Determining the compensation for APS’s solar purchase might seem perplexing. It’s essential to know that APS presently compensates at a rate of 8.46 cents per kWh for surplus solar power. Our guide will assist you in navigating through these compensations and enhancing your advantages with APS.

Keep reading to find out more!

Understanding the Cost of a Solar System in Arizona

Solar panels installed on suburban home in Arizona desert landscape.

In Arizona, the price you’ll pay for solar panels has a lot to do with how big your home is. On average, expect each watt of solar power to cost you some dollars – but remember, bigger systems might lower that price a bit.

Average cost per watt of solar installed

Diving straight into the heart of solar investments in Arizona, the financial figures paint an intriguing picture. The table below simplifies the cost range homeowners might navigate when installing solar panels. Keeping in mind, these numbers are averages and can fluctuate based on several factors, including system size, installation complexities, and equipment choices. Yet, they serve as a sturdy foundation for understanding the initial investment required.

AspectCost (Per Watt)
Average Cost of Solar System in Arizona$2.64
Cost Range for Solar Panel Installation in Arizona$2.29 – $2.64
Average Cost of Solar Panels in Arizona$2.61
National Average for Solar Panels$2.66

Evidently, Arizona boasts a slightly lower average cost for solar panels compared to the national figure. This difference, although seemingly minimal, can accumulate to significant savings, especially for large installations. Homeowners eyeing solar power as a viable alternative should find this encouraging. With prices on a gentle incline, the state’s solar landscape hints at both affordability and accessibility.

Overall, the cost per watt metric offers a clear starting point. Yet, the true financial narrative unfolds with deeper investigation into rebates, incentives, and the evolving buyback rates offered by utilities like APS. This exploration not only illuminates the upfront costs but also sketches the potential returns on solar investments.

An Overview of Arizona Public Service (APS) and Solar

A family installing solar panels on their Arizona home.

APS works with solar energy, making it easier for homes in Arizona to get power from the sun; keep reading to learn how you can join in.

APS’ net billing program

APS has a special program for people who use solar panels. This is called the net billing program, also referred to as EPR-2. It means if your solar panels make more energy than you use, APS gives you credit for each kilowatt-hour (kWh) of that extra power.

These credits show up on your bill and can lower how much you have to pay.

The extra good news? If you don’t use all your credits in one month, they carry over to the next month. This way, you keep saving money. Also, every year on September 1st, APS checks the rate they give for this excess energy.

So, it’s smart to know this date because things might change annually.

Time of Use rates

Understanding how electricity charges can fluctuate throughout the day is crucial for Arizona Public Service (APS) customers, especially those investing in solar energy. The Time of Use (TOU) rate plans play a pivotal role in this scenario. They’re designed to encourage smarter energy usage by offering different rates for electricity based on the time it is consumed. Let’s dive into the specifics with a straightforward breakdown in table format.

Rate Plan FeatureDescriptionImpact on Solar Customers
Time of Use (TOU)Electricity rates vary throughout the day, divided into peak and off-peak hours.Solar customers can maximize savings by consuming energy during off-peak hours.
Peak HoursHours during the day when electricity demand is highest, typically afternoon to evening.Customers are encouraged to reduce consumption during these times to lower costs.
Off-Peak HoursTimes when electricity demand is low, usually late evening to early morning.Optimal period for solar customers to use electricity, taking advantage of lower rates.

This rate structure allows for a more dynamic approach to managing electricity. For those with solar installations, understanding and adapting to these rates can lead to significant savings. By shifting energy-intensive activities to off-peak hours, solar customers can utilize the energy they generate more effectively, reducing reliance on the grid during costly peak times. Furthermore, APS’s commitment to such programs underscores the utility’s support for renewable energy adoption and sustainable living practices among its customer base.

Incentives and Rebates Offered by APS

APS gives money back and special deals for solar power users, making it a smart move to check out their programs.

APS Residential Battery Pilot Program

APS has a special deal for folks who use solar batteries at home. It’s called the APS Residential Battery Pilot Program. If you join, you can get $500 back for each kilowatt your battery can handle, up to $2,500 for your house.

This is great because it makes getting a solar battery more affordable. You need to be an APS customer and pick a time-of-use (TOU) plan or have an old plan that works with solar rates.

The program also throws in an extra $1,250 just for signing up. So, if you install a battery system, not only do you get money per kilowatt but also this nice bonus adding up to even more savings.

Living in APS territory means you can take part as long as your electric plan fits the bill.

The Process of Going Solar with APS

Starting your solar journey with APS is straightforward and exciting. First, you dive into paperwork, then wait for the green light as APS checks everything out.

Steps to interconnection and installation

Getting solar panels up and running with APS involves a few steps. First, you need APS to say yes before any work can start. Here’s how it goes:

  1. Fill out the interconnection application. This is your first step. You’re asking APS if you can connect your solar panels to their grid.
  2. Wait for approval from APS. They look at your application and decide if everything looks good.
  3. Once they say okay, move ahead with installing your solar panels. Now’s the time to get those panels up on your roof.
  4. After installation, gather all your paperwork. Make sure you have every document signed and ready.
  5. Next, tell APS you’re done by submitting the final documents. This shows them that everything is in place.
  6. Now, APS will come out to inspect your system. They want to make sure everything was installed correctly and safely.
  7. If they give the thumbs up, they’ll put in a new meter for your solar system… This meter tracks how much power you’re using and sending back to the grid.
  8. Finally, activate your solar energy system! Turn it on and start using clean energy from the sun.

Submitting final documentation

After your solar system is in place, the final step is handing in your paperwork to APS. This part makes sure everything aligns with their standards. Here’s how it goes down:

  • First up, you complete the solar system installation. This means all parts are put together and ready.
  • Next, gather all documents related to your solar project. These include permits, receipts, and plans.
  • Then, send these documents over to APS. They want to see everything that’s been done.
  • APS takes a look at what you’ve submitted. They’re checking if your solar setup matches what was approved.
  • If all looks good, APS schedules a visit. They come out to see your solar system in person.
  • During this visit, they check if your system matches the approved plans. It’s all about making sure things are right.
  • After passing inspection, APS moves forward with connecting your system to the grid. This means you start getting credit for the power you generate.

APS inspection and meter installation

Going solar with APS involves a few key steps. One of the most important is the APS inspection and meter installation. This ensures your system works well and safely connects to the grid.

  • First off, your solar panel system needs a thumbs – up from APS. This is where they come over and check if everything’s installed right. They’re looking to see that your setup ticks all the safety boxes.
  • Then comes the meter upgrade for solar installation. Since you’re going solar, your old meter might not be up for the job anymore. You’ll get a new bidirectional meter instead. It’s pretty cool because it tracks both energy you use from the grid and what you send back.
  • Solar power system approval process kicks in next. Once APS says everything looks good, they give your system an official okay. This means you’re all set to start using solar power at home.
  • Your energy usage tracking gets an upgrade too. With the new meter, keeping an eye on how much energy your panels are making versus what you use becomes a breeze.
  • Net metering for solar customers is another perk. It lets APS find out how much power you’ve given back to the grid. If you share more than you take, they might even pay you for it.
  • Finally, monitoring is key to getting the most out of your panels. Watching how much electricity your system produces helps spot any issues early on.

The Importance of Solar Battery for APS Customers

Solar batteries are a big deal for APS customers. They store energy from the sun during the day. Later, this energy can be used when it’s needed most. This means less reliance on the grid, especially during peak hours.

Plus, with APS offering $500 per kW for solar battery output, there’s a financial perk too.

APS is also looking into how batteries help with decarbonization through their Residential Battery Pilot Program. It’s all about making energy use cleaner and more efficient. For folks in Arizona, adding a battery to their solar setup not only cuts down energy costs but also supports renewable energy growth.

Evaluating the Worth of Solar with APS

Figuring out if solar makes sense with APS involves looking at how much money it puts back in your pocket. The buyback rate is a key player here. Currently, you get 8.46 cents for every kilowatt-hour (kWh) of solar energy you don’t use and send back to the grid.

However, keep an eye on this rate because it drops by 10% each year. This means planning when to make the switch is pretty crucial to lock in the best deal.

To add another layer, understanding the Value of Solar decision helps too. It secures your rate for ten years after installing solar panels. So, not only do you need to watch the yearly change in rates but grabbing this guarantee can really boost what you save or earn over time with APS.

All these pieces—buyback rates, reductions, and long-term guarantees—shape whether going solar adds up for you financially under APS’s policies and programs.

APS Solar Buy Back Rate

APS pays you for the extra solar energy you give back to them. Each year, this rate can go down, so getting in early is smart.

The yearly drop in buy back rate

Understanding the dynamics of the solar buyback rate is essential for APS customers looking to maximize their solar investment. Currently, the buyback rate stands at $0.09 per kWh. However, this figure isn’t static. It’s set to decrease by 10% annually, a critical factor for those calculating long-term returns. Below, we’ve broken down how this yearly reduction will impact the buyback rate, underlining the importance of acting swiftly to lock in higher rates before they decline.

YearBuyback Rate per kWh
Current Year$0.09
Next Year$0.081
Following Year$0.0729
3 Years Later~$0.0656

This table illustrates the immediate future but, remember… Arizona regulators are considering a proposal. If approved, the buyback rate could plummet to $0.053 per kWh. This proposal, still under review, marks a significant pivot point for APS customers. The clock’s ticking. With rates poised for a steep drop, capitalizing on the current or even next year’s rates could be a strategic move. This isn’t just about rates – it’s about seizing the moment, understanding market trends, and making informed decisions that align with your financial and environmental goals.

Maximizing benefits before rate reduction

Act fast to lock in the current APS solar buy back rate of $0.09 per kWh. With rates dropping each year, installing solar panels now is a smart move. You can then sell extra power back to the grid at this higher rate.

This helps lower your monthly bills and saves you more money over time.

By getting solar panels installed quickly, you’ll enjoy these savings before the next decrease hits. Plus, with APS planning to raise customer bills by 13-23%, grabbing this opportunity can soften that impact for you on future energy costs.

Next up, let’s dive into how adding a solar battery boosts these benefits even further.


APS pays you for the extra solar power you don’t use. This amount changes, but right now it’s about 8.46 cents per kWh. Every year, this payment drops a bit – by 10%. So, getting your solar system early means more money back.

Remember, as rates go down, locking in benefits soon is smart.

If you’re interested in comparing rates, check out how much PG&E pays for solar to see how it stacks up against APS.

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