Battery Storage with APS vs. SRP: Which Arizona Utility Offers Better Value?

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.

As more Arizona homeowners go solar, one question keeps coming up: “Should I add a battery to my system?”

With utilities like APS and SRP using time-of-use pricing and reduced export rates, solar batteries are no longer just a luxury — they’re often essential to maximizing return on investment.

But not all utilities treat solar-plus-storage the same. If you’re in the Phoenix metro area, the value of adding a Tesla Powerwall or other battery system depends heavily on whether you’re a customer of APS or SRP.

Here’s how battery storage compares under APS vs. SRP — and which offers the best long-term value for solar homeowners.

1. Why Batteries Are Growing in Arizona

Utility rates are getting:

• More complex (time-of-use pricing, demand charges)

• Less favorable for solar exports (low credit rates)

• Less reliable (monsoon-related outages and summer grid strain)

Batteries solve multiple issues:

• Shift solar energy to when you need it most

• Avoid buying power at peak utility rates

• Provide backup during outages

• Increase energy independence

Now let’s break it down by utility.

2. APS and Battery Storage: Smart Shifting, Big Savings

APS customers pay more for electricity during 4 p.m. to 7 p.m. on weekdays — when solar panels are winding down for the day.

With a battery, you can:

• Store solar energy produced earlier in the day

• Use that stored energy during APS peak hours

• Reduce or eliminate peak usage charges

• Lower your need to buy power from APS at 14¢–16¢/kWh

APS does not offer direct battery rebates, but their rate structure makes self-consumption very valuable.

Best APS Battery Strategy:

• Size your battery to cover your early evening loads

• Use smart automation to discharge during peak

• Maximize daytime self-use and minimize export

Result: Better ROI, faster system payback, and improved control over your monthly bill.

3. SRP and Battery Storage: Sometimes a Necessity

SRP’s Customer Generation Plan for solar homes includes:

• A low export credit (~2.8¢/kWh) for excess solar

• A $32.44 monthly grid access fee, no matter how much solar you use

• TOU pricing with on-peak hours from 5–9 a.m. and 5–9 p.m. in summer

Because exported solar is worth so little, batteries are essential to:

• Avoid exporting to SRP at a loss

• Use stored solar instead of buying at peak

• Keep your energy on-site and lower demand from SRP entirely

SRP does offer a battery rebate — up to $3,600 for qualified systems — which helps offset the higher installation cost.

Best SRP Battery Strategy:

• Size your system for maximum self-consumption

• Use automation to limit export during peak production

• Cover both morning and evening peaks with stored energy

Result: You reclaim more of your solar’s value and reduce long-term reliance on SRP’s rates and fees.

4. Backup Power: Same Benefit, Different Context

Both APS and SRP homeowners deal with:

• Summer grid strain

• Monsoon-related outages

• The need to keep security systems, refrigerators, and medical devices powered

A solar battery (like the Tesla Powerwall) gives both APS and SRP customers:

• Seamless automatic backup

• Stored solar for off-grid operation

• Protection from extended blackouts

However, because SRP export rates are so low, batteries double as both backup protection and financial optimization.

5. Cost and Payback Comparison

Factor	APS	SRP
Export credit rate	~5.6¢–7.2¢/kWh	~2.8¢/kWh
Battery rebate available	❌ None	✅ Up to $3,600
Fixed monthly fee	~$13–$15	$32.44
Peak rate timing	4–7 p.m. (3 hrs)	5–9 a.m. & 5–9 p.m. (8 hrs)
Best ROI use of battery	TOU shifting & peak shaving	Self-consumption & backup

6. Which Utility Gives You More Value from a Battery?

• APS customers benefit from better export credits and shorter peak hours, so batteries help optimize savings — but are not strictly necessary to make solar worthwhile.

• SRP customers see limited export value and high fixed fees, so batteries are highly recommended to maximize value and long-term ROI.

Verdict:

• Want faster financial payback? → APS

• Want true energy independence + rebates? → SRP

Why Work with Phoenix Valley Solar?

We’ve helped hundreds of APS and SRP customers:

• Understand their utility’s solar policies

• Design battery-ready or battery-included solar systems

• Apply for rebates, interconnection, and PTO

• Maximize savings through strategic battery placement

We’re known as the best solar company in Phoenix for customized solar-plus-storage solutions.

Want Help Deciding If a Battery Is Right for You?

Contact Phoenix Valley Solar today for a utility-specific savings analysis. We’ll evaluate your APS or SRP rate plan, your energy habits, and your solar goals — and help you design a system that gives you the control and independence you're looking for.

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.