How Solar Shields Arizona Homeowners from Utility Rate Hikes and Time-of-Use Pricing

zjalomari
Jun 18
4 min read

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.

Arizona homeowners have seen their electricity bills rise year after year, especially during the intense summer months. But these increases aren’t just about using more power — they’re about how utilities price that power.

From time-of-use (TOU) billing to seasonal rate spikes, utility companies like APS and SRP are charging more when you need electricity the most.

The good news? Installing residential solar panels in Phoenix is one of the most effective ways to shield yourself from these rising costs.

Here’s how solar helps Arizona homeowners take back control from utility companies and stabilize long-term energy costs.

1. The Problem: Utility Rates Are Increasing — and Becoming More Complex

Arizona utilities have been quietly adjusting rate structures over the last several years. Most households are now enrolled in time-of-use (TOU) plans that charge higher prices for electricity during peak hours, often between 4 p.m. and 7 p.m. — the exact time you're cooling your home after work.

These TOU plans:

Charge more for electricity during hot evenings
Provide minimal savings outside of peak hours
Make your bills unpredictable, even with consistent usage

Pair this with seasonal rate increases in the summer, and your energy bills can spike by 30% or more, even if your usage hasn’t changed.

2. How Solar Creates a Financial Buffer

Installing a home solar system in Phoenix allows you to generate your own electricity during the day — often enough to meet most or all of your daytime usage.

That means:

You rely less on the utility during peak periods
You can store excess solar energy with a battery to use when rates are highest
You avoid paying inflated prices for energy you no longer need to buy

Even without a battery, solar shifts the economics back in your favor by cutting your total grid usage dramatically.

3. Batteries Let You Avoid Peak Pricing Altogether

Pairing your panels with solar battery storage in Phoenix, such as a Tesla Powerwall, takes your savings a step further.

Batteries allow you to:

Store excess solar energy from earlier in the day
Use that stored power in the evening during peak TOU hours
Completely bypass peak rate windows without sacrificing comfort

In effect, your battery becomes your own personal hedge against utility pricing games — giving you stable energy at predictable costs.

4. Solar Locks in Your Cost of Power

Once your solar system is installed, you’ve essentially prepaid for 25+ years of electricity at today’s rates.

No matter how much APS, SRP, or TEP raise their rates:

Your system will continue generating free electricity
Your payback period stays the same or improves
Your long-term savings increase as rates rise

This makes solar not just a cost-saving decision, but a financial protection strategy.

5. Net Billing Still Offers Offsets — Even with Reduced Credits

While Arizona no longer uses full retail net metering, current net billing policies still allow you to:

Earn credits for surplus solar sent to the grid
Offset part of your nighttime or winter usage
Further reduce your reliance on utility-supplied power

With a properly sized system, you can minimize exposure to the grid entirely — even under the newer, less generous utility buyback structures.

6. Solar Adds Predictability in an Unpredictable Energy Market

Energy prices are volatile. As demand grows, fossil fuel prices fluctuate, and grid infrastructure ages, electricity will only get more expensive — and less predictable.

Solar gives you:

Stable, long-term savings
Less dependency on changing utility policies
Peace of mind that your biggest home expense is under control

It’s the only home upgrade that pays for itself while shielding you from rising external costs.

Take Control with Phoenix Valley Solar

At Phoenix Valley Solar, we help Arizona homeowners:

Design custom systems to match TOU billing schedules
Add battery storage to fully bypass peak pricing
Understand how to align solar usage with utility policies
Secure the best available solar incentives to lower upfront cost

We’re proud to be the best solar company in Phoenix for homeowners looking to protect themselves from the unpredictable cost of grid power.

Ready to Stabilize Your Energy Costs?

Contact Phoenix Valley Solar today for a free consultation. We’ll analyze your current utility plan and show you how solar can give you price stability, independence, and long-term peace of mind.