How much is APS raising rates in 2026?

APS filed for a ~14% average rate increase in late 2025, pending approval by the Arizona Corporation Commission. A typical Phoenix homeowner using 1,200 kWh/month would see their bill rise by $25–$35/month if approved as filed.

Does the APS rate hike make solar a better investment?

Yes. Higher electricity rates shorten the solar payback period and increase 25-year savings. Solar locks in your energy cost so future rate increases don't affect the electricity your panels produce.

When will the APS rate increase take effect?

APS filed its rate case in late 2025. ACC rate cases typically take 9–14 months, putting a final decision in mid-to-late 2026. Current rates remain in effect until the ACC issues its order.

Should I go solar now before the APS rate increase?

Going solar sooner is generally better, but installer quality and financing terms matter more than beating a rate decision by a few months. The payback math works at current rates; the rate increase just improves it further.

Arizona Solar Listchevron_rightResourceschevron_rightAPS Rate Increase 2026

Utility GuideUpdated June 2026

APS Rate Increase 2026: What Phoenix Homeowners Need to Know

APS filed a ~14% average rate increase with the Arizona Corporation Commission in late 2025. If approved, Phoenix-area homeowners will see bills rise by $14–$34/month depending on usage — and solar payback periods will shorten accordingly.

~14%

Rate Increase Filed

pending ACC approval

$14–$34

Avg Bill Impact

per month increase

Mid-2026

Decision Expected

ACC rate case timeline

~1 yr

Payback Improvement

shorter at new rate

info

Rate Case Status: Pending ACC Decision

APS's ~14% rate increase is a filed request, not a final rate. The Arizona Corporation Commission (ACC) reviews all rate cases and typically modifies the requested increase before approval. Current APS rates remain in effect until the ACC issues a final order, expected mid-to-late 2026.

APS Residential Rate History

APS rates have risen roughly 27% over the past seven years. The 2026 filing would be the largest single increase in that period.

Year	Avg Residential Rate	Change
2019	$0.098	Baseline
2021	$0.107	+9.2%
2022	$0.112	+4.7%
2023	$0.118	+5.4%
2024	$0.121	+2.5%
2025	$0.123	+1.7%
2026 (filed)	$0.140	+13.8%

Rates shown are approximate all-in averages including energy charges, distribution charges, and fixed fees. Actual bills vary by rate plan and usage.

How the Rate Increase Affects Your Bill

Estimated monthly bill impact if APS's 14% filing is approved as-is. Summer bills are typically 60–80% higher than annual averages due to air conditioning load.

Monthly Usage	Current Bill	Proposed Bill	Monthly Increase
800 kWh/mo	$98	$112	+$14
1,000 kWh/mo	$123	$140	+$17
1,200 kWh/mo	$147	$168	+$21
1,500 kWh/mo	$184	$210	+$26
2,000 kWh/mo (summer peak)	$246	$280	+$34

What It Means for Solar Payback

Higher electricity rates make solar more valuable. The comparison below uses a typical Phoenix homeowner: 10 kW system, $25,000 installed, offsetting ~80% of usage.

At current APS rate

$1,968/yr

annual savings (APS rate: $0.123/kWh)

8.9 years

payback period

$37,100

25-year savings

With 14% rate increase

$2,240/yr

annual savings (APS rate: $0.140/kWh)

7.8 years

payback period

$43,500

25-year savings

These estimates assume 3% annual utility rate escalation on top of the base rate, no battery storage, and the Arizona 25% state tax credit ($1,000 cap). APS's locked export rate of $0.0617/kWh is credited for excess generation.

APS Solar Export Rate: What Changes, What Doesn't

trending_upWhat Goes Up

·Your retail electricity rate (what you pay APS)
·Value of each kWh your panels offset
·Annual savings from solar generation
·Total 25-year return on your system

lockWhat Stays Locked

·APS export rate: $0.0617/kWh locked 10 years
·Your export rate is set at interconnection, not retail
·Electricity your panels produce (not sold back) is free
·Loan or lease payment if you financed your system

The key insight: solar savings come primarily from offsetting your retail rate (electricity you produce and use), not from export credits. So when retail rates rise 14%, every kWh your panels produce is worth 14% more — but your export credit stays at $0.0617/kWh.

How the ACC Rate Case Process Works

APS files rate caseCompleted: late 2025

APS submits a detailed rate filing to the ACC with supporting cost-of-service studies. The 14% figure is the company's ask — not the final number.

ACC staff review & intervenersOngoing: Q1–Q2 2026

ACC staff, consumer advocates, industrial customers, and solar industry groups all file testimony. This period typically takes 4–6 months.

Evidentiary hearingsExpected: mid-2026

ACC commissioners hold public hearings. Parties cross-examine each other's witnesses. The final approved increase is almost always less than what was filed.

Final order & new ratesExpected: late 2026

ACC issues a decision. APS implements new rates 30–60 days after. Historical APS rate cases have been approved at 60–75% of the filed amount.

Should You Go Solar Before the Rate Increase?

The rate case gives APS customers good reason to evaluate solar now — but the decision should be based on your specific situation, not urgency about a rate decision that's still months away.

check_circleGood reasons to move now

·APS payback periods are already favorable (7–9 years at current rates)
·Arizona's 25% state tax credit ($1,000 cap) is available now
·Higher rates only improve the math from here
·APS interconnection queue can take 2–6 weeks — starting earlier means saving sooner

warningDon't let urgency drive a bad deal