Arizona’s APS Customers Now Charged Higher Rates – Impact on Solar Sales Leads
April 24, 2024
Rate increases have become a recurring theme among American utilities, especially in the past year. Arizona Public Service (APS), the largest electricity provider in the state, has not been immune to this trend. Recently, APS announced a rate increase for its customers that is set to reshape the economic calculus for those with or considering solar installations.
Rate Changes and Their Impact on Arizona Solar
Following a decision by the Arizona Corporation Commission, APS customers are now facing an approximately 8% increase in their electricity bills. This hike translates to an additional $10 to $12 per month for the average household, or $120-$144 per year.
In addition, APS has introduced a surcharge specifically targeting rooftop solar customers, compounding the financial burden for those who generate their own power. The new solar surcharge is expected to be $2.50-$3.00 per month (amounting to $30-$36 per year).
Rising Demand for Solar in APS Territory
For existing solar customers, this rate increase and the new surcharge may somewhat dampen the financial returns of their solar investments. Previously, the economics of installing solar panels were bolstered by net metering policies that credited solar owners at generous rates for the electricity they added to the grid. However, changes like these are recalibrating the benefits, potentially slowing down the payback period of new solar installations.
Nevertheless, the climbing electricity rates are inflating enough to counteract the new solar fee. With hotter summers and longer heatwaves hitting year after year, the pain of higher electricity costs is going to be pushing more APS customers to seek solar solutions.
Grid Freedom Can Help Arizona’s Contractors Connect with More Solar Leads
For Arizona contractors serving APS territory, these rate changes are creating a lot of buzz. It’s going to be a challenge sorting out which customers are truly prepared to go solar, and who’s just getting worked up over the news.
Grid Freedom offers invaluable support in this by providing appointments with homeowners who have already expressed a strong interest in solar solutions. By leveraging Grid Freedom’s platform, contractors can effectively target their marketing efforts, ensuring they reach customers most likely to convert. All leads are pre-screened and prepped for their first consultation, with no contracts, bulk-minimums, or other strings attached.