Is APS More Expensive Than SRP? What Phoenix Homeowners Actually Pay in 2026

If you're shopping solar in the Phoenix area, the first question that usually comes up isn't about panels. It's about your utility. Whether you're on APS or SRP changes how your solar savings are calculated and what your electric bill looks like today.

So which one costs more? For most Phoenix homeowners running central air through a brutal summer, APS is meaningfully more expensive per kilowatt-hour. The gap isn't small. Here's what the 2026 numbers actually show.

APS rates in 2026: what the E-27 plan actually charges

APS's most common residential rate plan is E-27. It's a time-of-use plan that charges different rates depending on the time of day. On-peak hours run from 4 p.m. to 7 p.m. on weekdays, year-round.

In summer 2026, APS on-peak rates sit around $0.29 per kWh. Off-peak rates drop to around $0.10 per kWh. The problem for Phoenix homeowners is that summer afternoons are exactly when your A/C is working hardest. By the time you hit that 4 p.m. on-peak window, your system has already been running for hours in 110-degree heat.

The E-27 plan also includes a demand charge starting at $8.21 per kW per month for usage above 10 kW. That's a separate fee based on your highest 15-minute peak during the billing period, not your total consumption. Most households running central A/C in a 2,400 sq ft home will trigger this charge regularly throughout summer.

For a 2,400 sq ft Phoenix home with central A/C running most of the day, APS bills in July and August typically land between $250 and $320 per month. Add a pool pump on a non-optimized schedule and that number climbs.

SRP rates in 2026: how the Price Plan compares

SRP's most widely used residential option is the Price Plan. It's also a time-of-use structure, with on-peak hours running from 2 p.m. to 8 p.m. on weekdays, May through October.

SRP's on-peak rate in summer 2026 runs around $0.22 per kWh. Off-peak drops to around $0.07 per kWh. SRP also charges a monthly service fee of approximately $32.44. The tradeoff: SRP's peak window is six hours versus three for APS, so there's more exposure if you're running appliances in the late afternoon without planning around it.

For that same 2,400 sq ft Phoenix home on SRP, a July bill typically lands between $190 and $240. That's a real difference from APS, though some of SRP's advantage disappears if you run heavy equipment during peak hours without being deliberate about scheduling.

Side-by-side bill estimate for a 2,400 sq ft Phoenix home

A 2,400 sq ft Phoenix home in summer typically consumes around 1,800 to 2,200 kWh per month. Using 2,000 kWh as a baseline with moderate peak-hour usage, here is how the bills break down.

On APS E-27: roughly 400 kWh during on-peak hours at $0.29 per kWh equals $116. Roughly 1,600 kWh off-peak at $0.10 per kWh equals $160. Add an estimated demand charge of $50 to $80 and a basic service charge of approximately $15, and the total comes to $341 to $371 per month.

On SRP Price Plan: roughly 600 kWh during on-peak hours at $0.22 per kWh equals $132. Roughly 1,400 kWh off-peak at $0.07 per kWh equals $98. Add the monthly service fee of $32.44 and the total lands at $262 to $278 per month.

The difference is $70 to $100 per month during peak summer. Over a full year, that gap can exceed $840 to $1,100 for the same home with similar usage patterns. For APS customers, that math makes solar a more urgent conversation.

The solar calculator can give you a personalized estimate based on your actual utility, usage, and roof size.

How solar interacts differently with APS and SRP

Solar doesn't work the same way under both utilities, and that matters when you're evaluating a system.

Under APS, excess solar production exported to the grid earns you a credit under their net billing structure. New APS customers since 2017 receive less for exported energy than the retail rate they pay to import it. The structure still produces meaningful savings because you're reducing grid draws during the most expensive on-peak hours.

Under SRP, solar credits are calculated under the Customer Generation plan. SRP pays a lower export rate and charges a demand fee based on your highest 15-minute grid draw regardless of solar output. For SRP customers, oversizing a solar system can produce diminishing returns because demand charges apply to your peak grid pull, not your total consumption.

The practical result: APS customers typically see a more direct bill reduction from solar because their baseline rates are higher. SRP customers need a more carefully designed system to optimize around the demand fee structure.

What APS customers in Chandler, Gilbert, and Scottsdale are doing

Chandler straddles APS and SRP territory depending on the neighborhood. The western and northern sections of Chandler are typically APS. Homeowners there, along with many Gilbert and Scottsdale residents on APS, are increasingly going solar because their summer bills keep climbing. APS implemented rate increases in both 2023 and 2024.

A typical APS customer on E-27 with a 7 kW solar system through a prepaid solar lease can offset 80 to 90 percent of their grid usage during daylight hours. The 30% prepaid discount means the day-one system cost is reduced without waiting for a federal tax credit. If you missed the 2025 solar tax credit deadline, the prepaid lease is how you capture that same 30% savings built directly into the price. See the full breakdown in our Arizona prepaid solar lease guide.

Scottsdale homeowners with summer APS bills above $300 per month are finding the prepaid lease structure particularly practical because the upfront savings offset costs that compound year over year as APS rates continue to rise.

What SRP customers in Mesa and Tempe should know

SRP territory covers most of Mesa and Tempe. Homeowners in these areas deal with a different challenge: SRP's demand charge structure means system sizing matters more than panel count alone.

An oversized system that produces more than you can use on-site doesn't help much with SRP. The export credit rate is lower than retail and the demand charge still applies to your peak 15-minute grid draw. The best-performing systems for SRP customers are typically sized to cover base load without dramatically overproducing.

Mesa homeowners with SRP bills in the $190 to $250 range during summer can still find solid returns with solar, especially when the prepaid lease removes the upfront cost barrier. The 30% discount lowers the break-even point regardless of which utility serves your home.

Why knowing your utility is the first step

The APS vs. SRP split in the Phoenix metro isn't always obvious. Some Mesa neighborhoods are APS while streets nearby are SRP. Chandler straddles both utilities in different sections. Scottsdale is predominantly APS. Gilbert and Queen Creek are mostly SRP. Sun City and Surprise tend to be SRP. Tempe is largely APS with some pockets served by SRP.

Knowing your utility is step one. Knowing your rate plan is step two. If you're unsure which utility serves your address, the contact page can help you sort that out before you start comparing options.

Phoenix Valley Solar works with homeowners across the Valley on both utilities. Because we operate as a broker, we compare options from multiple installers rather than locking you into one company's offer. That matters when the right system design varies significantly depending on whether you're on APS or SRP. Learn more about how we work.

Frequently asked questions about APS vs SRP rates

Is APS more expensive than SRP in Arizona?

For most residential customers, APS results in higher monthly bills than SRP, particularly during summer. APS on-peak rates in 2026 run around $0.29 per kWh, compared to SRP's on-peak rate of approximately $0.22 per kWh. The comparison also depends on usage patterns and how well you shift loads outside peak hours, but for a typical Phoenix home the APS bill runs $70 to $100 higher per month in summer.

What is the average electric bill for a 2,400 sq ft home in Phoenix?

On APS, a 2,400 sq ft Phoenix home typically pays $250 to $370 per month in summer. On SRP, the same size home runs $190 to $280 during peak months. Annual APS bills for this home size average around $2,800 to $3,400, while SRP customers in a similar home typically see $2,200 to $2,800 per year.

Does solar save more money on APS or SRP?

Solar tends to reduce bills more directly for APS customers because their baseline per-kWh rates are higher. SRP's demand charge structure requires more careful system sizing to maximize savings. In both cases, a prepaid solar lease removes the upfront cost barrier and delivers a 30% discount on the system price from day one, making the break-even timeline shorter regardless of which utility you're on.

How do I know if I'm on APS or SRP?

Check your electric bill. Your utility's name appears at the top and your rate plan code appears in the rate detail section. If you're moving to a new address or aren't sure, your zip code gives a rough indicator but isn't definitive. Several Phoenix-area cities have streets split between both utilities.

What happened to the 30% solar tax credit in 2025?

The federal solar investment tax credit at 30% expired for most residential customers in 2025. Arizona homeowners who go solar now can still capture equivalent savings through a prepaid solar lease, which builds a 30% discount directly into the upfront price of the system. No tax filing required and no waiting for a refund.