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Arizona Net-Metering Rules

Date Last Updated5/15/2013
Policy TypeNet-Metering Policy
Policy Administrator/Contact OfficeArizona Corporation Commission (ACC)
Policy Initiation Date5/1/2009
Policy SummaryThe ACC adopted net-metering rules in October 2008 that took effect in May 2009. The rules apply to all investor-owned electric utilities and cooperative utilities in the state. Under the rules, net-metering is available to customers who generate electricity using CHP, solar, wind, hydroelectric, geothermal, biomass, biogas, or fuel cell technologies.

The rules do not set a firm kilowatt limit on system size. Instead, systems must be sized to meet all or part of a customer's electric load, and the system "may not exceed 125% of the customer's total connected load". Additionally, the rules do not set an aggregate capacity limit for all net-metered systems in a utility's territory.

The rules require that utility billing charges for net-metered facilities are assessed on a non-discriminatory basis. Any new or additional charges that would increase an eligible customer-generator's costs beyond those of other customers in the rate class to which the eligible customer-generator would otherwise be assigned, must be proposed to the ACC for consideration and approval.

Any net excess generation (NEG) is credited to the customer's next bill at the retail rate, through a kWh credit. For customers on a time-of-use rate, off-peak and on-peak kWh are tracked and credited accordingly. Any surplus NEG is reconciled at the end of each calendar year, through either a check or billing credit, at the utility's avoided-cost rate.
CHP Eligibility RequirementsBoth fossil-fueled and renewably-fueled CHP systems are eligible.
Eligible Project Size (MW)All sizes are eligible as long as the system size does not exceed 125% of the customer's connected electric load.
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
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