APS vs SRP: Which Arizona Utility Is Better for Solar & Battery Owners in 2026?
If you live in the Phoenix metro area, you're on either APS or SRP. And which one you have significantly impacts your solar and battery ROI. Here's the definitive 2026 comparison to help you understand what you're working with.
Quick note: You can't choose your utility — it's determined by your address. APS serves most of Phoenix, Scottsdale (north), Flagstaff, Tucson (parts), and rural Arizona. SRP serves Mesa, Tempe, Chandler, Gilbert, Scottsdale (south), and parts of Phoenix. This guide helps you maximize savings with whichever utility you have.
Rate Structure Comparison
The biggest difference between APS and SRP for solar owners isn't the rates themselves — it's how each utility structures your bill.
| Feature | APS (Saver Choice Plus) | SRP (Customer Generation) |
|---|---|---|
| Bill structure | TOU rates only | TOU rates + demand charges |
| Summer peak rate | $0.3439/kWh (4-7 PM weekdays) | $0.0828/kWh (2-8 PM weekdays) |
| Summer off-peak | $0.1235/kWh | $0.0591/kWh |
| Summer super off-peak | $0.0935/kWh (10 AM-3 PM) | $0.0446/kWh (10 AM-2 PM, varies) |
| Demand charges | None | $21.68/kW summer, $8.70/kW winter |
| Solar export credit | $0.076/kWh | ~$0.03-0.04/kWh |
| Peak hours | 4-7 PM weekdays | 2-8 PM weekdays (summer) |
The Demand Charge Problem (SRP)
This is the single biggest factor for SRP solar owners. SRP's demand charges are based on your highest single hour of grid usage during on-peak hours in the billing period. Here's why this matters:
- On the hottest day of the month, your AC runs hard when you get home at 3 PM
- Your solar panels are producing, but not enough to cover 100% of your AC load
- You pull 8 kW from the grid for just one hour
- That single hour costs you: 8 kW × $21.68 = $173.44 in demand charges for the entire month
This is why batteries are especially valuable for SRP customers. A battery can shave your demand peaks by covering those brief spikes, potentially saving you $100+/month in demand charges alone.
Solar-Only ROI: APS vs SRP
For a typical 8 kW solar system with a $250/month electric bill:
APS Customer
SRP Customer
Key takeaway: APS solar-only systems have roughly 25-30% better ROI than SRP systems, primarily because APS has no demand charges and higher export credits.
Solar + Battery ROI: The Gap Narrows
Adding a battery changes the equation significantly, especially for SRP customers:
- SRP demand shaving: A battery that covers peak demand spikes can save $1,200-$2,400/year in demand charges alone
- APS rate arbitrage: The bigger APS peak/off-peak spread means more arbitrage value ($0.25/kWh vs SRP's $0.02-0.04/kWh spread)
- APS VPP earnings: APS offers $150-$500/year through the Virtual Power Plant program. SRP does not currently have a comparable VPP program.
Bottom line on batteries
SRP customers: A battery is almost essential to get good solar ROI. Demand charge shaving alone can justify the battery cost.
APS customers: A battery improves ROI through rate arbitrage and VPP, but solar-only systems are still viable.
Which Utility Handles Solar Better Overall?
| Category | Winner | Why |
|---|---|---|
| Solar-only ROI | APS | No demand charges, higher export credits |
| Battery ROI | APS | Bigger rate spread for arbitrage + VPP earnings |
| Overall rate levels | SRP | Lower per-kWh rates across all periods |
| Rate simplicity | APS | TOU-only billing is easier to understand and optimize |
| Need for battery | SRP | Demand shaving makes batteries more cost-effective |
What You Should Do
If you're an APS customer:
- Solar-only is a solid investment with 12-14 year payback
- Adding a battery for rate arbitrage and VPP enrollment cuts payback to 4-6 years
- Maximize self-consumption — APS export rates are low
If you're an SRP customer:
- Strongly consider solar + battery together to manage demand charges
- Size your battery to cover peak hour demand spikes
- Read our complete SRP rates guide for detailed optimization strategies
Want to see the exact difference for your home? Our APS vs SRP Solar Calculator runs both utilities side-by-side with your specific system size and usage. Or use the Powerwall Payback Calculator to model battery-specific ROI on either utility.