Solar Savings in Prescott, Arizona
Prescott homeowners on Arizona Public Service pay an average of $165/month. At 13.0¢/kWh (Tier 1), here is what solar can realistically do for that bill.
Arizona Public Service Rates in Prescott
Arizona Public Service charges 13.0¢/kWh for the first 400 kWh/month (Tier 1) and 17.0¢/kWh above that (Tier 2). The average Prescott household uses around 1200 kWh/month, putting most usage into the higher Tier 2 bracket, where solar saves the most per kWh.
Arizona Public Service rates have increased 35% (2014-2024). At that pace, the average Prescott bill could reach $223/monthby 2036 without solar. A solar system locks in production at today's value and insulates you from future hikes.
| Utility | Arizona Public Service |
| Tier 1 rate | 13.0¢/kWh (first 400 kWh/mo) |
| Tier 2 rate | 17.0¢/kWh (above 400 kWh/mo) |
| Avg monthly bill | $185 |
| Avg monthly usage | 1200 kWh |
| Net metering | Net Metering — APS Export Energy Credit |
| Export credit | ~$0.075/kWh |
| Rate increase (10yr) | 35% (2014-2024) |
Solar Production in Prescott
Prescott receives 5 peak sun hours per day. This is the key input that determines how much electricity your panels produce. More sun hours mean more kWh generated, which translates directly to a lower bill.
Production estimates use a 7kW system at 80% efficiency (accounting for inverter losses, shading, and temperature derating). Actual output depends on roof orientation, tilt, and shading.
Real Savings Math for Prescott
At Arizona Public Service's 13.0¢ and 17.0¢/kWh rates, the average Prescott homeowner pays ~$165/month. A 7kW system producing 852 kWh/month replaces most of that grid usage, cutting the bill to around $45/month.
Based on a 7kW system at $3/watt. Actual savings depend on your roof, usage pattern, and Arizona Public Service rate plan. Export credits (~$0.075/kWh) apply to power sent to the grid.
System Cost and Payback in Prescott
A 7kW system in Prescott costs approximately $21,000 installed (at ~$3/watt, the current California market rate). With annual savings of $1,716, the estimated break-even point is 12.2 years. Systems carry 25-year manufacturer warranties, leaving 15+ years of essentially free electricity.
| System size | 7kW (typical for this usage level) |
| Installed cost (~$3/W) | $21,000 |
| Est. monthly savings | $143 |
| Est. annual savings | $1,716 |
| Payback period | 12.2 years |
| 25-year savings | $42,900+ |
| Peak sun hours | 5 hrs/day |
| Annual production | 10,220 kWh |
| Utility | Arizona Public Service |
| County | Yavapai |
Solar Incentives for Prescott Homeowners (2026)
- ✓Net metering: Net Metering - APS Export Energy Credit
- ✓Federal Section 48E credit (commercial/PPA structures only; residential Section 25D expired Dec 31 2025)
- ✓Arizona Residential Solar Energy Credit: 25% state tax credit up to $1,000
- ✓Arizona property tax exemption for added solar value
- ✓Arizona sales tax exemption on solar equipment purchases (~8% savings)
Incentive eligibility depends on your tax situation and installation timeline. Consult a licensed solar installer before making decisions.
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These numbers are based on Arizona Public Service rates and Prescott sun data. A local installer will give you exact figures based on your roof, shading, and actual usage.
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