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How to Save Money with Arizona Solar Install: Understanding APS Net Metering

Updated: Jul 12

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona solar calculator to get an estimate of your potential benefits.


With Arizona’s abundant sunshine, investing in a solar energy system can be a smart move for homeowners looking to reduce their energy bills and contribute to a sustainable future. Arizona Public Service (APS) offers net metering, a program that allows solar customers to offset their energy costs by feeding excess solar energy back into the grid. Understanding how net metering works and optimizing your solar system can significantly enhance your savings. In this blog, we’ll delve into the details of APS net metering and provide tips on how to maximize your financial benefits with an Arizona solar install.


What is Net Metering?

Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. If your solar panels produce more electricity than your home uses during the day, the excess energy is sent back to the grid, and you receive credits on your electric bill. At night or during periods of low solar production, you can use these credits to offset the cost of the electricity you draw from the grid.





APS Net Metering Explained

APS has a specific net metering policy that impacts how you can save with your Arizona solar install. Here are the key points to understand:

  1. Export Rate: APS pays solar customers an export rate for the excess energy they send back to the grid. This rate is set annually and can affect your overall savings. As of now, the export rate is approximately 10.45 cents per kilowatt-hour (kWh).

  2. Time-of-Use Rates: APS offers time-of-use (TOU) plans that charge different rates depending on the time of day. By shifting your energy usage to off-peak hours, you can save more money. Combining a TOU plan with solar can enhance your savings.

  3. Demand Charges: Some APS plans include demand charges, which are fees based on your highest energy usage during peak times. Reducing your peak usage can lower these charges, making your solar savings even greater.

Tips for Maximizing Your Savings with an Arizona Solar Install

  1. Optimize Your Solar System Size: Ensure your solar system is appropriately sized for your energy needs. Oversizing can lead to excess energy that is sold back at a lower rate, while undersizing won’t maximize your savings.

  2. Use Energy Efficiently: Shifting your energy usage to off-peak hours and reducing overall consumption can significantly impact your savings. Consider using energy-efficient appliances and smart home devices to manage your energy use.

  3. Monitor Your System: Regularly monitoring your solar system’s performance ensures it operates efficiently. Many solar systems come with monitoring apps that allow you to track production and consumption in real time.

  4. Take Advantage of Incentives: Arizona offers several incentives for solar installations, including the federal solar tax credit, state tax credits, and utility rebates. These can significantly reduce the upfront cost of your solar system.

  5. Consult with Experts: Partner with a reputable solar brokerage like Phoenix Valley Solar. Experts can help you navigate APS’s net metering policies, choose the best rate plan, and optimize your system for maximum savings.


Conclusion

Installing solar panels in Arizona and taking advantage of APS’s net metering program can lead to substantial savings on your energy bills. By understanding how net metering works, choosing the right rate plan, and optimizing your energy usage, you can maximize your financial benefits. If you’re considering an Arizona solar install, consulting with professionals can ensure you make the most of your investment and enjoy the long-term benefits of clean, renewable energy.


Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona solar calculator to get an estimate of your potential benefits.


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