APS Rate Increases: How Solar Protects Phoenix Homeowners

Arizona homeowners on APS have watched their electric bills climb year after year, and the trend shows no sign of slowing down. APS has filed for and received multiple rate increases over the past decade, with residential customers in Phoenix, Chandler, Mesa, Gilbert, Scottsdale, and Tempe paying significantly more per kilowatt hour today than they did five years ago. For many households, summer electric bills regularly exceed $300 to $500 per month, and in larger homes or those running multiple air conditioning units, bills can top $700 or more. Rooftop solar is the most reliable shield against rising utility rates, and the prepaid solar lease makes going solar more accessible than ever for Phoenix Valley homeowners.

How Much Have APS Rates Increased?

APS rates have risen steadily for years. Approved rate increases from the Arizona Corporation Commission have added roughly 15 to 20 percent to residential electricity costs over the past five years alone. The average residential rate currently sits around 13 to 15 cents per kilowatt hour, but when you factor in demand charges, grid access fees, and tiered pricing structures, effective rates for heavy summer users climb considerably higher.

The Arizona Corporation Commission, which regulates APS, has repeatedly approved rate hikes tied to infrastructure upgrades, clean energy mandates, and grid modernization costs. Every time those costs go up, they get passed directly to ratepayers through your monthly bill. Homeowners who rely entirely on the APS grid have no buffer against these future increases and no way to lock in a lower energy cost.

Why APS Bills Spike So Hard in Summer

Phoenix Valley summers are unlike anywhere else in the country. With temperatures regularly reaching 110 degrees Fahrenheit or higher from June through September, air conditioning runs almost continuously. The average Phoenix household uses between 1,200 and 1,500 kilowatt hours of electricity per month during peak summer months, compared to 500 to 700 kilowatt hours during milder months of the year.

This combination of high usage and higher APS tiered rates during summer is what drives those shocking bills. When you factor in that Arizona sees an average of 5.8 peak sun hours per day, you can see why rooftop solar is uniquely well suited to solving this problem. Your solar system generates the most energy precisely when you need it most and when APS is charging the highest rates.

How Solar Shields Phoenix Homeowners From Future APS Rate Hikes

When you install solar panels on your home, you generate your own electricity during daylight hours. That means every kilowatt hour your system produces is one you do not have to buy from APS at their current or future rates. As APS raises rates, your solar savings grow proportionally because you are offsetting more expensive grid electricity every single month.

Most properly sized solar systems in the Phoenix Valley can offset 80 to 100 percent of a home's electricity usage. During sunny days, your system may produce more electricity than you consume, and that excess energy gets credited back to your account through net metering. This billing arrangement with APS means your solar investment works even harder for you as utility rates continue climbing.

For a deeper look at how solar cuts your monthly charges, read our complete guide to how solar panels lower your electric bill in Arizona.

The Prepaid Solar Lease: Save 30 Percent With No Loan

Phoenix Valley Solar offers a financing structure that most Arizona homeowners have never heard of: the prepaid solar lease. Unlike a solar loan, the prepaid lease lets you pay for your system upfront at a 30 percent discount from retail pricing. You get the full benefit of solar production with no monthly loan payment and no interest charges eating into your savings.

The prepaid solar lease is not a power purchase agreement and it is not a traditional lease with monthly payments. It is a single upfront prepayment that locks in decades of clean solar energy at a fraction of what the grid would cost you over the same period. Because you are not borrowing money, there is no debt added to your balance sheet and no lender to deal with.

This approach pairs especially well with APS rate increase protection. You lock in your energy cost today at a 30 percent discount, and every future APS rate hike simply makes your prepaid solar investment more valuable. Use our solar calculator to estimate your savings based on your current APS bill and home size.

Solar Savings by City Across the Phoenix Valley

Phoenix Valley Solar works with homeowners across the entire metro area, and the combination of Arizona's sun resources and rising APS rates makes the case for solar strong in every community we serve.

Chandler homeowners on APS typically pay between $250 and $450 per month in summer. A properly sized solar system for a 2,200 to 2,800 square foot home can offset the majority of that bill, often bringing net energy costs near zero during peak production months. With the prepaid lease at 30 percent off, the financial case for going solar in Chandler is especially compelling.

Mesa is one of the fastest growing cities in Arizona, with a population now exceeding 500,000 residents. Larger Mesa homes with multiple air conditioning units regularly see summer bills over $500. Solar systems sized at 8 to 12 kilowatts are common for Mesa households and can dramatically reduce or eliminate APS charges during the highest production months of the year.

Gilbert homeowners, particularly in newer communities with larger square footage, often report summer bills in the $350 to $550 range. Solar performance in Gilbert is excellent thanks to consistent sun hours and wide rooftop exposure. Many Gilbert families find that solar paired with the prepaid lease delivers a payback period well within the system warranty window. For a full breakdown, read our post on solar panel payback period in Arizona explained.

Scottsdale homes tend to be larger and more energy intensive, with summer bills of $400 to $800 not uncommon in north Scottsdale communities featuring high ceilings, extensive glass, and pools. These homes often have generous south facing roof sections that are ideal for solar panel placement. The prepaid lease makes going solar accessible even for homeowners who prefer to avoid debt.

Tempe and Ahwatukee homeowners are seeing strong solar adoption as APS bills climb. The mix of older bungalows and newer construction in this corridor means system sizes vary, but almost every home can benefit from rooftop solar. Homeowners in Tempe have reported first year savings ranging from $1,200 to over $3,000 after going solar.

The rapidly growing communities of Queen Creek and San Tan Valley add thousands of new APS customers every year. These newer, larger homes are energy intensive and make rooftop solar an especially smart investment. Locking in a prepaid lease today protects Queen Creek and San Tan Valley homeowners from the continued impact of future APS rate increases.

How Phoenix Valley Solar Gets You the Best Deal on Solar

As a solar broker, Phoenix Valley Solar works with multiple top tier installers across the Phoenix Valley to find the best system and pricing for each homeowner. Unlike a single installer who only offers their own products, we compare options across providers to make sure you get the right system at the right price with no pressure and no bias toward any single brand.

The process starts with a free consultation where we review your APS bills, assess your roof, and calculate your potential savings. From there we handle everything including installer selection, permitting, utility interconnection, and final inspection. Most installations are complete within 60 to 90 days of signing.

Visit our About page to learn how we work, or head to our Contact page to schedule your free consultation. You can also run your numbers right now with our solar calculator. For a full comparison of financing options, read our guide on best solar financing in Arizona with no loan required.

Frequently Asked Questions

Will going solar eliminate my APS bill completely?

Most homeowners see their APS energy charges reduced by 80 to 100 percent with a properly sized solar system. A small grid connection fee from APS typically remains, but the energy portion of your bill drops dramatically or disappears entirely during high production months.

What happens to my solar savings when APS raises rates again?

Your savings actually increase when APS raises rates. Each kilowatt hour your solar system produces becomes more valuable as grid electricity gets more expensive. That is one of the most powerful financial benefits of going solar in Arizona.

Does the prepaid solar lease affect my home's resale value?

In most cases, solar installations increase home values in Arizona. Studies have shown that solar homes in the Phoenix metro sell at a premium compared to non-solar homes. With a prepaid lease, the system typically transfers to the new owner as a permanent asset rather than a liability.

How long do solar panels last in Arizona's climate?

Most modern solar panels carry a 25 year production warranty and routinely perform well beyond that timeline. Arizona's dry desert climate is actually beneficial for solar panel longevity since there is no snow, ice, or freezing temperatures to cause physical stress on the panels.

Is there a minimum APS bill size that makes solar worth it?

We generally recommend solar for homeowners paying at least $150 per month on their APS bill. At that level, the economics of the prepaid lease are compelling. Homeowners paying $250 or more per month typically see the strongest returns and the fastest payback periods in the Phoenix Valley.