Key Takeaways
- APS updates the value of excess solar energy exported to the grid every year through its Resource Comparison Proxy (RCP) program.
- The next APS RCP adjustment is expected to reduce the export credit available to new solar customers beginning September 2026.
- Homeowners considering solar should understand how timing, system design, and energy usage patterns affect long-term value.
- Battery storage can help homeowners use more of their own solar energy instead of relying on lower-value exported energy.
Arizona homeowners considering solar have another important date to watch.
Each year, Arizona Public Service (APS) updates the compensation rate for excess solar energy sent back to the grid. This annual adjustment affects how future solar customers are credited for the electricity their systems produce but do not immediately use.
For homeowners already considering solar, understanding this change matters because the value of exported solar energy is one factor that affects how a system is designed and how quickly it can deliver long-term energy savings.
What Is Changing With APS Solar Credits?
APS customers who install solar today typically participate in a net billing program rather than the older retail-rate net metering system.
Under APS’s Resource Comparison Proxy (RCP) program, excess electricity generated by a solar system is exported back to the grid and credited on the customer’s bill based on the current RCP purchase rate. These credits can roll forward and are applied toward future APS charges.
The RCP rate is reviewed annually through the Arizona Corporation Commission process.
For new solar customers, APS’s RCP export rate has continued to decline over time. The current rate effective September 2025 is $0.06171 per kilowatt-hour, and APS has proposed a further reduction to $0.05554 per kilowatt-hour beginning September 2026, subject to regulatory approval.
Why Does the APS RCP Change Matter?
When solar panels produce more energy than a home is using, that extra electricity is exported to the grid.
The value of that exported energy affects solar economics.
A homeowner who produces electricity during the middle of the day may have opportunities to:
- use more solar energy directly,
- shift energy usage to daytime hours,
- store excess energy for later use.
As export credits decline, the value of using your own solar production increases.
This does not mean solar is no longer valuable. It means system design matters more than ever.
Why Timing Matters for Homeowners Considering Solar
Solar projects are long-term investments. Utility rules, electricity rates, and compensation structures can change over time.
Homeowners who are already considering solar should understand:
- which APS export rate applies to their project,
- when that rate takes effect,
- how their system is designed around their household energy use.
The RCP rate assigned to a new solar customer is generally tied to the applicable rate schedule at the time the system is approved and interconnected. APS’s RCP structure includes a rate-lock period for qualifying customers under the current framework.
Because annual RCP adjustments occur on a predictable schedule, waiting may mean applying under a different export credit structure.
How Battery Storage Can Improve Solar Value
As APS export credits change, battery storage becomes an increasingly important consideration for some homeowners.
A solar-plus-storage system can help homeowners:
- store excess daytime solar production,
- use stored energy during higher-cost evening periods,
- reduce reliance on grid electricity,
- increase the percentage of solar energy used in the home.
The goal is not simply producing more solar energy. The goal is making the most valuable use of the energy your system produces.
For APS customers, system design should consider both solar production and household energy patterns, including when electricity is consumed.
Questions Arizona Homeowners Should Ask Before Going Solar
1. How will future APS export credit changes affect my solar system?
Your solar proposal should account for current APS rules, your expected energy usage, and how much of your solar production is likely to be exported.
2. Is my home a good candidate for battery storage?
Battery storage is not required for every homeowner, but it may improve the value of solar by allowing more control over when energy is used.
3. What APS solar rate will apply to my system?
The applicable APS export credit depends on the program and timing of your solar application and interconnection process.
4. Should I wait or move forward with my solar project?
Every homeowner’s situation is different, but annual utility program changes are one reason many homeowners choose to evaluate their options sooner rather than later.
5. How should my solar system be designed for APS rules?
A quality solar design should consider your home’s electricity usage, roof conditions, utility rules, and whether battery storage makes sense for your goals.
Take Control of Your Energy Future
APS solar compensation rules continue to evolve. While solar remains a powerful way for Arizona homeowners to produce their own electricity, understanding utility changes is increasingly important.
If you are considering solar, the best next step is understanding how current APS rules apply to your home and your energy goals.
A properly designed solar or solar-plus-storage system can help Arizona homeowners make smarter long-term energy decisions.
Sources
Arizona Public Service — Renewable Energy Riders
https://www.aps.com/en/Residential/Service-Plans/Compare-Service-Plans/Renewable-Energy-Riders
Arizona Public Service — Solar Energy Credit Transition FAQ
https://www.aps.com/en/Residential/Service-Plans/Understanding-Solar/Solar-Transition
Arizona Public Service — Resource Comparison Proxy Rate Rider
https://www.aps.com/-/media/APS/APSCOM-PDFs/Utility/Regulatory-and-Legal/Regulatory-Plan-Details-Tariffs/Residential/Renewable-Plans-and-Riders/rcp_RateSchedule.ashx
Arizona Corporation Commission
https://www.azcc.gov
