Solar Guide for Arizona Public Service (APS) Customers

If you're a Arizona Public Service (APS) customer considering solar energy, you're making a smart financial decision. With residential electricity rates averaging 14.2 cents per kWh, solar panels can dramatically reduce or even eliminate your monthly electric bill. The typical Arizona Public Service (APS) customer spends approximately $114 per month on electricity — money that could be working for you instead of going to the utility.

Phoenix metro and Northern Arizona

Arizona Public Service (APS) has a reduced rate net metering policy. While the buyback rate of 9.94¢/kWh is lower than the 14.2¢/kWh retail rate, solar remains highly economical. The key is to size your system to match your daytime consumption as closely as possible, maximizing direct savings at the retail rate. Any excess generation still earns you credits, just at the reduced buyback rate.

An 8kW solar system for a Arizona Public Service (APS) customer costs approximately $20,880 before the 30% federal Investment Tax Credit. After the ITC, your net cost drops to about $14,616. This system produces enough clean energy to save you approximately $2,291 per year, resulting in a payback period of roughly 5 years.

After your system pays for itself, you'll enjoy 17+ years of dramatically reduced electricity costs. Over a 25-year period, total savings for Arizona Public Service (APS) customers are estimated at $57,275 — and that's without accounting for the likely 2-3% annual increase in electricity rates that would make your savings even greater.