Renewable Energy

UPDATE (April 2022)

The most common question we receive about solar is “Does installing solar have any financial savings value?” The best answer we can give is maybe.

Because the residential rates at Sulphur Springs Valley Electric Cooperative (SSVEC) are so different from and investor-owned utility like Arizona Public Service Company (APS) or Tucson Electric Power Company (TEP) there is not a simple answer to the question of value. It really depends on how much the Photovoltaic (PV) system costs and the value you place on “green energy.”

To determine the economic value of a PV system you must find the cost per Kilowatt hour (kWh) so that you can compare it to how you currently purchase energy from SSVEC. This is a simple calculation, where you take the total cost of the system (installation cost, less tax credits, plus 20 years of maintenance) and divide it by the total number of kWh the PV system will produce over its life. Typically, this is going to range from 7 to 11 cents per kWh.

SSVEC’s Standard Residential Service Rate in 2022 for energy purchased is 10.3163 cents per kWh.

If you install a PV system, you are moved to a Distributed Generation Rate which has a monthly service fee that is $5.00 higher and a $2.70 metering fee is added to your bill, but the cost to purchase a kWh is discounted to 8.026 cents per kWh. This rate also sets the value (Export Rate) of any kWh that your system produces but you can’t consume the instant it is made. If you install a PV system in 2022 the Export Rate is 4.6691 cents per kWh. This export rate is “locked” based on your date of connection for a period of 10 years. At the end of the 10-year rate lock, your export rate will be based on the export rate that is in effect at that time as determined and approved by the Arizona Corporation Commission (ACC). In 2023 the export rate will drop to 4.131 cents per kWh.

So today, if your PV kWh cost comes in at 9 cents you save 1.3 cents on any kWh you produce and consume but lose about 3.4 cents on any kWh that comes back to the grid. It is not an easy or simple decision, and it is one that only you can make.


The SSVEC REST Plan

Incentives are as follows:

  • Solar Water Heating is 50 cents per the annual kWh saved (OG-300 certified)

Interconnection to the SSVEC distribution system is subject to the following disclosures in addition to the physical interconnection requirements.

  • SSVEC’s electricity rates, basic charges, and service fees are subject to change. Future adjustments to these items may positively or negatively impact any potential savings or the value of your photovoltaic system.
  • Your photovoltaic system is subject to the current rates, rules, and regulations established by the Arizona Corporation Commission (“Commission”). The Commission may alter its rules and regulation and/or change rates in the future, and if this occurs, your system is subject to those changes.
  • Any future electricity rate projections presented to you by sales agents are not approved by SSVEC or the Commission. They are based on projections formulated by external third parties not affiliated with SSVEC or the Commission.

Recommended Steps of Installation

  1. Fill out and email a SunWatts interconnection Application form to sunwatts@ssvec.com.
  2. Obtain multiple (at least three are recommended) bids for the installation of the PV or Solar Water Heating System. SSVEC will be happy to review these bids to provide a monthly SSVEC bill estimate and answer any questions you might have.
  3. Choose your contractor.
  4. Contractor installs the system and submits required documents to SSVEC.
  5. SSVEC inspects the system and installs the proper metering.

SSVEC is not “Anti-Solar”
We are “Pro-Member” and
want to help you make the best decision for you!
Send any questions to Carolina Villascuesa .