Net Metering vs Net Billing

‍

Net Metering: Traditionally, this mechanism allows homeowners with solar systems to offset their grid consumption by bankrolling unused generation at full retail electricity rates. Credits often roll over month to month and sometimes year to year, depending on state rules.
Net Billing: In contrast, net billing compensates solar owners at lower-than-retail rates—commonly based on wholesale or avoided-cost rates—without typically rolling over credits long-term.

‍

__________ #1 Real Estate News Brief Podcast in Arizona

Listen on any preferred platform:

Spotify YouTube Audible Amazon Music Apple Podcast

Arizona’s Transition: Net Metering is History

Phase-Out Timeline: As of late 2016, Arizona’s Corporation Commission officially phased out net metering in favor of net billing across utilities including APS, TEP, and SRP.

Why the Shift? Utilities argued that net metering caused a “cost-shifting” issue—solar owners avoided grid fees, leaving non-solar customers to shoulder the grid maintenance burden. This triggered a campaign for fairness across all ratepayers.

‍

How Does Net Billing Work in Arizona?

Compensation Mechanics: Under net billing, surplus solar energy is bought by the utility at a discounted export rate—not at full retail value.

APS Specifics: APS uses the Resource Comparison Proxy (RCP), which as of 2024 is around $0.0686/kWh—just over half the average retail rate (~$0.12/kWh).

Other Utilities:

APS: ~$0.08465/kWh
TEP: ~$0.0703/kWh
SRP: ~$0.0281/kWh
Note: These rates generally decline about 10% annually for new installations, though rates are locked in for the first 10 years post-installation.

Credit Structure: Unlike net metering, exports in Arizona are settled each billing cycle rather than rolled over as kilowatt-hour credits.

‍

Why This Matters if You're Buying or Selling Solar Homes

For Sellers: Homes equipped with solar may not yield the same financial savings as in other states—or even a few years ago—with the diminished value of exported energy.

For Buyers: Expect longer solar ROI timelines unless you self-consume most of your solar power or invest in storage options.

Strategic Levers:

Self-Use: Maximizing on-site solar consumption means you're valuing your solar at the full retail rate.
Energy Storage: Batteries become powerful tools to store excess production and avoid exporting at low rates.
Lock-In Smartly: Installing solar sooner enables you to lock in higher export rates for a decade, protecting against future declines.

‍

Join Key Mail Club

Always fresh, smart, data-driven future-proof analytics

from Sonoran Desert straight to your mailbox

First name

Last name

Email address

Thank you for subscribing!

_________ Homeowner's Manual

Tiled roofs—whether clay or concrete—are synonymous with Arizona’s architectural style, offering a blend of beauty, fire resistance, and long-term durability. With lifespans of 40–75 years, tile roofs

__________ Watch

Watch AZiqueHomes YouTube Channel

Weekly dose of local insights

Click Here to Schedule Private ZOOM Consultation Now

__________ Search New-Construction Homes

Benefits Of Private Representation
When Purchasing New-Build Home

__________ Editorial

opinion, tips & private insights

The announcement that the Arizona Cardinals have acquired 217 acres at the intersection of the Loop 101 and Scottsdale Road—just north of Phoenix—marks a pivotal moment for the region. The purchase

Arizona Cardinals’ $136 Million “Headquarters Alley” Project: How a 217-Acre Deal Will Redefine North Phoenix by 2028

By Katrina Golikova

The announcement that the Arizona Cardinals have acquired 217 acres at the intersection of the Loop 101 and Scottsdale Road—just north of Phoenix—marks a pivotal moment for the region. The purchase

Something to think about

How To Invest In Real Estate Using Your IRA Or Old 401(K)

By Katrina Golikova

Across the Valley, wealth management is taking on a new dimension. With rising property values in North Scottsdale, steady redevelopment in Old Town, and luxury residential projects in Desert Mountain

How To Passively Grow Equity With A New-Build Home—Without Sacrificing Lifestyle Or Peace Of Mind

By Katrina Golikova

In today’s housing market, timing and strategy often feel like everything. With construction cranes rising across places like North Scottsdale, Queen Creek, Goodyear, and Surprise, many buyers are

__________ Personal Zoom Consultation Scheduling

Your Personal Real Estate Strategy Session

I’d love to connect with you for a complimentary 60-minute Zoom consultation to discuss your real estate goals and answer your questions about Scottsdale’s market. This personalized session is designed to give you clarity and confidence in your next steps.

60 Minutes

Focused entirely on you

Personalized

Tailored to your needs

Actionable

Clear next steps

Pro tip: Come prepared with your questions for the most valuable conversation!

What’s the one question you’ve been meaning to ask a real estate advisor?

How To Prepare

Jot down your biggest questions—no topic is off-limits.
Clarify your goals (timeline, location, budget, lifestyle).
Gather any documents you’d like to review together.

My Clients' Rate the Outcome of the Consultation

42%

faster decision-making

65%

greater clarity on pricing

100%

appreciation for insight

__________ Contract

overview of the purchase contract