APS Is Slashing Solar Buy Back Rates on September 1st
Have you been thinking about installing solar panels for your home? If you live in APS territory, you should act fast. APS reviews its solar buyback rate every year on September 1st. It’s dropped its rate by 10% every year since 2017 and will drop it by another 10% this September.
Solar Net Billing & Buyback Rates
Net billing is a solar incentive that increases the financial benefits of residential solar panels. Under a net billing agreement, solar customers can export the excess electricity they generate to the electric grid. The electric company will credit you for the power you send to the grid and you can put your credit toward the electricity you buy from the grid when your solar panels are not producing electricity.
The rate at which the electric company credits you for the solar power you export to the grid is known as the buy back rate. The higher your buy back rate, the more you get for the power you send the grid.
APS Buyback Rates Decrease Every Year
In APS territory, buyback rates are on a step-down schedule. They’re cut by 10% every year on September 1st. The only exception was in 2020, when the rate was not dropped because of the pandemic.
| Year (9/1-9/1) | Rate |
|---|---|
| 2017-2018 | 12.9 cents/kWh |
| 2018-2019 | 11.61 cents/kWh |
| 2019-2020 | 10.45 cents/kWh |
| 2020-2021 | 10.45 cents/kWh |
| 2021-2022 | 9.405 cents/kWh |
| 2022-2023 | 8.456 cents/kWh |
| 2023-2024 | 7.619 cents/kWh |
| 2024-2025 | 6.85 cents/kWh |
Have you been thinking about installing solar panels for your home? If you live in APS territory, you should act fast. APS reviews its solar buyback rate every year on September 1st. It’s dropped its rate by 10% every year since 2017 and will drop it by another 10% this September.
Solar Net Billing & Buyback Rates
Net billing is a solar incentive that increases the financial benefits of residential solar panels. Under a net billing agreement, solar customers can export the excess electricity they generate to the electric grid. The electric company will credit you for the power you send to the grid and you can put your credit toward the electricity you buy from the grid when your solar panels are not producing electricity.
The rate at which the electric company credits you for the solar power you export to the grid is known as the buy back rate. The higher your buy back rate, the more you get for the power you send the grid.
APS Buyback Rates Decrease Every Year
In APS territory, buyback rates are on a step-down schedule. They’re cut by 10% every year on September 1st. The only exception was in 2020, when the rate was not dropped because of the pandemic.
When you install grid-tied solar panels, you will lock-in your buy back rate with APS for 10 years! Rates will continue to drop, so the sooner you go solar, the more you will save.
You Can Store Your Extra Power Instead of Selling It
Selling your power for utility credit is a smart financial move, but it becomes less advantageous as buyback rates go down. Once the latest rate cut goes into effect, buyback rates will be almost half what they were in 2017. If you don’t want to sell your power to APS for a reduced rate, you can install a solar battery and use it yourself instead. Solar batteries let you store the excess electricity your solar panels generate. Then, when your panels are not producing, you can tap into your battery for backup power instead of relying on the grid.
Go Solar Now for the Best Incentives!
There’s still time to lock-in the current buyback rate before it’s reduced, but the deadline is getting tight. To qualify for this year’s rate, your application must be submitted by September 1st at the very latest. If you want the best rate, reach out to us today and we’ll do everything in our power to get your application in on time. If you don’t make the deadline for this year, it’s still in your best interest to go solar sooner rather than later. APS will slash rates again next year. Get your application in now to lock in the best rate.
