Arizona Public Service (APS) customers need to complete an interconnection application, submit installation contracts, provide site plans and electrical diagrams, and obtain Permission to Operate (PTO) before activating solar systems. The complete permitting and approval process takes 3-6 weeks, with installation requiring 1-3 days depending on system complexity.
Key permitting requirements for APS solar customers include:
Critical timeline considerations: With APS solar buyback rates decreasing 10% annually each September and a proposed 14% utility rate increase in 2026, completing your interconnection before September 2025 locks in current compensation rates for 10 years. Additionally, the 30% federal solar tax credit expires December 31, 2025.
APS-approved solar installers handle most permitting paperwork, but understanding Arizona's solar requirements helps you navigate the process smoothly and avoid delays. This guide covers net billing programs, rate plans, permitting steps, timelines, and post-installation considerations for APS solar customers.
The traditional net metering option has been discontinued at APS, but their net billing alternative still delivers value to solar homeowners.
Net billing functions on a similar principle: surplus electricity your panels create beyond what you consume gets fed into the power grid, generating billing credits each month. Use these accumulated credits when production dips during nighttime or when clouds block sunlight.
The catch? Net billing compensates at lower rates than the old net metering system did. Your exported energy receives credit based on the Resource Comparison Proxy (RCP) export valuation rather than standard retail pricing. This rate undergoes yearly evaluation by the Arizona Corporation Commission, dropping 10% every September from 2017 forward (2020 being the lone exception during COVID-19). September 2025 will see yet another decrease, arriving in mere weeks.
Here's the silver lining: Securing your APS interconnection paperwork ahead of the crucial deadline guarantees rate protection against future reductions for the next ten years. Plus, acting now ensures you capture the 30% federal tax credit for solar panel and battery installations before this benefit disappears at year-end 2025.
While net billing won't deliver the dollar-for-dollar returns of previous net metering programs, it still provides substantial reductions to your electricity expenses. Here's a breakdown of the net billing framework at APS.
Arizona Public Service calculates compensation for surplus electricity your panels send to the grid using their Resource Comparison Proxy (RCP) methodology.
Currently in 2025, this compensation sits at $0.06857 for each kilowatt-hour (kWh) you export. This translates to approximately 50% of the standard retail electricity price of $0.12/kWh. Solar power consumed directly within your home saves you the complete retail cost, but surplus energy flowing back to the grid generates lower-value credits.
To optimize your financial returns under this utility's structure, prioritize consuming your solar generation during daylight hours when panel output peaks.
Arizona Public Service mandates time-of-use (TOU) billing for all solar panel installations. Under TOU plans, electricity costs increase during high-demand windows (generally 4 PM through 7 PM).
The utility currently provides two TOU pricing options:
*Billing determined by your peak single-hour consumption during high-demand periods monthly.
TOU-E works best for households that can schedule major appliance use outside peak windows. TOU-Demand provides lower baseline pricing but adds a demand fee when concentrated energy consumption occurs within any 60-minute period during premium hours. Minimize demand fees by spreading out operation of energy-intensive equipment like air conditioners, dishwashers, electric vehicle chargers. Alternatively, install battery storage to disconnect from the grid during expensive peak periods, eliminating premium charges entirely.
Arizona Public Service solar customers select between two compensation structures for surplus power generation:
RCP Export Compensation: Credits accumulate from month to month under this framework. Annual credits exceeding $25 result in a check payment from the utility. Credits below $25 annually carry forward into the following year. Your credit value links directly to the purchase rate assigned when your solar application was submitted.
EPR-2 Renewable Energy Billing: Credit values fluctuate based on seasonal peak versus off-peak designations, with monthly credit rollovers. Complex billing arrangements typically utilize this option.
The majority of homeowners opt for the RCP structure due to its straightforward and predictable nature.
Your solar array's total output differs from the compensation you earn from Arizona Public Service:
The utility monitors both metrics monthly and applies earned credits to your billing statement.
Key points to remember when making your solar transition:
Professional solar contractors handle the majority of administrative tasks and utility coordination, minimizing your direct involvement. However, understanding the installation process helps set proper expectations.
Your first priority is partnering with a reputable solar provider familiar with Arizona Public Service protocols, rate structures, and grid connection procedures. A skilled installer will:
Prioritize companies holding proper licensing, bonding, insurance, and APS approval status. Regional expertise proves invaluable when navigating rate options and securing necessary permits. View APS's list of qualified technology installers at their website.
For additional guidance on contractor selection, reference the National Renewable Energy Laboratory's resources on solar installation best practices.
After selecting your trusted local contractor, they'll file interconnection documentation with Arizona Public Service detailing your system specifications and technical configuration. Required submission materials include:
Most applications receive immediate approval. Systems incorporating batteries or specialized equipment may require design modifications before final acceptance.
Following Arizona Public Service's application approval, installation can commence. Standard systems typically proceed without complications, though battery integration may involve additional review cycles. The utility examines battery designs more thoroughly to verify safety compliance and grid compatibility.
Installation duration ranges from one to three days based on roofing conditions and system complexity. Your contractor coordinates required municipal inspections and building permits throughout this stage.
Post-installation, your contractor submits final paperwork to APS confirming the system:
This notification informs Arizona Public Service that your installation is complete and prepared for their concluding assessment, the Permission to Operate (PTO) process. Understanding NEC 690.56(C) labels for rapid shutdown ensures your system meets all safety standards.
APS schedules an on-site evaluation to examine your installation and install a bidirectional meter. This specialized device monitors electricity drawn from the grid and surplus solar energy exported back.
The inspection verifies proper and safe installation practices. Any identified issues prompt contractor notification for corrections and reinspection scheduling.
After passing inspection and meter installation, Arizona Public Service issues official Permission to Operate documentation. You'll receive an email notification plus a door hanger confirming system activation clearance.
Your residence can now generate renewable solar electricity and deliver immediate utility bill reductions.
Complete APS interconnection typically spans one to four weeks, varying with system design and utility processing speed. Timelines extend during peak periods like summer months or year-end. Battery or advanced component integration adds processing time, though your contractor manages communications and maintains progress.
According to IEEE Power & Energy Society research, streamlined permitting processes significantly reduce solar adoption barriers.
Arizona Public Service customers exploring solar should evaluate battery storage integration.
As discussed earlier, APS's net billing structure provides reduced compensation for grid-exported energy. Battery storage captures surplus generation for later consumption during expensive peak periods, decreasing grid dependence when rates climb.
Battery systems also maintain power to critical appliances like refrigerators, internet connectivity, and medical equipment during grid failures. Additionally, batteries maximize renewable energy utilization. If environmental impact matters to you, storage significantly reduces your carbon footprint.
However, battery systems require substantial upfront capital that may not suit every budget. When considering storage, assess financial viability and alignment with your energy priorities. Your solar contractor should present various battery options with projected payback timelines across different usage scenarios.
Your solar system is operational. Now what?
Despite solar panel installation, your property remains grid-connected, ensuring reliable electricity during nighttime or overcast conditions. Monthly billing continues, reformatted to reflect your solar configuration.
Your revised statement includes:
Maximize solar benefits by consuming electricity during peak generation periods, typically daylight hours. Additional savings come from operating major appliances (washing machines, dryers, and ovens) during off-peak windows when rates decrease.
Energy efficiency practices combined with smart energy timing create optimal solar savings.
With panels operational, regular performance monitoring ensures optimal function. You can:
Maintain warranty documentation for panels, inverters, and batteries for future reference.
Solar panels function for 25+ years, though inverters or batteries may require earlier replacement. Future system upgrades require:
Grid failures trigger automatic shutdowns in affected zones for safety purposes. Your solar system also deactivates unless battery or generator backup exists. Battery systems automatically power appliances during grid outages.
The EPA's Green Power Markets program provides additional resources on renewable energy resilience.
Solar-equipped homes typically sell faster at premium prices compared to non-solar properties. Green building practices like solar installations increase property values significantly.
Transitioning to solar energy as an Arizona Public Service customer represents a significant investment in your home's future and Arizona's renewable energy landscape. While APS's net billing structure offers reduced compensation compared to traditional net metering, solar installation still delivers substantial long-term savings, environmental benefits, and energy independence.
The key to maximizing your return lies in timing and strategy. With RCP export rates decreasing 10% annually each September and a proposed 14% rate increase on the horizon for 2026, acting sooner rather than later locks you into more favorable rates for the next decade. Additionally, the 30% federal solar tax credit remains available through the end of 2025, providing immediate financial relief on your investment.
Whether you choose a straightforward solar panel system or opt for battery storage to maximize savings during peak hours, partnering with an experienced, APS-approved installer ensures smooth navigation through interconnection requirements, permitting processes, and rate plan selection. Your solar journey with Arizona Public Service doesn't end at installation, it's an ongoing opportunity to reduce your carbon footprint, lower monthly expenses, and take control of your energy future.
The International Energy Agency reports that solar adoption continues accelerating globally, with homeowners recognizing both financial and environmental benefits.
Ready to explore solar options for your home? Contact our expert team today to discover how much you could save with solar energy. Our comprehensive solar services and expert guidance ensure your project succeeds from start to finish.
How much can I save on my electric bill by going solar with APS?
Savings vary based on your system size, energy consumption patterns, and chosen rate plan. Most APS solar customers reduce their electricity bills by 50-90%. Homes that consume solar energy during peak production hours (daylight) and shift major appliance use to off-peak times see the greatest savings. Your actual savings depend on factors like your roof orientation, shading, system efficiency, and whether you add battery storage to avoid expensive on-peak rates.
What happens to my solar credits if I produce more electricity than I use with APS?
Under APS's RCP export rate plan, excess credits roll over monthly throughout the year. If your accumulated annual credits exceed $25, Arizona Public Service issues a check payment. Credits below $25 annually carry forward to the following year. Currently, exported solar energy receives credit at $0.06857 per kWh, approximately half the retail electricity rate. Your credit value depends on the purchase rate assigned when you submitted your solar application.
How long does it take to get solar panels installed and approved by APS?
The complete process from application to Permission to Operate typically takes 3-6 weeks. Installation itself requires 1-3 days depending on roof complexity and system size. The APS interconnection application and approval process spans 1-4 weeks, potentially longer during peak seasons like summer or year-end. Systems with battery storage may require additional review time as the utility examines battery designs more thoroughly for safety and grid compatibility. Your installer manages this timeline and coordinates all communications with Arizona Public Service.
Do I need a solar battery with my APS solar system, or can I install panels only?
Battery storage is optional, not mandatory. Solar panels alone still deliver significant savings by offsetting daytime electricity costs. However, batteries provide three key advantages for APS customers: (1) storing excess energy to use during expensive on-peak hours (4-7 PM) instead of exporting it at reduced RCP rates, (2) providing backup power during grid outages, and (3) maximizing renewable energy usage throughout the day. The decision depends on your budget, energy goals, and whether you experience frequent power outages. Your installer can calculate payback periods for various battery scenarios. Learn more about DIY solar systems or explore off-grid options for complete energy independence.
Will I still receive an electric bill from APS after installing solar panels?
Yes, you'll continue receiving monthly bills from Arizona Public Service even with solar panels. Your home remains grid-connected to ensure reliable electricity at night and during cloudy weather. However, your bills will be significantly lower and formatted differently. You'll see your chosen TOU rate plan, energy usage breakdown by time of day, renewable rider credits for exported energy, and a fixed grid access charge for maintaining infrastructure. Many solar customers see bills reduced to just the minimum connection fee plus minimal usage charges. According to the American Solar Energy Society, grid-connected solar systems provide the best balance of savings and reliability for most homeowners. The World Bank's energy initiatives highlight how distributed solar generation supports grid stability while reducing household energy costs. For commercial applications, explore our commercial solar design services for large-scale projects.
We are dedicated to providing top-notch solar permit services to homeowners, business owners, DIY, and solar installers. Contact us today.
