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SRP Price Changes Explained Without the Utility-Speak

If you’re an SRP customer, you’ve probably heard a lot of utility-speak lately. 

Price changes.
Time-of-use windows.
Solar plans.
Export credits.
Demand charges.

That’s a lot to sort through, especially when all you really want to know is: What does this mean for my bill?

Here’s the plain-English version: It’s true that SRP recently raised their rates, but your SRP bill isn’t just about how much electricity your home uses. It’s also about when you use electricity, how much power your home pulls from the grid at once, and whether or not your home is set up to produce, store, or manage energy in a smarter way.

Here’s what SRP customers should know about the factors affecting their monthly bill, along with the adjustments or upgrades that may help homeowners use energy more strategically.

Did SRP Raise Rates in 2026?

Many SRP customers are noticing price changes in 2026, but those changes actually came into effect in the November 2025 billing cycle. Major changes include:

  • An overall 2.4% price increase for SRP customers
  • An average residential bill increase of about 3.5%
  • Updated monthly service charges (an increase of $10/month for typical single-family homes)
  • Updated price plans (including the announcement that some current price plans will be unavailable to new customers and will be phased out in the coming years) 

Detailed information about these residential rate changes, including information about their new price plans, can be found on SRP’s website. 

But here’s the most important thing for homeowners to understand: the rate increase is only part of the story.

SRP may have approved an overall price increase, but the exact impact on each home depends on the customer’s energy habits. That’s why one household may see a modest change while another notices a bigger jump.

A few things will affect your final bill:

  • Your rate plan
  • Your total electricity use
  • How much energy you use during on-peak hours
  • Whether you have solar
  • Whether your plan includes demand charges
  • How much energy your home exports to the grid
  • How well your home manages major loads like AC, pool pumps, dryers, and EV charging

In other words, the rate structure matters just as much as the rate itself.

Why SRP Bills Can Feel So Complicated

When it comes to electric bills, most people think in simple terms: use more electricity, pay more money.

That’s still partly true. But SRP’s pricing is a bit more layered than that.

Depending on your plan, your bill will also be affected by:

  • What time of day you use electricity
  • Your highest grid demand during certain windows
  • How much solar energy your home produces
  • How much extra solar energy goes back to the grid
  • Whether your system includes a battery or energy management technology

This can actually be quite frustrating for homeowners. They may feel like they’re being careful with their energy, only to see a bill that is higher than expected. 

A lot of the time, these homeowners are neglecting an important part of the equation: timing. 

What Are SRP Time-of-Use Windows?

Time-of-use means electricity costs are different depending on the time of day.

“On-peak” hours are the more expensive windows. These happen when demand on the grid is higher, often late afternoon or evening when people are home and the house is fully in use (the AC is running, dinner is happening, laundry is going, etc.).

“Off-peak” or “super off-peak” hours are the lower-cost windows. These are the times when energy costs less. Customers can often save money by shifting certain energy-heavy tasks into these windows, like using major appliances, charging an EV, running the pool pump, or pre-cooling the house.

SRP’s newer time-of-day plans give customers different schedule options for on/off-peak hours, with lower energy costs from 8 a.m. to 3 p.m. and higher costs from 5-10 p.m. or 6-9 p.m., depending on the plan. 

That doesn’t mean families should stop living their lives during peak hours. Nobody wants to build their life around a utility chart.

But a few practical shifts can help—especially in the summer when energy bills are at their highest. Think:

  • Running the dishwasher later
  • Moving laundry out of peak hours
  • Adjusting pool pump schedules
  • Charging an EV outside on-peak windows
  • Pre-cooling the house before peak pricing begins

These adjustments can all reduce how much electricity your home pulls from the grid when it costs the most.

Why Peak Hours Matter So Much in Arizona

In Arizona, summer energy use is not subtle.

The AC works harder. Pool pumps run more often. Kids are home all day. Garage fridges are working against the heat. Dinner is cooked while the house is still warm. And even after sunset, homes can still hold onto hours of built-up heat.

That’s why SRP peak hours matter.

The same home can use the same total amount of electricity from one month to the next, but their bills can still change based on when the electricity is used.

This matters for everyday energy use.

What Can SRP Customers Control?

SRP customers can’t control price changes—past or future. But you can control how and when your home uses energy.

  • You can operate major appliances outside peak hours when possible.
  • You can schedule the pool pump for lower-cost windows.
  • You can pre-cool your home before peak pricing begins.
  • You can review whether your current plan still fits your home.

These steps may not magically lower your bill. (After all, Arizona summers are still Arizona summers.) But they can help your home use energy more strategically.

Another way to use your energy more strategically? With a well-designed SRP solar plan. 

How Do SRP Solar Plans Work?

Home solar plans allow customers to generate some of their own electricity with solar panels. Customers are still billed for energy they pull from the grid, but depending on their plan, they can also receive credit for extra energy their system produces and sends back to the grid.

It sounds simple enough, and it certainly seems appealing for Phoenix homeowners. 

But before signing up for solar—through SRP or anyone else—homeowners need to remember that solar plans are not all structured the same way. Plans might:

  • Include demand charges 
  • Use time-of-day pricing 
  • Give credit for exported solar energy at a specific rate 
  • Work better for homes that can shift usage away from peak hours 
  • Be better for homes with batteries or energy management systems

That’s why SRP solar should not be treated like a one-size-fits-all solution.

A solar system can look impressive on paper and still underperform financially if it isn’t designed around the right utility plan.

What Is a Demand Charge?

Demand charges are one of the most confusing parts of SRP solar plans.

Here’s a simple way to understand it:

  • Energy usage is the total amount of electricity your home uses over time (measured in kilowatt-hours, or kWh).
  • Demand is how much power your home pulls at once (measured in kilowatts, or kW).
  • A demand charge is a fee based on your home’s biggest short burst of grid demand during peak hours. 

That means your bill may be affected by how much electricity your home pulls from the grid at the same time.

For example, imagine this all happens during an on-peak window:

  • The AC is running.
  • The oven is on.
  • The dryer is going.
  • The pool pump kicks on.
  • Someone plugs in an EV.

Even if this happens for a short period, it can create a demand spike. On certain SRP plans, that single spike can affect the bill.

This means that SRP solar demand charges can be tricky. Even if you are careful for most of the month, one high-demand window can make a noticeable difference. 

What Happens When Solar Energy Goes Back to the Grid?

When your solar system produces more energy than your home is using at that moment, the extra energy may be sent back to the grid. That is called exported energy.

On certain SRP solar plans, homeowners receive credit for exported energy. But that credit does not necessarily cancel out the price you pay when you pull electricity from the grid.

If your system sends a lot of extra energy to the grid during lower-value times, but your home still pulls electricity from the grid during higher-cost peak hours, you might not save as much as expected.

This doesn’t mean solar isn’t working. It means that your goal is to use solar energy in the smartest way possible.

And once again, it means that timing matters.

Where Batteries Fit In

Batteries can help solve this timing challenge for some SRP customers.

Solar panels produce the most energy when the sun is strongest. But many homes use the most electricity later in the day, especially during the summer. 

A battery can store extra solar energy produced during the day so the home can use more of that power later, including during higher-cost peak windows.

In simple terms, solar helps you produce power. A battery allows you to decide when to use more of that power.

That can help homeowners:

  • Pull less electricity from the grid during expensive hours
  • Reduce demand spikes
  • Access backup power during outages

Still, batteries are not automatically the right fit for every house.

The value depends on your energy use, your rate plan, your solar production, your budget, your comfort goals, and how much control you want over peak-hour usage.

But for some SRP solar customers, batteries aren’t just a “nice extra.” They’re part of a smarter solar design strategy.

Solar Design Matters More than Ever

As nice as it would be to promise that all solar home systems are created equal, that’s simply not true. At the end of the day, a home’s solar system must be designed thoughtfully to fit the home’s needs.

In good solar design, the right question is not just, “How many panels can fit on the roof?”

The better question is, “How should this system be designed for this home, this utility plan, and this family’s real energy habits?”

The best system isn’t always the biggest system. Every system needs to account for how the home actually uses energy. That means it should be designed while considering:

  • Utility provider
  • Rate plan (including demand charges and export credits)
  • Roof direction
  • Shade
  • AC usage
  • Pool pump schedule
  • Appliance habits
  • EV charging needs
  • Solar production potential
  • Peak-hour usage

All those considerations may lead to a larger system or a smaller one. It may point toward a battery, load control, or some other energy management technology. It all depends on the home.

Is Solar Still Worth It for SRP Customers?

For many SRP customers—yes, solar can still make sense.

Just remember that design matters. Don’t settle for a generic solar proposal. Ask questions and expect clear answers. 

That’s what you get with Citrus Solar. We believe that Valley homeowners deserve to have all the information before making a decision about adding solar to their home. And we give it to you in a straightforward, low-pressure way—without all the utility speak.

We know SRP plans (because we’re Arizona homeowners, too), and we can help you understand time-of-day pricing, demand charges, export credits, batteries, and more.

Plus, we’ll help you look at your home, your usage, your current SRP plan, and the setup that gives you the best chance to save.

That’s what neighbors are for. 

Discover How Solar Could Work for You

At Citrus Solar, we’ve seen firsthand how the right solar setup can help SRP customers manage their monthly bills. That starts with smart design, clear answers, and a plan built around the way your home actually uses energy. 

We’re more than happy to help you explore what solar could do for your family. No pressure, just answers. 

Give us a call or get your online quote today.