Solar + storage in Arizona

Battery storage in Arizona

In Arizona, battery storage systems can provide extra savings when installed with solar if your rate plan includes demand charges or time of use rates by storing the electricity generated by your solar system and discharging the electricity for use when electricity costs are higher.

Arizona resources

There are currently no Arizona-specific incentives for battery storage. Learn more about national incentives for batteries here.

The future of distributed solar + storage 

In the future, distributed storage could play a larger role in Arizona’s electricity system through something called Virtual Power Plants (VPP). A VPP consists of hundreds (or thousands) of individual battery storage systems paired with solar distributed throughout homes and businesses. These storage devices can be charged, discharged, and managed in coordination with one another to provide clean, dispatchable power at a moment’s notice, reducing the need for traditional coal or gas power plants. In some jurisdictions, each owner of a battery storage device is compensated for the energy they provide to the grid. 

We don’t currently have a policy that would allow for VPPs in Arizona but discussions are ongoing. Contact the Arizona Corporation Commission if you want to see Arizona pass a policy that would allow for VPPs to take off in the state and reduce our reliance on fossil fuels.