APS vs SRP: Which Arizona Utility Is Better for Solar in the Phoenix Valley?

Before you go solar in the Phoenix Valley, you need to know which utility serves your home and how that utility handles solar customers. Arizona Public Service, or APS, and Salt River Project, or SRP, are the two dominant residential utilities in Maricopa County. They serve different geographic territories, charge different rates, and have meaningfully different billing structures for solar customers. For homeowners in Goodyear, Sun City West, and Surprise, APS is the typical utility. For homeowners in Scottsdale, Fountain Hills, Gilbert, Chandler, and most of the East Valley, SRP is more common. Some cities like Phoenix have both utilities serving different neighborhoods.

Phoenix Valley Solar is an independent solar broker who designs every system around your specific utility's billing structure. We know both APS and SRP solar programs in depth, and we make sure your system is optimized for whichever utility serves your home. Use our Arizona Solar Calculator to model your savings, or contact us for a utility-specific consultation.

APS Solar Billing: How It Works for Phoenix Valley Homeowners

APS offers several rate plans for solar customers, with the most common being a time-of-use plan where electricity costs vary by time of day. On-peak hours from approximately 3 pm to 8 pm on weekdays carry higher rates than off-peak hours. APS compensates excess solar generation through a Solar Export Credit, currently in the range of 7 to 9 cents per kilowatt hour, which is below the retail rate customers pay for grid electricity.

The key financial strategy for APS solar customers is to maximize self-consumption during on-peak hours. A battery paired with solar allows you to store midday solar production and discharge it during on-peak evening hours when APS rates are highest, avoiding the most expensive grid electricity while your panels have stopped producing for the day. This makes battery storage particularly valuable for APS customers compared to those on flat-rate plans.

SRP Solar Billing: The Customer Generation Plan Explained

SRP requires solar customers to enroll in its Customer Generation pricing plan. This plan includes a monthly solar fee based on your solar system's capacity, a demand charge based on your peak 30-minute grid draw, and a reduced energy charge for electricity you consume from the grid. Excess solar is credited at a below-retail export rate.

The SRP demand charge is the most significant difference from APS billing. Your monthly bill partially depends on your single highest 30-minute grid draw in the billing period, regardless of when it occurs. A single evening where you run the oven, HVAC, and other appliances simultaneously while drawing heavily from the grid can set a high demand charge for the entire month. Solar plus battery directly addresses this by providing stored energy during high-consumption evening periods, reducing your peak grid draw.

For a full breakdown of how net metering credits work under both utilities, read our post on Arizona net metering for APS and SRP customers.

Which Utility Is Actually Better for Solar?

The honest answer is that neither APS nor SRP is definitively better for solar in all situations. Both utilities have changed their solar programs to reduce export credit rates below retail. Both reward self-consumption. Both have structures where battery storage adds meaningful value. The financial outcomes under APS and SRP are broadly comparable for a well-designed, properly sized solar system, though the optimal system design, particularly whether to include storage, differs between the two.

What matters more than which utility is better is how well your system is designed for your specific utility. An APS customer with the wrong rate plan selected before installation can significantly underperform expectations. An SRP customer with a system sized too large will face high solar fees without proportional benefit. Getting the design right for your utility is exactly what Phoenix Valley Solar does as your independent broker.

Rate Comparison: APS and SRP Residential Electricity Costs in 2025

APS residential rates as of 2025 range from approximately 13 to 18 cents per kilowatt hour depending on rate plan and time of use, with on-peak rates running higher. APS raised rates approximately 20 percent since 2021 and has a pending rate case seeking another 14 percent increase in 2026. SRP rates are generally comparable and raised in November 2025, with the additional demand charge component making total effective cost per kilowatt hour similar to APS for high-usage households.

Both utilities are raising rates, and both are projecting continued rate increases driven by infrastructure investment, data center demand growth, and regulatory requirements. Going solar on either utility is a hedge against these increases. For more on the rate environment and why it strengthens the solar case, read our post on how Arizona electricity rates are rising and how solar protects you.

Get a Utility-Optimized Solar System from Phoenix Valley Solar

Whether you are an APS customer in Goodyear or Sun City West, or an SRP customer in Scottsdale or Fountain Hills, Phoenix Valley Solar designs your solar system around your specific utility's billing structure. We review your 12-month bill history, model the best rate plan, size your system for maximum financial return, and recommend battery storage only when it genuinely improves your outcome.

Visit our About page to learn how we work, then contact Phoenix Valley Solar for a free utility-specific solar consultation. We serve Goodyear, Sun City West, Scottsdale, Surprise, Fountain Hills, Sun City, and Sun Lakes.

Frequently Asked Questions

Is APS or SRP better for solar panels in Arizona?

Neither is definitively better. Both utilities have reduced export credit rates below retail and both reward self-consumption. Financial outcomes are broadly comparable when systems are properly designed for each utility's specific billing structure.

Does APS or SRP pay more for excess solar?

APS pays approximately 7 to 9 cents per kilowatt hour for excess solar through its Solar Export Credit. SRP pays a similarly reduced rate through its Customer Generation export compensation. Both are below retail, which is why maximizing self-consumption is the primary financial strategy for solar customers of both utilities.

What is SRP's demand charge for solar customers?

SRP charges solar customers a monthly demand fee based on their highest 30-minute grid draw in the billing period. This demand charge is separate from energy consumption charges and can significantly affect total bill cost, which is why battery storage is especially valuable for SRP customers.

How do I know if I am on APS or SRP?

Check your electricity bill. The utility name will be clearly displayed. APS serves most of the West Valley including Goodyear, Surprise, and Sun City West. SRP serves much of the East Valley including Scottsdale, Fountain Hills, Gilbert, and Chandler. Parts of Phoenix are served by both.

Can a solar broker help me optimize my system for APS or SRP?

Yes. Phoenix Valley Solar designs every system around your specific utility's billing structure. We review your bill history, model the best rate plan, and size your system to maximize financial return under APS or SRP billing rules. Contact us for a free consultation.