This article provides a clear, state-by-state breakdown of all requirements and links involved in the solar installation process, covering every requirement from M0 to M1 through M2 for Arizona. It outlines the documentation, approvals, and compliance steps that installers and sales teams must follow to ensure each project meets state-specific regulations. Designed as a practical guide, it helps teams quickly understand what’s required in each state to keep projects compliant and moving efficiently.
Arizona-Active Utilities
State | Utilities* = Lease Only | Min. Production Factor for Sales (Y1 Prod / DC kW) |
Arizona (Lease) |
| 900 |
Arizona-Battery Energy Storage
*As of 10/1/25, battery attachment will be required for all new solar sales in Arizona
| Backup | Arbitrage |
Details | Purpose: Designed to provide backup power during an outage. Systems with Backup capability will also support Arbitrage functions.** | Purpose: An Arbitrage-only or ‘load-shifting’, or ‘peak shaving’ battery system is battery system that allows the homeowner to charge and discharge their battery with solar power to avoid:
Arbitrage Batteries are NOT capable of providing backup power source in the event of a grid outage or power interruption. |
Pricing | Priced by total cost of the battery (price caps apply)
| AZ:
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Markets | All markets except:
| ONLY available in:
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Arizona TOU & Export Credits:
Arizona utilities offer low export credits, and TOU rate plans are required in the most common utilities. Arizona uniquely offers optional TOU+Demand charge rates, which some homeowners who are involved with their usage and rate plan may choose.
Both Self-Consumption mode and TOU/Savings mode are acceptable in Arizona.
LightReach generally recommends Self-Consumption Mode (also called Self-Powered) in Arizona as it’s easy to configure. Self-Consumption mode ensures all stored energy is utilized first, up to the Reserve Level, before the home consumes from the grid.
TOU mode, called Time-Based Control in Tesla and Savings mode in Enphase, could very well benefit homeowners further. However, it’s critical the correct utility rate plan is programmed with accurate Buy and Sell rates. Since LightReach is not confident all Arizona rate plans are correctly programmed and match each homeowner’s actual utility rate, we recommend installers set the mode to Self-Consumption.
| Full service (Backup) |
|
Arizona | Yes | Yes |
Mode Recommendation | SolarEdge: Self-Consumption Tesla: Self-Powered Enphase: Self-Consumption
TOU mode also ok
| SolarEdge: Self-Consumption Tesla: Self-Powered Enphase: Self-Consumption
TOU mode also ok
Storm Mode must be enabled. |
Reserve State of Charge | No minimum MAX: up to 50% depending on customer preference | Minimum 20% required Max: up to 100% depending on customer preference, however, the less reserved for backup the more the battery can be used to save on rates.
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State(s) | Snow Loss (Only use if design platform does not have a total value) | Minimum System Loss without Shade Loss (Includes Snow Loss) |
| 0% | 9.1% |