Arizona Incentives for Renewable Energy     


Net Metering

Last DSIRE Review: 04/30/2001  


Incentive Type:  Net Metering Rules

Eligible Technologies:   Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydro, Geothermal Electric,

Applicable Sectors:   Commercial, Industrial, Residential, General Public,

Nonprofit, Utilities,

Max. Cap.:  100 kW for TEP; 10 kW for APS

Cap. Limit:  none

Excess:  APS: avoided cost, TEP: fixed seasonal rates

Date Enacted:  2/4/94

Expiration Date:  none


Authority:   ACC Decision No. 52345; APS

tariff: EPR-4 and TEP tariff: 101 and 102


The original Arizona Corporation Commission regulatory decision allowing net metering was made on July 27, 1981. This ruling allows net metering for qualifying facilities (QF) as defined by PURPA. No Arizona utility filed a net metering tariff until Arizona Public Service (APS) company filed in 1994 to allow net metering of all renewable energy generators under 10 kW. Net excess generation under the APS tariff is purchased at the utility’s avoided cost. Tucson Electric Power Company (TEP) filed two net metering tariffs in 1996. The first is Tariff 101 applying to commercial customers, and Tariff 102 applies to all other customers. Under both tariffs, net metering is allowed for QFs 100 kW or smaller. Net excess generation is purchased at fixed seasonal rates. Commercial customers may receive 4.4¢/kWh May through October and 3.5¢/kWh for November through April. All other customers receive 4.84¢/kWh May through October and 3.85¢/kWh November through April.



Ray Williamson

Arizona Corporation Commission

1200 W. Washington Street

Phoenix, AZ 85007

Phone: (602) 542-0828Fax: (602) 542-2129


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