APS and SRP Are Raising Rates in 2026: Here Is How to Save Money with Solar

If you are an APS or SRP customer in Arizona, you need to read this. The two largest utilities serving the Phoenix Valley are raising their rates significantly, and if you are not already protected by solar energy, your electric bills are about to get worse. This is not a rumor or speculation. Arizona Public Service has filed for a nearly 14% rate increase, and Salt River Project already raised rates in November 2025. Together, these changes represent one of the most significant shifts in Arizona utility pricing in years, and they underscore exactly why going solar in 2026 is one of the smartest financial moves an Arizona homeowner can make.

At Phoenix Valley Solar, we are an independent solar broker. That means we work for you, not for the utilities and not for any single installer. We shop the market on your behalf, find you the best deal available, and structure your solar agreement to protect you from exactly the kind of rate increases we are seeing from APS and SRP right now. Learn more about how we work on our About Page. See what you could save with our free Solar Calculator. Or reach out directly through our Contact Page for a free no obligation consultation.

What APS Is Doing: A Nearly 14% Rate Hike Coming in 2026

In June 2025, Arizona Public Service filed an application with the Arizona Corporation Commission requesting a 13.99% net increase to its revenue collection. For a typical residential customer using 1,000 kilowatt-hours of electricity per month, the net monthly bill impact would be approximately $20 more every single month. If approved as proposed, new APS rates would go into effect no earlier than July 8, 2026.

To put that in perspective, this is the fourth time APS has sought a rate increase since 2017. Just one year ago, in early 2024, the Arizona Corporation Commission approved an 8% APS rate increase that added $10 to $12 per month to the typical residential bill. APS customers are already paying $12 more per month than they were just a year ago. If the new 14% request is approved, that monthly increase grows by another $20 on top of what customers are already paying.

APS is also requesting approval to switch to a formula rate system that would allow it to seek annual rate adjustments going forward, meaning this may not be a one-time event. Arizona Attorney General Kris Mayes has intervened in the case, calling the request a blatant attempt to pad corporate profits at the expense of Arizona consumers while Pinnacle West, the parent company of APS, reported $609 million in net income in 2024.

What SRP Is Doing: Rate Increases Already in Effect

SRP customers did not have to wait for 2026. Salt River Project already raised its rates in November 2025, implementing a 2.4% overall price increase that added $169 million in base revenue. For the average residential customer using 1,117 kilowatt-hours per month, that translated to approximately $5.61 more per month.

But the headline percentage understates what actually happened for many homeowners. SRP also raised its fixed monthly service charges for residential customers in single-family homes by 50%, making it one of the highest residential fixed charges of any public power utility in the entire nation. A fixed charge is the portion of your bill you cannot control regardless of how much or how little electricity you use. Raising it by 50% means that even homeowners who aggressively conserve energy still pay significantly more every month.

SRP has also restructured its rate plans in ways that make solar-only systems less effective without battery storage, pushing on-peak hours later into the evening when panels are no longer producing. This structural change means that SRP customers who go solar without a battery are increasingly exposed to high peak rates during the hours when they need electricity most.

Why These Rate Increases Are a Much Bigger Deal Than They Look

When utilities announce a rate increase, they tend to frame it around the average customer at average usage levels. APS says the typical customer will pay $20 more per month. What they are not emphasizing is what that looks like for Phoenix Valley homeowners in summer, when electricity usage is anything but average.

A homeowner currently paying $350 in August, which is common in a Phoenix area home with central air conditioning running most of the day, is not a 1,000 kilowatt-hour-per-month customer. They are using significantly more than that. For higher-usage households, a 14% rate increase does not add $20 per month. It adds $40, $50, or more per month depending on consumption. Over a year, that is $480 to $600 in additional electricity costs on top of what you are already paying.

And this is happening against a backdrop where both APS and SRP have already raised rates multiple times in the past few years. Arizona consumers are not seeing one surprise increase. They are experiencing a sustained, ongoing escalation in their utility costs with no indication that it will slow down. In fact, if APS gets its formula rate proposal approved, annual increases could become the permanent new normal.

How Solar Protects You from APS and SRP Rate Increases

When you install solar panels, your home generates its own electricity. That electricity does not come from APS or SRP, which means it is not subject to their rate increases. Every kilowatt-hour your panels produce is a kilowatt-hour you do not buy from your utility at whatever price they decide to charge that year.

A properly sized solar system in the Phoenix Valley can offset 80% to 100% of a typical home's annual electricity consumption. Arizona averages 7.5 peak sun hours per day, the highest in the contiguous United States, meaning solar panels produce more electricity per panel here than virtually anywhere else in the country. When APS raises its rates by 14%, your solar system keeps producing the same amount of electricity at the same cost to you: zero.

Homeowners who went solar several years ago are watching APS and SRP bills climb around them while their own energy costs stay flat. That is the rate protection solar delivers, and in a utility environment like the one Arizona homeowners are now facing, that protection is worth more than it has ever been.

How to Save Money with Solar in 2026 Using a Solar Broker

If you are an APS or SRP customer who has been considering solar, the rate increases make 2026 the most compelling year on record to act. But how you go solar matters just as much as whether you go solar. Working with a solar broker in Phoenix gives you access to something that going directly to a single installer does not: a comparison of multiple options across the market, structured to find you the best combination of pricing, equipment quality, and financing terms.

At Phoenix Valley Solar, our core product for most Arizona homeowners is the prepaid solar lease with a 30% discount off the full system value. With the federal solar tax credit no longer available, this is the most financially efficient path to solar for the majority of homeowners. You pay once upfront at a 30% discount, the panels go on your roof, and your electricity bill drops immediately. No loan. No ongoing payment. No maintenance responsibility. The solar company handles all of that for the life of the system.

As an independent broker, we are not tied to any single installer or financing product. We evaluate the market on your behalf and match you with the best available option. That independence is what makes the difference between a good solar deal and the best possible solar deal.

Read our detailed breakdown of Solar Lease vs Buying Solar: Why the Prepaid Lease Wins in Arizona to understand exactly how the numbers compare.

The Installation Timeline: Why Acting Now Matters

APS rates are expected to change in the second half of 2026, no earlier than July 8. SRP customers are already paying higher rates as of November 2025. For both sets of customers, the math on acting now is straightforward.

A residential solar installation in the Phoenix Valley takes approximately four to eight weeks from signed agreement to a live producing system, including design, permitting, utility interconnection approval, and installation. Homeowners who start the process now give themselves the best chance of having a fully operational system before summer peak season arrives and before the next round of APS rate increases goes into effect.

Every month of delay is another month of paying full utility rates that are already higher than they were a year ago and heading higher still. Use our free Solar Calculator to see what your current utility spending looks like projected over the next five to ten years if APS and SRP continue their current rate trajectory.

What a Solar Broker in Phoenix Does That Direct Installers Cannot

When you call a solar company directly, you are getting one company's perspective on what your solar system should look like and cost. That company has a financial interest in selling you their product at their price. They are not going to tell you if a competitor offers better equipment, a better warranty, or a better lease structure.

A solar broker in Phoenix does something fundamentally different. We represent you, the homeowner, in the solar market. We leverage our relationships with multiple vetted installers to identify the best system for your roof, your energy usage, and your utility provider, whether that is APS or SRP. We negotiate on your behalf, handle the comparison work, and walk you through the agreement in plain language before you sign anything.

To learn more about how a solar broker works and why it benefits Arizona homeowners, read our post on What Is a Solar Broker and Why Arizona Homeowners Are Using One.

Take Control of Your Energy Bill Before the Next Increase Hits

APS and SRP are not going to start charging you less. The trajectory of Arizona utility rates is clear, and it is going in one direction. Solar gives you the ability to step off that escalator and generate your own power at a fixed, predictable cost for the next 25 years.

As an independent solar broker in Phoenix, Phoenix Valley Solar is uniquely positioned to help you navigate this decision with clarity and confidence. We work for you. We find you the best deal. And we structure the agreement so you start saving from day one with the prepaid solar lease at a 30% discount.

Visit our About Page to learn who we are. Run your personalized savings estimate with our free Solar Calculator. Or reach out through our Contact Page to schedule your free consultation today. The rate increase is coming. The question is whether it is going to affect you.

APS and SRP control your electric bill. Solar gives that control back to you.

Frequently Asked Questions

How much is APS raising rates in 2026?

APS filed for a 13.99% net increase to revenue collection in June 2025, which would add approximately $20 per month to the typical residential customer using 1,000 kilowatt-hours. For higher-usage households, which are common in the Phoenix Valley during summer, the monthly increase would be significantly larger. New rates are expected to take effect no earlier than July 8, 2026, pending Arizona Corporation Commission approval.

Did SRP raise rates in 2025?

Yes. SRP implemented a 2.4% overall rate increase effective November 2025, adding approximately $5.61 per month for the average residential customer. SRP also raised fixed monthly service charges for single-family homeowners by 50%, making its fixed charge one of the highest of any public power utility in the nation. This means SRP customers pay more regardless of how much energy they conserve.

How does solar protect me from APS and SRP rate increases?

Solar panels generate your own electricity from sunlight, which means every kilowatt-hour your system produces is one you do not have to buy from APS or SRP at their current or future rates. A properly sized system can offset 80% to 100% of your annual electricity consumption. When APS raises rates by 14%, your solar-generated electricity is completely unaffected by that increase.

What is the best way to save money on my APS or SRP bill in 2026?

The most effective way to reduce your APS or SRP bill in 2026 is to install solar panels, ideally before summer peak season begins and before APS rate increases take effect. Working with an independent solar broker in Phoenix ensures you get the best available system at the best price rather than settling for whatever one company offers. The prepaid solar lease with a 30% discount is the most financially efficient solar option currently available in Arizona.

Why should I use a solar broker in Phoenix instead of going directly to a solar company?

A solar broker represents your interests rather than those of any single installer. Brokers have access to multiple vetted installation companies and can compare pricing, equipment quality, warranty terms, and lease structures across the market. This typically results in better terms than working directly with one company. The broker is compensated by the installer after the deal closes, so the service costs you nothing directly.