The APS Rooftop Solar Proposal in Depth: Bill Credit Option

July 18, 2013

When APS submitted its net metering proposal to the Arizona Corporation Commission (ACC) on July 12, it included two options. If adopted, either will foster a sustainable, fair and broad-based solar energy future for Arizona.

Information about the first option, or the Net Metering Option, was posted to the site on July 17. Here’s some information about the second option, which is called the Bill Credit Option.

With the Bill Credit Option, future residential customers who install rooftop solar would receive fair compensation from APS in return for the power they generate. This option replaces current net metering with a different way of crediting the customers for their solar energy.

As more people install solar on their homes, it becomes more important that everyone who uses the grid helps cover the cost of keeping it operating at all times. Under current rules, rooftop solar customers benefit from a reliable grid, but essentially avoid paying for their use of it. Non-solar customers pay more to pick up this cost.

This option would address that problem by ensuring customers pay a fair share for the cost of the grid through regular rates and are still compensated fairly for the energy their systems provide.

Future rooftop solar customers would select whichever rate plan they choose, like a typical APS customer.

Net metering would be replaced by a credit on the customer’s bill for the power they generate, at a rate set by the ACC and based on the rates APS pays other generators for power.

View fact sheet on option 2 (PDF).