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TOU Rate Structure

Solar ROI for Arizona Public Service (APS) Customers

Arizona Public Service (APS) charges an average of $13.2¢/kWh. Peak rates reach $24.5¢/kWh with off-peak at $7.2¢/kWh, creating strong battery arbitrage value. A 7 kW solar system produces a $14,954 NPV over 25 years.

$11,740
Net System Cost
$14,954
25-Year NPV
8 years
Payback Period
$0.101/kWh
Solar LCOE

Arizona Public Service (APS) Rate Structure

ParameterRate
Average residential rate$13.2¢/kWh
Peak rate$24.5¢/kWh
Off-peak rate$7.2¢/kWh
Peak/off-peak spread$17.3¢/kWh
Rate structureTOU
Export credit policyResource Comparison Proxy (RCP) rate ~$0.03/kWh

Solar System Economics

A 7 kW solar system for a Arizona Public Service (APS) customer costs $18,200 before incentives. The 30% federal ITC saves $5,460, and the Arizona state credit adds $1,000. The net out-of-pocket cost is $11,740.

At Arizona Public Service (APS)'s $13.2¢/kWh average rate, the system saves $1,617 in year one, producing 12,250 kWh. The solar LCOE of $0.101/kWh is 23% below Arizona Public Service (APS)'s current rate.

Battery Storage for Arizona Public Service (APS) Customers

$8,400
Battery Net Cost
$2
Daily Arbitrage
$575
Annual Arbitrage
-$2,881
25-Year Battery NPV

Arizona Public Service (APS)'s TOU spread generates $575/year in arbitrage value. The 25-year battery NPV of -$2,881 suggests batteries are marginal on economics alone. Backup power value and grid services programs may improve the case.

FAQ: Solar for Arizona Public Service (APS) Customers

How much can Arizona Public Service (APS) customers save with solar?
A typical 7 kW solar system saves Arizona Public Service (APS) customers approximately $1,617/year in electricity costs. Over 25 years, the NPV of savings after system costs is $14,954.
What is Arizona Public Service (APS)'s rate structure?
Arizona Public Service (APS) uses a time-of-use (TOU) rate structure with peak rates of $24.5¢/kWh and off-peak rates of $7.2¢/kWh. The $17.3¢/kWh peak/off-peak spread creates significant value for battery storage — TOU arbitrage alone is worth $575/year.
Does Arizona Public Service (APS) offer net metering?
Resource Comparison Proxy (RCP) rate ~$0.03/kWh
Should Arizona Public Service (APS) customers add battery storage?
Battery storage for Arizona Public Service (APS) customers has a 25-year NPV of -$2,881. The economics are marginal based on TOU savings alone, but backup power value and future grid services programs may change the equation.

Other Utilities in Arizona

Salt River Project (SRP)
$12.8¢/kWh · TOU
›
Tucson Electric Power (TEP)
$12.8¢/kWh · TOU
›

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