Electricity Rates in Arizona
Average residential electricity cost, utility comparison, and solar savings potential for Arizona homeowners.
Arizona Electricity Cost Overview
The average residential electricity rate in Arizona is $0.13 per kWh, which is 19% below the national average of $0.16/kWh.Arizona homeowners pay an average of $98 per month for electricity, based on typical usage of 753 kWh per month.
Arizona electricity rates have been rising steadily as utilities invest in grid modernization. With abundant sunshine, solar panels offer significant savings compared to increasingly expensive grid electricity.
Major Electric Utilities in Arizona
| Utility Company | Avg Rate ($/kWh) | Customers | Est. Monthly Bill |
|---|---|---|---|
| Arizona Public Service (APS) | $0.12 | 1.3M | $90 |
| Salt River Project (SRP) | $0.11 | 1.1M | $83 |
| Tucson Electric Power | $0.13 | 430K | $98 |
How Solar Compares to Arizona Electricity Rates
Without Solar
- Monthly bill: $98
- Annual cost: $1,176
- 25-year cost: $29,400
- Rate trend: Rising 2-5% annually
With Solar
- Monthly savings: $90
- Annual savings: $1,080
- 25-year savings: $42,000
- Rate: Locked in for 25+ years
Electricity Rates FAQ - Arizona
The average residential electricity rate in Arizona is $0.13 per kilowatt-hour (kWh), which is 19% below the national average of $0.16/kWh. The average monthly electric bill is approximately $98.
With solar panels, Arizona homeowners can reduce their electricity costs by approximately 92%, saving around $90 per month or $42,000 over 25 years. The 30% federal tax credit further reduces the upfront cost.
The largest electric utilities in Arizona include Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power. Rates vary between utilities, so your exact cost depends on your provider and usage.
Yes, electricity rates in Arizona have been increasing over time, following national trends of 2-5% annual increases. This upward trend makes solar panels an increasingly attractive investment since they lock in your energy costs for 25+ years.
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