How Going Solar with Arizona Public Service (APS): Full Guide

If you’re considering going solar in Arizona, then chances are you’ve heard of Arizona Public Service (APS). After all, they are one of the largest providers of solar energy and sustainable electricity to customers in the state. APS is an excellent example of a solar power provider that can help Arizonans make the switch to independent and sustainable energy.

We’ll explore why switching to APS for your home or business’s renewable energy needs is often the way to go. We’ll look at benefits such as competitive pricing and reliable services. This information will help you make informed decision when you purchase your own solar panel system!

What is APS?

APS, short for Arizona Public Service, is the largest electric utility company in Arizona. They have around 2.7 million customers across 11 counties. It is a trusted provider of electricity for residential, commercial, and industrial clients throughout the entire state. APS, which is the main subsidiary of Pinnacle West Capital Corporation, was previously known as AZP. With its headquarters located in Phoenix, Arizona, APS plays a pivotal role in ensuring a reliable and efficient power supply for the residents and businesses of the region.

APS Solar Buyback Incentive

APS offers many incentives. One of these is APS’s solar buyback program. What is a buyback program?

The APS Solar Buy Back Rate could be your ticket to saving money with solar energy. Here’s the deal: when your solar panel system generates extra energy that you don’t use, it goes back to APS’s grid. Then, APS sells this energy to their other customers, and you get a credit on your bill for being the generator. It’s all thanks to the buyback rate, or solar export rate, that APS calculates for you. So not only are you taking advantage of clean energy, but you’re also making some cash back.

Here’s the thing… The current APS solar buyback rate for solar drops 10% every year on September 1st. That’s why it’s important to act now and install your solar system before then. By doing so, you can lock in APS’s buyback rate for 10 years, which will cause saving more money in the long run. Don’t wait too long! Otherwise, you’ll end up saving less than the buyback rate keeps dropping year after year. So why not start reaping the benefits of solar energy today and secure your buyback rate?

Does Arizona Public Service Offer Net Metering?

Net metering is a billing mechanism that allows solar panel owners to receive credit for the excess electricity they generate and send back to the grid. Net metering enables solar panel owners to offset their energy use and save money on their electricity bills.

Here’s how it works: when solar panels generate more electricity than necessary, the excess power is sent back to the grid, and the meter spins backward, effectively giving the solar panel owner credit for the energy they produced. This credit can offset future electricity bills.

APS, regrettably, does not provide a net metering option. They do, however, have a net billing program that offers marginally less in terms of savings than full-retail net metering.

How Does APS’ Net Billing Program Work?

As mentioned, APS does not offer net metering. However, your home will use the solar energy that your solar panels generate as part of APS’s net billing program to help reduce your power bill.

You should know the solar energy your home generates and consumes is equivalent to paying the full retail rate for power. For APS users, that works out to about $0.12 per kWh. However, the exact amount will depend on your personal rate plan.

When your solar panels generate excess energy beyond your home’s requirements, it gets sent back to the grid and sold for $0.085 per kWh, which is around 25% less than the retail price. This amount is then credited to your electricity bill, helping to reduce future energy expenses. APS refers to this as the ‘Resource Comparison Proxy Export Rate’ (RCP rate).

APS Time of Use Rates

When you pay for power based on the time of day you use it, you are using time-of-use rates. This way of billing, known as time-of-use rates (TOU), aligns the cost of electricity generation with the price of electricity, and it determines how you, as the customer, will be billed for your electricity usage.

APS Time of Use rates depend on the plan you choose. There are three options: Fixed Energy Charge Plan, Time-of-Use 4pm-7pm Weekdays, and Time-of-Use 4pm-7pm Weekdays with Demand Charge.

APS Residential Battery Pilot Program

Unfortunately, APS is no longer accepting applications for this program. This is a pilot program and hopefully, it is successful and will be offered again.

If the pilot is successful, then next time you would choose between two options. You can either share your battery system performance data with us and receive up to $2,500 per home with the Data Only option or allow us to access data associated with your battery system and share its capacity for a maximum of 100 events per year to receive up to $3,750 per home with the Data and Battery Management option. 

Both options offer a onetime, upfront incentive paid within 4 weeks of receiving permission to operate (PTO). Keep in mind that the customer handles any income taxes that may apply related to amounts received under the Program.

APS Solar Fees for Solar Panel Owners

Currently, there is a monthly APS fee for solar panel owners based on how much energy is generated, which is $0.93 per Kw-DC. It is estimated that on average it will cost $100 for the entire year. However, there is good news! The Arizona Corporation Commission voted to remove that fee beginning in December. Therefore, this “grid access fee” will be a thing of the past!

Current Solar Buyback Rate

Customers will lock in the current APS legacy solar buyback rate for ten years if they gain their solar panel system before September 1 of each year. However, the purchaser must get the solar system permit within 180 days of making the purchase. If the delay is not the fault of the customer or the customer’s installation, the need extends to 270 days. The APS Solar Buy Back Rate will be determined by the purchase rate in effect at the end of the ten-year period. The new buyback rate may alter annually.

Sneak Peak of APS Solar Rate

Below is a list of the current rate and APS legacy solar buyback rate for comparison:

September 1, 2017 through September 30, 2018   12.90 ¢ per kWh

October 1, 2018 through September 30, 2019 11.61 ¢ per kWh

October 1, 2019 through September 30, 2021 10.45 ¢ per kWh

October 1, 2021 through August 31, 2022               9.405 ¢ per kWh

September 1, 2022 through August 31, 2023             8.465 ¢ per kWh

Steps to going solar with Arizona Public Service

Sometimes it can feel stressful when you feel like you have a lot of things to accomplish once you go solar. Here’s the thing, APS has made it very simple for you to reap the benefits that the company has to offer. Below are the steps you will take: 

1. Submit application
2. Approval and installation
3. Submit final documentation
4. APS inspection
5. Email confirmation

FAQ

Does Arizona pay for solar panels? 

No, the State of Arizona does not pay for solar panels or the installation of those solar panels. However, with all the tax rebates and other incentives, there has never been a better time to go solar (especially in such a sunny State!).