Salt River Project (SRP) serves over 2 million customers across Arizona and offers four distinct solar billing plans for homeowners installing solar panels. Solar installation with SRP costs approximately $15,500 before incentives, dropping to $9,800 after applying federal and state tax credits.
Arizona electricity rates have increased to $0.15 per kilowatt-hour, making solar energy an increasingly attractive option for reducing monthly utility bills. However, SRP's unique billing structure differs significantly from other Arizona utilities, requiring careful plan selection between demand-based and export-based rate structures.
SRP solar customers must choose between two plan categories: demand plans that offer full retail net metering credits but include demand charges, or export plans that provide fixed $0.0345 per kilowatt-hour export credits without demand charges. Both plan types require time-of-use rates and enforce monthly minimum bills of approximately $30 based on home size. Unlike other Arizona utilities offering 10-year locked export rates, SRP updates its export rate annually, making long-term savings projections more challenging.
While SRP does not offer direct solar rebates, Arizona homeowners can access a 30% federal tax credit and a 25% state tax credit (capped at $1,000), plus property and sales tax exemptions. The typical payback period for SRP solar installations ranges from 8 to 12 years depending on energy usage patterns and billing plan selection.
In February 2025, SRP approved new pricing that takes effect in November 2025, resulting in an average residential bill increase of 3.5% ($5.61 monthly) and solar residential bills increasing by 5.5% ($7.39 monthly). Current solar plans remain available for new customers until November 2029.
Solar panel systems in Arizona average approximately $15,500 before applying any incentives.
Salt River Project provides four distinct billing structures for solar customers, each requiring time-of-use rates and monthly minimum charges of approximately $30 (a 50% increase from previous rates).
SRP currently does not provide utility rebates or direct incentives for solar installations, though state and federal tax credits remain available.
Solar installation with SRP can reduce electricity expenses, but demand charges and export rate structures require careful analysis to determine long-term savings potential.
SRP updates export rates annually, unlike other Arizona utilities that offer 10-year locked rates, making financial projections more variable.
Arizona solar installations typically cost around $15,500 on average. After applying available state and federal incentives, the net cost reduces to approximately $9,800. Actual installation expenses vary based on system size, household energy consumption, and the selected installation contractor.
Arizona homeowners benefit from the region's exceptional solar resource, often requiring fewer panels compared to other states to achieve similar energy production levels.
Advantages:
Disadvantages:
Salt River Project structures its solar billing into two primary categories: demand plans and export plans. Each category operates under different rate structures and credit mechanisms.
Available Options: Customer Generation Plan, Average Demand Plan
Plan Features:
The demand plan structure operates on net metering principles with time-of-use rates and demand charges. Solar energy generated is consumed directly by the home, with surplus energy transmitted to the grid.
During each billing cycle, SRP calculates grid energy consumption against the energy exported to the grid. When exports exceed consumption, account credits are applied at the full retail electricity rate for each excess kilowatt-hour produced.
Demand charges reflect the maximum power drawn from the grid during peak hours. The Customer Generation Plan implements tiered power usage levels, while the Average Demand Plan applies a uniform, slightly higher demand charge rate.
Available Options: Time-of-Use Export Plan, Electric Vehicle Export Plan
Plan Features:
Export plans function differently from traditional net metering structures. Excess solar generation receives credit at a fixed rate of $0.0345 per kilowatt-hour, regardless of generation timing, rather than receiving full retail rate compensation.
Despite higher electricity rates, these plans eliminate demand charges entirely. Depending on energy usage patterns, export plans may provide superior savings even with reduced export credit rates.
Battery storage systems pair particularly well with export plans. Energy storage allows homeowners to utilize stored energy at full retail value while avoiding demand charge concerns. Proper system design considerations ensure optimal performance.
SRP has committed to developing a Virtual Power Plant (VPP) pilot program that compensates customers using battery storage to supply energy during peak demand periods or energy shortages. This program aims to enhance rooftop solar benefits for battery storage customers.
SRP does not currently offer dedicated rebates or incentives for solar panel installations. However, installing a demand management system alongside solar panels qualifies for a $250 SRP rebate.
While utility-specific incentives are limited, Arizona provides tax credits that combine with the federal tax credit program. The Arizona solar tax credit equals 25% of installation costs, capped at $1,000. Additional property tax and sales tax exemptions further reduce overall solar installation expenses.
Federal Tax Credit: Federal income tax credit worth 30% of total solar installation costs.
Arizona State Tax Credit: Income tax credit equal to 25% of installation costs, maximum $1,000.
Solar Sales Tax Exemption: Solar equipment and installation services exempt from Arizona state sales tax.
Property Tax Exemption: Solar system value excluded from property tax assessments.
SRP Demand Management Rebate: $250 rebate available for qualified demand management system installation with rooftop solar.
Installing solar panels involves several critical steps beyond physical installation to ensure proper grid connection and system operation. The typical SRP solar installation process includes:
Step 1: Submit Application to SRP. Required documentation includes an interconnection agreement, installation contract, site design specifications, and supporting technical documentation.
Step 2: Application Review Process. SRP evaluates submitted applications to verify design compliance and technical specification adherence to utility requirements.
Step 3: Physical Installation and Inspection. Panel installation typically requires one to three days. Post-installation verification and inspections are conducted by SRP and local municipal authorities.
Step 4: System Commissioning and Operational Authorization. Following successful inspections, SRP installs metering equipment. A witness test demonstrates proper system functionality. Upon test completion, SRP grants permission to operate.
Solar panel installation as an SRP customer can represent a sound financial investment, but several factors require careful consideration before proceeding.
SRP's full retail net metering options provide value, but demand charges and mandatory monthly minimum bills limit total savings potential. Maximizing savings under demand plans requires diligent energy usage monitoring to minimize demand charges. Export plan alternatives reduce demand charge concerns, but lower export rates may not fully offset future energy consumption needs.
Current solar plans (E-13, E-14, E-15, and E-27) remain available for new customers until November 2029, providing a window for homeowners to lock in existing rate structures before transitioning to newer time-of-use plans. The annual export rate adjustments implemented by SRP add uncertainty to long-term financial projections compared to utilities offering fixed 10-year rates.
Determining whether solar installation provides value requires consultation with experienced local solar contractors. Professional installers possess detailed knowledge of regional savings potential and can provide accurate projections for specific properties. Understanding Arizona's renewable standards also helps contextualize long-term benefits.
Obtaining quotes from at least three different installers is recommended. This approach helps identify the most suitable installation partner while securing competitive pricing on system installation. Professional solar contractors can provide detailed assessments of solar energy efficiency for specific properties.
Transitioning to solar energy with Salt River Project presents Arizona homeowners with a viable pathway to reduce electricity expenses and gain energy independence. While SRP's billing structures differ from standard utility models, understanding the available demand and export plans enables informed decision-making that aligns with specific energy consumption patterns.
The combination of Arizona's abundant sunshine, federal tax credits, and state incentives makes solar installation financially accessible despite the absence of utility-specific rebates. However, factors like demand charges, minimum monthly bills, and export rate structures require careful evaluation to accurately project long-term savings potential. The February 2025 rate approval introduces modest increases starting November 2025, with solar customers facing slightly higher percentage increases than non-solar customers.
Success with SRP solar installation depends on selecting the appropriate billing plan, monitoring energy usage strategically, and considering battery storage options where beneficial. The upcoming Virtual Power Plant program may provide additional value for battery storage customers. Consulting with experienced solar contractors provides essential insights into system sizing, financial projections, and plan selection tailored to individual property characteristics.
For Arizona homeowners committed to reducing utility dependence and securing predictable energy costs, solar installation with SRP offers substantial value when approached with thorough planning and professional guidance. Understanding home solar systems ensures proper implementation.
How Much Does Salt River Project (SRP) Charge for Electricity?
SRP charges approximately $0.13 per kilowatt-hour on average. Solar customers must enroll in time-of-use rate plans where electricity pricing fluctuates based on time of day and season. On-peak electricity rates range from $0.06 to $0.26 per kilowatt-hour, while off-peak rates fall between $0.05 and $0.09 per kilowatt-hour for solar customers.
Will I Still Receive an SRP Bill After Installing Solar Panels?
Yes, monthly bills from Salt River Project continue after solar panel installation. SRP enforces monthly minimum bill requirements of approximately $30 for typical residential customers. Solar credits cannot offset these minimum charges. Demand charges may also apply depending on the selected solar rate plan. Understanding solar power basics helps homeowners manage expectations.
Do I Need a Solar Battery With Salt River Project?
Solar battery installation is not required with Salt River Project. However, battery storage may provide additional electricity bill savings under export plan structures. The primary benefit of battery storage for SRP customers extends beyond financial savings to include backup power capability. Solar panels paired with battery storage systems maintain power availability during grid outages.
What Is the Payback Period for Solar Panels With SRP?
The payback period for solar panels with SRP typically ranges from 8 to 12 years, depending on system size, energy consumption patterns, selected billing plan, and available incentives. Homes with higher electricity usage and strategic energy management under demand plans often achieve shorter payback periods. Export plan customers may experience longer payback timelines due to lower export credit rates. Avoiding common permit mistakes ensures smooth installation.
Can I Get Free Solar Panels From SRP?
No, SRP does not provide free solar panel installations. Advertisements promoting free solar panels typically refer to third-party financing arrangements like solar leases and power purchase agreements. These programs eliminate upfront installation costs but require ongoing monthly payments. Understanding the true nature of these financing options is essential before committing to any solar agreement.
We are dedicated to providing top-notch solar permit services to homeowners, business owners, DIY, and solar installers. Contact us today.
