Battery + VPP Calculator

See how APS Virtual Power Plant earnings and incentives make batteries the highest-ROI clean energy investment in Arizona

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Virtual Power Plant (VPP) — Your Battery Earns Money

APS dispatches your battery during peak grid demand events (~15 times/year). You earn $150-$500/year while keeping backup power for emergencies. The grid gets cleaner, you get paid.

Battery Configuration

Size your battery and toggle VPP to see the earnings impact

13.5 kWh

Usable capacity: 12.8 kWh (95% DoD)

$950/kWh
Enphase ($750)Tesla PW3 ($950)Sonnen ($1200)

Earn $150-$500/yr from APS grid services

Battery charges from solar — zero charging cost

Your Battery ROI

Net Cost

$4,228

Gross: $12,825

Year 1 Earnings

$1,025

$1.92/day arbitrage

Payback

4.3 yrs

Within warranty!

10-Year Total

$9,524

ROI: 125.3%

Incentive Stack — 67% Off

Federal Battery ITC (30%)-$3,848
AZ State Credit (25% up to $1k)-$1,000
APS Cool Reward Rebate-$3,750
You Pay$4,228

The 30% federal battery ITC applies to standalone batteries (no solar required). Available through 2032.

VPP Earnings Detail

15

Events/Year

$22

Per Event

$325

Annual VPP

APS dispatches your battery during extreme heat peak demand. Each event uses ~50% of capacity. Your home remains protected — battery refills overnight.

Annual Battery Earnings Breakdown

10-Year Battery Net Position

30% federal tax credit saves you $3,848 — batteries qualify through 2032!
APS Cool Reward rebate: $3,750 off your battery cost
VPP participation earns $150-$500/year from APS grid services
Incentives cover 67% of your battery cost!
Battery pays for itself in 4.3 years — 5.7 years of pure profit within warranty

APS Rates Used: Peak (4-7pm) $0.3439/kWh summer, $0.2145/kWh winter. Off-peak $0.1235/kWh. Summer spread: $0.2204/kWh.

Assumptions: 90% round-trip efficiency, 2% annual degradation, 10-year warranty period. VPP: ~15 events/year.

Disclaimer: Battery ITC (30%) requires tax liability to claim. VPP program terms subject to APS approval and may change. Rebate availability is first-come, first-served.

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Battery + VPP Calculator — Arizona APS | Clean Energy Hub