If you are in Arizona and considering going solar, Arizona Public Service (APS) might be on your radar. As the state's largest and oldest electric company, APS isn't just about keeping your lights on—they're also pioneering solar energy solutions tailored for Arizonans like you.
But before you jump on the solar bandwagon, it's key to look at APS’ solar services closely. Why, you ask? Because not all solar programs are the same. Knowing the details of APS' solar offerings can help you make the best decision and ensure you get the most out of your investment. So let's see if APS Solar is the right fit for you.
Key Takeaways
APS offers a net billing program with an RCP rate of about $0.076 per kWh for excess solar energy.
TOU plans vary rates by time of day, encouraging off-peak energy use for savings.
Federal and state tax credits can significantly reduce solar installation costs.
APS Net Billing Program
APS’ net billing program is different from the traditional net metering setup you might have heard about. Instead of crediting your excess solar energy at the retail rate, APS credits you at a lower rate called the Resource Comparison Proxy (RCP) rate, currently about $0.07619 per kWh. This is less than the retail rate of around $0.15 per kWh, so while it’s a good deal, it doesn't completely offset your future energy costs from APS.
But there's a silver lining: the solar energy your home uses is valued at the full retail rate, which maximizes your savings. Only the excess energy sent back to APS is purchased at the lower RCP rate. This setup encourages you to use your solar energy efficiently, reducing the amount you need from the grid.
The net billing program has its advantages. For one, it incentivizes efficient energy use. By making the most of your solar production, you can minimize the amount of energy you need to buy from APS. However, it also means you need to be mindful of your energy consumption patterns to maximize your savings.
Time of Use Rates
APS also requires solar customers to enroll in Time of Use (TOU) rate plans. These plans vary rates depending on the time of day, making electricity most expensive during on-peak hours (typically 4 PM to 7 PM). Outside of these hours, rates drop, giving you a chance to save even more by shifting energy use to off-peak times.
There are two TOU plans offered by APS:
Time of Use (TOU) Plan: This plan charges different rates depending on the time of day. By using more electricity during off-peak hours, you can lower your overall costs.
Time of Use with Demand Charge: This plan has lower energy rates but includes a demand charge based on the maximum amount of power your home uses from the grid during peak hours.
Here's a breakdown of the rates offered in each plan:
Plan | Time of Use | Time of Use With Demand Charge |
On-peak rates (4PM - 7PM) | $0.34 per kWh | $0.06 |
Off-peak rates (all other times) | $0.12 per kWh | $0.14 |
Monthly demand charge | $0 | $19.59 per kW of highest on-peak usage hour |
By shifting your energy usage to off-peak times, you can lower your electricity bills. For example, running your washing machine or charging your electric car during off-peak hours can save you money. TOU rates make it easier to plan and manage your energy consumption, ensuring you get the most out of your solar system.
APS Solar Incentives and Rebates
APS doesn’t offer direct incentives or rebates for solar installations, but they do support your solar journey by facilitating state and federal credits. These incentives can really cut down your upfront costs, making solar energy more affordable for you.
The federal government gives you a solar investment tax credit (ITC) that lets you deduct 30% of your solar system’s installation cost from your federal taxes. Sweet deal, right? On top of that, Arizona throws in a state tax credit worth 25% of your system’s costs, up to $1,000. Most solar systems in Arizona qualify for the full $1,000 credit, which is a nice bonus.
Why does this matter? These tax credits don’t just reduce what you pay initially—they also boost the long-term value of your solar investment. Lower upfront expenses and increased savings over time make going solar a savvy financial move. You’re not just investing in clean energy; you’re also setting yourself up for a cost-effective future. Leveraging these state and federal tax credits can significantly lower your initial investment and lead to substantial savings on your electricity bills.
Steps to Going Solar with APS
Step 1: Choose a Solar Installer
Your first move is to pick a reputable solar installer. Look for companies with solid experience, great reviews, and the right certifications (like NABCEP). A good installer will provide a detailed site assessment, a clear quote, and guide you through the paperwork and permits.
Step 2: Apply for Interconnection
Once you’ve chosen an installer, they’ll help you apply for interconnection with APS. This application ensures your solar system can safely connect to the grid. You’ll need to submit detailed plans of your installation, including system size and electrical schematics. APS will review your application to ensure it meets all safety and technical standards, which usually takes a few weeks.
Step 3: Approval and Installation
After submitting your interconnection application, APS will either request revisions or approve the project. Generally, you’ll get approval on the first submission, but if you’re adding a solar battery, it might take a bit longer. Once approved, your installer can begin the installation. They’ll mount the panels, connect the wiring, and set up the inverters.
Step 4: Submitting Final Documentation
When the installation is complete, your installer will send APS the necessary documents confirming the system is installed correctly and up to code. This includes final inspection reports and completion certificates.
Step 5: Inspection and Meter Installation
APS will then schedule an inspection to make sure your solar system matches the approved plans. During this visit, they’ll also install a special electric meter that enables you to participate in their net billing program. If APS finds any issues, they’ll notify your installer to make the necessary fixes before scheduling another inspection.
Step 6: System Activation Approval
Once all the above steps are done, you’ll receive permission to operate. APS will send an email confirming that you can turn on your system and start generating solar power.
Now that your system is active, you can start generating solar power and reducing your electricity bills.
Finding the Right Solar Installer
Choosing the right solar installer is crucial for a smooth and successful installation. Start by researching local installers, focusing on experience, customer reviews, and certifications like NABCEP.
Look into their track record—successful projects similar to yours indicate reliability. When contacting potential companies, ask about their experience, the types of panels they use, and their installation process.
Comparing quotes from multiple installers helps you understand costs and services better. Ensure they have the necessary licenses and offer solid warranties on both equipment and labor.
By taking these steps, you can confidently choose a reliable solar installer, ensuring you get the most out of your solar investment and enjoy a hassle-free installation process.
Why Choose IntegrateSun?
Choosing the right solar installer is a big decision, but with IntegrateSun, it’s straightforward and stress-free. With years of experience and countless successful installations, we’ve built a solid reputation for reliability and excellence.
Our team is not only highly skilled but also genuinely passionate about helping you switch to solar energy. From the initial site assessment to handling permits and installation, we manage everything, ensuring a smooth process. We tailor our services to your needs, whether for a commercial property or a cozy home.
Ready to start your solar journey? Get a free solar quote today and see how IntegrateSun can transform your energy future.
FAQs
What is APS’ buyback rate for solar energy?
APS’ buyback rate, known as the Resource Comparison Proxy (RCP) rate, is approximately $0.076 per kilowatt-hour (kWh).
How long does the APS solar installation process take?
Does APS offer net metering?
Are there any incentives for APS solar customers?
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