APS vs. SRP: Which Utility Is Better for Solar in Arizona?

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.

If you’re considering solar energy for your home in the Phoenix area, one of the biggest factors influencing your system’s performance and savings is your utility provider.

In Arizona, most homeowners are serviced by either APS (Arizona Public Service) or SRP (Salt River Project). Both offer solar programs — but the way they compensate solar customers, structure rates, and support clean energy can vary significantly.

Here’s a side-by-side comparison of APS vs. SRP for solar homeowners — so you can understand what to expect, and how to get the most out of your system.

1. Service Area

Before anything else, you’ll want to know which utility serves your home.

• APS: Covers most of north and west Phoenix, including Peoria, Surprise, Goodyear, Buckeye, and parts of Scottsdale and Paradise Valley.

• SRP: Covers much of the East Valley and central Phoenix, including Mesa, Tempe, Chandler, Gilbert, and parts of Queen Creek.

You can’t choose your provider — it’s based on your address — but understanding your utility’s policies will help you size your system and plan your installation effectively.

2. Solar Buyback Rates (Net Metering vs. Net Billing)

Arizona no longer uses true net metering, but each utility handles solar energy exports differently.

APS: Net Billing

• You sell excess energy to APS at a fixed export rate, currently around 5.6¢–7.2¢ per kWh, depending on the year and plan.

• You buy back power at retail rates (10¢–15¢+ during peak times).

• Encourages self-consumption and smart scheduling with batteries.

SRP: Customer Generation Plan

• You export excess solar to SRP at a much lower rate, around 2.8¢ per kWh.

• There’s a monthly grid access charge of $32.44, regardless of how much solar you use.

• SRP’s rate structure strongly favors reducing grid dependence, not exporting energy.

Winner: APS – While neither offers full net metering, APS pays more for exported solar and has lower fixed fees.

3. Time-of-Use (TOU) Pricing and Peak Hours

Both APS and SRP use TOU plans for solar customers, meaning the time you use electricity impacts your bill.

• APS Peak Hours: 4 p.m. – 7 p.m. (weekdays, summer)

• SRP Peak Hours: 5 a.m. – 9 a.m. and 5 p.m. – 9 p.m.

If you don't have battery storage, these windows often require you to buy power at high rates, since solar output drops in the late afternoon.

Winner: APS – Slightly shorter peak hours and higher export credits make it easier to save without a battery.

4. Monthly Charges and Fees

Even with solar, both utilities charge monthly fees.

Fee Type	APS	SRP
Basic Service Fee	~$13–$15/month	$32.44/month (fixed)
Demand Charges	On certain rate plans	Not typical for residential
Export Cap (System Size)	~150% of load (flexible)	15 kW AC max export allowed

Winner: APS – Lower fees and more system design flexibility.

5. Battery Compatibility and Value

Battery storage is becoming increasingly valuable under Arizona’s utility policies.

• APS: Works well with batteries — charge your battery during solar hours and discharge during peak.

• SRP: Batteries help you avoid both high on-peak usage and the export credit penalty.

Winner: Tie – Both benefit from batteries, but SRP customers may depend on them more to see real savings.

6. Incentives and Rebates

Neither APS nor SRP currently offers direct solar installation rebates. However:

• SRP offers a limited-time battery incentive (up to $3,600) for qualified installs.

• Both utilities qualify for the 30% Federal Solar Tax Credit and the $1,000 Arizona Solar Tax Credit.

Winner: SRP (for now) – Battery rebate programs give it a slight edge if you install storage.

7. Long-Term Solar Friendliness

APS has made moderate progress supporting rooftop solar, gradually lowering export rates but still allowing flexible system sizing.

SRP has faced criticism for policies that discourage rooftop solar adoption — especially their mandatory $32+ monthly fee, which doesn’t scale with system size or usage.

Winner: APS – More solar-friendly overall.

Final Verdict: APS vs. SRP for Solar

Feature	APS	SRP
Export Credit Rate	Higher	Lower
Monthly Fixed Fees	Lower	Higher
Battery Integration Value	Strong	Strong
System Sizing Flexibility	More	Capped
Overall Solar-Friendliness	👍🏼	👎🏼

If you’re in APS territory, you’ll generally see faster payback, more export value, and fewer billing penalties.

If you’re with SRP, solar still makes sense — especially when paired with a battery and self-consumption strategy — but expect a longer path to ROI.

Not Sure How Your Utility Affects Solar?

Contact Phoenix Valley Solar today for a personalized solar consultation. We’ll evaluate your utility plan, design a system that maximizes your savings.

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.