Two Important Tips to Maximize APS’ 20-Year Grandfathering Promise

Kyle Ritland

May 2017

residential-solar-arizona-incentives.jpgWe’ve written a lot about the upcoming APS rate case, and how it’s going to impact future solar customers. But in two MAJOR ways, the new rate plans will also have a significant impact on existing APS solar customers as well.

The 20-year net metering grandfathering clause that APS has promised to all current solar customers, will be tied directly to your old APS solar plan. This means that whatever rate plan you are on when the new rates take effect (expected to be July 1, 2017), you must remain on in order to benefit from the 20-year grandfathering benefit.

This may not sound like such a big deal until you consider this: once the rate case vote happens, there will be new rate plans rolled out across the board, both solar and non-solar alike.  As a result, it is imperative that APS customers be on their preferred rate plan, one that they are 100% happy with, at that time. Any changes made on or after the anticipated July 1, 2017 date will require homeowners to choose from one of the new rate plans, while also dropping to the new net-metering program with a grandfathering window of only 10 years.

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Tip 1: To maximize APS’ 20-year grandfathering benefit, make sure you are totally happy with your current solar rate plan before the proposed July 1, 2017 deadline.  

For our second tip, we have some good news. If you sell your home after the new APS rates are in effect, and the home you are selling is grandfathered into an older APS plans with 20-year grandfathering, the grandfathered plan will transfer to the new homeowner. So long as the new owners don’t change the rate plan, they can ride out the remainder of the 20-year period and maximize their return. In this sense, going solar now, even if you may sell your home ten years from now, grants you a key market differentiator that can be used to market your solar home to potential buyers. 

Tip 2: Lock in your current APS solar plan and 20-year grandfathering today, and use that as a marketing tool when you sell your home down the road.

It’s important to note that the above tips only apply to customers who currently have solar, or have signed a contract to add solar on file before APS’ proposed deadline of July 1, 2017.  Whatever rate plan you are on at that time is the one that will be grandfathered and tied to your home, regardless of owner, so long as the plan is not changed. 

The ACC is expected to vote on the APS Rate Case any day now. If approved, the plans are expected to be effective July 1, 2017.  If you’ve been considering solar, now is the time to act if you want to take full advantage of the solar grandfather clause and lock in today’s more favorable rates. 

If you have any questions around the APS rate case, we invite you to download our complimentary guide, "5 Things You Should Know About the APS Rate Case"and if you're interested, request a free custom solar quote from one of our solar experts today.

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