Arizona homeowners with rooftop solar won't be facing a new monthly charge on their electricity bills anytime soon. 

A Court of Appeals panel has rejected a second attempt by Arizona Public Service to revive the fee.

Here's what to know

In 2024, the Arizona Corporation Commission signed off on a rate increase that let the utility add $2 to $3 a month to bills for solar customers, according to KJZZ.

Supplying electricity when rooftop panels fail or generate too little power creates "extra costs," Arizona Public Service argued, and the fee was meant to provide cover.

Arizona Public Service hadn't provided evidence that solar customers drove up costs, the appeals court found. That finding drove its June decision to block the charge, which also faulted regulators for approving it without first letting opponents challenge it.

Going solar is one of the best ways to save money on home energy, and solar leases in particular can lead to hundreds of dollars in monthly savings without upfront costs. Homeowners can use EasyHome's free explorer tool to view potential savings from vetted installers in their area.

More background

The commission left the fee in place after a December 2024 rehearing at which pro-solar groups presented their position. According to KJZZ, Arizona Public Service and the Corporation Commission cited that hearing when they asked the appeals court to reconsider.

For the appeals panel, allowing opponents to participate hadn't amounted to "a full and fair opportunity to contest the solar-specific charges."

An administrative law judge stopped a testimony from an economist representing the Arizona Attorney General's Office, which opposed the fee. The appeals panel cited that interruption in its decision.

For affected households, the surcharge would add $24 to $36 to annual electricity bills. The dispute concerned only the additional charge for customers with rooftop panels, not the entire Arizona Public Service rate increase.

What's being done?

The Office of General Counsel, which handles legal services for the Corporation Commission, is reviewing the ruling, a commission spokesperson said. Arizona Public Service, meanwhile, intends to ask the Arizona Supreme Court to review the case.

Arizona Public Service spokesperson Ann Porter emphasized the utility's position in an email to KJZZ, writing, "APS would like additional review so that we can ensure appropriate rates for residential customers with rooftop solar. APS remains committed to providing safe, reliable service while supporting rates that are fair for all customers."

For homeowners weighing solar's costs and benefits, EasyHome can also help them explore their options for backup battery storage. Pairing solar with a battery allows homeowners to maximize savings and power their home with solar when the grid goes down.

Where can I learn more?

Rooftop solar panel owners can significantly reduce their monthly energy bills, but some utility providers aren't willing to play ball. 

• An Arizona court paused a case over policy allowing annual utility rate increases.

• A Phoenix coffee shop added cocktails to its menu after its utility bill hit $1,500.

• Arizona homeowners weighing solar savings have said batteries can help their energy costs.

• Arizona utility bill aid is offering up to $640 for eligible APS and SRP customers.

• Colorado Springs solar owners say a $500 annual credit shift undermines their panels' value.

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