Skip to content
SRP · Salt River Project

The SRP rate increase, and the demand-charge catch

SRP rates went up again, and the fixed charge climbed even faster. There is also a twist most East Valley homeowners miss: SRP bills solar homes on demand, not just total energy. Here is what changed and how to design around it.

SRP rate increase: 2.4%

in effect since November 2025. Source: SRP Board of Directors price process, 2025.View the filing.

What it looks like over 25 years

A rate increase does not happen once. It compounds. The line below shows the difference between staying on the SRP rate and locking your cost in with solar.

25-year cost: staying with the utility versus going solar A rising line shows utility costs climbing year over year as rates increase. A flatter line shows solar: a larger upfront cost that stays nearly level, so the two lines cross at roughly year 8 and the gap keeps widening after that. $0 $29k $57k $86k $115k Yr 0 Yr 5 Yr 10 Yr 15 Yr 20 Yr 25 Pays off around Yr 8
Stay with the utility (rates rising 5%/yr) Go solar (cost levels off)

Illustration of the two cost paths over 25 years, not a quote. Your real numbers come from the free savings review.

Cumulative cost over 25 years: staying with the utility vs going solar (illustrative)
Year Cumulative utility cost Cumulative solar cost
0 $0 $18,000
5 $13,262 $19,250
10 $30,187 $20,500
15 $51,789 $21,750
20 $79,358 $23,000
25 $114,545 $24,250

How solar caps your rate

Owning solar fixes the cost of the power your panels make, so an SRP rate increase only applies to what you still pull from the grid. On SRP that is only half the story, because most solar customers move to a demand rate that charges for your single biggest hour of usage. A system sized for your roof alone can leave that demand charge untouched.

That is where battery storage earns its keep on SRP: it shaves the evening peak that drives the demand charge. We break down the plans and the trap in SRP solar plans.

On the SRP grid? See solar in Mesa, Tempe, Gilbert, Chandler, Queen Creek.

Estimate my savings How residential solar works

See what the SRP increase costs your home.

Bring a recent SRP bill. We will size a system around your actual plan and show you an honest number. No pressure.