top of page

APS Net Metering & Solar Buyback Update in 2024: What You Need to Know

Arizona Public Service (APS) has been a significant player in the renewable energy sector, providing solar energy solutions to numerous customers. However, the landscape of solar energy incentives and policies is constantly evolving, affecting both existing and potential solar customers. This article delves into the latest updates regarding APS’s solar utility programs, focusing on the removal of net metering, current solar buyback rates, and the upcoming changes slated for August 2024.

Understanding APS Solar Buyback Program Changes

APS has a long history of promoting solar energy within Arizona. Over the years, it has introduced several initiatives aimed at encouraging homeowners and businesses to adopt solar power.

History and Evolution of APS Solar Initiatives

APS’s journey with solar energy began with robust incentives and programs designed to make solar power more accessible. Initially, these programs included generous rebates and the popular net metering system, which allowed customers to sell excess energy back to the grid at a one-to-one rate.

Removal of Net Metering in 2017

In 2017, APS made a significant change by removing net metering, a program that offered a 1-to-1 credit for any excess energy sent back to the grid. This shift marked a turning point in the economic viability of solar installations for many customers, prompting a need for new strategies to maximize solar energy benefits.

Current Solar Buyback Rates and Upcoming Changes

Current APS Solar Buyback Rate Explained

As of now, APS offers a solar buyback rate of $0.0761 per kWh for excess energy generated by solar systems. This rate is substantially lower than the retail rate for electricity, which has significant implications for the financial returns on solar investments.

Implications of Proposed Rate Reduction in August 2024

In August 2024, the Arizona Corporation Commission (ACC) may approve a proposal to reduce the solar buyback rate by 20%. This reduction aims to balance the financial dynamics between solar and non-solar customers but poses challenges for those relying on solar energy.

Issues Faced by APS Solar Customers

Financial Impact of Rate Reductions

The current buyback rate influences how quickly homeowners can recoup their initial investment in solar panels. With the rate set to potentially decrease by another 20% in August 2024, it becomes crucial for solar customers to understand how these changes affect their overall savings.

Challenges for Existing and New Solar Customers

For existing solar customers, the reduced buyback rate means adjusting their energy usage and storage strategies. New customers must carefully consider the financial implications before investing in solar systems, factoring in the longer payback periods due to lower buyback rates.

The Economic Benefits of Solar Energy

Cost-Benefit Analysis of Solar Installations

Installing solar panels requires a significant upfront investment. However, the long-term savings on energy bills can offset these costs, particularly when combined with available financial incentives and rebates.

Financial Incentives and Rebates

Despite the reduction in buyback rates, various financial incentives, such as federal tax credits and state rebates, still make solar installations an attractive option. These incentives can significantly reduce the initial cost, enhancing the overall return on investment.

Proposed Solutions for APS Solar Customers

Optimizing Energy Usage

Existing APS customers can adapt to the upcoming changes by optimizing their energy usage. This includes installing energy-efficient appliances, scheduling high-energy tasks during daylight hours, and investing in backup batteries.

Energy Storage Solutions

Backup batteries play a crucial role in maximizing the benefits of solar energy. They allow homeowners to store excess energy generated during the day for use at night or during power outages, ensuring a continuous power supply.

Solar and Backup Batteries

The Role of Backup Batteries in Solar Energy

Backup batteries are essential for making the most out of solar energy systems. They store excess energy generated during sunny periods, which can then be used during times when solar production is low, such as at night or during cloudy days.

Types of Backup Batteries

There are various types of backup batteries available, including lithium-ion and lead-acid batteries. Each type has its advantages and disadvantages in terms of cost, storage capacity, and lifespan, making it important for homeowners to choose the right battery for their needs.

Achieving Energy Independence

Strategies for Maximizing Solar Savings

Solar energy, coupled with backup batteries, provides a path to energy independence. By generating and storing their electricity, homeowners can reduce their reliance on the grid and protect themselves from rising utility rates.

Long-term Financial Benefits

The combination of solar panels and backup batteries can lead to substantial long-term financial savings. While the initial investment is higher, the reduction in energy bills over the system’s lifespan can result in significant overall savings.

Comparative Analysis and Best Practices

APS vs Other Utility Providers

Comparing APS’s solar programs with those of other utility providers can provide valuable insights. While APS has reduced its incentives, other providers may offer more favorable rates or additional benefits that make solar installations more attractive.

Successful Solar Programs in Other States

Looking at successful solar programs in other states can offer lessons for APS customers. States with robust solar incentives and supportive policies can serve as models for optimizing solar energy benefits in Arizona.

Environmental Impact

Reducing Carbon Footprint with Solar Energy

One of the primary benefits of solar energy is its positive impact on the environment. By reducing reliance on fossil fuels, solar energy helps decrease greenhouse gas emissions and combat climate change.

Solar Energy’s Role in Sustainability

Solar energy plays a vital role in creating a sustainable future. As technology advances and costs decrease, solar power becomes an increasingly viable option for reducing the carbon footprint and promoting environmental sustainability.

Technological Innovations

Advances in Solar Technology

Technological advancements are continually improving the efficiency and affordability of solar panels and backup batteries. Innovations such as bifacial solar panels and advanced energy management systems are enhancing the performance of solar installations.

Future Trends in Solar Energy

The future of solar energy looks promising, with ongoing research and development aimed at making solar power more accessible and efficient. Trends such as solar-powered smart homes and grid-independent communities are on the horizon, revolutionizing the way we generate and use energy.

Government Policies and Support

Government Incentives for Solar Energy

Government policies play a critical role in the adoption of solar energy. Federal and state incentives, such as tax credits and grants, make solar installations more affordable and attractive to homeowners and businesses.

Policy Changes Affecting Solar Energy

Policy changes, both at the federal and state levels, can significantly impact the solar energy landscape. Keeping abreast of these changes helps customers make informed decisions about their solar investments.

Community Impact

Benefits of Solar Energy for Communities

Solar energy offers numerous benefits to communities, including job creation, economic growth, and energy independence. Community solar programs can also provide access to solar energy for those who cannot install panels on their property.

APS’s Role in Community Development

APS has a role to play in promoting solar energy within communities. By supporting local solar projects and providing education on the benefits of solar power, APS can help foster sustainable and resilient communities.

Customer Case Studies

Success Stories of APS Solar Customers

Examining the success stories of APS solar customers can provide inspiration and insights. These case studies highlight the benefits and challenges of going solar, offering valuable lessons for new customers.

Lessons Learned from Early Adopters

Early adopters of solar energy can share valuable experiences, from navigating the installation process to optimizing energy savings. Their insights can help new customers make informed decisions and maximize the benefits of their solar investments.


What is the current solar buyback rate offered by APS?

The current solar buyback rate offered by APS is $0.0761 per kWh for excess energy generated by solar systems.

How will the proposed rate reduction in August 2024 affect solar customers?

The proposed rate reduction could decrease the solar buyback rate by 20%, impacting the financial returns for solar customers and potentially extending the payback period for solar installations.

What strategies can existing APS customers use to adapt to the new rates?

Existing APS customers can optimize their energy usage by installing energy-efficient appliances, scheduling high-energy tasks during daylight hours, and investing in backup batteries to store excess energy.

What types of backup batteries are available for solar systems?

Various types of backup batteries are available, including lithium-ion and lead-acid batteries, each with its advantages and disadvantages in terms of cost, storage capacity, and lifespan.

Are there any financial incentives for installing solar panels?

Yes, there are several financial incentives available, including federal tax credits, state rebates, and other programs designed to reduce the initial cost of solar installations.

How does solar energy benefit the environment?

Solar energy reduces reliance on fossil fuels, decreasing greenhouse gas emissions and helping combat climate change. It also plays a crucial role in promoting sustainability and reducing the carbon footprint.


As APS prepares to implement changes to its solar buyback rates, both existing and potential solar customers need to stay informed and adapt their strategies accordingly. By understanding the financial implications, exploring energy storage solutions, and taking advantage of available incentives, customers can continue to benefit from solar energy while contributing to a sustainable future. The evolving landscape of solar energy presents both challenges and opportunities, and with the right approach, APS customers can navigate these changes successfully.

APS solar buyback


13 views0 comments


SunPower Solar Tucson Arizona

Get Your Instant Estimate Now 

We will not share your information or send you any spam. By requesting your design, you will be receiving the most accurate system design in the solar industry created by our NAPCEP certified engineers.  We will include a full breakdown of the overall cost and savings you can expect choosing SunPower to power up your property.  We use the latest LiDAR technology to determine the best placement for your solar panels. our Light Detection and Ranging scan will give you the most accurate system design in the solar industry because we will be able to strategically detect the best placement for your solar panels for maximum efficiency.

bg-panel (1).png

We will begin to build your free system design and estimate and email you the results 

bottom of page