If you're an APS (Arizona Public Service) customer considering solar, understanding how APS credits your exported electricity is essential to accurate savings calculations. The short version: APS pays approximately $0.068 per kWh for solar you send back to the grid — less than half the retail rate you pay for electricity.
This gap between what you earn for exports and what you pay for consumption makes self-consumption the primary value driver for APS solar customers. The electricity you use directly from your panels saves you $0.15/kWh; the electricity you export earns you only $0.068/kWh.
For a full picture of all incentives available to APS solar customers, see our complete Arizona solar incentives guide. And to see how APS rates factor into your personal savings estimate, use our solar savings calculator.
APS Territory: Are You an APS Customer?
APS serves most of metropolitan Phoenix including Scottsdale, Chandler, Glendale, Peoria, Surprise, Goodyear, Avondale, Tempe (parts), and Flagstaff. If you're unsure, your utility bill will identify your provider. Note that Mesa, Gilbert, most of Chandler, and parts of Tempe are served by SRP — not APS. See our SRP solar plan guide if you're an SRP customer.
From Net Metering to Net Billing: What Changed
Arizona once had true net metering, which credited solar exports at the full retail rate (approximately equal to what you pay for electricity). APS transitioned away from this model starting around 2017 following a series of Arizona Corporation Commission decisions.
Today, APS uses a net billing model with an export rate set by the Resource Comparison Proxy (RCP) — an estimate of what APS's cheapest alternative energy source would cost. This is significantly lower than retail, and it's why self-consumption now matters so much for APS solar customers.
Current APS Solar Buyback Rate (2026)
| Program | Export Credit Rate | Retail Rate | Notes |
|---|---|---|---|
| APS Net Billing (RCP) | ~$0.068/kWh | ~$0.15/kWh | Current standard rate |
| SRP Export Credit | ~$0.065/kWh | ~$0.14/kWh | Comparison |
| TEP Net Billing | ~$0.057/kWh | ~$0.13/kWh | Comparison (Tucson) |
Note: The RCP rate is updated periodically by the Arizona Corporation Commission. The rate shown reflects the 2026 APS filing. Verify current rates with APS directly for the most up-to-date figure.
APS Rate Plans for Solar Customers
Choosing the right APS rate plan is just as important as choosing the right solar system. The wrong rate plan can significantly reduce your savings even with a properly sized system.
Saver Choice (Standard Rate Plan)
APS's basic rate plan with a tiered usage structure. Monthly service charge plus energy charges by usage tier. Solar customers on this plan benefit from reduced energy charges during daylight hours. Generally the simplest option for smaller systems without time-of-use complexity.
Saver Choice Plus (Time-of-Use)
A time-of-use rate plan where on-peak rates (typically 4–7 PM weekdays) are higher, while off-peak rates are lower. Solar production during afternoon hours helps offset some of the highest-priced electricity. Works well for households that use most electricity in the morning and evening.
Saver Choice Max
A demand-charge rate plan where your bill includes both energy charges (per kWh) and a demand charge (based on your peak 15-minute usage in the month). This plan can be problematic for solar customers because even one high-demand moment (running AC + oven + EV charger at the same time) can result in a high monthly demand charge that solar doesn't directly mitigate — unless you have a battery.
See Your APS Solar Savings
Our calculator uses current APS net billing rates to give you an accurate savings estimate.
Calculate My APS Savings →System Sizing Strategy for APS Customers
Because exports earn less than consumption saves, the optimal APS solar strategy is to size your system to cover approximately 80–95% of your annual consumption — not to massively overshoot it. An oversized system produces more than you can consume, and that excess is exported at the low $0.068/kWh rate rather than offsetting your $0.15/kWh bill.
The sweet spot: size your system so that most of what you produce is consumed directly, with modest exports during peak solar production hours (around midday). Our calculator helps you find this optimal size.
APS Interconnection: How to Connect Your System
APS requires an interconnection application before your system can be activated. The process typically takes 4–8 weeks and includes:
- Your installer submits an interconnection application to APS on your behalf
- APS reviews the application (technical compatibility check)
- APS issues approval with any conditions
- System installation and city inspection
- APS final inspection and Permission to Operate (PTO)
- APS installs a bi-directional meter (at no cost to you)
How to Read Your APS Solar Bill
After going solar, your APS bill will show several new line items:
- Energy Delivered: kWh you consumed from the grid
- Energy Received: kWh your system exported to APS
- Solar Export Credit: Dollar value of your exports at the RCP rate
- Net Energy Charge: Energy delivered minus export credits
- Monthly Service Charge: Fixed charge all APS customers pay regardless of solar
Battery Storage and APS Rates
A home battery is increasingly valuable for APS solar customers on demand-charge or time-of-use rate plans. A battery lets you:
- Store midday solar production for evening use (avoiding buying peak-hour power)
- Reduce demand peaks (critical on Saver Choice Max)
- Provide backup power during monsoon-season outages
The federal ITC applies to batteries when they're solar-charged, making the after-credit cost more reasonable. Read more in our guide on Arizona solar payback periods.
APS vs SRP: Quick Comparison for Solar Customers
| Factor | APS | SRP |
|---|---|---|
| Export credit rate | ~$0.068/kWh | ~$0.065/kWh |
| Retail rate | ~$0.15/kWh | ~$0.14/kWh |
| Demand charges available | Yes (opt-in) | Yes (some plans) |
| Interconnection timeline | 4–8 weeks | 4–8 weeks |
| Monthly fixed charge | ~$15/month | ~$20/month |
For a deep dive on SRP's programs, see our SRP solar rate plan guide. For more on how to choose the right installer who understands your APS rate structure, see our Arizona solar installer guide.
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