What Happens to Solar Power You Don’t Use

Once your home solar energy system is up and running, what happens to excess solar energy that you don’t use? The good news is that extra power is sent to the grid for everyone to use. Let’s look at how you can benefit from excess solar power and programs in place by APS and SRP.

Excess Energy Compensation

The Arizona Corporation Commission established the Resource Comparison Proxy (RCP) in 2018. The RCP compensates homeowners for excess power produced by home rooftop solar systems. Without getting too detailed, the RCP is based on average open market costs over a recent five-year period. There are rules in place to not allow the annual excess power rate to decrease by more than 10%. You’re compensated for up to 10 years at the rate set during interconnection with the power grid. This is advantageous to you since solar power prices have fallen over time. The current RCP rate of $.0781 per kWh continues until September 30, 2022.

APS Programs

APS’s program is called RCP Export Rider. APS measures the extra power your family doesn’t need and credits your next monthly bill using the current net billing solar purchase energy price. APS installs an AMI meter which can remotely collect solar usage in real time.

SRP Programs

SRP installs a second power meter at your home to monitor the daily energy output from your solar panel system. This data is used for SRPs two excess solar energy programs.

Renewable Net Metering Rider

SRP automatically enrolls customers in this program unless you choose to enroll in the Buyback Service Rider. Excess energy generated is rolled over to the next month. Any energy rolled over and not used after 12 months is credited back to your account at the current RCP rate.

Buyback Service Rider

When the power produced by your solar array system is greater than the energy needs of your home in a particular hour, the excess power is credited to your utility bill. SRP determines the energy credit by using the hourly indexed kWh price less SRP’s costs for scheduling, dispatch services, and system control.

Sounds complicated? Cool Blew Solar installers are experts at everything from excess energy credits to installing and servicing your solar panel system. Call Cool Blew Solar today at 623-234-2836 to schedule an appointment with the highly trained and dependable Cool Blew Solar professionals.

FAQ's

Is Solar Energy Expensive?

The size of your panel installation and the needs of your home will affect your costs. The average net cost of a 5.69kW system is $13,838 cash after 30% rebate (according to solar-estimate.org). An average-sized system can cost up to $35,000. Larger installations will require more hardware, planning and construction time. This can further increase costs. While solar panels are expensive, they have many distinct benefits. Cool Blew Electric & Solar’s experts can assess your situation and goals and recommend a cost-effective system to meet your needs.

How Much Can I Save By Installing Solar Panels?

An average-sized system (5 kilowatts) can reduce up to 50% of your monthly electricity bill. A 5.69kW system would offset 100% of your energy usage if your typical monthly bill is $138. Over a period of 20 years, these savings can add up to $30,000, based on your location and energy usage.

How Long Would It Take to Recoup My Solar Investment by Solar Energy Savings?

With a 5.69kW Solar system you would recoup your savings in 7 years and 2 months but with continuous Utility increases every year your Return and Investment will be much sooner.

What is a Solar Lease Program?

The Solar Lease Program has been one the most popular option that homeowners have chosen over the years. Solar Lease programs gives homeowners the opportunity to take advantage and put Solar on their homes and a guaranteed savings from their Utility for little to no money out of pocket. Most Leases are 20 year power guarantee from the solar provider and includes fixed monthly payments, no repair cost, fully insured and warrantied for the life of the system.

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