Electricity Rates in Phoenix, AZ
Average electricity cost, utility comparison, and solar savings potential for Phoenix homeowners.
Electricity in Phoenix, AZ averages $0.13/kWh and about $98/month — here is how that compares and how solar lowers it.
- The average residential electricity rate in Phoenix is $0.13/kWh, 19% below the U.S. average of $0.16/kWh.
- A typical Phoenix home pays about $98 per month for electricity.
- Arizona has a regulated market — the local utility sets the rate.
- Solar panels cut a typical Phoenix bill by about 92% (around $90/month) and lock in costs for 25+ years.
What is the average electricity rate in Phoenix, AZ?
The average residential electricity rate in Phoenix, AZ is $0.13 per kWh, which is 19% below the national average of $0.16/kWh. Homeowners in Phoenix pay an average of $98 per month for electricity, based on typical usage of 753 kWh per month.
Electricity rates in Phoenix are determined by the local utility providers that serve the area. Rates can vary depending on your specific utility, usage level, and time of use.
Which electric utilities serve Phoenix, AZ?
| Utility Company | Avg Rate ($/kWh) | Est. Monthly Bill |
|---|---|---|
| Arizona Public Service (APS) | $0.12 | $90 |
| Salt River Project (SRP) | $0.11 | $83 |
| Tucson Electric Power | $0.13 | $98 |
Can solar lower your Phoenix electricity bill?
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 - Phoenix, AZ
The average residential electricity rate in Phoenix is $0.13 per kilowatt-hour (kWh), which is 19% below the national average of $0.16/kWh. The average monthly electric bill for Phoenix homeowners is approximately $98.
With solar panels, Phoenix 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 of going solar.
The major electric utilities serving the Phoenix area include Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power. Rates vary between providers, so your exact cost depends on your utility and usage level.
Yes, electricity rates in Phoenix and across Arizona have been increasing, following national trends of 2-5% annual increases. This makes solar panels an increasingly attractive option since they lock in your energy costs for 25+ years.
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