Molly Ayala
Arizona's electricity rates have been rising, with the average electric bill in the state being 11% higher than the national average. The average electric rates in Arizona cost 16 ¢/kilowatt-hour (kWh), with residential rates averaging 11.29 ¢/kWh and commercial rates averaging 9.53 ¢/kWh. The average electricity customer in Arizona uses 1,530 kWh of electricity per month, and 18,360 kWh over the course of the year. This has resulted in an increase in electricity usage due to a higher demand for air conditioning. As a result, there has been a focus on reducing electricity consumption, with many turning to solar energy as a solution.
| Characteristics | Values |
|---|---|
| Average electricity rates in Arizona | 15.73 ¢/kWh (9% lower than the national average) |
| Average monthly residential electricity bill in Arizona | $107 (12.15% greater than the national average) |
| Average residential electricity rate in AZ | 11.29 ¢/kWh (4.97% less than the national average) |
| Average commercial electricity rate in AZ | 9.53 ¢/kWh (5.55% less than the national average) |
| Average monthly commercial electricity bill in AZ | $629 (22.73% greater than the national average) |
| Average electricity customer usage per month in AZ | 1,061 kWh |
| Average electricity customer usage per year in AZ | 18,360 kWh |
| Average electricity customer usage per month in Phoenix, AZ | 1,622 kWh |
| Average electricity customer usage per year in Phoenix, AZ | 19,464 kWh |
| Average monthly electric bill in Phoenix, AZ | $245 |
| Average payback period for a solar system in AZ | 7.53 years |
| Average payback period for a solar system in Phoenix, AZ | 7.42 years |
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What You'll Learn
Average residential electricity rate
The average residential electricity rate in Arizona is 15.73 cents per kilowatt-hour, which is 9% lower than the national average. Arizona ranks 28th in average electricity rates in the United States. The average electric rates in Arizona cost 16 ¢/kilowatt-hour (kWh), meaning that the average electricity customer in Arizona uses 1,530 kWh of electricity per month and 18,360 kWh over the course of the year.
Residential electricity rates in Arizona averaged 11.29 ¢/kWh in 2019, which ranked the state 27th in the nation. This rate increased to 13.27 ¢/kWh in 2020, a slight increase from 2019, and further rose to 14.0 ¢/kWh in 2023. The Arizona residential electricity rate in 2025 is expected to average 15.05 cents per kilowatt-hour.
The cost of electricity in Arizona has fluctuated over the years due to various factors, including the type of energy source used. The state offers a 100% sales tax exemption to citizens who install private solar. The amount that Arizona residents can save with solar depends on their current electricity expenditure and the proportion of their electric bill that solar can offset. Based on the intensity and amount of sunlight hours in Arizona, the average electricity customer in the state will require a 10.0 kilowatt (kW) solar panel system to offset 100% of their annual electricity consumption of 18,360 kWh per year.
The average monthly residential electricity bill in Arizona is 12.15% greater than the national average monthly bill of $107. Residential electricity consumption in Arizona averages 1,061 kWh/month, which is 17.5% higher than the national average monthly consumption of 903 kWh/month. Arizona residential electric rates are highest in May, and the highest average bill is in July.
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Average commercial electricity rate
Arizona ranks as the 27th lowest-priced state in the US for electricity, with the average electricity rate in the country being 12.89 cents per kWh. The average commercial electricity rate in Arizona is 12.15 cents per kWh, which is 7% lower than the national average. The average monthly commercial electricity bill in Arizona is $772, which is 22.73% greater than the national average monthly bill of $629. Commercial electricity rates in the state average 9.53 cents per kWh, which ranks Arizona 22nd in the country. The average commercial electricity rate of 9.53 cents per kWh in Arizona is 5.55% less than the national average commercial rate of 10.09 cents per kWh.
The commercial electricity consumption in Arizona averages 8,106 kWh per month, ranking 5th in the US. This average monthly commercial electricity consumption in Arizona is 29.95% greater than the national average consumption of 6,238 kWh per month. The approximate range of commercial electricity rates in the US is 6.86 cents per kWh to 34.88 cents per kWh.
The industrial electricity rates in Arizona average 6.53 cents per kWh, ranking the state 26th in the nation. The average industrial electricity rate of 6.53 cents per kWh in Arizona is 2.1% less than the national average industrial rate of 6.67 cents per kWh. The approximate range of industrial electricity rates in the US is 4.13 cents per kWh to 30.82 cents per kWh.
The residential electricity rates in Arizona average 11.29 cents per kWh, which is 4.97% less than the national average residential rate of 11.88 cents per kWh. The average residential electricity bill in Arizona is about $120 per month, ranking 13th in the US. This is 12.15% greater than the national average of $107. Residential electricity consumption in Arizona averages 1,061 kWh per month, which ranks 16th in the US. This average monthly residential electricity consumption in Arizona is 17.5% greater than the national average monthly consumption of 903 kWh per month.
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Annual electricity consumption
The average electricity consumption in Arizona is influenced by various factors, including weather, energy sources, and individual usage.
Residential electricity consumption in Arizona averages 1,061 kWh/month, with rates ranging from 11.29¢/kWh to 16 ¢/kWh. This equates to an average monthly bill of around $125, which is higher than the national average. The cost of electricity in Arizona has been steadily increasing over the years, presenting a financial challenge for households.
Commercial electricity consumption in Arizona averages 8,106 kWh/month, with rates of around 9.53¢/kWh to 12.15 ¢/kWh. This results in a higher average monthly commercial electricity bill compared to the national average.
In Phoenix, Arizona, the average electricity consumption is higher, with residential customers using approximately 1,622 kWh of electricity per month, leading to an annual consumption of 19,464 kWh.
To manage these costs, Arizona residents can consider investing in solar energy systems. By utilizing solar energy, households can reduce their electricity costs and, in some cases, eliminate energy expenses entirely after the initial investment is paid off, typically within 7 to 8 years.
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Cost-saving measures
The average electricity rates in Arizona are continuously rising, which is a challenge for households. The average electric rates in Arizona cost 16 ¢/kilowatt-hour (kWh), which is 11% higher than the national average electric bill. The average electricity customer in Arizona uses 1,530 kWh of electricity per month, and 18,360 kWh over the course of the year.
Install a Solar System
Investing in solar energy is one of the best ways to reduce electricity costs. Solar generators use free solar energy to generate electricity and charge appliances, reducing the amount drawn from the utility grid. On average, it takes around 7.5 years to break even on a solar investment in Arizona, after which you may not owe anything on your electric bills.
Use a Smart Thermostat
Installing a smart thermostat can help control the usage of air conditioning, which is a significant contributor to electricity costs, especially during peak hours.
Reduce Electricity Consumption
Simple measures like turning off appliances when not in use, using energy-efficient light bulbs, and maintaining appliances for optimal performance can help reduce overall electricity consumption.
Energy-Efficient Appliances
When purchasing new appliances, look for energy-efficient options with the Energy Star label. These appliances are designed to use less energy, which can lead to significant savings over time.
Take Advantage of Local Solar Incentives
Talk to an energy advisor or research local solar incentives and rebates that you may be eligible for. These programs can help offset the cost of installing solar panels and accelerate the payback period.
By implementing these cost-saving measures, Arizona residents can make informed decisions about their energy usage, reduce their electricity bills, and manage their overall cost of living more effectively.
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Comparison with national average
Arizona's electricity rates have been continuously rising, with the average electricity customer in the state using 1,530 kWh of electricity per month, and 18,360 kWh over the course of the year. This is much higher than the national average monthly consumption of 903 kWh/month.
The average electric rates in Arizona are 16 ¢/kWh, while the national average is 11.88 ¢/kWh. This means that the average monthly residential electricity bill in Arizona is 12.15% greater than the national average monthly bill of $107.
Commercial electricity consumption in Arizona averages 8,106 kWh/month, which is 29.95% greater than the national average of 6,238 kWh/month. The average commercial electricity rate in Arizona is 9.53 ¢/kWh, which is 5.55% less than the national average of 10.09 ¢/kWh.
In Phoenix, Arizona, the average monthly electric bill for residential customers is $245/month, which is calculated by multiplying the average monthly consumption of 1,622 kWh by the average electric rate of 15 ¢/kWh. Over the next 25 years, residents of Phoenix can expect to pay $91,900 on electric bills, 12% higher than the national average.
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Frequently asked questions
The average electricity rate in Arizona is 15.73 ¢/kWh for residential customers and 12.15 ¢/kWh for commercial customers.
The average Arizona resident uses 1,530 kWh of electricity per month, or 18,360 kWh per year.
The average monthly electric bill for residential customers in Arizona is $245/month, which is 12.15% greater than the national average.
Arizona residents can reduce their electricity costs by investing in solar energy. Solar panels can help to offset the cost of electricity and, in some cases, can eliminate energy costs altogether.
