APS Solar Rate Plans in 2026: Which Option Cuts Your Bill the Most in Phoenix?

Which APS solar rate plan is best for a home that exports power during the day?

For a Phoenix home that sends excess solar to the grid during midday and draws from APS in the evening, the Time-of-Use 4pm to 7pm plan without the demand charge is almost always the smarter pick. The demand charge plan offers lower per-kilowatt-hour rates, but it adds a monthly fee based on your highest single hour of on-peak grid draw. In Phoenix summers, when the air conditioning runs hardest right at 6pm, that one spike can cost you $30 to $50 in a single month before a single kilowatt-hour gets priced.

The plain TOU plan charges more per on-peak kWh but delivers what most households actually need: predictable math with no demand multiplier waiting at the end of the month.

How APS solar rate plans compare on real numbers

APS's current rate table is pretty blunt about the tradeoff. On the standard TOU plan, summer on-peak energy runs $0.2978 per kWh from 4pm to 7pm on weekdays. Off-peak hours drop to $0.10789. From November through April, a "super off-peak" window runs 10am to 3pm on weekdays at just $0.03166 per kWh, which lines up almost exactly with when solar panels produce the most.

The demand charge version of the TOU plan cuts the on-peak rate to $0.12414 per kWh in summer and off-peak to $0.05276. Those numbers look great until the demand charge line appears: $16.875 per kilowatt of your highest on-peak hour each summer month, and $11.845 per kilowatt in winter. A home with a 3-ton AC unit running briefly at 5pm in August could see 3 to 4 kilowatts billed for demand that month alone. Multiply that across six summer months and you're adding $200 or more per year just in demand fees, before a single energy rate difference gets counted.

Solar panels lower electric bill amounts most when the rate plan doesn't introduce costs that cancel the gains.

Does the proposed APS rate hike change which plan makes sense?

APS filed a rate case with the Arizona Corporation Commission in early 2026, requesting a 16% residential rate increase, roughly $20 per month for the average customer. Hearings began in May 2026. If approved, rates could take effect later this year.

That potential increase makes plan selection more consequential, not less. If on-peak rates climb another 16%, the gap between what you pay to draw from the grid and what you earn for exporting solar grows wider. The current APS net billing buyback rate sits at approximately $0.0617 per kWh after a 10% reduction that took effect in September 2025. If you're earning six cents for every kWh you export and potentially paying 35 cents for every kWh you draw during peak hours post-hike, the math strongly favors self-consuming your solar production rather than exporting it.

This spread is one reason a solar broker who compares multiple installer quotes matters. Sizing your system correctly, neither too large to over-export nor too small to cover daytime load, changes the numbers significantly. Phoenix Valley Solar works specifically as a solar broker, gathering competing installer quotes so you can evaluate options without a single company controlling the conversation.

Why SRP customers in Mesa, Chandler, and Gilbert face different rules

APS and SRP divide the Phoenix metro by neighborhood, not by city. Some addresses in Mesa, Chandler, and Gilbert sit in SRP territory. Others are served by APS. There are neighborhoods where one side of a street pays APS rates and the other pays SRP. APS solar rate plans don't apply to SRP customers at all, and the export rates, rate structures, and incentive programs differ meaningfully between the two utilities.

If you live in the East Valley and aren't certain which utility serves your home, check a recent bill. The utility name and account number are at the top. SRP customers comparing the two utilities in more detail can read through APS vs. SRP solar export rates in 2026 for a side-by-side breakdown.

How APS solar rate plans affect homeowners across the Phoenix Valley

What does choosing the wrong plan cost a Phoenix homeowner?

A Phoenix home averaging 1,500 kWh of monthly consumption in summer could see a $40 to $80 monthly difference between plans depending on usage patterns. Homes in central and north Phoenix tend to run larger square footage and heavier AC systems, which increases the demand charge risk. The plain TOU plan gives you predictability: higher on-peak rates per kWh, but no surprise demand multiplier.

Phoenix averages roughly 7.5 peak sun hours per day, among the highest in the country. A properly sized residential solar system covers most of the daytime load and exports during the 10am to 3pm window when production peaks. That export earns net billing credits at the current $0.0617 per kWh rate, which is well below what you pay to draw from the grid in the evening. This spread is also why battery storage is attracting growing interest in Phoenix. A battery lets you store midday solar instead of exporting it at $0.06, then use that stored power at 6pm instead of drawing from APS at $0.30.

Does the TOU plan work differently for Scottsdale and Tempe homeowners?

For APS customers in Scottsdale and Tempe, the rate plan options are the same as Phoenix. The TOU and demand charge structures apply identically. Scottsdale homes, which tend to run larger and often include pools, carry heavier summer loads. Pool pumps are one of the subtler contributors to demand charges if they run during the 4pm to 7pm weekday window. Shifting the pump timer to run before 4pm or after 7pm is one of the simplest demand charge management moves for Scottsdale homeowners on the demand plan.

Tempe households near the university corridor often have more variable usage patterns. Renters and shared households are less likely to consistently stagger appliance use around peak hours. The plain TOU plan is generally easier to manage there.

What should Glendale and Peoria homeowners know about APS solar rate plans?

The West Valley has added population fast. Glendale and Peoria have seen significant new construction over the past several years, and much of that growth falls within APS service territory. New construction often comes with slightly better insulation, but also larger square footage and more electrical loads. The same rate plan logic applies in the West Valley as everywhere else: if you cannot guarantee your AC, dishwasher, and water heater stay off during 4pm to 7pm on weekdays, the demand charge plan adds unpredictable costs.

Portions of Peoria, particularly toward Surprise and El Mirage, sit in SRP territory. This is not something you can determine from the city name alone. Verify at the address level.

What role does financing play in APS solar rate plan savings?

The rate plan you pick interacts directly with how you pay for your system. Homeowners who go solar through a prepaid lease lock in a 30% discount from the start. The leasing company claims the 48E commercial tax credit and passes that savings to you as a lower prepaid cost. This path is fully available in 2026, even though the Section 25D residential credit for owned systems expired after December 31, 2025.

If you're weighing whether you missed the federal incentive window, the answer depends on how you finance. Cash buyers and loan customers installing in 2026 receive no federal credit. Prepaid lease customers still get the equivalent 30% discount through the 48E pass-through. This is not tax advice, and your specific situation may differ. A tax professional can confirm what applies to you.

For a prepaid lease homeowner on APS, the solar cost is fixed and predictable from day one. That makes the savings from choosing the right rate plan more visible because your solar cost isn't changing, only your grid draw cost is. Run the numbers for your home at the Solar Calculator or ask directly through the Contact page. Phoenix Valley Solar compares vetted installers and helps you find the best solar company in Arizona for your specific address and rate plan combination.

How to actually decide between the two APS solar rate plans

Start with 12 months of usage data from your APS online account. The hourly data is available in your usage history. Look specifically at what you draw between 4pm and 7pm on weekdays in July and August. If that number is high or unpredictable, the demand charge plan adds costs you can't reliably control. If it's low and consistent, and you're willing to shift large appliance use, the demand charge plan might save you money on the lower off-peak rates.

For most households without battery storage in Phoenix, the plain TOU 4pm to 7pm plan is the more predictable option. It costs more per on-peak kWh but protects you from the demand multiplier in the months when Phoenix heat makes it hardest to avoid running your AC at 6pm.

For households adding a battery, the demand charge plan deserves a closer look. If your battery covers the full 4pm to 7pm window consistently, the lower energy rates on the demand plan provide real savings. The right system size matters for this to work. A solar broker comparing multiple installer bids can help you size both the panel array and battery for the rate plan you're targeting, rather than sizing for a generic recommendation.

For more on how Arizona's export policy works under net billing, Arizona net billing in 2026 covers what changed from the old net metering program and what the current rules mean for your monthly credits.

Reduce your electric bill in Arizona before the next rate increase by getting competing quotes through Phoenix Valley Solar. As the best solar installer comparison service in the Phoenix Valley, we source bids from multiple vetted solar companies so you're not locked into one company's recommendation.

Frequently Asked Questions

Which APS solar rate plan is best for a home with solar panels?

For most Phoenix solar homes, the Time-of-Use 4pm to 7pm plan without the demand charge is the better choice. It charges more per on-peak kilowatt-hour but has no demand multiplier. The demand charge plan only wins if you have a battery that fully covers your 4pm to 7pm grid draw every weekday.

What is the APS on-peak electricity rate in summer 2026?

On the standard Time-of-Use plan, APS charges $0.2978 per kWh during on-peak hours, which run from 4pm to 7pm on weekdays in summer. The demand charge plan's on-peak rate is $0.12414 per kWh, but adds a $16.875 per kilowatt monthly demand fee based on your highest single peak hour.

Can I stay on a standard APS rate after installing solar?

No. APS requires all solar customers to switch to one of the two Time-of-Use plans: the standard TOU 4pm to 7pm plan or the TOU plan with a demand charge. You cannot remain on a flat residential rate once your solar system is connected and your net billing meter is installed.

What is the APS solar buyback rate in 2026?

APS pays approximately $0.0617 per kWh for exported solar energy under the Resource Comparison Proxy net billing program. That rate dropped 10% in September 2025 and is down about 52% from the 2017 rate of $0.129 per kWh. New installations get a 10-year rate lock from the date they connect.

Does APS serve all of Mesa, Chandler, and Gilbert?

No. APS and SRP divide the Phoenix metro by neighborhood, not by city. Parts of Mesa, Chandler, and Gilbert are served by SRP, not APS. APS solar rate plans only apply to APS customers. Check your utility bill to confirm which company serves your specific address before comparing plans.

Can I still get the 30% solar discount without the federal tax credit in 2026?

Yes, through a prepaid solar lease. The Section 25D residential credit expired after 2025 for homeowners who buy their system. But the 48E commercial credit still lets leasing companies claim 30% and pass that discount to you as a lower prepaid cost. Consult a tax professional for your specific situation.