A guide to going solar with Arizona Public Service (APS)

Going solar with Arizona Public Service (APS) can be a smart and sustainable choice for homeowners looking to reduce their energy bills. Arizona’s abundant sunshine is perfect for solar energy, but navigating APS’s policies and rates might seem overwhelming. This guide will help you understand the process, from understanding APS’s solar policies to choosing the right plan for your needs. With the right information, you can harness the power of the sun while keeping your costs in check.

Key takeaways

• Net Billing Over Net Metering: APS doesn’t offer net metering, but their net billing program lets homeowners sell excess solar energy back to the grid, albeit at a lower rate than retail prices.
• Time of Use Rates: APS customers who install solar are required to use Time of Use rates, where electricity costs more during peak hours (4 PM – 7 PM) but is cheaper off-peak.
• Tax Incentives: Arizona offers a 25% tax credit on solar system costs, which can be combined with the 30% federal solar tax credit to significantly reduce installation costs.

Does Arizona Public Service offer net metering?

APS does not offer traditional net metering, which means you won’t receive full retail credit for the excess energy your solar panels generate. Instead, APS operates a net billing program. While this offers a lower rate for the energy you export to the grid, you can still save significantly on your energy bill by using the solar power your system generates.

How does APS’ net billing program work?

APS’s net billing program works by compensating homeowners for excess solar energy that their system produces and sends back to the grid. Under this system, homeowners can reduce their electricity bills by using the energy their solar panels generate. If you generate more than you use, APS will purchase the excess energy at a rate of $0.076 per kWh, which is significantly lower than the retail price of electricity.

Resource Comparison Proxy Export Rate

APS compensates homeowners for the excess solar energy sent to the grid using the Resource Comparison Proxy Export Rate (RCP). This rate is set at $0.076 per kWh, which is significantly lower than the retail electricity rate. While this means your excess solar energy won’t cover all your future energy costs, it still offers a way to reduce your overall electricity bill.

Time of Use rates

APS customers who install solar panels are required to use Time of Use (TOU) rates, where electricity prices vary depending on the time of day. The most expensive rates are during on-peak hours (4 PM to 7 PM), while off-peak hours (all other times) offer much lower prices. This means that if you manage your energy usage well and avoid high-demand periods, you can maximize your solar savings.

Does APS offer any solar incentives or rebates?

While APS doesn’t currently offer solar incentives or rebates, Arizona’s solar tax credits provide significant savings. Homeowners can benefit from both the Arizona state tax credit of up to 25% of system costs (up to $1,000) and the federal solar tax credit, which covers 30% of the installation cost. Combining both credits can result in substantial savings for APS customers.

Steps to going solar with Arizona Public Service

Going solar with APS is a streamlined process, with a few key steps involved. Here’s how you can get started:

Step 1: Submit interconnection application

Your solar installer will handle the paperwork and submit the interconnection application to APS. This includes required documents like the site plan, electrical diagrams, and authorization forms.

Step 2: Interconnection approval and installation

Once APS approves the application, your solar installer can begin the installation. They will also address any revisions APS might request for safety or technical reasons.

Step 3: Submitting final documentation

After the system is installed, your installer will submit final documents to APS, confirming that everything is up to code.

Step 4: APS inspection and meter installation

APS will inspect the system and install a new electric meter that will enable you to take part in their net billing program.

Step 5: Permission to operate

Once your system passes inspection, APS will send you a notification and grant you permission to operate your solar system.

Should APS customers consider installing a solar battery?

If you’re thinking about going solar with APS, you may also want to consider installing a solar battery. Here are some things to keep in mind:

1. Backup Power for Emergencies A solar battery can provide backup power during a grid outage, ensuring that essential appliances continue to function even when the grid is down.
2. Extended Solar Savings While APS’ net billing program allows you to send excess solar energy back to the grid, a battery lets you store that energy and use it later when the sun isn’t shining, helping to maximize your solar savings.
3. Costs and Payback Period Solar batteries can be expensive—often costing upwards of $10,000. While they offer backup power and the potential for extra savings, the return on investment isn’t always immediate. The payback period can be extended, making it a more worthwhile option for homeowners who prioritize energy independence.

Find the right solar installer to help you reduce your APS bills

Choosing the right solar installer is essential for maximizing the benefits of your APS and solar power system. A trusted installer will ensure your solar panels are correctly sized for your home, optimize your system for the best performance, and navigate the Arizona solar program seamlessly. Be sure to choose a company with a proven track record, positive customer reviews, and NABCEP certification to ensure quality and reliability. Getting multiple quotes will help you find the best deal for your needs and budget.

Frequently Asked Questions:

Conclusion

Going solar with Arizona Public Service (APS) can be a smart choice for homeowners looking to reduce their energy bills and take advantage of Arizona’s abundant sunshine. Although APS doesn’t offer traditional net metering, their net billing program still provides significant savings on excess solar energy. By selecting the best APS plan for solar and carefully navigating the installation steps, you can enjoy the benefits of solar power while contributing to a greener future. If you’re ready to make the switch, finding the right solar installer will ensure you maximize your investment and achieve long-term energy savings.