Just as it has every year since 2017, APS is planning to lower the buyback rate for excess solar energy beginning September 1, 2022. If you've been holding off going solar, now is a great time to lock in better savings before they're gone.
As it has been for the last four years (except 2020, due to COVID), APS will soon reduce the buyback rate that ensures maximum credits for any excess solar energy sent back to the grid. This means less return for any future solar customers who miss the September 1st deadline.
The good news is that anyone who locks in a signed solar interconnection agreement before September 1st, or anyone who already has an existing APS solar contract, will be grandfathered and shielded from future reductions for the duration of their contract.
So, if you’ve been considering solar, don't wait. Here are four big reasons why now is the time to act.
1. The current 9.40 cent solar buyback will decrease
In 2017, APS did away with net metering, the program that offered a 1-to-1 credit for any excess energy sent back to the grid. The new program sets a single "export rate" that is reviewed annually every September. The current export rate is set at 9.40 cents per kWh, and is expected to decrease on September 1st. This is the third time the export rate is being re-evaluated post-2017. An ACC vote in the coming weeks is expected to approve a new rate for all solar contracts after September 1st, 2022.
2. Locking in a solar contract now will shield you for 10 years
APS honors new solar contracts for 10 years. So, if you’ve been considering solar and want to ensure today’s best rates while shielding yourself from future rate increases or buyback credit decreases, be sure to lock in your solar contract before August 15, 2022. This earlier deadline ensures we have enough time to secure approval on your solar energy design and grid connection contract with APS.
3. Solar incentives still exist but are also disappearing quickly
The current 26% federal solar investment tax credit is set to decrease at the end of 2022. Starting in 2023, the solar tax credit drops to 22% before disappearing entirely by 2024. An increase to 30% with an extension for ten years was proposed as part of the Inflation Reduction Act 2022, but there is no guarantee this will pass congressional approval and become law. The state of Arizona still offers a flat $1,000 solar tax credit while voiding sales tax on a solar purchase.
If you are looking to cash in your piece of Arizona’s abundant sunshine and lock in maximum savings before the next big rate review, contact us for a custom APS solar quote. If you aren't quite ready for a quote, you can download our complimentary whitepaper: Is Solar Right for You?
*For more information about the APS deadline, you can access the APS Rate Rider PDF here.