Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate SRPs Solar Rate Plan with additional incentives to maximize your savings. You can also use our Arizona solar calculator to get an estimate of your potential benefits.
Switching to solar energy is an exciting journey toward sustainability and savings. For Arizona residents, understanding the specifics of SRP's solar rate plans and how they compare to regular electric plans is crucial. This blog will guide you through the key details, including electric rates, the role of demand charges, and how these can lead to overall cost savings.
SRP Electric Rates: Solar vs. Regular Plans
Salt River Project (SRP) offers various rate plans for its customers. Here’s a breakdown of the rates for both solar and regular plans:
Regular Electric Plans
Basic Plan: This plan features a straightforward pricing structure, with rates that typically increase with higher energy usage. For example:
Summer (May - October): 14.7¢ per kWh
Winter (November - April): 11.5¢ per kWh
Time-of-Use Plan (TOU): Rates vary depending on the time of day, encouraging usage during off-peak hours.
On-Peak: 24.8¢ per kWh
Off-Peak: 10.5¢ per kWh
Solar Rate Plans
Residential Demand Plan: This plan incorporates both energy usage and demand charges.
Energy Rate: 4.7¢ per kWh
Demand Charge: $8.40 per kW during on-peak hours (weekday afternoons and early evenings)
EZ-3 Plan: A variation of the TOU plan with shorter peak hours.
On-Peak: 23.8¢ per kWh
Off-Peak: 9.5¢ per kWh
Understanding the Demand Charge
A unique aspect of SRP's solar rate plans is the demand charge. This charge is based on your highest hour of usage during peak periods within a billing cycle. The demand charge might seem daunting, but it can actually lead to significant savings.
How Demand Charges Work
Measurement: Your demand is measured in kilowatts (kW) during the highest hour of peak usage.
Calculation: For instance, if your highest usage in a month is 5 kW during on-peak hours, your demand charge would be 5 kW * $8.40 = $42.
Savings with Demand Charges
Encourages Efficient Energy Use: By understanding and managing your peak usage, you can minimize your demand charge. This might involve spreading out the use of high-energy appliances or investing in energy-efficient devices.
Lower Energy Rates: The residential demand plan offers significantly lower per kWh rates (4.7¢) compared to regular plans, which can result in substantial savings over time.
Solar Compatibility: Solar energy production can offset high peak usage, further reducing demand charges. For example, using solar energy during peak periods can lower the demand measured by SRP, leading to lower monthly bills.
Conclusion
SRP's solar rate plans, particularly those involving demand charges, provide a path to smart energy management and potential cost savings. By strategically managing your energy use and leveraging solar power, you can take full advantage of lower rates and reduced demand charges. Embracing these plans not only supports your financial goals but also contributes to a greener, more sustainable future.
Contact us to explore SRP's solar rate plans today and start your journey toward efficient, cost-effective, and environmentally friendly energy use.
Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate SRPs Solar Rate Plan with additional incentives to maximize your savings. You can also use our Arizona solar calculator to get an estimate of your potential benefits.
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