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. 

Read Next

October 26, 2026
Q3 2026 was a pivotal period for the global inverter market, marked by capacity expansion in the US and a landmark regulatory shift.
October 26, 2026
ARRAY Technologies has partnered with Aeeris subsidiary Early Warning Network (EWN) to bring automated hail protection to solar PV plants in Australia.
October 26, 2026
Aiko Solar has revealed a return to profitability in the third quarter of this year and released details of a major technology upgrade to its PERC production line.
October 23, 2026
New Jersey representative Rob Menendez has introduced the Socket Full of Sunshine Act, the first federal-level bill to support plug-in solar.
October 23, 2026
Deriva Energy has announced the close of approximately US$540 million in financing for its 350MW Sullivan County Power Project.
October 22, 2026
NextEra Energy recorded a 9.7% increase in its net earnings in Q3 2026, with earnings up 9.5% in the nine months to date this year.

Upcoming Events

Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye