Your APS or SRP Bill Has Risen 20% Since 2021. Here Is What Phoenix Homeowners Are Doing About It.
- Mar 20
- 6 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.
Published by Phoenix Valley Solar | Phoenix, AZ
If your electricity bill feels higher than it used to be, you are not imagining it. Arizona residential electricity rates climbed nearly 20% between 2021 and 2024, and there is no sign that trend is reversing. For the average Phoenix household spending around $250 per month on electricity, that increase adds up to hundreds of extra dollars every year with nothing to show for it.
A growing number of Phoenix homeowners are locking in their energy costs before rates climb any further. The tool most of them are using is not a solar purchase. It is a prepaid solar lease, and in 2026 it has become the most financially accessible solar option available in Arizona.
What Phoenix Homeowners Are Actually Paying for Electricity
The average Arizona homeowner needs a system large enough to offset significant electricity consumption, and with rates currently averaging around 14 to 15 cents per kilowatt-hour, those bills compound quickly during Phoenix summers when air conditioning runs nearly around the clock.
APS and SRP have both raised rates multiple times in recent years. The Arizona Corporation Commission has approved further rate adjustments, and utility analysts expect continued upward pressure as the grid absorbs more demand and infrastructure costs increase. Homeowners who lock in a fixed energy cost today are insulated from those future increases in a way that renters and non-solar homeowners simply are not.
The question for most Phoenix homeowners is not whether to go solar. It is how to go solar in a way that makes financial sense right now, especially after the elimination of the residential federal tax credit.
How the Prepaid Solar Lease Turns Rising Rates Into a Locked-In Advantage
Here is the core idea behind the prepaid solar lease and why it makes so much sense in the current environment.
When you enter a prepaid solar lease with Phoenix Valley Solar, you make a single upfront payment that covers your system for the full lease term, typically 20 to 25 years. That payment is calculated based on today's commercial 48E Investment Tax Credit, which our company qualifies for as the system owner and passes directly to you as a discount on your prepaid price.
Once that payment is made, you are generating your own electricity for the life of the lease. You are no longer fully dependent on APS or SRP for every kilowatt-hour you consume. Every time they raise their rates, the gap between what you pay per unit of energy and what your neighbors pay grows wider in your favor.
Think of it this way. You are buying decades of predictable energy production at today's discounted price, while everyone around you continues paying whatever the utility decides to charge next year, and the year after that.
Why the Prepaid Model Is Different From a Monthly Solar Lease
Many people have heard of solar leases but are familiar with the monthly payment version, where you pay a fixed amount each month for 20 or 25 years. That model has some advantages but it also has drawbacks. Monthly lease agreements can include escalator clauses that increase your payment over time, and you are still writing a check every month.
The prepaid solar lease eliminates both of those concerns. There is one payment, made upfront, and after that your solar production is yours. No monthly bills. No escalator clauses. No surprises.
This is a meaningful distinction that is worth understanding before you compare solar quotes in the Phoenix area.
What the 48E Commercial Tax Credit Means for Your Prepaid Price
The commercial 48E Investment Tax Credit remains active through 2027. Because Phoenix Valley Solar owns the system under a prepaid lease, we qualify for this credit as a business owner of solar assets. Federal law allows us to apply that credit to reduce the cost of the system, and we pass those savings directly to you in the form of a lower prepaid price.
In practical terms, this means the discount that used to come through the now-eliminated residential 30% ITC is still available to you, just through a different and currently legal structure. You do not need to claim anything on your taxes. You do not need a large enough tax liability to absorb a credit. The savings are already built into the price you pay.
This window closes at the end of 2027. Companies that own leased solar systems will no longer qualify for the 48E credit after that, which means the discounted prepaid pricing we offer today will not be available indefinitely.
Real Savings for Phoenix and Chandler Area Homeowners
Let's put some numbers to this. The average Arizona homeowner spends around $3,000 per year on electricity. Over a 25-year lease term, at current rates and with continued increases, that adds up to a significant and growing expense.
A prepaid solar lease offsets the majority of that bill. The exact amount depends on your system size, roof orientation, shading, and usage patterns, but Phoenix is one of the best solar production environments in the country with over 300 sunny days per year and some of the highest peak sun hours in the nation. Systems here perform extremely well.
Phoenix Valley Solar serves homeowners throughout the valley including Phoenix, Chandler, Gilbert, Tempe, Mesa, Scottsdale, and Ahwatukee. We review your actual APS or SRP bill, design a system sized for your home, and show you clearly what your production and savings would look like before you commit to anything.
The Advantage of Going Solar With a Local Company
There are national solar brands with large advertising budgets and call centers in other states. There are door-to-door salespeople who show up unannounced with iPads and pressure tactics. There are online lead generation platforms that sell your contact information to multiple installers before you have finished filling out the form.
Phoenix Valley Solar is none of those things.
We are a locally owned, BBB A-rated company based at 4435 E Chandler Blvd in Phoenix. We partner with vetted local installers who know the permitting requirements in Maricopa County and have done this work in the valley for years. When you call our number, you reach someone who understands your APS rate plan and knows what a Phoenix summer does to an electricity bill.
Our approach is straightforward. We explain how the prepaid lease works, show you the numbers for your home, and let you decide. No pressure, no gimmicks, no misleading claims about a tax credit you no longer qualify for.
Common Concerns About Solar Leasing Answered Directly
What if I sell my home? The prepaid lease transfers to the new owner. In a market where buyers are increasingly energy-conscious, a home with an existing prepaid solar system and no monthly payments is a genuine selling advantage, not a liability.
What if the system needs maintenance or repairs? Because Phoenix Valley Solar owns the system, all maintenance and repairs are our responsibility for the life of the lease. You are never on the hook for a broken inverter or degraded panel.
Do I need good credit? No. The prepaid lease does not require a credit check. You are not taking on debt. You are making a one-time payment for a long-term energy asset.
How long does installation take? Most residential solar installations in the Phoenix area are completed within a few weeks of finalizing the agreement, including permitting and utility interconnection.
What happens when the lease ends? At the end of the lease term you typically have the option to renew the lease, have the system removed at no cost, or in many cases purchase the system outright at a fair market value.
The Right Time to Act Is Before the Next Rate Increase
APS and SRP do not announce rate increases far in advance. They apply, the commission approves, and your bill goes up. The best position to be in is one where you have already reduced your dependence on the grid before the next approval goes through.
With the 48E commercial tax credit window open through 2027 and Phoenix electricity rates continuing to climb, the prepaid solar lease opportunity available today is genuinely time-sensitive in a way that is not just a sales tactic. The math is better right now than it will be in two years.
Phoenix Valley Solar offers free, no-obligation consultations for homeowners throughout the Phoenix metro area. We will review your bill, size a system for your home, and show you exactly what your prepaid investment and projected savings look like.
Call or text: (480) 270-2280 Visit: 4435 E Chandler Blvd, Ste 200, Phoenix, AZ 85048 Web: phoenixvalleysolar.com
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