Arizona Electricity Rates Are Rising — Here’s How Solar Can Protect You

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 your electricity bill has gone up over the past year, you're not alone. APS and SRP customers across Arizona are seeing higher rates, new fees, and unpredictable pricing, especially during the summer months. For homeowners looking for long-term stability, solar energy offers more than savings — it offers protection.

Here’s how going solar in Arizona helps shield you from rising electricity costs, and why locking in your energy rate now could be one of the smartest financial decisions you make.

1. Arizona Utility Rates Are on the Rise

Arizona’s major utilities — including APS, SRP, and TEP — have all proposed or approved rate increases in recent years. Reasons include:

• Infrastructure upgrades

• Grid reliability investments

• Rising energy demand

• Fuel price volatility

Recent examples:

• APS increased rates in 2023 and is proposing more hikes for 2025

• SRP customers now face a fixed monthly charge of $32.44 for solar homes, regardless of usage

• Peak-time usage is getting more expensive, especially between 4–9 p.m.

With time-of-use (TOU) pricing and lower export credits for solar users, the cost of doing nothing continues to grow.

2. Solar Locks In Your Cost of Energy

When you install solar panels, you’re not just generating electricity — you’re locking in the cost of producing it for the next 25+ years.

• No fuel charges

• No seasonal spikes

• No rate increases

• Just clean, predictable power from your roof

It’s like securing a fixed mortgage rate — but for your utility bill.

Even as APS and SRP rates climb, your solar system continues to offset that usage at no additional cost.

3. Battery Storage Adds Even More Protection

By pairing your solar system with a battery (like the Tesla Powerwall or Enphase IQ Battery), you can:

• Store excess solar during the day

• Use stored energy during peak pricing hours

• Avoid exporting power at low rates

• Gain backup power during outages

This is especially valuable for SRP customers, who get low export credits (~2.8¢/kWh) but face high costs for grid usage during peak hours.

In short, batteries help you consume more of your own power — and depend less on the utility altogether.

4. How Solar Helps

You Budget More Accurately

With traditional electricity:

• You don’t control your rates

• You don’t know what your bill will be month to month

• You’re subject to seasonal spikes, surcharges, and “demand fees”

With solar:

• You reduce or eliminate your variable usage charges

• You pay a fixed monthly amount (if financing) or nothing (if paid outright)

• You gain control over one of your largest household expenses

Homeowners in Phoenix, Mesa, and Chandler are using solar to stabilize their finances, not just their carbon footprint.

5. Combine Solar with Smart Energy Habits

To maximize protection from rising rates:

• Shift major electricity use to daytime hours (while solar is producing)

• Use smart thermostats and timers

• Run your A/C earlier in the day and coast through peak hours

• Install battery storage to cover high-cost evening periods

We offer tools and recommendations to help you build a full energy strategy, not just a solar system.

6. Don’t Wait for Another Rate Hike

Every few years, utility companies file new rate cases. Once approved, your bill increases — even if your usage stays the same.

Solar lets you:

• Stop reacting to rate hikes

• Take control of your home’s energy future

• Capture state and federal incentives before they phase down

• Add value to your home with a fixed energy asset

And with financing, you can start saving with no money down — and keep your energy costs stable from day one.

Why Phoenix Valley Solar?

We help Arizona homeowners:

• Analyze current and projected utility costs

• Design systems that reduce risk and increase savings

• Integrate solar with battery storage, EV charging, and smart home tech

• Navigate APS and SRP rate structures for maximum benefit

We’re proud to be the best solar company in Phoenix for families who want financial control, energy independence, and long-term peace of mind.

Want to Lock in Your Energy Costs Before They Rise Again?

Contact Phoenix Valley Solar today for a free savings analysis. We’ll show you how much you can save — and how to protect yourself from Arizona’s rising utility rates with a custom solar solution.

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.