Arizona Power Bills Could Rise 14% by 2026! Why Going Solar Now Makes Sense.
Arizona Public Service (APS) has officially requested a 14% rate increase from the Arizona Corporation Commission, slated to take effect in mid-2026. For the average household, this means about $20 more per month, or $240 per year in additional electricity costs. This would be the fourth APS price hike since 2017. The price hike history is cited as a 4.5% increase in 2017, then an 8% increase in 2023, and yet another 8% that went into effect last year (2024).
Why Are Rates Going Up?
APS cites rising infrastructure costs, wildfire mitigation, and new energy investments. Critics, including Arizona Attorney General Kris Mayes, have called the increase “corporate greed,” noting that APS earned record profits in 2024 while customers struggle with higher costs of living.
What This Means for Homeowners
If approved, this would be the second double-digit rate hike in less than five years, a pattern that pushes Arizonans more towards energy independence. With no sign of utility prices stabilizing, locking in your own clean power with solar and battery storage is becoming not just environmentally smart but financially urgent.
How Solar and Batteries Fight Back
- Fixed Energy Costs: A solar system locks in predictable energy costs. With APS that’s a 10 year lock-in for the current buy-back rate, which helps you bank solar credits.
- Resilience: Battery storage keeps the lights on during outages and lets you draw stored power during APS peak-rate hours. Battery storage helps with summer A/C costs, as well as, winter and night-time usage fluctuations.
- Protection Against Inflation: Every APS rate hike increases the value of your solar production. If the current rate hike increase trends continue, who knows how expensive electricity will become. The time to act is now.
What’s the scoop?
APS and the ACC have begun gathering public comments on the proposal:
A telephone-only public comment session was scheduled for this Monday evening to hear from customers.
Several additional comment sessions are planned as part of the rate case’s procedural timeline. A formal regulatory decision on the rate increase is expected later in 2026 as part of the rate case process.
If you want to protect yourself from future rate increases by taking control over your monthly electricity bill, solar and battery storage are here to help.
