Net Metering vs. Net Billing in Arizona: What Every Homeowner Needs to Know Before Buying or Selling a Solar Property

Solar panels can power more than your home—they can power financial decisions. But if you’re buying or selling a home in Arizona, especially in the APS service area, understanding how solar energy is billed could make or break your deal. Solar billing systems are more than a utility concern—they’re a significant part of a home’s value, monthly expenses, and long-term return on investment.

Let’s demystify Arizona’s Net Metering vs. Net Billing structures and provide a clear roadmap for navigating solar-powered transactions.

Net Metering (NEM) – Legacy Plan (Pre-2017)

This now-discontinued plan was highly favorable:

• 1:1 Credit – Homeowners received full retail value for excess energy exported to the grid.
• Monthly Rollover – Credits rolled over and offset future bills.
• Long-Term Savings – Provided meaningful reductions in utility costs.
• No New Access – This plan is grandfathered in; only homes already on NEM can retain it.

Net Billing – Current Standard (Post-2017)

Today’s default billing model under APS:

• Wholesale Rate Credit – You are compensated at a much lower fixed rate for exported energy.
• Reduced Value – Credits are worth less than what you pay to buy energy.
• No Rollover – Credits do not accumulate in the same way as NEM.