering: when your solar panels generate more electricity than your home uses, the excess power is sent back to the grid and earns a monthly bill credit. These credits can be applied to future electricity bills when your system isn’t producing enough power (e.g. at night or on cloudy days).          

That said, the value of your solar credits is lower under net billing than it was under net metering. Instead of receiving the full retail rate, excess electricity is credited at a reduced rate known as the Resource Comparison Proxy (RCP) export rate. This rate is re-assessed annually by the Arizona Corporation Commission and has been reduced by 10% every September since 2017, with the exception of 2020 due to the pandemic. Another reduction is expected this September, justafew weeks away.

The good news: if you sign an APS solar interconnection agreement before the critical deadline, you'll be shielded from further reductions for ten years. Doing so would also set you up to receive the 30% solar and battery tax credit before it expires at the end of 2025.

Learn More: Beat the Clock—APS Solar Buy-Back Drops on Sept 1!

Understanding APS’s Net Billing Structure

Net billing doesn’t offer the same one-for-one savings as the old net metering system, but it can still offset a large portion of your energy costs. Let’s take a closer look at how net billing works under APS. 

Resource Comparison Proxy (RCP) export rate

APS uses a billing structure called the Resource Comparison Proxy (RCP) to determine the value of any excess electricity your solar panels export to the grid. 

As of 2025, that rate is $0.06857 per kilowatt-hour (kWh) exported. That means exported solar power is credited at roughly half the retail rate of $0.12 per kWh. So, while solar energy that’s used immediately in your home offsets the full cost of retail electricity, any unused energy sent back to the grid earns a reduced credit. 

The best way to maximize solar savings under APS’s plan is to use as much of your solar energy as possible during the day, when your system is generating the most power.

Time-of-Use (TOU) rate plans

All APS customers who install solar panels are required to enroll in a time-of-use (TOU) rate plan, where electricity is more expensive during peak demand hours (typically between 4 PM and 7 PM). 

APS currently offers two TOU rate plans:

* Charged based on the highest 1-hour usage during on-peak times each month.

TOU-E is better if you can avoid using large appliances during peak hours. TOU-Demand offers cheaper rates overall, but includes a demand charge if you use a lot of energy at once during a single 60-minute window during on-peak hours. To avoid high demand charges, you can stagger the use of major appliances like air conditioning, dishwashers, or EV chargers. Or add a battery and go “off-grid” during on-peak hours to avoid the higher rates all together.  

Solar buyback rate options 

When you go solar with APS, you’ll choose one of two buyback options for excess energy your system produces:

• RCP export rate: In this option, your credits roll over month to month. If your annual credit exceeds $25, you’ll receive a check from APS. If your annual credit is under $25, it’ll roll over to the next year. The credit amount also depends on the purchase rate you were placed on when you applied for your solar system.
• Renewable Energy Net Billing (EPR-2): Here, the credit value varies between on-peak and off-peak seasons, and credits roll over monthly. This option is often used for more complex billing setups. 

Most homeowners choose the RCP rate because it’s more simple and consistent. 

Solar production vs. credits

Your solar system’s energy production is different to the credits you receive from APS:

• Production refers to how much electricity your solar system produces overall
• Credit refers to any excess electricity you don’t use that’s exported back to the grid. 

APS tracks both these values and applies the credits to your bill each month.

Other things to note about billing when you’re an APS solar customer

Some other things worth noting when transitioning to solar are:

• APS reviews its net billing rates annually every September, with updates taking effect on September 1. The RCP rate decreases by 10% each year.
• Once your solar system is connected, your rate is locked in for 10 years. This means that going solar sooner will likely lock you into a better rate.
• Budget Billing, which uses the average of your monthly energy use to keep bills consistent, isn’t currently available for solar customers.  

Steps to Going Solar with APS

Qualified solar companies will take care of most of the paperwork and coordination with APS, so there’s not much you need to do when it comes to setting yourself up. Still, it’s helpful to understand the steps involved in the process so you know what to expect.  

Step 1. Choose an experienced solar installer

Before anything else, it’s important to partner with a trusted solar provider who understands APS’s policies, rate plans, and interconnection requirements. A qualified solar installer will: 

• Evaluate your energy needs based on your past APS bills
• Design a solar system that fits your home, budget, and energy goals
• Walk you through any applicable solar incentives, tax credits, rebates, and APS programs 
• Handle all documentation and communication with APS. 

Look for companies that are licensed, bonded, insured, and APS-approved. Local knowledge goes a long way, especially when it comes to navigating APS rate plans and handling permits and approvals. You can view a list of APS Qualified Technology Installers here. 

To learn more about how to choose a reputable solar provider, you can also read our article: How to Choose the Best Solar Installation Company For Your Home. 

Step 2: Submit an interconnection application to APS

Once you’ve found a trusted local installer, they’ll submit an interconnection application to APS on your behalf. This application outlines your system’s design and technical details. In addition to the application, APS requires:

• A copy of your signed installation contract
• A site plan showing the solar panel layout
• An electrical three-line diagram of the system
• A completed authorization form.

In most cases, the application will be approved without revisions. But if your system includes a battery or other advanced features, APS might ask for some changes before the final design is approved.

Step 3: Get approval and begin installation

Once APS approves your application, you can proceed with installation. Most standard systems move forward without delay, but if your system includes battery storage there can be a bit more back-and-forth. APS reviews battery system designs in more detail to make sure they’re safe and compatible with the grid. 

Solar installation can take anywhere between one to three days, depending on your roof and the complexity of your system. Your installer will also coordinate any necessary city inspections or building permits during this phase.

Step 4: Submit final documentation

With solar installed, your solar will submit final documents to APS to confirm that the system: 

• Matches the approved design
• Meets all safety and electrical code requirements
• Is ready for inspection. 

This essentially tells APS that your solar system is complete and ready for their final review - a process commonly known as Permission to Operate, or PTO. 

Step 5: APS inspection and meter installation

APS will then schedule a site visit to inspect your system and install a bi-directional meter. This special meter tracks how much electricity you use from the grid, and how much excess solar energy you export to the grid. 

The inspection makes sure that your solar system was installed correctly and safely. If APS finds any issues, they’ll notify your installer to make corrections and schedule a reinspection.

Step 6: Receive permission to operate

Once your system passes inspection and the new meter is in place, APS will send you an official Permission to Operate (PTO). You’ll usually get both an email and a door hanger letting you know that you’re cleared to turn your system on. 

Now, your home can finally begin generating clean solar energy and you can start seeing the benefits on your energy bill. 

What’s The Timeline?

The full interconnection process with APS can take between one and four weeks, depending on your system design and APS response times. This timeline can extend during busy times of year such as summer or year-end. If you’re including batteries or other smart components, it can also add a bit more time, but your installer will manage communications and keep things moving.  

Should APS Customers Get a Solar Battery?

If you’re an APS customer considering solar, it may be worth adding battery storage to your system. 

As we mentioned earlier, APS’s net billing program compensates you at a lower rate for the excess energy you send back to the grid. With a solar battery, you can store that excess energy and use it later during more expensive on-peak hours to reduce your reliance on grid electricity when rates are higher.

Another key benefit of a solar battery is that you can continue powering essential appliances, like your fridge, Wi-Fi, or medical devices, during a power outage. Of course, a solar battery also allows you to power more of your home with renewable energy. If the environmental benefits of solar power are important to you, a battery can help reduce your carbon footprint even more. 

Keep Reading: Should I Get Battery Storage for My Solar Energy System?

That said, a solar battery requires an upfront investment which may not be suitable for everyone. If you’re thinking about battery storage, consider whether it makes financial sense and aligns with your energy goals. Your solar installer should be able to show you options for various batteries and the respective payback periods you can achieve through different scenarios. 

Going Solar With APS: Next Steps

OK, so your solar system is up and running. What next? 

Understanding your new APS bill

Even with solar panels, your home stays connected to the APS grid to make sure you have access to reliable energy at night or during cloudy weather. You’ll continue to receive a monthly bill, only it will look a little different to reflect your new solar setup. 

Here’s what you’ll see on your new bill:

• Rate plan: Remember, you can choose between two TOU options: Time-of-Use 4pm-7pm Weekdays, or Time-of-Use with Demand Charge

• Energy use breakdown: This lets you view your energy usage and costs by time of day, along with comparisons to past usage

• Renewable Rider (Buyback Rate): Any excess energy your system sends to APS is credited to your account, helping reduce your monthly bill

• Grid Access Charge: This is a fixed monthly fee to help maintain grid reliability. 

Start shifting energy use for more savings

You can maximize your solar savings by using electricity when your system is generating the most power, usually during daylight hours. You’ll also save more by running large appliances like your washer, dryer, or oven, during off-peak hours when electricity rates are lower. 

Monitor your solar system’s performance

Now that you have solar panels in place, it’s important to regularly check your system’s performance and make sure everything is working as it should. You can: 

• Log into your APS account to view how much energy your system has sent to the grid
• Use your installer’s app to track solar production
• Contact your installer if you notice unusual dips in performance, especially if it’s a sunny day.

Remember to keep all your warranty documentation handy for panels, inverters, and batteries, just in case.

See: Solar Performance Monitoring - Best Practices

Know what to do if… 

You want to make an upgrade

Solar panels will last upwards of 25 years or more, but you may need to replace inverters or batteries sooner. If you plan to upgrade your system in the future:

• Submit an application to APS for any upgrades that increase your system size by more than 1 kW or 10%
• Email renewables@aps.com if you're making smaller changes to request an Equipment Amendment Form. 

There’s a power outage

If the grid goes down, APS automatically shuts off power in affected areas to keep you safe. This means your solar system will also shut down, unless you have a battery or generator. If you have a solar battery, it’ll automatically kick in to power appliances when the grid is down. 

Learn More: What Happens if You Have Solar and the Power Goes Out?

You need to sell your home

Homes with solar power often sell faster and at a higher price than homes without. If you plan to sell your solar home, read our article to know what to expect from the process: Selling Your Home With Solar Panels: Expert Guide 2025.

Start Your Solar Journey with APS Qualified Technology Installers 

At Sun Valley Solar Solutions, we’ve been helping APS customers go solar for more than a decade. We’re an APS Qualified Technology Installer and we understand the ins and outs of APS’s net billing program, rate plans, and interconnection process. Whether you’re looking to reduce your electricity bills, increase your energy independence, or simply harness the power of Arizona’s sun, we’ll help make your transition to solar power smooth and stress-free. Contact us today for a free solar consultation.