Understanding Solar Savings in Arizona’s High-Rate Electricity Market 

Are rising electricity costs hurting your household budget? For Arizona homeowners dealing with increasingly expensive utility bills, solar power offers a proven solution for immediate and long-term savings. With Arizona enjoying 300+ sunny days annually, homeowners across Phoenix, Scottsdale, and beyond are leveraging this abundant resource to dramatically see an APS, or SRP bill reduction with Solar Savings. 

How Your Solar System Generates Real Financial Savings 

Immediate Daytime Production Benefits 

When your solar panels generate electricity during daylight hours, you’re effectively powering your home for free instead of purchasing that electricity from APS or SRP. This direct offset creates immediate savings: 

• Peak Production Timing: Arizona solar systems generate maximum power during the hottest part of the day, precisely when electricity is most expensive and in highest demand. 

• Self-Consumption Advantages: Each kilowatt-hour consumed from your panels represents direct savings on your utility bill. 

• Summer Maximization: Your panels produce the most electricity during summer months, when Arizona electricity rates traditionally reach their highest points. 

For example, if your home typically uses 40kWh daily and your solar system produces 30kWh, you’ll only purchase 10kWh from the utility—a 75% reduction in daily electricity costs. 

Utility Export Credits Enhance Your Savings 

When your solar panels produce excess electricity beyond what your home is currently using, this surplus energy flows back to the grid, providing additional financial benefits: 

• APS Export Credits: Current rates approximately $0.07-$0.08 per kilowatt-hour. 

• SRP Export Compensation: Your SRP solar bill reduction is about $0.028 per kilowatt-hour under popular E-13 and E-14 rate plans. 

• Net Billing Advantages: While export rates are lower than retail electricity costs, they still significantly improve your systems overall economics. 

Strategic Time-of-Use Optimization 

Solar power production aligns perfectly with Arizona utility rate structures: 

• Peak Rate Avoidance: Solar generation typically coincides with higher-priced electricity periods 

• Demand Charge Reduction: For homes on demand-based plans. Solar can dramatically lower expensive demand charges. 

• TOU Plan Compatibility: Solar systems naturally complement time-of-use rate plans by producing during high-rate periods 

Amplify Savings with Battery Storage Solutions 

Adding battery storage to your Arizona solar system creates additional cost-saving opportunities: 

• Energy Banking: Store excess daytime solar production instead of exporting at lower credit rates 

• Peak Period Protection: Use stored solar energy during evening peak rate periods when panels aren’t producing 

• Demand Management: Batteries can discharge during high-usage times, minimizing costly demand charges 

A typical residential battery system stores 10-15kWh of electricity—enough to power essential home systems throughout the evening hours when utility rates are highest. 

Long-Term Protection Against Rising Electricity Costs 

Beyond immediate monthly savings, solar provides critical insulation against future rate increases: 

• Fixed Production Costs: Once installed, your solar system generates electricity at the same cost for 25+ years 

• Rate Increase Protection: Arizona utility rates have consistently risen 2-3% annually over the past decade 

• Inflation-Proof Investment: While utility rates continue to increase, your solar production cost remains unchanged. 

Additional Financial Benefits for Arizona Solar Homeowners 

Solar investments provide multiple financial advantages beyond direct utility bill savings: 

• Property Value Increase: Homes with owned solar systems typically sell for 3-4% more than comparable non-solar properties 

• Arizona Tax Exemptions: Solar energy systems are exempt from both sales tax and property tax assessments. 

• Federal Investment Tax Credit: Currently 30% of system cost through 2032.

• System Longevity: Premium solar panels continue to produce at 80%+ efficiency for 25+ years. 

Calculate Your Potential Solar Savings in Arizona Today 

Most Arizona homeowners achieve complete payback on their solar savings within 7-10 years, while continuing to generate savings for 25+ years. The combination of instant savings on energy bills, insulation from future rate hikes, and attractive financial incentives makes solar power a highly rewarding investment for Arizona households.

Discover how much you could save with solar? Contact Solar Topps today for your personalized savings analysis and take the first step toward energy independence. 

Request Your Free Solar Savings Calculation