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Solar · Utility Guide

Solar with Arizona Public Service

APS ended retail net metering in 2017. What you get instead is an export rate that steps down almost every September, and a 10 year lock on whatever rate you catch when you apply.

EIA + public rate data Updated annually

The APS export rate only moves one direction

  1. 2017

    APS replaces retail net metering with net billing at the Resource Comparison Proxy rate, an avoided cost figure set by the Arizona Corporation Commission.

  2. Most Septembers

    The RCP steps down by up to 10 percent. It has dropped nearly every year since 2017, with 2020 the exception.

  3. 2024 to 2025

    The rate sits around 6.85 cents per kWh, roughly 60 percent of the retail average, then falls to about 6.17 cents on September 1, 2025.

  4. Your application date

    Whatever rate is current when you submit interconnection locks for 10 years. Earlier adopters keep richer export credits; waiting means locking a lower one.

APS rates: modest climb, big footprint

Arizona Public Service's average residential electricity price has risen from 12.93 cents per kWh in 2015 to 17.03 cents in 2025, an increase of about 32 percent, or roughly 2.8 percent per year. The chart shows APS's average residential price by year. Hover any point for the exact figure.

APS residential price by year
Average residential price, cents per kWh. Source: EIA Form 861 (per-utility) and EIA retail-sales data (state average).

Current residential rates

APS residential rates are shown below, from the utility's published tariffs and the public Utility Rate Database. Rates vary by plan, season, and usage and change over time.

PlanEnergy chargeFixed / basic
R-1 Fixed Energy Charge (large/Tier 3 usage, 1,000+ kWh/mo avg)15.418 cents/kWh flat$0.458/day basic service charge (~$13.93/mo)
R-1 Fixed Energy Charge (medium/Tier 2, 600-1,000 kWh/mo)14.052 cents/kWh flat$0.458/day basic service charge (~$13.93/mo)
TOU-E Time-of-Use (4-7pm weekday peak)On-peak 34.396 cents (summer) / 32.543 cents (winter); Off-peak 12.345 cents (summer) / 12.351 cents (winter); winter Super Off-peak 3.495 cents per kWh$0.458/day basic service charge (~$13.93/mo)

Rates are APS bundled tariff charges effective March 8, 2024 (ACC Decision No. 79293; R-1 = A.C.C. No. 6148, TOU-E = A.C.C. No. 6154). The per-kWh energy charges shown are the bundled tariff rates before monthly adjustor/rider line items (fuel, etc.); the all-in effective rate a customer pays is higher, which is why the EIA average residential price (16.45 cents/kWh for 2024) exceeds the flat tariff energy charge. R-1 is tiered by average monthly usage: small/Tier 1 (<=600 kWh) 12.925 cents at $0.362/day, medium/Tier 2 (600-1,000 kWh) 14.052 cents, large/Tier 3 (>=1,000 kWh) 15.418 cents. APS filed a new rate case June 13, 2025 (requesting ~15.99% base revenue increase); new rates not expected until second half of 2026.

What rising APS rates could cost you

APS rates have risen about 2.8% per year. Enter your bill to see what that pace of increase could compound to over time, and what you have likely already absorbed. This is an estimate, not a guarantee.

$200
Adding usage soon?
2.8%
10 yrs
Your bill in 10 years$0
Total you'd pay APS over 10 yrs$0
Of that, extra from rate hikes$0
Extra absorbed, last 10 yrs$0
Projected monthly bill over time

Estimate only. Projects your current bill forward at APS's historical average rate increase (2.8% per year, from EIA data); it assumes your usage stays the same except for any add-ons you select. Actual rates depend on your usage, rate plan, and the utility's future filings, and are not guaranteed. This is general information, not financial advice.

Net billing and the RCP rate

APS does not offer retail-rate net metering. Since 2017 it uses net billing: your home consumes your solar first, and any excess you export to the grid is bought back at the Resource Comparison Proxy (RCP) export rate, an avoided-cost rate set by the Arizona Corporation Commission that is well below the retail rate you pay for power. The RCP rate is about 6.85 cents/kWh (2024-2025), roughly 60% of the ~16.5 cents/kWh retail average. Exports earn a monthly bill credit; unused credit rolls forward month to month, and APS issues a refund check at year-end if your accumulated credit exceeds $25. The RCP rate steps down by up to 10% each year (it has dropped about 10% nearly every September since 2017, except 2020), falling to roughly 6.17 cents/kWh on September 1, 2025. Importantly, the rate in effect when you submit your interconnection application is locked in for 10 years, so earlier adopters keep a higher export credit. Because exports are credited below retail, the economics strongly favor self-consumption and pairing solar with battery storage.

Why the application date matters

The APS structure creates an unusual clock: because the export rate steps down almost annually and locks for 10 years at application, the credit side of solar quietly erodes for whoever waits. Self-consumed power, offsetting retail around 16.5 cents average, is unaffected by the step downs.

Exports earn monthly bill credit, roll forward, and APS cuts a refund check at year end if accumulated credit tops $25. With exports worth roughly 60 percent of retail and falling, sizing toward self-consumption and considering storage beats building for surplus. Note also that APS filed a rate case in June 2025 seeking a roughly 16 percent base revenue increase, with new rates expected in the second half of 2026. Get a site-specific quote.

APS service area

APS serves Arizona: APS serves 11 of Arizona's 15 counties, including most of metro Phoenix and surrounding communities, across roughly 34,600 square miles. Investor-owned utility (IOU) regulated by the Arizona Corporation Commission..

To confirm whether a specific address is served by APS, check your electricity bill. A ZIP lookup tool is coming to this site.

Full data and sources

Per-utility prices are computed from EIA Form 861 (bundled residential revenue divided by sales), which reconciles to the EIA's published figures. These are public-domain U.S. government data.

APS average residential electricity price by year
YearAPS (c/kWh)
201512.93
201613.11
201713.57
201814.16
201913.6
202013.24
202113.45
202213.87
202315.31
202416.45
202517.03

Sources: EIA Form 861 (Sales to Ultimate Customers), 2015-2024 annual files · EIA Table 6: 2024 Utility Bundled Retail Sales - Residential (2024 reconciliation, APS = 16.45 cents/kWh) · EIA Arizona Electricity Profile / State data · APS Rate Schedule R-1 Fixed Energy Charge tariff (A.C.C. No. 6148, eff. March 8, 2024) · APS Rate Schedule TOU-E Time-of-Use tariff (A.C.C. No. 6154, eff. March 8, 2024) · APS Residential Service Plans (rate plan overview) · APS Rate Rider RCP (Resource Comparison Proxy export rate schedule) · Solar.com: Solar Net Billing in Arizona (RCP mechanics, 10% annual cap, 10-year lock) · Solar Topps: APS Solar Buyback Rates 2026 (6.85 cents now, ~6.17 cents after Sept 1, 2025)

FAQ

Does APS have net metering?

Not since 2017. APS uses net billing: your home consumes solar first, and exports are credited at the Resource Comparison Proxy rate, about 6.85 cents per kWh in 2024 to 2025, roughly 60 percent of the retail average.

How long is my APS export rate guaranteed?

The RCP rate in effect when you submit your interconnection application is locked in for 10 years. Since the rate has stepped down about 10 percent nearly every September since 2017, application timing directly affects a decade of export value.

What happens to unused APS solar credits?

Export credits offset your bill monthly and roll forward. If accumulated credit exceeds $25 at year end, APS issues a refund check.

Are APS rates about to change?

APS filed a rate case on June 13, 2025 requesting roughly a 16 percent base revenue increase. New rates are not expected until the second half of 2026, and the outcome rests with the Arizona Corporation Commission.