Is APS or SRP Cheaper for a Solar Home in Phoenix? It Depends on How Much You Export

Is APS more expensive than SRP for a solar home?

For most solar homeowners in Phoenix, APS ends up cheaper than SRP once you account for export credits and base charges. APS pays 6.171 cents per kilowatt-hour for power you send back to the grid. SRP pays 3.45 cents. That gap looks small until you run the numbers over a month.

The more power you export, the more that difference compounds. A household sending 300 kilowatt-hours per month back to the grid earns $18.51 with APS. The same household earns $10.35 with SRP. Add in the base charge difference, where APS charges roughly $12 per month for most residential plans while SRP raised its single-family base charge to $30 in November 2025, and APS pulls ahead by more than $26 per month for that high-exporting household before you even account for retail rates.

But here is what catches people off guard: you do not get to choose your utility. APS and SRP divide the Phoenix Valley by neighborhood, not by city. Two houses on the same block can have different utilities depending on which side of the street they sit on. The answer to whether APS or SRP is cheaper for solar depends entirely on your roof, your system size, and the address on your electric bill.

How does the APS export credit compare to SRP when you send 300 kWh per month to the grid?

APS pays 6.171 cents per kilowatt-hour under its Resource Comparison Proxy (RCP) net billing program, which means a household exporting 300 kilowatt-hours earns about $18.51 that month. SRP's TOU Export plan pays a flat 3.45 cents per kilowatt-hour, putting that same household at $10.35. The difference of $8.16 per month adds up to nearly $98 per year from export credits alone.

That 300 kilowatt-hour export figure is realistic for a well-sized system in Phoenix. The Valley gets around 6.5 peak sun hours per day, among the highest of any major city in the country. A 9 or 10 kilowatt system on a home using 1,200 kilowatt-hours per month will routinely send 200 to 400 kilowatt-hours back to the grid in spring and fall, when solar production peaks and air conditioning demand drops. If you are on APS, that surplus works meaningfully in your favor. On SRP, the same kilowatt-hours are credited at less than half the rate.

Is APS still cheaper than SRP if you only export 100 kWh per month?

Even at 100 kilowatt-hours exported, APS still leads. APS earns you $6.17 in export credits that month versus SRP's $3.45. The credit gap narrows to $2.72, but the monthly base charge difference stays the same. APS residential customers pay around $12 per month in fixed charges. SRP single-family customers pay $30. That $18 gap does not move regardless of how much or how little solar you produce.

A low-exporting household on APS comes out roughly $20 better per month on those two factors alone, even before accounting for retail rates. SRP's blended retail rate runs around 11.9 cents per kilowatt-hour compared to APS's roughly 12.8 cents, so SRP does edge out APS on the per-kilowatt-hour cost of power you buy from the grid. But the base charge premium and lower export credits offset that advantage for any household with panels on the roof.

For a low exporter, the math is closer, which is exactly why it is worth running your numbers through the Solar Calculator before assuming one utility gives you better solar economics.

Which Phoenix Valley cities are in APS territory versus SRP territory for solar?

Your utility depends on your address, not your city. Neither APS nor SRP serves any major Phoenix Valley city entirely. A street in Scottsdale can be APS on one side and SRP on the other, and the same split runs through Glendale, Chandler, Phoenix proper, and everywhere in between.

Certain areas skew toward one provider. Much of Mesa, Tempe, Scottsdale, and Gilbert sit predominantly in SRP territory. Much of the western and northwestern Phoenix metro, including Glendale, Peoria, Surprise, Goodyear, Avondale, Buckeye, and Litchfield Park, tends to have APS service. But these are tendencies, not rules. The only way to know for certain is to pull out a recent electric bill and read the name at the top.

For Gilbert homeowners who want to understand how utility territory affects their solar options, this guide to Gilbert's solar utility setup breaks down what SRP customers in that area can realistically expect from a rooftop system.

For Chandler homeowners, the same split applies block by block. Chandler's APS and SRP territory breakdown explains the divide and what it means for system sizing and savings.

Does your APS or SRP territory change how large your solar system should be?

Yes, in a meaningful way. If you are on SRP, it generally makes less financial sense to oversize your system. Sending large amounts of power to the grid at 3.45 cents per kilowatt-hour returns very little money. You are better off sizing the system to meet most of your consumption without producing large surpluses. Battery storage becomes much more valuable on SRP for the same reason: storing excess midday solar and using it in the evening avoids both the low export credit and the cost of buying expensive on-peak power after sunset.

APS customers have more room to maneuver. The 6.171 cents per kilowatt-hour export credit, while still well below retail rates, is high enough that modest oversizing can make sense, particularly for households whose consumption peaks in the early evening when the solar system is already winding down.

What does the prepaid solar lease offer APS and SRP homeowners who missed the 2025 tax credit?

The federal Section 25D residential solar tax credit expired for owned systems after December 31, 2025. Homeowners who buy a system outright in 2026 no longer receive a federal credit. But the prepaid solar lease works differently, and the 30 percent discount is still on the table.

Phoenix Valley Solar offers a prepaid lease that gives homeowners the equivalent of a 30 percent cost reduction upfront. The leasing company can still claim the 48E commercial clean energy credit through 2027 and passes those savings directly to the homeowner as a lower price. You get the discount without owning the system or filing for a credit yourself. This is not tax advice, and the specifics depend on your situation, so consulting a tax professional is worth the call. But for homeowners on both APS and SRP who were waiting for the right moment, this is the moment.

SRP homeowners especially should pay attention here. Because export credits on SRP are low, the upfront cost reduction matters more to your overall payback math. A lower starting cost improves your return even when the monthly export earnings are modest. Learn more about how this works on the About page or reach out through the Contact page.

How do APS rate plans affect the export math compared to SRP?

APS solar customers are typically placed on the TOU 4pm to 7pm weekday rate plan, which charges about 34.4 cents per kilowatt-hour during those on-peak hours in summer and around 12.35 cents at all other times. Your solar system is generating at full output from roughly 9 in the morning until 3 in the afternoon, mostly during off-peak hours. That means the power you are self-consuming and exporting during peak production is priced at the cheaper off-peak rate, and your highest-value savings come from directly offsetting your morning and early afternoon load.

The on-peak window from 4 to 7 pm is when solar production is already declining. Homeowners who shift dishwasher loads, EV charging, and other flexible usage out of that window, or who add battery storage to cover that gap, get significantly more out of their APS solar system. The savings on reduce electric bill Arizona calculations hinge on how well your household can avoid drawing grid power at peak pricing.

SRP's on-peak windows sit at different hours by season, which changes the calculus slightly, but the principle holds for both utilities: the highest-value use of solar power is self-consumption during the hours you would otherwise be buying the most expensive grid power. For a deeper look at which APS plan structure works best for solar homes, this guide to APS solar rate plans in 2026 walks through the tradeoffs.

How does the APS versus SRP comparison play out across specific Phoenix Valley cities?

The APS versus SRP question plays out differently depending on where in the Valley you live, though the answer always starts the same way: check your bill first.

In Glendale, much of the western portion of the city falls under APS service. Homeowners there benefit from the higher export credit and lower base charge. Solar installations in those neighborhoods have the best export economics in the metro, and working with a solar broker in Arizona who can size the system to your specific APS plan can make a meaningful difference in how quickly it pays off.

In Scottsdale, SRP covers a significant share of the city's central and northern areas. Given the lower export credit at 3.45 cents per kilowatt-hour, homeowners there do best with a system sized to their actual consumption rather than a system designed to produce large exports. Battery storage becomes a better investment in SRP territory, since it shifts that low-value export into high-value self-consumption.

In Tempe and Mesa, SRP is common across much of both cities. These are dense urban markets where rooftop space is sometimes limited anyway, which naturally constrains system size and export volume. Paired with SRP's export rate, right-sizing is particularly important here.

In Surprise, Goodyear, and Buckeye, APS territory is the norm. These communities have grown rapidly in recent years, and new construction in the western Valley often comes with APS service from the start. Residents of residential solar Arizona subdivisions here are well-positioned to benefit from APS's export credit structure, especially on larger new-build homes with higher electricity loads.

In Peoria, both APS and SRP serve different neighborhoods. The same is true across parts of Phoenix and Chandler. The best solar company in Arizona for your situation will confirm your utility territory as part of the initial assessment, and a good solar broker arizona partner will pull your address before recommending a system size.

If you want to see how your specific usage and utility stack up, the Solar Calculator runs the numbers based on your actual consumption.

Frequently Asked Questions

Is APS more expensive than SRP for a solar home in Arizona?

For most solar homeowners, APS ends up cheaper than SRP when you account for both export credits and base charges. APS pays 6.171 cents per kilowatt-hour for exported power versus SRP's 3.45 cents, and APS monthly base charges run around $12 compared to SRP's $30.

How much does APS pay for solar power exported to the grid in 2026?

APS pays 6.171 cents per kilowatt-hour under its Resource Comparison Proxy net billing program for solar customers who installed in the 2025 to 2026 window. That rate is locked in for 10 years from your installation date, though rates for new customers drop roughly 10 percent each September.

How much does SRP pay for solar power sent back to the grid?

SRP pays 3.45 cents per kilowatt-hour on its TOU Export and EV Export plans. That rate is significantly lower than APS, which is why system sizing and battery storage decisions matter more for SRP solar customers who want to maximize their return.

Can I choose between APS and SRP for my Phoenix solar home?

No. APS and SRP assign service by address, not by customer preference. Your utility is determined by your specific neighborhood, and two homes on the same street can have different utilities. Check the name on your electric bill to confirm which one serves you.

Does exporting more solar power make APS a better deal than SRP?

Yes, the gap widens with higher exports. A household exporting 300 kilowatt-hours per month earns $18.51 from APS versus $10.35 from SRP, a difference of about $98 per year in export credits alone. The base charge gap adds another $18 per month in APS's favor regardless of export volume.

Can I still get a 30 percent solar discount if I missed the 2025 federal tax credit?

Yes. The prepaid solar lease from Phoenix Valley Solar offers the equivalent of a 30 percent discount because the leasing company passes through the 48E commercial clean energy credit. This works for both APS and SRP customers in 2026. Consult a tax professional for your specific situation.