Net Metering (Arizona)

From Open Energy Information

Last modified on February 12, 2015.

Rules Regulations Policies Program

Place Arizona
Name Net Metering
Incentive Type Net Metering
Applicable Sector Commercial, Industrial, Institutional, Local Government, Nonprofit, Residential, Schools, State Government
Eligible Technologies Anaerobic Digestion, Biomass, CHP/Cogeneration, Fuel Cells using Renewable Fuels, Geothermal Electric, Hydroelectric, Hydrogen, Landfill Gas, Municipal Solid Waste, Photovoltaics, Small Hydroelectric, Solar Thermal Electric, Wind, Biogas
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Aggregate Capacity Limit No limit specified
Applicable Utilities Investor-owned utilities, electric cooperatives

Meter Aggregation Not addressed
Net Excess Generation Credited to customer's next bill at retail rate; excess reconciled annually at avoided-cost rate

REC Ownership Customer owns RECs

System Capacity Limit No capacity limit specified, but system must be sized to meet part or all of customer’s electric load and may not exceed 125% of customer’s total connected load

Date added to DSIRE 2008-10-21
Last DSIRE Review 2013-04-17

References DSIRE[1]


Net metering is available to customers who generate electricity using solar, wind, hydroelectric, geothermal, biomass, biogas, combined heat and power (CHP) or fuel cell technologies. The ACC has not set a firm kilowatt-based limit on system size capacity; instead, systems must be sized to not exceed 125% of the customer’s total connected load. If there is no available load data for the customer, the generating system may not exceed the customer’s electric service drop capacity. Additionally, the ACC has not set an aggregate capacity limit for all net-metered systems in a utility’s territory. The utility must instead demonstrate to the ACC why such a cap should be allowed.

The ACC requires that net metering charges be assessed on a non-discriminatory basis. Any new or additional charges that would increase an eligible customer-generator's costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned must be proposed to the ACC for consideration and approval.

Net metering is accomplished using a single bi-directional meter. Any customer net excess generation (NEG) will be carried over to the customer's next bill at the utility's retail rate, as a kilowatt-hour (kWh) credit. Any NEG remaining at the customer’s last monthly bill in a calendar year will be paid to the customer, via check or billing credit, at the utility’s avoided cost payment.

For customers taking service under a time-of-use rate, off-peak generation will be credited against off-peak consumption, and on-peak generation will be credited against on-peak consumption. The customer’s monthly bill is based on the net on-peak kWh and net off-peak kWh amounts. Any monthly customer NEG will be carried over to the customer's next bill as an off-peak or on-peak kWh credit.

Under the ACC rules, each utility must file an annual report listing the net metered facilities and their installed capacity for the previous calendar year.

SRP and municipal utilities do not fall under the jurisdiction of the ACC, and therefore are not subject to the state rules.

Incentive Contact

Contact Name Barbara Keene
Department Arizona Corporation Commission
Address 1200 W. Washington St.
Place Phoenix, Arizona
Zip/Postal Code 85007
Phone (602) 542-0853


Authorities (Please contact the if there are any file problems.)

Authority 1: ACC R14-2-2301 et seq.
Date Effective 2009-05-01
Date Enacted 2008-10-16

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"