Going Solar in Tempe AZ: Is Your Home on APS or SRP and How Does Your Utility Affect System Sizing?

Your Tempe address determines your utility, and that single fact shapes how your solar system should be sized. APS and SRP both serve Tempe neighborhoods, and the service boundary runs between streets, not cities. Check the name on your most recent electric bill before making any other solar decision.

Which utility serves your Tempe address

APS and SRP divide service by neighborhood. Two houses a short distance apart near a service boundary can be on different utilities entirely. There is no shortcut: the name on your electric bill is the only reliable answer.

If you moved recently or pay auto-pay without opening statements, log in to your utility account online. The utility name appears at the top of every statement page.

This matters because the two utilities run separate solar export programs with meaningfully different compensation rates. A system designed for one utility may look quite different from a system designed for the other.

How APS and SRP credit your exported solar energy

When your panels produce more than your home uses at a given moment, the surplus flows back to the grid. Both utilities track that export and apply a bill credit, but through different programs.

APS credits new solar customers through the Resource Comparison Proxy (RCP) program. The RCP rate resets each September for customers who interconnect during that period and then locks for a full decade from your interconnection date. Because the rate updates annually before locking, check aps.com/plans for the figure that applies when your system connects.

SRP offers several solar price plans, including options with a demand charge. The Time-of-Use Export plan credits exported energy at a flat rate with no peak or off-peak distinction for the export itself. Review your plan options at srpnet.com before committing.

Utility	Export program	Export credit	Rate structure
APS	Resource Comparison Proxy (RCP)	Verify at aps.com/plans	Locked for a decade from connection
SRP	Time-of-Use Export	3.45 cents/kWh	Flat, all hours

Why the export rate matters when sizing your system

This is where the utility comparison becomes practical. When the export credit is higher, a system that produces a modest surplus over your annual usage can pay off across the system's life. When the credit is low, panels that routinely push excess power to the grid return very little for that output.

On SRP's Time-of-Use Export plan, a lower export credit often shifts the design logic. Rather than maximizing roof coverage, sizing the system close to your actual annual usage and adding a battery to capture midday production for evening use can make more sense. Storing power for your own consumption is often worth more than exporting it at a low credit rate. Some SRP solar plans also include a demand charge; a battery can help flatten those spikes.

On APS, the current time-of-use plan has an on-peak window in the late afternoon and early evening on weekdays, running year-round. Battery storage earns its keep there too, capturing midday solar output for release during those higher-rate hours.

The system a good installer proposes should reflect your specific utility. A proposal that does not address your utility's rate structure is worth questioning before you sign.

What solar companies in Tempe, Arizona offer at the quoting stage

One quote is not a benchmark. With a single bid, you have no way to assess whether the price is competitive or whether the design fits your export situation correctly.

Phoenix Valley Solar is a broker, not an installer. We take your project details to several vetted installers, collect their proposals, and put them side by side so you can compare system size, equipment brands, warranty terms, and financing options at a glance. Installers who know they are competing for the same project tend to return sharper numbers.

Solar companies working in Tempe handle City of Tempe permitting on your behalf. The City of Tempe Building Safety Division reviews and approves solar installations, and your installer files the permit and schedules inspections. Asking about the permit timeline upfront is smart, since delays affect when you start generating.

For context, typical installed cost across the Phoenix metro runs around $2.27 per watt before incentives, and the average system is near 13.9 kilowatts. Your project will vary based on your usage, roof area, shading, and which utility serves your address.

Financing options after the federal credit changed

Homeowners who buy a solar system with cash or a loan receive no federal solar tax credit in 2026 or beyond. The residential clean energy credit ended for owner-buyers after 2025.

Leased and prepaid systems work differently. The leasing company owns the equipment and can still qualify for the commercial energy credit, then passes the savings along as a lower payment. The Phoenix Valley Solar prepaid lease is priced at 30 percent off for that reason.

This is not tax advice; consult a tax professional.

Your main options, at a glance:

• Cash purchase: you own the system; no federal credit flows to the buyer

• Solar loan: low or no money down; same result, no buyer credit

• Prepaid lease: one upfront payment at a meaningful discount; the leasing company claims the credit

For a detailed comparison, see our post on the prepaid solar lease vs a solar loan in Phoenix. To see how the two utilities stack up on solar export rates, see APS vs SRP solar rates.

Confirm which utility is on your bill, then use the solar calculator to get a rough system size. When you are ready to compare bids, the contact page is where to start, or read more about how PVS works first.

Frequently Asked Questions

How do I know if my Tempe address is on APS or SRP?

Check the name on your electric bill. APS and SRP both serve Tempe, and the boundary runs between neighborhoods, not city lines. If you pay auto-pay without opening statements, log in to your utility account online.

Does SRP pay the same rate for exported solar energy at all hours?

Yes. SRP's Time-of-Use Export plan credits exported solar at a flat 3.45 cents per kWh regardless of time of day. The rate does not change between peak and off-peak hours for the export credit itself.

Do I need a City of Tempe permit to install solar panels?

Yes. Solar installations in Tempe go through the City of Tempe's Building Safety Division. Your installer files the permit and handles inspections. Ask for the expected permit timeline before signing a contract.

Is there still a federal solar tax credit in 2026?

Not for homeowners who buy with cash or a loan. The residential clean energy credit ended after 2025. Prepaid and leased systems work differently: the leasing company can still claim the commercial credit and pass savings along. This is not tax advice; consult a tax professional.

Why does the utility affect how solar companies in Tempe size a system?

Each utility pays a different rate for power your panels send back to the grid. When the export credit is lower, sizing the system close to your actual usage and adding a battery is often a better fit than maximizing roof coverage.