Arizona Faces Rising Electric Rates—Why Now Is the Time

Arizona Public Service (APS) has proposed a 14% rate increase for 2026 to fund system upgrades and new generation, marking a substantial rise compared to filings from 3–4 years ago . Among these, APS highlighted costs tied to power plant improvements, grid modernization, and regulatory compliance .

Meanwhile, Salt River Project (SRP) is also revising rate structures—including base rate and FPPAM adjustments—based on customer usage patterns and plan types, potentially increasing the cost of electricity for many households .

Rising utility bills in Arizona are real—and not just APS. That makes solar not just a green choice, but a smart financial move.

Arizona’s Solar Incentives in 2025

• Sales Tax Exemption: No state sales tax on solar equipment in Arizona, reducing purchase costs.
• Net Metering: Rooftop solar excess is credited back to homeowners, offering long-term savings.
• Federal ITC Deadline: 30% Residential Clean Energy Credit ends December 31, 2025. No phase-out—if your system isn’t commissioned by year’s end, the credit is gone.

Bottom line: With utilities raising rates and incentives set to expire, the outlook is clear—2025 is your last chance to lock in savings.

National and Global Solar Policy Shake‑Ups

• “One Big Beautiful Bill” passed July 4, 2025—it ends the 30% residential ITC and restricts commercial credits to projects started by mid‑2026.
• Trump’s July 7 executive order imposes stricter eligibility rules (safe‑harbor, construction start), creating market uncertainty .
• Solar stocks like Enphase and Sunrun dropped sharply—reflecting investor concern over policy swings.

Despite political headwinds, the Energy Information Administration (EIA) says solar will power ~7% of U.S. electricity in 2025 and 8% in 2026—a 34% increase in summer generation over last year.

FERC also reports that 77.7% of new U.S. capacity in 2025 is solar—roughly 9.5 GW through April, far outpacing wind and gas. Globally, solar remains the dominant new energy source—96% of renewables added in recent years .

Tips to Slash Solar Costs—Drawn From U.S. Best Practices

With the federal credit ending, roadmap to lower-priced solar becomes vital:

1. Automate permitting
   State tools can cut $0.98/W—the difference between complexity and simplicity.
2. Bulk hardware procurement
   Scaling buys reduces per‑unit cost.
3. Streamline inspections
   Faster timelines mean systems come online before year-end.
4. Include storage
   Solar Batteries amplify savings and avoid rates linked to demand charges.

Following models like Australia—$2.02/W fully installed—U.S. systems can fall from $5/W to under $3/W 

Why Act NOW: Your Checklist

• Lock in 30% ITC before December 31, 2025—or lose it entirely.
• Avoid looming rate hikes and potential tariffs on imported panels.
• Gain energy independence, hedging against future utility increases.
• Boost property value and support grid health.
• Leverage robust Arizona incentives—sales tax breaks & net metering.

Switching to Solar in Arizona with US Power

In Arizona and nationwide, every sign points to solar being not just wise—it’s urgent. Utility costs are rising, federal tax incentives are expiring, and policies are becoming uncertain. But time is literally ticking:

📅 You must install and commission your system by December 31, 2025, to secure the full 30% ITC.

Act now to:

• Lock in your savings before incentives vanish.
• Shield yourself against rate hikes and future energy cost volatility.
• Take advantage of Arizona’s favorable solar policies and net metering advantages.

⚡ Don’t wait. Contact US POWER Today! A trusted solar provider to get your custom quote, start permitting, and schedule installation—before it’s too late. The window closes faster than you think.