APS Solar: Rate Plans, Export Credits, and Battery Math for 2026

How APS treats rooftop solar in 2026

APS moved off traditional 1:1 net metering after Arizona Corporation Commission Decision No. 75859 in December 2016. Since January 2017, new APS solar customers receive an export credit rather than full retail rollover. The rate is set annually through the Resource Comparison Proxy (RCP) and steps down by no more than ten percent per year, with each customer locked to the RCP rate in effect at their interconnection for ten years.

The RCP has fallen roughly half a cent per year since launch. Our 2026 working estimate is approximately $0.0544 per kWh exported (flagged as an estimate; confirm the active rate on the APS rate plan page before sizing a system). Retail on-peak energy under APS time-of-use plans is roughly five times that figure in summer, which is why self-consumption beats exporting.

Customers interconnected before December 31, 2016 were grandfathered on traditional net metering for 20 years from their original interconnection date. Those legacy accounts retain retail-rate rollover, which is why an older neighbor's math looks better than yours.

APS residential solar rate plan comparison

APS requires solar customers to pick a time-of-use or demand plan. Flat-rate R-Basic is not available with rooftop generation. The plan determines when your kWh are worth the most and whether a demand charge applies.

Plan	Best for	Key features	Gotcha
Saver Choice (TOU-E / E-12)	Smaller homes, moderate AC load	Time-of-use energy only, on-peak 3-8pm weekdays summer	No demand charge, but on-peak kWh rate is high
Saver Choice Plus (E-15)	Homes that can shift load off-peak	TOU energy plus a small demand component	Demand window hits during typical AC stacking hours
Saver Choice Max (E-27)	Battery-equipped homes, disciplined users	Low energy rate, high 4-7pm summer demand charge	One uncontrolled AC plus dryer spike can cost $60+ in a single month
Premier Choice Large	Large homes over ~4,000 sqft, heavy summer use	Higher fixed service charge, gentler energy rates	Poor fit unless monthly usage clears roughly 2,000 kWh
Legacy Net Metering	Pre-2017 interconnected accounts only	Retail-rate rollover for 20 years from original interconnection	Closed to new enrollment; do not modify the system in ways that trigger re-interconnection

Source: APS Residential Service Plans.

Saver Choice Max (E-27) and demand charges

E-27 is where APS solar gets interesting, and where it gets dangerous. The plan uses a low energy rate in exchange for a demand charge on the single highest 60-minute average kW pulled from the grid during the 4-7pm weekday window (May through October). Summer on-peak demand can clear $17 to $23 per kW depending on tier.

Run the numbers: a 4-ton central AC pulling 4.5 kW, layered with a dryer (5 kW) and an EV charger (7.2 kW) for a single hour in July, lands you a 16.7 kW demand reading. At $20 per kW, that one overlapping hour adds roughly $334 to the monthly bill. A battery that keeps grid import below 3 kW during 4-7pm cuts that same line item to around $60.

The inverse is also true: without a battery or rigorous load scheduling, E-27 can produce a higher annual bill than the simpler E-12 plan. E-27 without storage is only a fit for households that genuinely stay out of the kitchen, laundry, and EV-charging business between 4pm and 7pm in summer.

Why batteries are now the interesting APS move

The export credit sits around $0.054 per kWh. The on-peak retail rate on Saver Choice TOU plans runs roughly $0.29 per kWh on summer afternoons. Every kWh that a battery self-consumes during that window instead of exporting at midday is worth the difference, roughly $0.24 per kWh displaced.

On E-27 the value stacks further. The battery shaves the demand peak (worth $17 to $23 per kW of avoided peak), and it also time-shifts solar production into the 4-7pm window at retail value. A 13.5 kWh Powerwall 3 on an APS E-27 household can conservatively save $900 to $1,600 per year over solar-only on the same plan, with the upper range depending on how disciplined the homeowner is with EV and pool-pump timing.

APS on-peak hours are 3pm to 8pm weekdays in summer and 5am to 9am plus 5pm to 9pm in winter on most current TOU plans. Program the battery to the summer window first; winter arbitrage is a secondary benefit in AZ.

Interconnection with APS

APS residential interconnection runs under Service Schedule 14. Typical timeline from application to permission to operate is 30 to 45 days after the installer submits a complete package. Systems under 20 kW AC with UL-listed inverters qualify for the streamlined Level 1 process. Any system must be installed by a contractor holding the appropriate Arizona Registrar of Contractors license (typically ROC C-11 or KA electrical for PV; ROC CR-11 for solar with plumbing tie-ins such as pool heat).

APS requires a bidirectional revenue-grade meter (APS swaps it as part of PTO) and a visible, lockable AC disconnect within sight of the meter. Battery systems add a separate Energy Storage Agreement and, for ESS over 10 kWh, an interior-install signoff that many AZ jurisdictions now require per NFPA 855.

When APS solar doesn't pencil

Solar is not free money. The combinations that consistently do not work out on APS service:

• Monthly bills under roughly $100. The fixed interconnection and service fees eat the savings.
• Homes with heavy shading from mature mesquite, palo verde, or pine canopy. APS will still interconnect, but the production math collapses.
• Homeowners planning to sell within 36 months. Cash-purchase payback is typically 9 to 12 years on APS; short-hold math rarely recovers.
• Tile roofs more than 15 years old. The re-flashing labor on a tile tear-and-reset can add $4,000 to $8,000 to an install if the roof needs replacement during the 25-year panel warranty.

For a full cost breakdown by system size and financing path, see our Arizona solar cost guide. To compare panels, see solar panels in Arizona. If batteries are the main driver, review Arizona solar battery options and the Tesla Powerwall guide.

Federal and state incentives on APS service

The stack has not changed with utility: APS customers access the 30 percent federal Residential Clean Energy Credit (IRC Section 25D) and the $1,000 Arizona state tax credit (A.R.S. 43-1083). See Arizona solar incentives for full detail. APS itself no longer offers a residential solar rebate; the old APS Battery Rebate pilot is closed to new enrollment as of 2024. Confirm current program status on aps.com before assuming a utility incentive.