Digitallinksolar

4 Reasons to Go Solar before September

Arizonans are once again facing a looming APS deadline. As part of the changes that were approved by the ACC in 2017, APS is able to re-evaluate their solar buyback rate every September.

Known as the “export rate” in common APS terms, this credited price for excess solar energy sent back to the grid was reduced by ten percent in September 2018, 2019, 2020, and 2021. If precedent continues, September 1 could see a similar reduction.

But there’s good news. Due to past & ongoing APS/SRP rate changes, anyone who locks in their solar contract before that vote, 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 ¢.0945 solar buyback rate is under review

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 Summer. The current export rate is set at ¢.0945 per kWh, down from the previous two years. This is the third time the export rate is being re-evaluated post 2017. An ACC vote in the coming weeks will set a new amount for the following year beginning in September.

2Locking in a solar contract before September will shield you for 10 years

APS honors new solar panel 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 September.

3Solar incentives still exist, but are disappearing quickly

The 26% federal solar panel investment tax credit is set to decrease again at the end of 2022. Starting in 2023, the solar tax credit drops again to 22% before disappearing entirely by 2024. For now, the state of Arizona still offers a flat $1,000 solar tax credit while voiding sales tax on a solar purchase.

4Despite the confusion, solar is alive and well in AZ

With ongoing rate changes at both SRP and APS, many people assume that solar panel is losing its luster here in the Valley of the Sun. This couldn’t be further from the truth—there is still plenty of room for savings. With that said, a solar ROI typically factors in available incentives and energy buyback credits, all of which are ramping down as time marches on. So, when it comes to solar panel, waiting is generally not the most lucrative strategy. 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 solar quote. If you aren’t quite ready for your solar quote, we will be here when you are – however, the savings may not be.