The average residential electricity rate in Arizona (AZ) is $0.1340 per kWh as of April 2026, according to the US Energy Information Administration (EIA). This is far below the national average of $0.1805/kWh, ranking Arizona #18 out of 51 (all 50 states plus Washington DC), where #1 is the cheapest and #51 is the most expensive. The average Arizona household consumes 1,254 kWh per month, resulting in a monthly electric bill of approximately $168 and annual electricity costs of about $2,016.
Arizona has the highest per-household electricity consumption for cooling. The Palo Verde Nuclear Generating Station near Phoenix is the largest nuclear plant in the US.
This comprehensive guide covers Arizona electricity rates, historical trends, utility providers, bill calculation, solar savings potential, and actionable tips to reduce your electric bill. All rate data is sourced from the US EIA and updated monthly. Use our electricity cost calculator for personalized estimates.
Arizona residential electricity rates have increased 8% over the past six years. The table below shows the trajectory compared against the national average.
| Year | Arizona ($/kWh) | National Avg | Difference |
|---|---|---|---|
| 2020 | $0.1243 | $0.1322 | -6% |
| 2022 | $0.1280 | $0.1492 | -14% |
| 2024 | $0.1300 | $0.1680 | -23% |
| Apr 2026 | $0.1340 | $0.1805 | -26% |
Arizona has a regulated electricity market. The primary providers are: Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power.
Arizona generates electricity from: Natural gas 32%, Nuclear 28%, Solar 18%, Coal 12%, Other 10%.
Your monthly electric bill = kWh Used × Rate per kWh. The average Arizona household uses 1,254 kWh/month.
SRP and APS have very different rate structures. SRP offers demand-based plans that reward off-peak usage. APS time-of-use rates swing from 8 cents off-peak to 24+ cents on-peak in summer. Shifting AC, pool pump, and EV charging to off-peak hours saves 20-30%.
Universal strategies: adjust thermostat 2-3 degrees (saves 5-10% on HVAC), switch to LEDs (see our LED savings calculator), unplug phantom loads (saves $100-200/year), and run major appliances during off-peak hours if your utility offers time-of-use pricing. For larger investments, consider a heat pump, better insulation, or a smart thermostat.
Arizona receives 6.5 peak sun hours/day. A 6 kW system produces ~11,673 kWh/year, saving ~$1,564/year. With the 30% federal ITC, payback is typically 8-12 years. Use our solar panel calculator and solar ROI calculator for personalized estimates.
| State | Rate ($/kWh) | Avg Bill | Market |
|---|---|---|---|
| Arizona (AZ) | $0.1340 | $168 | Regulated |
| California (CA) | $0.3375 | $228 | Deregulated |
| Colorado (CO) | $0.1418 | $120 | Regulated |
| Nevada (NV) | $0.1383 | $149 | Regulated |
| New Mexico (NM) | $0.1378 | $108 | Regulated |
| Utah (UT) | $0.1098 | $99 | Regulated |
Data source: US Energy Information Administration (EIA), Electric Power Monthly, April 2026. Rates shown are average residential rates and may differ from your specific utility tariff. Solar estimates assume a 6 kW system with 82% efficiency factor. Always verify current rates with your utility provider.