Do you have peppers with rotten spots on them this year? We seem to be having a lot of this on some of the chile peppers on our plants – we suspect it's sunscald combined with the super hot and dry weather we've been having! Regardless, we chop off the bad part and throw it in the compost, and use the rest of the pepper in all sorts of recipes. Nothing goes to waste!
Preventing sunscald on peppers:
Providing some shade for your pepper plants during the middle of the day when temperatures are high and the sunlight is strongest can help (such as with shade clothes). But we usually just let them be, if the plants are bushy enough, usually most or all of the peppers will be sufficiently covered to avoid sunburn. And, don't worry if your peppers have these sunscald spots, you can still use them, make sure to cut off the bad or rotten area and use the rest. And don't forget to compost the scraps!
Homemade compost is the best fertilizer for peppers!