- SRP puts rooftop solar customers on demand-based Customer Generation price plans, so your savings depend on your peak demand, not just how much energy you use. SRP’s residential solar plans (E-27 and E-15) add a monthly demand charge on top of energy charges (SRP).
- SRP is a public-power utility that is not regulated by the Arizona Corporation Commission, so its elected board sets solar rates, unlike investor-owned APS (Arizona Corporation Commission).
- Arizona’s residential electricity averages about 15.23 cents per kWh, below the U.S. average (EIA), so the solar case here rests on high output, not a high rate.
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
If Salt River Project, SRP, is your electric utility, your rooftop solar math works differently than it does for most of Arizona, and the reason is the price plan. SRP is a public-power utility that serves about 1.2 million customers across the Phoenix metro area, and it puts residential solar customers on demand-based Customer Generation price plans. That means SRP bills part of your monthly charge on your peak power draw, not only on the kilowatt-hours you use. It is a genuinely different structure from the net billing that investor-owned APS uses, and it is the single biggest thing to understand before you go solar on SRP. This page explains how SRP’s solar price plans work, why SRP is not regulated like other Arizona utilities, and how the numbers shake out in 2026.
SRP solar at a glance
On SRP, rooftop solar sits on a demand-based Customer Generation price plan, so your bill turns on peak demand as well as energy. SRP owns the meter, the rates and the interconnection process in its Phoenix-area territory, and because it is a public-power district rather than an investor-owned utility, it sets its own solar policy. The table below sums up what that means for a homeowner going solar in 2026.
| Detail | What to know |
|---|---|
| Utility type | Public power; the Salt River Project Agricultural Improvement and Power District, a political subdivision of Arizona |
| Customers | About 1.2 million electric customers across the Phoenix metro (SRP) |
| Regulation | Not rate-regulated by the Arizona Corporation Commission; SRP’s elected board sets rates and solar policy |
| Solar price plans | Demand-based Customer Generation plans: E-27 (Customer Generation) and E-15 (Average Demand); verify the current plan and charges with SRP |
| Residential rate | Arizona averages about 15.23 cents per kWh, below the U.S. average (EIA); your plan also adds a demand charge |
| Source | SRP Customer Generation price plan |
What a typical Phoenix-area system produces. According to MySolarFY’s own analysis (August 2026), a typical 7 kW rooftop system in the Phoenix metro produces about 12,142 kWh a year (NREL PVWatts). The Valley of the Sun gets some of the strongest solar resource in the country, so output per panel is high. What that output is worth to you, though, depends heavily on your SRP price plan, because part of your bill is set by your peak demand rather than by energy alone. Treat this as a planning estimate and get a site-specific figure. Estimate your roof’s likely output with NREL’s free PVWatts calculator.
How SRP’s demand-based solar price plans work
SRP serves residential rooftop-solar customers on demand-based Customer Generation price plans, which is the main thing that sets SRP solar apart from APS. For how Arizona credits exported solar statewide, see our guide to Arizona net billing in 2026. On SRP’s E-27 Customer Generation Price Plan and E-15 Average Demand Price Plan, your monthly bill has an energy charge for the kilowatt-hours you use plus a demand charge tied to your highest power draw during a set peak window (SRP). A demand charge means running several big appliances at once during peak hours can raise your bill even if your solar panels cover most of your total energy. SRP has also stated that E-27 and E-15 are scheduled to be eliminated as of the November 2029 billing cycle, with remaining customers moved to a successor plan (E-16), so confirm which plan applies to you and its exact charges directly with SRP before you size a system. For how export credits work in general, see how net metering credits your solar exports.
| Solar rules | SRP (public power) | APS (investor-owned) |
|---|---|---|
| Rate-regulated by | SRP’s own elected board (not the ACC) | Arizona Corporation Commission |
| Solar billing structure | Demand-based Customer Generation plans; a monthly demand charge plus energy charges | Net billing, where exports are credited at an export rate set through the ACC |
| What lowers the bill | Cutting peak demand matters as much as producing energy; a battery or load shifting can help | Self-consumption and export credits; time-of-use timing drives value |
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Why SRP is not regulated like other Arizona utilities
SRP is not rate-regulated by the Arizona Corporation Commission, so its own elected board sets its solar price plans. The Arizona Corporation Commission, which regulates investor-owned utilities like Arizona Public Service (APS) and Tucson Electric Power (TEP), states plainly that SRP is not under its jurisdiction for rates, rules and regulations; the ACC’s authority over SRP is limited to specific matters like bond issuances, generation over 100 megawatts, and transmission lines of 115 kilovolts or greater (Arizona Corporation Commission). SRP is the Salt River Project Agricultural Improvement and Power District, a political subdivision of Arizona, governed by an elected board and council. For a homeowner, the practical result is that SRP’s solar rules, including its demand-based price plans, are decided by SRP itself, so they can differ sharply from the ACC-set net billing that APS customers get. See the statewide picture in our Arizona solar guide.
Arizona rates and what solar offsets on SRP
Arizona’s electricity rates are below the national average, so on SRP the savings come from high solar output and from managing your demand, not from beating a high rate. Arizona residential electricity averages about 15.23 cents per kWh (EIA, as of May 2026), below the U.S. average, and the Phoenix area’s strong sun means a well-placed system produces a lot; see typical system prices in our Arizona solar cost guide. On SRP, though, part of your bill is the demand charge, so a system that only cuts total energy can leave money on the table if your peak draw stays high. That is why load shifting, and often a battery, matter more here than on a simple energy-only rate. To see how bill credits and rate structure change your monthly cost, read how solar lowers your electricity bill, and to weigh payback, see the financial case for whether solar panels are worth it.
What changed federally, and what it means for SRP customers
The federal homeowner credit is gone, but SRP’s price plans and Arizona’s strong sun are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so an SRP customer who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, so on a lease or PPA you do not file for a federal credit yourself. The 25D homeowner credit, by contrast, ended after December 31, 2025. For the full timeline, see what the federal solar tax credit change means in 2026.
How to connect solar to SRP
Connecting solar to SRP means filing an interconnection application, enrolling on the Customer Generation price plan, and waiting for permission to operate before you switch on. The process follows a set order, and the key rule is that you cannot turn the system on until SRP grants permission to operate. The general path is:
- Interconnection and price-plan application. You or your installer file an SRP interconnection application and enroll on the applicable Customer Generation price plan.
- Review and agreement. SRP reviews the application and returns an interconnection agreement to sign.
- Install and inspect. The system is installed and passes local city or county electrical and building inspection.
- Meter set. SRP installs or reconfigures a meter that measures both your usage and your peak demand.
- Permission to operate. SRP issues permission to operate. The system may not run on the grid before this.
A licensed installer normally manages this whole process for you, and the details, plans and charges can change, so confirm SRP’s current Customer Generation price plan and interconnection terms before you commit (SRP). For the questions to ask, see the right questions to ask a solar installer. You can also read the local overviews for solar in Phoenix, solar in Mesa, and solar in Scottsdale, along with the nearby suburbs of solar in Chandler, solar in Gilbert, and solar in Glendale.
How to choose a solar installer in SRP territory
Choose an SRP installer by the objective criteria below, and make sure they can model your specific demand-based SRP price plan. The Phoenix metro has one of the most active solar markets in the country, so you have plenty of licensed installers to compare. Rather than chasing a “best” list, screen any installer against objective criteria, and make sure they can model your specific SRP price plan:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper Arizona licensing (a ROC solar or electrical contractor license) and any required city or county permits.
- A clear workmanship and equipment warranty in writing.
- Real experience with SRP’s demand-based Customer Generation price plans and interconnection, so the quote reflects your demand charge, not just energy.
- A written production estimate and a transparent quote that is honest about SRP’s rates, demand charges and how a battery would change the math. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Frequently asked questions
Does SRP require solar customers to be on a demand-based price plan?
Yes. SRP serves residential rooftop-solar customers on its Customer Generation price plans, E-27 and E-15, which are demand-based: your bill includes a demand charge tied to your peak power draw plus energy charges (SRP). That is different from a simple energy-only rate, so cutting your peak demand matters. SRP has said E-27 and E-15 are scheduled to be eliminated as of the November 2029 billing cycle, with remaining customers moved to a successor plan, so confirm the current plan and charges with SRP.
Is SRP regulated by the Arizona Corporation Commission?
No. The Arizona Corporation Commission states that SRP is not under its jurisdiction for rates, rules and regulations; the ACC’s authority over SRP is limited to specific matters such as bond issuances, generation over 100 megawatts, and transmission lines of 115 kilovolts or greater (Arizona Corporation Commission). SRP is a public-power district governed by its own elected board, which sets its solar price plans. That is why SRP’s solar rules differ from ACC-regulated utilities like APS and TEP.
How is SRP solar different from APS solar?
The billing structure is the core difference. SRP puts solar customers on demand-based Customer Generation price plans, so part of your bill is a demand charge on your peak draw. APS, an investor-owned utility regulated by the Arizona Corporation Commission, uses net billing, where your exports are credited at an ACC-set export rate. Because of the demand charge, load shifting and batteries often matter more for SRP customers than for APS customers. Compare an installer quote against your actual SRP plan before you decide.
What does SRP’s demand charge mean for my solar savings?
A demand charge is based on your highest power draw during a set peak window, measured in kilowatts, rather than on total energy used. That means running several large appliances at the same time during peak hours can raise your bill even if your panels cover most of your energy. Solar still lowers your energy charges, and shifting big loads or adding a battery can help manage the demand charge. Ask any installer to model your bill on your specific SRP price plan, and verify current charges with SRP.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. An SRP customer who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. SRP’s price plans and Arizona’s solar resource were not affected by that federal change.
How do I connect solar to SRP?
You or your installer file an SRP interconnection application and enroll on the applicable Customer Generation price plan, SRP reviews and returns an agreement to sign, the system is installed and passes local inspection, SRP sets a meter that measures usage and demand, and then SRP issues permission to operate. You cannot turn the system on until you have that permission. A licensed installer usually handles the paperwork, and because plans and charges change, confirm SRP’s current terms before you decide.
Reviewed by the MySolarFY team. Figures were verified against the linked SRP, Arizona Corporation Commission, EIA, NREL, and IRS sources as of August 2026. SRP price plans, demand charges, rates, and tax rules all change over time, so confirm current terms with SRP before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the incentives and bill credits often go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
