How to Read and Understand Your APS or SRP Solar Bill in Arizona

zjalomari
Jul 2
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.

You went solar to save money — but when your first utility bill arrives after installation, it can be confusing.

Arizona’s two largest electric utilities, APS (Arizona Public Service) and SRP (Salt River Project), use complex billing systems for solar customers that include terms like “grid usage,” “exported kWh,” and “demand charges.”

Many homeowners aren’t sure what they’re paying for — or how to read the numbers.

In this guide, we break down how solar billing works with APS and SRP, and how to track your true savings after going solar.

1. Solar Doesn’t Eliminate Your Utility Bill — It Reshapes It

After going solar, your utility bill doesn’t disappear. Instead, it changes in structure:

You use some electricity directly from your solar panels
You may send excess energy to the grid during the day
You draw from the grid at night or during cloudy periods
Your bill reflects both usage and export credits, plus fixed fees

Understanding how your utility calculates these charges is key to tracking your system’s performance.

2. APS Solar Billing Explained (Net Billing)

APS uses a net billing system, not traditional net metering. Here’s how it works:

You buy electricity from APS at your full retail rate (e.g., 12–14¢/kWh depending on plan)
You sell excess solar energy to APS at a much lower rate (currently ~5–7¢/kWh, depending on year and plan)
You pay the difference between what you use and what you export

APS solar customers also pay:

Basic service charges ($13–$15/month)
Demand charges (on certain plans)
Time-of-use (TOU) rates, where electricity is more expensive between 4 p.m. and 7 p.m.

Tip: To maximize savings with APS, time your high-usage activities (laundry, EV charging, A/C) outside of peak hours, and consider battery storage to avoid exporting low and buying high.

3. SRP Solar Billing Explained (Customer Generation Plan)

SRP offers fewer solar-friendly rate plans and structures, but their Customer Generation Plan works like this:

You pay per kWh you use, but with higher on-peak rates during 5–9 a.m. and 5–9 p.m. in the summer
You receive a solar export credit (~2–3¢/kWh in 2025) for excess energy
All customers pay a $32.44 monthly system access fee (non-negotiable)

SRP customers may find that battery storage or larger self-consumption systems provide greater value than grid-export-focused designs.

Tip: Make sure your solar installer sizes your system based on your usage and SRP’s export credit limits — oversizing can reduce your return.

4. Key Terms to Understand on Your Bill

kWh Used – The total energy you pulled from the grid kWh Exported – The solar energy you sent to the grid Net Usage – The difference between your usage and export Export Credit – The value your utility gives you per exported kWh Basic Service Charge – A flat monthly fee you pay regardless of usage Demand Charge (APS only) – A fee based on your highest 1-hour usage in a month

Most solar customers will still see a small monthly bill — but it should be significantly lower than pre-solar months, especially in summer.

5. How to Monitor Your Savings Accurately

To know how much you’re truly saving:

Compare your current utility bill to same-month bills from previous years
Use your solar app (e.g., Enphase, SolarEdge) to view solar production
Track exported vs. consumed energy
Account for non-energy charges like taxes and fixed fees

Phoenix Valley Solar helps customers set up custom monitoring dashboards so they can see production, usage, and utility savings all in one place.

6. When to Consider Adding a Battery

If your APS or SRP solar bill still feels higher than expected, a battery may help.

With a battery, you can:

Use your own stored solar at night instead of buying at peak rates
Avoid exporting solar at low-value times
Reduce demand charges (APS)
Gain backup power during grid outages

This is especially helpful in SRP territory, where export credits are low, and in APS territory, where time-of-use rates and demand charges penalize afternoon usage.

Why Work with Phoenix Valley Solar?

We go beyond panel installation — we educate every customer on:

Reading and understanding their utility bill
Designing systems tailored to APS or SRP plans
Maximizing ROI with or without battery storage
Navigating utility approval and performance tracking

We’re proud to be the best solar company in Phoenix for homeowners who want honest savings and long-term support.

Confused by Your Solar Bill? We’ll Help You Decode It.

Contact Phoenix Valley Solar today for a free solar performance checkup. We’ll review your system’s production and your APS or SRP bill to ensure you’re getting the savings you deserve.