How Much Can You Save on Your APS Bill With Solar?

Arizona homeowners on APS face some of the highest residential electricity rates in the Southwest. With rates climbing past 13 cents per kilowatt hour on average, and summer bills regularly reaching $300 to $500 for a typical Phoenix Valley home, the question most homeowners are asking is simple: how much can solar actually save on your APS bill? The answer depends on your current usage, your roof, and how you choose to go solar. For most Phoenix Valley families, the savings are substantial and they start on day one.

At Phoenix Valley Solar, we help homeowners in Chandler, Mesa, Gilbert, Scottsdale, Tempe, Queen Creek, and across the Phoenix metro understand the real numbers before they commit to anything. You can learn more about our team and our approach on our About page. Whether you are curious about your payback period or ready to lock in your savings, this guide breaks down exactly what APS customers can expect when they make the switch to rooftop solar.

What APS Customers Are Paying Now

APS has raised residential rates multiple times over the past decade. As of 2025, the average APS customer in the Phoenix Valley pays between 12 and 15 cents per kilowatt hour depending on their rate plan, time of use charges, and demand fees. A typical 2,000 square foot home using around 1,200 to 1,500 kilowatt hours per month will see an average APS bill of $175 to $225 in the cooler months and $350 to $500 or higher during peak summer cooling season when air conditioners run around the clock.

These bills are expected to keep climbing. APS has already signaled future rate increases tied to infrastructure upgrades and grid modernization. Locking in your energy costs now with solar protects you from those increases for the next 25 years and gives you a predictable, lower cost of electricity regardless of what happens to utility rates down the road.

How Solar Panels Reduce Your APS Bill

Rooftop solar panels generate electricity directly from sunlight and send that power to your home first before drawing from the grid. Every kilowatt hour your panels generate is one less kilowatt hour you buy from APS. During peak daylight hours, a properly sized solar system can fully offset your daytime energy use, reducing your daytime grid draw to near zero.

Whatever excess power your system produces during the day is sent back to APS through net metering, and you receive a credit on your bill. At night or on cloudy days, you draw from APS as usual but at a reduced rate because your credits offset that usage. The result is a dramatically lower monthly APS bill year round.

The Prepaid Solar Lease Advantage

The way you finance your solar system has a direct impact on how much you actually save. Homeowners who take out a solar loan pay interest for the life of the loan, which can significantly reduce their net savings over time. Those who go with a monthly lease pay a fixed monthly payment that may be less than their current APS bill but still represents an ongoing cost. Neither of those options gives you the same immediate and lasting savings as the prepaid solar lease.

The prepaid solar lease lets you save 30 percent on the cost of your solar system upfront with no loan, no monthly payments, and no interest charges eating into your returns. You prepay for 25 years of solar energy at a steep discount and your savings start immediately. There is no debt on your home and no lender involved. For a full comparison of how this option stacks up against other financing paths, read our post on the best solar financing in Arizona with no loan required.

What Phoenix Valley Homeowners Are Actually Saving

The average Phoenix Valley homeowner with a properly sized rooftop solar system saves between $120 and $220 per month on their APS bill during the spring and fall months. During the brutal Arizona summers when electricity use peaks, those savings can climb to $250 to $400 per month or more, depending on system size and home energy consumption.

Two data points illustrate why Arizona is one of the best places in the world to go solar. First, the Phoenix area receives an average of 5.8 peak sun hours per day, more than nearly any other metro in the country. That means panels here produce significantly more electricity annually than the same panels would in California, Texas, or any state with less consistent sunshine. Second, APS residential rates have increased by approximately 20 to 30 percent over the past five years. Homeowners who went solar in 2020 are already watching their monthly APS charges shrink while their neighbors see annual bill increases with no end in sight.

APS Bill Savings Across the Phoenix Valley

Every corner of the Phoenix Valley sits in one of the best solar climates anywhere in the world. Here is what solar savings typically look like for homeowners in the major markets we serve.

Chandler is one of the fastest growing cities in Arizona, with a population approaching 300,000. The city's mix of newer construction and large two story homes means higher cooling loads and bigger electricity bills. Chandler solar customers typically offset 80 to 100 percent of their APS usage and see average annual savings of $1,800 to $2,800 depending on system size.

Mesa is Arizona's third largest city and home to thousands of families paying above average APS bills due to a mix of home construction ages and larger single story layouts. Mesa homeowners who go solar with the prepaid lease commonly report first year savings of $1,500 to $2,500 on their APS bills.

Gilbert's family oriented neighborhoods and high percentage of newer homes with solar ready roofs make it one of the strongest solar markets in the Phoenix Valley. Gilbert homeowners benefit from excellent southern exposure and minimal shading, making system performance exceptionally high. Typical APS savings for Gilbert families range from $1,600 to $2,600 per year.

Scottsdale homeowners often have larger homes with higher energy consumption, which means bigger APS bills and bigger savings potential. A well sized solar system in Scottsdale can cut APS bills by $200 to $400 per month in summer, with annual savings often exceeding $3,000 for larger properties.

As a dense urban core close to ASU and the light rail corridor, Tempe has a mix of older homes and newer builds. Most Tempe solar customers using the prepaid lease see immediate monthly savings averaging $130 to $200 during peak cooling season.

Queen Creek and San Tan Valley are among the fastest growing communities in the East Valley, and many homes here carry higher APS bills due to larger square footage and newer appliances running at full load year round. Solar customers in Queen Creek are seeing some of the highest savings rates in the metro, with many families saving $2,000 to $3,500 on their APS bills annually.

Calculate Your Exact APS Savings

The best way to know exactly how much you can save on your APS bill is to run the numbers for your specific home. Our Solar Calculator lets you enter your average monthly APS bill and see a real estimate of your potential savings with solar. You can also contact our team to get a full custom analysis at no cost or obligation.

If you want to understand the full picture of your investment, read our guide on how solar panels lower your electric bill in Arizona for a detailed breakdown of how the billing offset works. And if you are thinking ahead to when your system pays for itself, our post on the solar panel payback period in Arizona walks through the real timeline and long term returns for Phoenix Valley homeowners.

Frequently Asked Questions

How much can I save on my APS bill each month with solar?

Most Phoenix Valley homeowners save between $120 and $400 per month on their APS bill with a properly sized rooftop solar system. Summer savings are highest because that is when energy use and APS rates peak together. The exact amount depends on your home size, your current energy consumption, and the system installed on your roof.

Does APS buy back the extra solar energy my panels produce?

Yes. APS participates in net metering, which means any excess electricity your panels generate during the day is sent back to the grid and credited to your account. Those credits offset your bill when you draw power at night or on overcast days. Your net metering credits roll over month to month so strong summer production can offset fall and winter usage.

What is the best way to go solar in Arizona to maximize APS savings?

The prepaid solar lease is the best option for Arizona homeowners who want maximum APS savings without taking on debt. You pay 30 percent less upfront compared to a traditional purchase, with no loan, no interest, and no monthly payments. Your APS bill reductions start immediately and the savings are locked in for 25 years.

How long before solar pays for itself against my APS bills?

The payback period depends on your system cost and your current APS bill, but most Phoenix Valley homeowners with the prepaid solar lease see full payback within 6 to 9 years. After that, the energy savings are pure return on your investment. Arizona's 5.8 average peak sun hours per day make the payback timeline much faster here than in most other states.

Does it matter which APS rate plan I am on if I go solar?

Yes, significantly. Some APS rate plans work much better with solar than others, particularly time of use plans where you can export solar energy during peak rate hours and earn higher credits. Phoenix Valley Solar reviews your current APS rate plan as part of every consultation to make sure you are on the best plan to maximize your solar savings. Contact us today to get started with a free, no obligation consultation.