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Arizona (AZ) • Arizona Public Service (APS)Model: Avoided Cost

APS Arizona Resource Comparison Proxy (RCP) Export Rate & TOU Demand Guide

Arizona Public Service (APS) steps down its Resource Comparison Proxy (RCP) solar export rate by 10% every year (now ~6.85¢/kWh) while charging 34¢/kWh—or $19.90/kW demand fees—between 4 PM and 7 PM when Phoenix air conditioners run hardest.

Peak Import Rate
$0.34 – $0.36 / kWh (4 PM – 7 PM Weekday On-Peak) OR $19.90/kW Demand (R-2)
Midday Export Credit
$0.0685 / kWh (Current RCP Export Tier — Drops up to 10% annually)
Peak Export / VPP Bonus
$0.0685 / kWh (Fixed 10-Year Locked RCP Export Credit)
Min Monthly Bill
$15.00 – $19.50 Basic Service Charge + Grid Access Charge ($0.93/kW)

1. 24-Hour Import Cost vs. Export Credit Visualizer

Schedule: APS Rider RCP (Resource Comparison Proxy) + Time-of-Use 4pm-7pm (R-TOU-E / R-2)

Compare what Arizona Public Service (APS) charges you to import 1 kWh vs. what they pay you when you export 1 kWh during each time window—and how your battery inverter should be programmed:

10:00 AM – 3:00 PM (Solar Midday / Winter Super Off-Peak)
Import: 12.5¢/kWhExport: 6.85¢/kWh
Grid Buy:
Grid Sell:
Inverter Dispatch Rule: Charge LFP battery to 100% SoC; pre-cool Phoenix home to 70°F before 3:45 PM
4:00 PM – 7:00 PM (APS Critical On-Peak & Demand Window)
Import: 34.8¢/kWhExport: 6.85¢/kWh
Grid Buy:
Grid Sell:
Inverter Dispatch Rule: 100% Battery Discharge Mode: zero grid kW demand and zero 35¢/kWh imports during 115°F Phoenix afternoons!
7:00 PM – 10:00 AM (Off-Peak)
Import: 12.8¢/kWhExport: 6.85¢/kWh
Grid Buy:
Grid Sell:
Inverter Dispatch Rule: Use remaining battery down to 20% SoC; export excess afternoon PV at 6.85¢ locked for 10 years

2. Forensic Tariff & Battery Arbitrage Math

Battery Pairing Necessity Score: 91% Mandatory (4 PM–7 PM Peak is 5x higher than 6.85¢ RCP export credit)
  • 1The 10-Year RCP Lock-In Rule: Every September 1, APS reduces the RCP export credit by up to 10% for new applicants (from 12.9¢ in 2017 down to ~6.85¢ today). Once your PTO is approved, you lock in your RCP tier for 10 years.
  • 2Beating the APS R-2 Demand Charge ($19.90/kW) with LFP Load Shaving: On APS’s R-2 TOU- with-Demand schedule, off-peak electricity is dirt-cheap (~6.2¢–11¢/kWh), but your highest 1-hour kW spike between 4 PM and 7 PM is billed at ~$19.90 per kW! A 12 kW hybrid inverter + 14.3 kWh LFP battery holds 4 PM–7 PM grid draw at 0.0 kW—slashing APS bills by $220+/month.
Optimal Hardware Architecture for Arizona Public Service (APS)

EG4 18kPV (12kW Continuous AC for 5-Ton Phoenix A/C) + 14.3kWh–28.6kWh LFP

Estimated Payback under APS Rider RCP (Resource Comparison Proxy) + Time-of-Use 4pm-7pm (R-TOU-E / R-2): 4.7 – 5.5 Years

View Direct Wholesale Pricing →

Arizona Public Service (APS) Solar Tariff FAQ

Does APS charge a monthly Grid Access Fee to solar customers?

Customers on standard non-demand TOU schedules (like Time-of-Use 4pm–7pm Weekdays) pay a monthly Grid Access Charge of ~$0.93 per kW of DC solar capacity (~$9.30/mo for a 10 kW array), whereas customers on the R-2 Demand schedule are exempt from the Grid Access Charge.

Why should Phoenix solar panels face West as well as South on APS?

West-facing panels (240°–270° azimuth) produce peak power between 3:00 PM and 6:30 PM—directly overlapping the brutal APS 4 PM–7 PM Peak window when 5-ton air conditioners are running nonstop.

More Utility NEM 3.0 & Avoided Cost Rate Matrices