Going Solar in Tempe AZ: Which Utility Serves Your Block and What Your Summer Bill Could Look Like

Does Your Street Fall in APS or SRP Territory in Tempe?

Two neighbors on opposite sides of a street in eastern Tempe can receive bills from entirely different utilities. APS (Arizona Public Service) and SRP (Salt River Project) divide the city at the neighborhood level, not the city boundary, and the utility you land on changes how much solar can cut your summer bill by a meaningful margin.

APS covers the western and central portions of Tempe, including neighborhoods near Arizona State University, downtown Tempe Town Lake, and the Tempe Marketplace corridor. SRP takes over in eastern Tempe, in the neighborhoods that blend toward Chandler and Mesa along the Loop 202 freeway. The dividing line follows a patchwork of service territory maps drawn decades ago, not any visible street or landmark.

The only reliable way to confirm which utility serves your address is to check a recent electric bill. The header will show either APS or SRP. You can also enter your address at aps.com or srpnet.com to get a definitive answer. Do not assume based on your zip code or the utility your neighbor uses. That assumption has led more than a few Tempe homeowners to request solar quotes sized for the wrong rate plan.

How APS Rates Work for a Tempe Solar Home in 2026

APS bills most solar customers on the Saver Choice Plus time-of-use plan. Under that plan, summer on-peak hours run 3 p.m. to 8 p.m. on weekdays, when the rate reaches 24.16 cents per kilowatt-hour. Every other hour costs 12.96 cents per kilowatt-hour. A flat-rate alternative called Saver Choice charges 13.34 cents per kilowatt-hour around the clock with no time-based variation.

For a typical 1,800 square foot Tempe home using about 1,200 kilowatt-hours per month in summer, an APS bill in July or August often lands between $220 and $280 before solar. A 6-kilowatt system producing around 830 kilowatt-hours per month, based on Tempe's 5.5 daily peak sun hours, offsets roughly 70 percent of that usage. More importantly, APS credits excess solar production at the full off-peak retail rate of 12.96 cents per kilowatt-hour through net metering, so power your panels push to the grid during midday does not go to waste.

The estimated monthly savings under APS for that same home run $130 to $160, which compounds to roughly $19,000 over 15 years. For Tempe homeowners trying to save on their APS bill with solar, the combination of high summer rates and retail net metering makes the math work better here than almost anywhere else in the country.

How SRP Rates Work for Solar Companies Tempe Arizona Customers Are Dealing With

SRP bills most of its residential solar customers on the EZ-3 Solar plan, and the structure differs from APS in ways that matter for solar design. Peak hours are shorter, covering just 3 p.m. to 6 p.m., Monday through Sunday, from May through October. But the peak rate is steeper, at 27.80 cents per kilowatt-hour, and SRP adds a demand charge of $7 per kilowatt during those summer peak hours. The demand charge is based on the highest 15-minute energy draw your home pulls from the grid during peak time, not on total usage.

The off-peak rate under EZ-3 runs 9.21 cents per kilowatt-hour, which is lower than APS's off-peak figure. But the export credit for excess solar energy is only 2.81 cents per kilowatt-hour, about one-fifth of what APS net metering pays. That gap matters more the larger your system is relative to your real-time consumption, because surplus production earns almost nothing instead of a meaningful bill credit.

SRP also offers the Standard Plan with tiered pricing: 9.85 cents per kilowatt-hour for the first 600 kilowatt-hours, 12.11 cents for 601 to 1,000 kilowatt-hours, and 15.25 cents above 1,000 kilowatt-hours. A Tempe home burning 1,200 kilowatt-hours in July lands squarely in those upper tiers.

For a 1,800 square foot SRP home with the same 6-kilowatt solar system, monthly savings run $80 to $110. The system produces identical electricity, but the lower export credit and the demand charge reduce the net benefit compared to APS.

What Does the Demand Charge Mean for Solar Companies Tempe Arizona Homeowners?

The demand charge is the part of SRP's rate structure that solar alone does not fix. Even if your panels cover 80 percent of your monthly kilowatt-hour usage, a single peak-hour spike from running your air conditioner, dishwasher, and oven at 4 p.m. on a July Thursday sets a new demand peak. A home drawing 5 kilowatts from the grid during that moment owes $35 in demand charges on top of the energy charges.

Adding a battery that stores midday solar and discharges it during peak hours is one of the more effective ways for SRP customers to reduce that exposure. SRP solar customers who pair storage with their system consistently see better summer bill reductions than those who go panels-only.

For a deeper look at how net metering and export credits differ between the two utilities, see our post on APS vs. SRP rates for solar exporters in 2026.

Summer Bill Scenario: 1,800 Square Foot Tempe Home in 2026

Here is what the numbers look like side by side. Starting point: a 1,800 square foot home in Tempe, central AC, an electric water heater, and average July usage of 1,200 kilowatt-hours. Without solar, that home pays roughly $240 per month in July on APS Saver Choice Plus and around $230 per month on SRP's Standard Plan.

Add a 6-kilowatt solar system producing 830 kilowatt-hours per month. The APS customer offsets 830 kilowatt-hours directly and earns net metering credit at 12.96 cents for any surplus midday production. Net bill in July drops to roughly $80 to $110. The SRP customer offsets the same kilowatt-hours in self-consumption but earns only 2.81 cents for surplus and still faces a summer demand charge. Net bill in July drops to around $120 to $150.

Both outcomes represent real reductions in residential solar energy savings. APS customers reach breakeven faster. SRP customers still benefit, but the system design needs to prioritize self-consumption, meaning it should be sized to cover real-time usage precisely rather than counting on grid export to accumulate credits.

Tempe's 5.5 peak sun hours per day is among the highest in the continental United States. During the summer months when bills peak, that figure climbs to 6.0 to 6.5 hours per day. That solar resource means a 6-kilowatt system here produces output comparable to a 7 to 8-kilowatt system in a region with 4.5 peak sun hours. Use our Solar Calculator to estimate the right system size for your address and usage.

How to Choose a Solar Installer in Phoenix When You Live in Tempe

Tempe homeowners sit in one of the most competitive solar markets in Arizona. Three factors make choosing wisely harder than it looks. First, not every installer is equally familiar with both APS and SRP interconnection requirements. A company that primarily works in SRP territory may not optimize your system design for APS net metering, and vice versa. Second, because Tempe electricity prices are high, some installers quote oversized systems knowing that net metering credits pad the apparent payback calculation. Third, contract terms on loans and leases vary substantially between the eight to twelve active solar companies in Tempe Arizona and the broader Phoenix market.

The practical answer is to get at least three competing bids. That step typically surfaces a spread of $3,000 to $6,000 on identical-spec systems. Phoenix Valley Solar works as an independent solar broker: we pull quotes from multiple vetted installers, explain the APS or SRP-specific considerations for your address, and deliver a side-by-side comparison without favoring any one company. You can reach us at /contact or read more about how we work on our About page.

Compare Solar Installers in Phoenix Without the Sales Pressure

The most common mistake Tempe homeowners make is accepting the first installer's quote because the salesperson created urgency around a time-sensitive offer. Solar installers in Arizona operate in a competitive market. Quotes are almost always negotiable, and a better price rarely requires rushing.

An independent solar advisor in Phoenix can run that comparison for you. Phoenix Valley Solar reviews your address, utility, roof age, current usage, and shading before sourcing quotes from the best solar installers in the area. Because we are compensated the same regardless of which installer you choose, there is no pressure toward any particular brand or contract type.

For Tempe homeowners comparing quotes on similar hardware, the variable is usually financing terms and system design efficiency rather than panel brand. Total system output, the rate plan your utility places you on, and the export credit structure matter more for your payback period than the panel nameplate.

Prepared to compare solar quotes in Phoenix and the Tempe area without sales pressure? Start the process here.

Best Solar Company in Phoenix for Tempe Homeowners

The best solar company in Phoenix for a Tempe homeowner is the one that knows your specific utility's rate structure, sizes the system for your actual consumption pattern, and provides a written proposal you can compare directly with two or three competing offers. No single installer holds that title across all addresses. What matters is whether the company understands APS net metering or SRP demand charges at the level where it shapes their design recommendations.

Phoenix Valley Solar's broker model is built around that comparison. We gather competing bids from vetted local installers across the Phoenix Valley, explain the APS or SRP-specific design implications for your Tempe address, and hand you the quotes side by side. There is no sales call, no high-pressure close. Reach out and get competing quotes today.

Financing Solar in Tempe in 2026: The Prepaid Lease at 30% Off

If you missed the 2025 federal solar tax credit deadline for owner-purchased systems, there is still a path to the same 30 percent discount on residential solar in Arizona. The Section 25D residential credit expired for owned systems after December 31, 2025, so a cash or loan purchase in 2026 does not qualify for that federal benefit. But a prepaid solar lease structures the savings differently: the leasing company claims the 48E commercial clean energy credit and passes those savings to you as a 30 percent reduction in the prepaid price. The net result to your budget is the same discount as the old ITC provided. (This is not tax advice; consult a qualified tax professional about your specific situation.)

The Arizona state tax credit, worth 25 percent of your system cost up to $1,000, remains available in 2026 and adds to the overall picture regardless of ownership structure. Arizona also exempts solar equipment from state sales tax and protects the solar-attributable increase in your home value from property taxes.

For Tempe homeowners in APS or SRP territory, the prepaid solar lease also eliminates concern about installer financing markups on loan products. You pay a single upfront cost at the discounted rate and lock in the production benefit for the full term. For a direct comparison of loan and prepaid lease cash flows, see Prepaid Solar Lease vs. Solar Loan in Phoenix.

Solar Across the Phoenix Valley: Tempe, Mesa, Chandler, and Beyond

The utility split running through Tempe extends into every Valley city. In Mesa, eastern neighborhoods are primarily SRP while pockets near downtown sit in APS territory. In Chandler, most homes are on SRP, but western Chandler neighborhoods near Price Road can fall on either side. In Scottsdale, APS dominates the eastern corridor while SRP holds patches in the older McCormick Ranch area. In Peoria and Glendale, APS serves most addresses. In Gilbert, SRP covers the bulk of the city.

Most of Maricopa County's more than 150,000 residential solar installations are concentrated in the same Valley cities where summer electricity costs are highest. Wherever you are in the Phoenix metro, confirming your utility before requesting solar quotes is essential. It determines the entire economics of your project.

If you live near Tempe in Scottsdale and want to see that city's utility territory and solar savings analysis, the Going Solar in Scottsdale AZ post covers the same side-by-side approach.

Frequently Asked Questions

Which utility serves Tempe AZ: APS or SRP?

Both APS and SRP serve different parts of Tempe. APS covers western and central Tempe, including areas near ASU and downtown. SRP serves eastern Tempe neighborhoods near Chandler and the Loop 202 corridor. Check your electric bill or use the address lookup tools at aps.com or srpnet.com to confirm.

How much can solar lower an APS bill in Tempe?

A 6-kilowatt solar system on a typical 1,800 square foot Tempe home under APS can reduce your summer bill by $130 to $160 per month. APS offers retail-rate net metering that credits excess solar at about 12.96 cents per kilowatt-hour, which accelerates your payback compared to SRP territory.

Why do SRP solar customers save less than APS customers?

SRP pays a solar export credit of only 2.81 cents per kilowatt-hour for surplus energy, compared to APS's retail net metering near 12.96 cents. SRP also charges a $7 per kilowatt demand fee during summer peak hours, which solar production alone cannot eliminate without a paired battery.

Is there still a solar tax credit in Arizona in 2026?

The federal Section 25D residential credit expired after December 31, 2025 for owner-purchased systems. Homeowners using a prepaid solar lease can still access a 30 percent discount through the 48E commercial credit passed through by the leasing company. Arizona's state credit of 25 percent up to $1,000 still applies. This is not tax advice; consult a tax professional.

How do I get unbiased solar advice in Arizona?

An independent solar broker in Arizona compares quotes from multiple vetted installers without favoring any one company. Phoenix Valley Solar gathers competing bids, explains the APS or SRP rate implications for your address, and presents options side by side with no sales pressure or installer preference.

How many peak sun hours does Tempe AZ get for solar?

Tempe averages 5.5 peak sun hours per day annually, one of the highest rates in the continental United States. Summer months push that figure to 6.0 to 6.5 hours per day. This strong solar resource means a 6-kilowatt system in Tempe produces as much as a larger system would in cloudier climates.