Beyond Net Metering
Customers with older solar power systems should expect a transition when their systems have been in place for 20 years. At that point, they are no longer eligible for net metering, a policy that has allowed them to exchange excess solar energy for an equivalent amount of energy on demand from TEP.
In October 2018, the Arizona Corporation Commission (ACC) voted to phase out net metering in favor of compensation more closely aligned with the price utilities pay for energy produced by large solar arrays. Customers with existing solar arrays were allowed to continue using net metering for 20 years from the date their systems were connected to their utility's local energy grid.
TEP, like other utilities in the state, now buys excess output from rooftop arrays at a rate that reflects our average solar energy costs over the previous five years. Details are described in TEP’s Rider-14 Resource Comparison Proxy (RCP) Export Rate. Current and past buyback rates for excess energy are listed in TEP’s Statement of Charges.
Bill credits will be based on the RCP rate in effect as systems mature. Customers can expect the RCP rate to be reset each year. We anticipate that the rate will decrease by about 10 percent annually until it is on par with the cost of energy from larger systems. To learn more, visit our RCP page. Details about net metering are available at TEP’s Rider – 4 Net Metering for Certain Partial Requirements Service (NM-PRS).
Under the ACC's order, customers transitioning to the RCP rate also must begin taking service under a Time of Use pricing plan. These plans include higher rates during periods when customers use the most energy and lower rates during off peak periods.
Please visit our answers to frequently asked questions. If you still have additional questions, please call a member of our Customer Care team at 520-623-7711 or reach out directly to our Renewables team at renewables@tep.com.