Arizona to finally decide value of solar

Facebook
Twitter
LinkedIn
Reddit
Email
The Arizona Corporation Commission to review the state's current net metering scheme next week and decided whether to scrap retail net metering. Source: Flickr/Lonny Weaver

After years of drawn-out discourse, the Arizona Corporation Commission will decide next week what the ‘value of solar’ really is, and just how much utilities will pay for electricity generated by rooftop systems.

On 19 December regulators will discuss what changes, if any, will be officially made to the current net metering scheme which credits consumers the full retail rate, which stands at around US$0.115/kWh for Tucson Electric Power (TEP).

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

With Arizonan utilities such as Arizona Public Service,TEP and UniSource Energy (UNS) filing rate cases that include proposals to scale-back net metering in varying degrees and introduce alternate rate designs, the general consensus among utilities is that they are paying too much for solar power and solar customers are being subsidised for their use of the grid.

On the other hand, solar advocates have attempted to document the benefits of rooftop solar in the state in protest to proposals that include higher charges and net metering credit cuts that could lead to the eventual elimination of net metering altogether.

Next week, the Arizona Corporation Commission (ACC), will attempt to put the argument to rest in its official determination of the value of distributed generation for rate-setting purposes.

The five-member elected body that regulates the state utilities has a mammoth task at hand with much at stake. Many of the proposals put forward by APS and TEP have the potential to make solar uneconomical for many residents in the state due to reduced credit rates, and proposed demand charges.

A non-binding ruling in October from a Corporation Commission administrative law judge said that the ACC should completely scrap the current net metering system, with credits instead being based closer to the wholesale rate of around US$0.03/kWh for APS.

This recommendation will form the basis for the 19 December ruling, but the ACC has the final say with freedom to reject, accept or modify the proposal. 

13 October 2026
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 13-14 October 2026 is our fourth PV CellTech conference dedicated to solar manufacturing in the USA. From polysilicon, wafers, ingots, cells and modules, to critical component suppliers including glass and frames, the event connects every stage of the value chain under one roof. PV CellTech USA also brings together investors, innovators, manufacturers and industry stakeholders to collaborate and strengthen domestic solar manufacturing across the United States.

Read Next

August 3, 2026
Trinasolar has been selected to supply solar modules for the Good Earth Green Hydrogen and Ammonia project in New South Wales, Australia.
July 31, 2026
FIC has acquired Perfect Power, developer and owner of the Jaguar Energy Centre, a planned 1.15GW solar and battery storage platform.
July 31, 2026
The Colombian Ministry of Mines and Energy has awarded 995MW of solar PV and nearly 100MW of battery energy storage system (BESS) in a clean energy procurement auction.
July 31, 2026
Solar PV solutions provider Nextpower has registered a record quarterly eBOS bookings in the second quarter of 2026 and completed the acquisition of Zigor Corporation and its US-based subsidiary, Apex Power.
July 31, 2026
German solar research centre the Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) has signed an agreement with Himachal Pradesh University to pursue research into floating solar PV.
July 31, 2026
Avaada has secured approximately US$1.3 billion in debt to fund a 2.15GW portfolio of hybrid and solar projects in Gujarat and Maharashtra.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye