Arizona Electricity Rates 2026 — Cost per kWh & Savings
The average electricity rate in Arizona (AZ) is $0.1301/kWh, ranking #14 among US states. The average monthly bill is $143 for 1099 kWh of usage.
Calculate Your Arizona Electric Bill
Electricity Savings Tips for Arizona
Arizona is one of the best states for solar energy with 6.5 peak sun hours. Summer AC bills can exceed $300/month — solar panels pay for themselves in 5-7 years here. SRP and APS both offer time-of-use rates where shifting usage to off-peak hours (after 8pm) can cut bills 20-30%.
Primary Utility: APS, SRP
Arizona has a regulated electricity market served primarily by APS, SRP. Rates are set by the state public utility commission and cannot be changed by shopping for providers. Focus on reducing usage and investing in efficiency improvements to lower your bill.
Solar Energy in Arizona
Arizona receives an average of 6.5 peak sun hours per day. This is excellent for solar energy production. A typical 6 kW system would produce approximately 11388 kWh per year, potentially offsetting your entire electric bill. At $0.13/kWh, a solar system that produces 11388 kWh/year saves approximately $1482/year. With the 30% federal tax credit, typical payback is 8-12 years.