Skip to content
D Digilifetrends

Home Improvement

Arizona appeals court turns away renewed solar fee on homeowners

Digilifetrends Published 3 min read

For impacted households, the surcharge would have added $24 to $36 a year to electricity bills.

Palm trees around a building.
Photo Credit: iStock

Arizona homeowners with rooftop solar will not be seeing a new monthly utility charge any time soon.

A panel of the Court of Appeals has rejected Arizona Public Service’s second effort to bring back the fee.

What to know

According to KJZZ, the Arizona Corporation Commission approved a rate increase that allowed the utility to add $2 to $3 a month to the bills of solar customers.

Arizona Public Service said providing electricity when rooftop systems underperform or go offline creates extra costs, and the charge was intended to help cover them.

The appeals court said APS did not supply evidence showing that solar customers increased costs. That conclusion supported its earlier ruling blocking the charge, which also said regulators approved it before opponents had a chance to challenge it.

Background

The commission kept the fee in place after a rehearing in December 2024, when pro-solar groups presented their case. KJZZ reported that APS and the Corporation Commission pointed to that hearing when they asked the appeals court to reconsider.

But the panel concluded that allowing opponents to take part did not amount to a full and fair chance to dispute the solar-specific charges.

FROM OUR PARTNER

Crushed by your bills? See instant solar savings from vetted installers in just a few clicks

Arizona appeals court turns away renewed solar fee on homeowners

With energy prices through the roof, there's never been a better time to go solar — and EasyHome can help you find the best prices from the best installers in your area.

EasyHome takes the guesswork and headaches out of energy upgrades by showing you estimated savings from a network of vetted local partners. To get started, just enter your ZIP and share a few details about your home — seeing your estimate is really that easy.

An administrative law judge also cut off testimony from an economist for the Arizona Attorney General’s Office, which opposed the fee. The appeals panel cited that interruption in its decision.

The disputed charge would have meant an extra $24 to $36 per year for affected households. The case addressed only the added fee for customers with rooftop panels, not APS’s broader rate increase.

What happens next?

A commission spokesperson said the Office of General Counsel, which handles legal services for the Corporation Commission, is reviewing the ruling. APS, meanwhile, plans to ask the Arizona Supreme Court to take up the case.

In an email to KJZZ, APS spokesperson Ann Porter said the company wants further review to ensure proper rates for residential customers with rooftop solar. She added that APS remains committed to safe, reliable service while supporting rates that are fair for all customers.

For homeowners evaluating solar, EasyHome also says it can help compare backup battery storage options. Pairing solar with a battery can help maximize savings and keep power flowing when the grid goes down.

Rooftop solar panel owners can lower their monthly energy bills, but some utility providers remain resistant.

• 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.

More from Digilifetrends