Arizona Solar Buyback Rates 2026: APS, SRP & TEP Explained

Why Arizona Solar Buyback Rates Matter in 2026

Installing solar in Arizona is not simply a question of how many kilowatt-hours your panels can generate. The financial result also depends on what happens when your home produces more electricity than it is using.

That excess electricity can flow to the utility grid. Depending on your utility and rate plan, you may receive a bill credit for that exported energy. The credit is often worth less than the retail price you would have paid to purchase electricity from the grid, which makes solar self-consumption increasingly important.

What Is a Solar Buyback Rate?

A solar buyback rate is the rate or formula used by a utility to compensate a solar customer for electricity exported to the grid. Utilities may also describe this as an export rate, export credit, or purchase rate.

The basic concept is simple: your solar system produces electricity, your home consumes some of it, and any remaining production may be exported. The utility then applies the rules associated with your solar rate plan.

Arizona Solar Buyback Rates: APS vs. SRP vs. TEP

The three utility names most homeowners encounter in major Arizona solar markets are Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power (TEP). Their solar compensation structures are not interchangeable.

*SRP’s current solar price-plan page lists 3.45¢/kWh for excess energy under its export plans. Utility pricing can change, so verify the applicable plan and current rate before making a purchase decision.

APS Solar Buyback Rate 2026

APS is one of the most important utilities to understand if you are shopping for solar in the Phoenix metropolitan area. The utility’s current residential solar information identifies the Resource Comparison Proxy (RCP) and Renewable Energy Net Billing (EPR-2) as key options for solar customers.

How APS RCP works

Under the RCP structure, excess electricity exported to the APS grid receives a dollar-based bill credit rather than a simple one-for-one retail kWh credit. APS says the credit is applied monthly and unused credits roll into the next month. At the end of the year, accounts with a credit balance of at least $25 can receive a refund check, while smaller balances roll forward.

APS EPR-2 is different

APS also offers Renewable Energy Net Billing under EPR-2. According to APS, the credit amount can depend on on-peak and off-peak purchase rates and on whether the electricity is exported during the summer or winter season.

That means two homeowners in the same city can potentially have very different solar economics depending on their rate structure, usage pattern, system design and interconnection arrangement.

For the current APS rules and rate schedules, see the official APS Renewable Energy Riders page.

SRP Solar Buyback Rate 2026

SRP works differently from APS. Rather than treating every solar customer as though there were one universal buyback rate, SRP offers multiple residential solar price plans.

SRP’s current comparison page identifies export plans for customers who generate most of their own energy. Under those plans, excess energy is exported and credited at a fixed price of 3.45 cents per kWh.

Why the SRP export rate isn’t the whole story

A low export credit does not automatically mean solar is a bad investment. The important number is the amount of expensive grid electricity you avoid buying, not simply the amount of electricity you export.

For example, using solar electricity directly to power an air conditioner, pool pump, refrigerator or EV during solar production can avoid a retail electricity purchase. Sending that same electricity to the grid may receive a much smaller export credit.

SRP also offers a separate Renewable Export Program for qualifying systems. That program can use hourly market-priced credits, which is different from the fixed export pricing on SRP’s standard solar export plans.

TEP Solar Buyback Rate 2026

Tucson Electric Power uses a Resource Comparison Proxy structure for qualifying rooftop solar customers. TEP explains that the RCP is designed to compensate customers for excess electricity generated by private rooftop systems.

TEP’s official materials state that the RCP is normally adjusted annually and that eligible customers can preserve the applicable export rate for a defined period under the utility’s interconnection rules.

Why TEP homeowners should check the application date

Solar compensation can depend on when the interconnection application was submitted and which RCP period applied at that time. Therefore, a generic internet article quoting an old TEP rate can be misleading for a homeowner shopping for solar today.

For the latest information, use TEP’s official Resource Comparison Proxy page and its current rate schedules.

Net Metering vs. Net Billing in Arizona

One of the biggest sources of confusion when researching Arizona solar buyback rates is the difference between net metering and net billing.

Net metering

In a traditional net-metering arrangement, electricity generated and consumed can be offset on a kWh basis under the applicable utility rules. Older or grandfathered customers may still have arrangements that differ significantly from those available to new solar customers.

Net billing

Under net billing, electricity exported to the grid receives a separate monetary credit or purchase rate. That export rate can be lower than the retail price of electricity purchased from the utility.

APS itself explains that legacy EPR-6 net-metering customers can transition to the RCP structure when their legacy compensation period ends. That is why the phrase “Arizona has net metering” can be too broad to describe the situation for a new solar installation.

Why Your Solar Export Rate Can Change Your Savings

Consider a simplified example. Suppose your home avoids buying electricity from the utility when your solar panels power your appliances directly. That avoided purchase can be more valuable than exporting the same electricity and receiving a lower export credit.

Do Solar Batteries Make More Sense in Arizona in 2026?

In a market where exported solar can be worth less than electricity purchased from the grid, a battery can become an important part of the financial equation.

Instead of exporting every excess kWh at the utility’s export value, a battery can store some of that electricity for later use. The homeowner can then use stored energy after the solar panels stop producing.

A battery is not automatically the best choice for every Arizona homeowner. Its value depends on the utility, rate plan, household load, battery price, usable capacity, efficiency, warranty, financing and how frequently the battery cycles.

How to Calculate the Value of Arizona Solar Buyback

A useful solar analysis should separate three different values: electricity you consume directly, electricity exported to the grid, and electricity you later purchase from the utility.

For a simplified export calculation, you can estimate:

For example, if a solar system exported 2,000 kWh during a year and the applicable export value were 3.45¢/kWh, the export component would be:

That does not mean the homeowner only saved $69 from those 2,000 kWh. It only illustrates the value of the exported portion. The financial value of solar also includes electricity consumed directly by the home, which can avoid purchases at the applicable retail rate.

Why Solar System Size Matters More Under Export Pricing

If exported electricity receives a lower value than retail electricity, producing more electricity is not automatically the same thing as creating more savings.

Imagine two homes with identical solar systems. Home A runs its pool pump, laundry, dishwasher and EV charger during sunny hours. Home B is empty during the day and sends most of its solar generation to the grid.

Even with identical panels, production and weather, their financial outcomes can be different because their self-consumption rates are different.

What can increase solar self-consumption?

• Running flexible appliances during daylight hours.
• Charging an EV while solar production is high.
• Pre-cooling the home when appropriate and practical.
• Using smart energy management equipment.
• Installing battery storage where the economics make sense.
• Designing the solar system around actual household electricity consumption.

How Buyback Rates Affect Solar Payback in Arizona

Your solar payback period is the amount of time required for cumulative energy savings and applicable incentives to recover the net cost of the system.

Export rates influence the annual savings component. If a large portion of your production is exported at a relatively low credit, your annual savings may be lower than they would be under a full-retail net-metering arrangement.

On the other hand, a well-designed system that increases direct solar consumption can produce stronger savings without relying as heavily on utility export compensation.

Arizona Solar Incentives: Start With the Bigger Picture

Buyback rates are only one part of the Arizona solar equation. Before estimating a system’s return, homeowners should also check applicable state tax credits, tax treatment, utility programs and current federal rules.

7 Questions to Ask an Arizona Solar Installer

Before signing a solar contract, ask the installer to show the assumptions behind the projected savings rather than relying on a single headline number.

1. Which utility rate plan will my system use?
2. Which export or buyback rate is being used in the proposal?
3. Is that rate current, and where can I verify it?
4. How much of my annual solar production is expected to be self-consumed?
5. How much electricity is expected to be exported?
6. Does the proposal assume a battery, and how does the battery change the model?
7. What happens to the projected savings if the utility changes its rates?

Common Arizona Solar Buyback Mistakes to Avoid

1. Assuming every Arizona homeowner gets the same rate

Arizona has multiple electric utilities and multiple solar compensation structures. Your address and utility matter.

2. Using an old rate from a 2024 or 2025 article

Export rates and utility plans can change. Always verify the current utility documentation before making a financial decision.

3. Calling every modern solar program “net metering”

Legacy net-metering arrangements and newer export-credit or net-billing structures can work very differently.

4. Calculating savings from total production alone

The amount of electricity your home directly consumes can matter just as much as the total amount your panels generate.

5. Ignoring battery economics

Batteries can change when and how solar energy is used, but they also add upfront cost. The correct question is not simply “Is a battery good?” but “Does a battery improve the economics of this specific home and rate plan?”

6. Assuming an incentive automatically applies

Tax credits, rebates, utility programs and financing incentives can have separate eligibility requirements. Always verify the current program rules.

More Solar & Energy Guides From Rebate Radar

If you’re researching solar in Arizona, these related resources can help you move from incentives to actual system economics.

Arizona Solar Buyback Rates 2026: FAQ

Official Sources & Verification