Solar-qualified homeowners in Arizona Public Service (APS) territory get to save money by sending the extra energy their system generates to the grid. APS takes the excessive energy, sells it to other consumers, and credits the generating homeowner’s bill. The company uses a standard rate known as the “solar export rate” or “buyback rate” to credit homeowners for exporting energy to the grid.
Every year since 2017, APS reviews its buyback rate, with the rate dropping 10% every year on September 1st. Thus, if you have been holding off on the decision to go solar, right now is the time to install your system to lock in your buyback rate!
If you install solar power in your Arizona home before September 1st this year, your rates will be grandfathered at the current rate for the next ten years. Going solar now allows you to lock in higher APS rates and save more cash. With the buyback rates dropping every year, waiting to install solar power means you will save less money.
Below are three key things to note about the APS buyback rate.
The Current Rate Will Go Down
In 2017, APS dissolved its net metering program, which was offering a 1-1 credit for any energy exported to the grid. In its place came a net billing program with a “single export rate” that is reviewed annually on September 1st. Currently, the rate stands at 8.46 cents per kWh but is set to go down, as it does every year, by 10%.
APS Could Introduce Another Rate Hike
Other than its buyback rate being expected to decrease, APS is mulling another rate hike. The company is already seeking approval on a rate hike that could increase customer bills by an average of $18 or 13-23% monthly. If the Arizona Corporation Commission approves it, the rate could be effective as early as December 1st, 2023. With such hefty energy costs looming, it is time to lock in your solar contract and get cheaper energy and a better buyback rate.
Installing Solar Early Enough Will Ensure You Avoid the Rush
APS honors all new solar contracts for a decade. Installing solar before the buyback rate review will shield you from future buyback credit decreases or rate increases.
Nonetheless, the process takes a few months and is subject to external aspects and their backlogs and respective timelines. Going solar now ensures your installation is done very early, and you are ready for the review before the rush of APS customers floods near the deadline. You can begin making savings on your monthly energy costs as early as now!
What are the requirements for receiving APS solar buyback rate?
You have to meet several requirements to be eligible for APS solar program’s buyback rate. Your home solar system should have met the following criteria:
- Use of photovoltaic panels
- Interconnection with APS energy distribution grid
- Proper location, installation behind the power meter, and appropriate size, given your home’s energy consumption potential
Go Solar With Solar Optimum
Going solar allows you to cash in on Arizona’s sunshine with APS buyback rates while saving on home energy costs. Our solar experts can offer further guidance and help you install a home solar system that meets APS standards. Contact Solar Optimum today for a quote.