APS vs SRP Solar Rates in 2026: Which Utility Costs Less for a Phoenix Home That Sends Back Power?

How Do APS and SRP Solar Rates Differ in 2026?

APS net billing pays solar exporters roughly 10 cents per kWh while SRP buyback sits at about 3 cents. That seven-cent gap matters more than most homeowners realize: on an 8 kW south-facing system in Phoenix, it translates to a difference of $30 to $50 every month in credits alone, before you factor in each utility's time-of-use structure.

Both utilities raised rates in 2025. APS implemented a 6.5 percent increase effective July 1, 2025, after Arizona Corporation Commission approval. SRP's board approved a 3.9 percent increase effective May 1, 2025. For a Phoenix household that consumes around 2,000 kWh in a summer month, both increases nudge the financial case for solar forward. The key question is which utility pays back more fairly when your panels produce more than your home can use.

Why Does Your Address Decide Your Utility, Not Your City Name?

Your utility is determined by your specific address, not the city you live in. APS and SRP divide the Phoenix Valley by neighborhood, and the boundary does not follow city lines. Parts of Scottsdale, Chandler, and Gilbert sit in APS territory while other blocks in those same cities are SRP. Mesa neighborhoods are mostly SRP-served, and Glendale, Peoria, and Surprise are predominantly APS, but even those patterns have exceptions at the edges.

The fastest way to confirm your utility is to look at a recent electric bill or enter your address at aps.com or srpnet.com. A solar installer who tells you "everyone in your city uses APS" or "Mesa is all SRP" is working from a rough generalization, not your actual address. This matters because the rate math below only applies once you know which utility you are actually on.

What Does the APS E-12 Solar Plan Look Like in 2026?

APS solar customers default to the E-12 plan, a time-of-use structure designed for homes with net billing. The on-peak rate runs 29.3 cents per kWh during weekday peak hours from 3 PM to 8 PM. Outside that window, including all day Saturday and Sunday, the off-peak rate is 12.8 cents per kWh. The monthly customer charge is $15.

Excess solar energy sent to the grid earns a Resource Comparison Proxy credit rather than a full retail credit. As of 2025 through 2026, that RCP rate sits at approximately 10 cents per kWh. Credits accumulate on your bill each month and roll forward. Any unused balance at the annual true-up in October is paid out as a check at the RCP rate.

For a deeper look at how APS calculates the monthly export credit, see How APS Calculates Your Monthly Solar Export Credit Under Net Billing in 2026.

Is the APS Peak Window Good or Bad for Solar?

The 3 PM to 8 PM peak window is partially good news for solar homeowners. Your panels produce well into that window during summer, typically generating meaningful output through 5 PM or 6 PM on a clear Phoenix afternoon. Power you consume directly from your panels during those hours displaces electricity that would otherwise cost 29.3 cents per kWh. Power you send back to the grid during that same window earns only the 10-cent RCP rate, so battery storage can capture the difference.

What Does the SRP E-27 Solar Plan Look Like in 2026?

SRP solar customers use the E-27 time-of-use plan, which runs differently in summer and winter. Summer on-peak hours are weekdays from 2 PM to 8 PM at 28.8 cents per kWh. Off-peak is 10 cents per kWh. Weekends and holidays are always off-peak. The monthly service charge is $32.44, more than double the APS customer charge.

Winter shifts the peak window to 5 PM to 9 PM at 18.9 cents per kWh, with a 9.1-cent off-peak rate. From November through April, solar production in Phoenix still averages around 5 peak sun hours per day, but the later peak window means panels are winding down output right when prices climb.

Why Is the SRP Solar Buyback Rate So Low?

SRP does not offer net metering. Solar customers earn credits at SRP's avoided cost rate, which represents what SRP would have paid to procure that power on the wholesale market. In 2025 through 2026, that rate runs approximately 2.8 to 3.5 cents per kWh, far below retail. Unlike APS net billing, which at least ties the credit to a proxy of comparable resource value, SRP's buyback is essentially a wholesale price. Homes that export a lot of solar will see that export earn very little on SRP.

What Does the Monthly Bill Math Look Like for an 8 kW System on APS vs SRP?

A south-facing 8 kW system in Phoenix produces roughly 1,114 kWh per month, using the city's 5.8 average peak sun hours per day and an 80 percent real-world efficiency factor. Against a summer household consumption of around 2,000 kWh, that system covers just over half of usage.

Assuming 60 percent of production is consumed directly during the day and 40 percent is exported when demand is low, here is how the numbers work out across the two utilities.

On APS, the 668 kWh of self-consumed solar avoids roughly $140 in charges each month, split across on-peak and off-peak hours. The remaining 446 kWh exported to the grid earns about $44 in net billing credits at the 10-cent RCP rate. Total monthly benefit: around $184.

On SRP, the same 668 kWh of self-consumed solar avoids roughly $130 in charges, since SRP on-peak is slightly lower at 28.8 cents and off-peak is a full 2.8 cents less than APS. But the 446 kWh exported earns only about $13 in buyback credits at the 3-cent avoided cost rate. Total monthly benefit: around $143.

The gap between $184 and $143 runs about $40 per month in this scenario, or roughly $480 per year. The driver is almost entirely the export credit. For homes that export more, the gap widens. For homes with aggressive load-shifting or battery storage that brings exports close to zero, the utilities become closer to equal on pure economics.

Which Areas of the Phoenix Valley Are in APS vs SRP Territory?

Glendale, Peoria, Surprise, Goodyear, Avondale, Buckeye, and Sun City neighborhoods draw from APS in most parts of those communities. Anthem, Cave Creek, and much of north and west Phoenix are also predominantly APS-served.

Most of Mesa, Tempe, Fountain Hills, and Apache Junction neighborhoods run on SRP. Scottsdale, Gilbert, and Chandler have mixed territory, with service boundaries that do not follow any obvious geographic feature.

City of Phoenix is split: north and west sections tend to be APS while east and central Phoenix neighborhoods often fall under SRP. If you are in any mixed-territory community, the only reliable check is your actual bill or the utility address lookup tools.

If you are comparing solar options in Scottsdale, the Going Solar in Scottsdale AZ guide walks through how to confirm your territory and what the rate difference means for system sizing.

How Can Phoenix Homeowners Reduce Their Electric Bill Regardless of Utility?

The biggest lever for solar savings on either utility is self-consumption. Every kilowatt-hour your home absorbs directly from your panels saves at the retail rate, which runs between 10 and 29 cents depending on time of day. Every kilowatt-hour exported earns far less.

Practical ways to increase self-consumption include running dishwashers, laundry, and pool pumps between 10 AM and 2 PM when solar output peaks and before either utility's afternoon peak window. APS customers who add battery storage can push self-consumption above 90 percent and almost eliminate grid imports during peak hours. SRP customers get a stronger return from batteries because the buyback rate is so low that any stored solar is worth more consumed at home than sent to the grid at 3 cents.

Reducing your electric bill in Arizona with solar starts with understanding the rate math for your specific utility. Use the Solar Calculator to model system sizes and monthly savings for both APS and SRP scenarios before your first installer conversation.

How Do You Compare Solar Installers in Phoenix and Find Unbiased Advice?

Choosing between APS and SRP territory means nothing if the installer you pick charges $3 more per watt than a comparable company one call away. The single most effective step Phoenix homeowners can take is to get competing bids before signing anything.

Phoenix Valley Solar is an independent solar broker, not an installer. That means our job is to gather quotes from multiple vetted installers and lay them out side by side so you can compare cost per watt, equipment brands, warranty terms, and financing options without a sales pitch attached to each number. Independent solar advisors like PVS charge nothing for that service because the installers pay us, not you.

If you want unbiased solar advice in Arizona or a straightforward way to compare solar installers in Phoenix, start with a free consultation or visit the About page to see how the broker model works.

Why a Prepaid Solar Lease Still Gets You a 30% Discount in 2026

Homeowners who buy a solar system outright in 2026 no longer qualify for the federal Section 25D residential tax credit, which expired at the end of 2025. That changes the owned-system math compared to what buyers expected a year ago.

A prepaid solar lease still delivers a comparable benefit. The leasing company can claim the 48E commercial clean energy credit through 2027 and pass that savings to you as a reduced upfront price, typically around 30 percent below the full system cost. Anyone who missed the 2025 tax credit window for an owned purchase can achieve a similar discount point through the prepaid lease structure without owning the equipment.

That said, tax situations vary. This is not tax advice, and you should consult a qualified tax professional before making any financing decision based on credit eligibility. Reach out through the contact page to learn how the prepaid lease compares to a cash purchase or solar loan for your specific usage profile on APS or SRP.

Frequently Asked Questions

Does APS or SRP pay more for solar power sent back to the grid in 2026?

APS pays roughly 10 cents per kWh for exported solar through its net billing Resource Comparison Proxy rate. SRP pays about 3 cents per kWh at its avoided cost rate. For a typical 8 kW system, that difference adds up to $30 to $50 more in monthly credits on APS.

How do I know if my Phoenix address is served by APS or SRP?

Check your electric bill or enter your address at aps.com or srpnet.com. The boundary between APS and SRP runs by neighborhood, not by city name, so you cannot determine your utility from your city alone. Some blocks in Scottsdale, Gilbert, and Chandler fall under APS while nearby blocks are SRP.

What are the APS E-12 solar plan peak hours in 2026?

APS E-12 peak hours are Monday through Friday from 3 PM to 8 PM, year-round. The on-peak rate is 29.3 cents per kWh and the off-peak rate is 12.8 cents. Weekends and holidays are always off-peak, and there is no demand charge for residential solar customers.

What is the SRP solar buyback rate in 2026?

SRP credits solar exports at its avoided cost rate, which runs approximately 2.8 to 3.5 cents per kWh in 2026. SRP does not offer net metering. Solar homeowners get the most value by using solar energy directly at home rather than sending excess to the grid.

Can I still get a 30% discount on solar in Phoenix without the federal tax credit?

Yes. The federal Section 25D residential credit expired after 2025, but a prepaid solar lease lets the leasing company pass through the 48E commercial credit, typically delivering a price about 30% below full system cost. This is not tax advice; consult a tax professional for your situation.

How much does an 8 kW solar system produce each month in Phoenix?

An 8 kW south-facing system in Phoenix generates roughly 1,100 to 1,200 kWh per month, based on the city's 5.8 average peak sun hours per day and an 80 percent real-world efficiency factor. That covers about 55 to 60 percent of a typical summer household's usage.