Solar Savings in Phoenix: Rates and 2026 Math

How Much Can You Save in Phoenix?

Phoenix homeowners on Arizona Public Service pay an average of $195/month at 13.0¢/kWh (Tier 1) and 17.0¢/kWh (Tier 2). With 6.5 peak sun hours per day, a properly sized system can offset 80-90% of your usage, cutting the average bill from $195 to ~$12/month.

What Drives Savings in Phoenix?

• Arizona Public Service rate structure: At 17.0¢/kWh for Tier 2, every kWh your panels produce offsets your most expensive grid usage first. That is where the math gets compelling.
• 6.5 peak sun hours: Above-average sun exposure makes every panel more productive.
• NEM 3.0 (since April 2023): Export credits are now ~~$0.075/kWh, so self-consumption matters most. Size your system for your daytime usage, not maximum export.
• Rate escalation: Arizona Public Service rates have increased 35% (2014-2024). Each year you wait, your baseline bill grows, making the solar investment more valuable in hindsight.