How APS and SRP Affect Your Solar Savings in Arizona
Your utility provider is one of the most important factors in determining how much solar can save you, and in the Phoenix Valley, that means understanding either APS (Arizona Public Service) or SRP (Salt River Project). Their rate structures, net metering policies, and demand charges are different in meaningful ways, and the right solar system for an APS customer may look very different from the right system for an SRP customer. As an independent solar broker, Phoenix Valley Solar knows both utility programs inside and out and uses that knowledge to build the right solution for your home.
APS Solar Customers.
Who is on APS?
APS serves most of the Phoenix Valley outside of the SRP service territory, including Scottsdale, Goodyear, Sun City, Surprise, Fountain Hills, and parts of Chandler and Gilbert.
APS Net Metering
APS offers a net metering program that credits solar customers for excess energy exported to the grid. However, APS export rates are lower than the retail rate you pay for electricity, which affects your overall payback timeline. The key to maximizing savings on APS is sizing your system to offset your consumption during peak rate hours rather than overproducing for low-value credits.
APS Time of Use Rates
APS customers are typically placed on a Time of Use rate plan, meaning electricity costs more during peak afternoon and evening hours,exactly when Phoenix homes are running air conditioning at full power. A well-designed solar system offsets your usage during these expensive windows, which is where the biggest savings come from on an APS bill.
APS Demand
Charges Some APS rate plans include demand charges based on your highest usage period in a billing cycle. Your Phoenix Valley Solar broker will evaluate your specific APS rate plan and usage history to determine whether your system design should focus on peak shaving, consumption offset, or a combination of both.
SRP Solar Customers.
Who is on SRP?
SRP serves a large portion of the East Valley, including Mesa, Tempe, Chandler, Gilbert, and parts of Scottsdale and Queen Creek.
SRP Net Metering
SRP's export program differs significantly from APS. SRP pays a lower rate for energy exported to the grid and applies a monthly fee to solar customers, which affects the financial calculus of going solar on SRP. This makes system sizing and financing strategy especially important for SRP customers, oversizing a system to maximize exports is generally not the right approach.
SRP Time of Use Rates
Like APS, SRP uses Time of Use pricing, with higher rates during peak summer afternoon hours. Solar production in Arizona naturally peaks during these exact hours, which creates a strong alignment between when your panels produce power and when that power is most valuable on your bill.
SRP Demand Charges
SRP's demand charge structure is one of the most important factors to understand before going solar as an SRP customer. Your Phoenix Valley Solar broker will review your SRP usage data and recommend a system design that accounts for demand charges to make sure you are actually saving money, not just generating power.
Why Working With an Independent Solar Broker Matters for APS and SRP Customers.
Most solar installers have a standard system they sell to everyone, regardless of whether you are on APS or SRP. That one-size-fits-all approach leaves money on the table. As an independent solar broker in Arizona, Phoenix Valley Solar designs your comparison around your specific utility provider, rate plan, and usage patterns, then matches you with the right local installer for your situation.
That also means our most popular financing option, the prepaid solar lease with 30% upfront savings, is evaluated in the context of your actual APS or SRP bill, so you know exactly what you are getting into before you commit to anything.
Net Metering, Rate Structures,
Incentives & What to Know
Net Metering
Both APS and SRP offer programs to credit solar customers for excess energy, but the credit rates and program structures differ. Understanding your specific export credit rate is essential to accurately projecting your payback period.
Time of Use Rates
Both utilities use Time of Use pricing. A properly sized and oriented solar system in Phoenix generates peak power during the highest-cost rate windows, which is the primary driver of bill savings for Valley homeowners.
Utility Incentives
Both APS and SRP have offered incentives for solar installations in the past. Program availability and amounts change over time, and your Phoenix Valley Solar broker will advise you on any current programs that apply to your home at the time of your consultation.
Not sure whether you are on APS or SRP, or what your current rate plan means for solar savings? Contact us for a free consultation and we will walk through your utility bill with you line by line. You can also use our free Solar Calculator to get a quick estimate, or learn more about our services to see every option we offer.