Net Metering in Arizona: What You Need to Know About Solar Savings in 2025
Net Metering in Arizona: What You Need to Know About Solar Savings in 2025
Blog Article
Net metering in Arizona has undergone key changes, and understanding the current policy is essential for homeowners and businesses looking to invest in solar energy. In 2025, Arizona operates under a net billing model, which affects how solar users are credited for excess energy sent back to the grid. While the structure has shifted from traditional net metering, solar remains a financially smart choice—especially with the right system design and an informed understanding of the state’s evolving solar programs.
From Net Metering to Net Billing: Arizona's Solar Transition
Arizona no longer uses traditional net metering. Instead, the state has implemented a net billing structure. Under this system, rooftop solar customers receive credit for the excess electricity they send to the grid—but at a rate lower than the retail electricity price.
This means customers sell surplus power back to the utility at a fixed export rate, which varies by provider. Unlike net metering, which credits energy at full retail value, net billing in Arizona is based on real-time market pricing and utility policy. It’s important to understand this shift when evaluating your potential solar savings.
Net Billing vs. Net Metering: What’s the Real Difference?
- Net Metering: Energy sent to the grid earns full retail credit, often matching your electricity rate.
- Net Billing: Excess energy earns credit at a reduced utility export rate, which lowers your overall return.
Arizona’s net billing system is still cost-effective, especially for homes with high daytime energy use and well-optimized solar panel installations.
How Much Do Solar Panels Cost in Arizona?
The average cost of solar panels in Arizona generally falls within a broad range, depending on several factors like system size, panel efficiency, installation type, and roof complexity. Most residential systems are priced between a low-to-mid five-figure range before incentives. You can use a solar cost calculator in Arizona to get a personalized estimate based on your energy usage. With the 30% federal solar tax credit, total upfront expenses are significantly reduced, making solar more affordable and improving long-term returns.
Do Solar Panels Increase Home Value in Arizona?
solar panels increase home value in Arizona, making them a smart long-term investment for homeowners. Studies show that homes with solar energy systems sell for 3% to 5% more than comparable non-solar homes. Buyers in Arizona are increasingly interested in energy-efficient homes due to rising utility costs and abundant sunshine. The added appeal of lower electricity bills and sustainable living makes solar-equipped properties more competitive in the housing market. In many cases, solar systems can also reduce time on the market. With these advantages, going solar is not just an energy decision—it’s a real estate upgrade.
Arizona Solar Programs: Are Incentives Still Available?
Beyond net billing, there are several Arizona solar programs worth exploring:
- Federal Investment Tax Credit (ITC) – 30% off your total system cost
- Sales tax exemptions – Arizona waives sales tax on eligible solar equipment
- Property tax exemptions – Your home’s solar upgrade won’t increase your tax bill
These benefits make now a smart time to buy solar panels in Arizona, especially for homeowners who want to reduce their long-term energy costs.
Should I Go Solar in Arizona Despite Net Billing?
Even with net billing vs net metering comparisons showing a drop in export value, the high solar irradiance in Arizona still makes solar a solid investment. With over 300 sunny days per year, solar energy in Arizona remains among the most productive and reliable in the U.S.
Pair that with increasing utility rates, and the answer to should I go solar in Arizona is often a confident yes—especially if you consume more power during the day or install battery storage.
Conclusion:
While the days of full-value net metering in Arizona may be over, there are still plenty of financial and environmental reasons to go solar. Whether you’re calculating potential savings, researching net-billing programs, or comparing installation quotes, working with an expert partner can make all the difference. solar sme is here to guide you through every step—from system design to incentives—so you get the most from your solar investment in Arizona. Report this page