Electricity rates in Arizona have been rising steadily over the last few years. This has led many homeowners to look for ways to reduce their home energy costs. If you are an Arizona Public Service (APS) customer, going solar and taking advantage of their net billing program can go a long way in helping you save on your energy bills. However, to enjoy the full benefits of this program and get the best APS solar buyback rate, there are a few things you need to know.
Understanding the APS Buyback Rate
When you install solar panels as an APS customer, the extra energy generated by your panels is sent to APS’s grid. The electric utility then sells this energy to their other customers. In exchange, you receive credits on your bill for the electricity you add to the grid. The rate at which the company credits you for the excess energy is called the buyback rate or solar export rate. The APS solar buyback rate is reviewed on September 1st every year.
APS Solar Rate Plans
APS offers its customers three different solar rate plans to choose from:
- Time-of-use 4 PM–7 PM weekdays
- Time-of-use 4 PM–7 PM weekdays with demand charge
- Fixed Energy Charge plan
Each of these options has its own benefits. To maximize your net billing options, be sure to pick the right plan for your home. This will largely depend on the APS plan you had before going green and your energy usage habits.
Should APS Customers Go Solar?
So, is going solar worth it for APS customers? If you are looking to escape expensive electric bills, you may want to consider going green. With the net billing program by APS, you will be able to offset your energy usage, something that will help reduce your overall electricity costs. However, to be eligible for the APS solar buyback rate, you need to meet certain conditions and complete the APS interconnection process.
Why Now Is the Time To Switch to Solar Energy
Once you’ve decided that going solar is worth it, consider making the switch as soon as possible. Here’s why.
Avoid the Rush
The solar installation process is subject to backlogs, delays and external deadlines. Having your installation done early will help you avoid the rush by APS customers as the deadlines approach and allow you to start enjoying lower utility bills sooner.
Take Advantage of Current Solar Buyback Rates
The buyback rate associated with APS’s net billing program is reviewed annually on September 1st. This rate has been dropping by 10% every year, a trend that is expected to continue. Below is the trend over the past years:
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- Sept 1, 2017 to Sept 30, 2018: 12.9 cents per kWh
- Oct 1, 2018 to Sept 30, 2019: 11.61 cents per kWh
- Oct 1, 2019 to Sept 30, 2021: 10.45 cents per kWh
- Oct 1, 2021 to Aug 31, 2022: 9.405 cents per kWh
- Sept 1, 2022 to Aug 31, 2023: 8.465 cents per kWh
APS honors all new solar contracts for one decade. By embracing solar energy today, you will lock in your buyback rate, effectively protecting yourself against future rate fluctuations.
Offset Rising Electricity Prices
In addition to the solar buyback rate dropping each year, APS raised its electricity prices in 2024. With this rate hike, the average residential customer expects a bill increase of about 8%, meaning going solar is even more attractive now.
Enjoy Solar Incentives
While APS does not offer solar incentives and rebates to its customers, you can take advantage of both federal and state solar incentives when you adopt solar power. These can save you a significant amount of money.
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. Solar Optimum is an industry leader in renewable energy and roofing. Our solar experts will explain how solar power will benefit you, install your home solar system and help you navigate the APS interconnection process. Contact us to go solar today and enjoy a lower energy bill.
