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RatesMarch 10, 20266 min read

APS Net Billing Explained: What Solar Owners Actually Get Paid in 2026

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If you're going solar in Arizona, the single most important number you need to understand is the APS export rate: 7.6 cents per kWh. That's what APS pays you for every kilowatt-hour your panels send back to the grid.

Net Metering Is Gone — Welcome to Net Billing

Arizona used to have net metering, where the utility credited you at the full retail rate for exported solar. Those days are over. APS now uses a “Resource Comparison Proxy” (RCP) to value your exports — and in 2026, that rate is just $0.076/kWh.

For context, you're buying electricity from APS at $0.12-$0.34/kWh depending on time of day. So every kWh you export is worth 3-4x less than every kWh you use yourself.

The Math: Self-Consumption vs Export

What You Do With SolarValue Per kWhWhy
Use during peak (4-7pm)$0.3439Offsets most expensive grid power
Use during off-peak$0.1235Offsets mid-range grid power
Export to grid$0.076APS pays the minimum RCP rate

Why This Makes Batteries Essential

Without a battery, a typical solar home exports about 65% of its production during midday hours when nobody's home. At $0.076/kWh, that's a terrible deal.

With a battery, you store that midday solar and use it during peak hours (4-7pm) when APS charges $0.3439/kWh. The value swing is enormous: every kWh shifted from export to peak self-consumption is worth $0.268 more.

For a 13.5 kWh battery cycling daily, that's roughly $1,100/year in extra value — on top of the 30% federal battery tax credit that's still available through 2032.

3 Ways to Maximize Your Solar Value Under Net Billing

  1. Add a battery — Store excess solar for peak hours instead of exporting at 7.6¢. Use our battery calculator to see your payback period.
  2. Shift loads to solar hours — Run the dishwasher, laundry, and pool pump from 10am-3pm when your panels are producing.
  3. Right-size your system — Oversizing means more exports at the low RCP rate. Match your system to your actual usage with our solar calculator.

The Bottom Line

APS net billing means self-consumption is king. Every kWh you use yourself is worth 2-4x more than what APS pays for exports. The right combo of solar sizing + battery storage + load shifting can get your self-consumption rate above 80% — and that's where the real savings live.

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