How to Lower Your Electricity Bill in Arizona

Arizona’s extreme heat means that air conditioners are working overtime for much of the year.  t While this essential technology keeps us cool and happy here in the Valley of the Sun, it also means the state’s electric bills are higher than the national average. Summer’s not the only month Arizonan’s see high electricity bills, either. Winters can also be cold, especially at night, and we all love to snuggle indoors with a heater to keep us warm.

Fortunately, there are numerous things you can do to keep your electricity costs down. From practicing energy-saving habits, investing in smart home technologies, or installing solar panels, keep reading to learn the best ways to lower your electricity bill year round in Arizona. 

Key takeaways: 

• Arizona’s monthly electric bills are higher than the national average and peak during the summer months. 
• Air conditioning units are the biggest energy consumers in Arizona households, but there are ways you can optimize usage to reduce energy consumption and save money. 
• The best way to reduce electricity bills in Arizona is to switch to solar and harness the state’s abundant sunshine to produce your own electricity. 

Electricity costs in Arizona

Monthly electricity bills in Arizona are higher than the national average. According to data from the Energy Information Administration (EIA), the average monthly bill in Arizona was around $128.40, compared to the national average of $111.67. With climate change comes hotter and longer summers, which means utilities will continue to invest in more ways to make electricity. This will drive rates even higher in the years to come. 

During summer months, bills are higher due to increased energy consumption from air conditioners. In a study by Texas Electricity Ratings, Arizonans were found to pay around $100 more on their electricity bills during the summer, making Arizona the state where residents spend the most to keep cool during hotter months. 

Because Arizona’s electricity consumption peaks during the summer months, power providers tend to increase electricity rates to cover the dramatic increase in demand, making bills even more expensive. But it's not just Arizona summers that cause residents to crank up the air conditioning. Winters can also be very cold, especially at night, and most Arizonans use some type of heating in their homes when the weather cools down. 

All of this contributes to a high monthly utility bill. As a result, families in Arizona are looking for ways to change their energy usage habits in an effort to reduce their monthly electricity bills. For this reason, more homeowners than ever are switching to solar power to harness clean, renewable electricity and reduce their energy costs. 

While this involves making an upfront investment, the cost savings over time will offset that investment in 8-10 years on average. When you consider that modern solar panels have a lifespan measured in decades, that’s many years of free electricity after the initial investment is paid back. In short, when you have more than 300 sunny days a year as we do here in Arizona, combined with exceeding high electricity rates, going solar is a genuine “no brainer”. 

See More: Top Reasons to Go Solar in Arizona

How to lower your electricity bill in Arizona

If you live in Arizona and want to reduce your monthly electricity bill, continue reading for our best tips. 

Optimize your AC usage

We’d never tell an Arizonan to not use their air conditioning but there’s a fair bit you can do to optimize usage and reduce your electric bill. 

Firstly, make an effort to maintain your AC regularly and keep it in good shape, particularly before the seasons get too hot or cold. Keep the vents clear, clean the filters, and ensure that windows, doors, and chimney flues are properly closed before you switch it on. This can help your AC run more efficiently and reduce the amount of power it needs. 

Next, try to avoid setting your thermostat to extreme temperatures, whether that’s arctic cold in summer or Sonoran desert hot in winter. The ideal AC temperature should be around 78 degrees Fahrenheit in the Arizona summer. That might not sound cool enough for some people, but if the outside temperature is over 110 degrees, you’ll find 78 degrees is still a huge relief. 

Also, there is no need to crank your thermostat lower than your ideal temperature setting. Some people think this behavior will make the temperature cool faster. Trust us, the AC will not get to your ideal temperature faster just because you’ve set it 10+ degrees below your desired temp. All that does is put extra stress on your HVAC equipment and open the door for you to forget that the thermostat is set way lower than you need. Regardless of your starting temperature, simply set the thermostat to your desired temperature and let the system do its job. 

In the winter, when outside temperatures are moderate, set your thermostat between 68 to 70 degrees Fahrenheit while you're awake and lower while you sleep. Think of it this way: the smaller the difference between inside and outside temperatures, the less your HVAC system has to do. This means less electricity needed and a lower  bill, as well as less wear and tear on your system. 

According to the U.S. Department of Energy, turning your thermostat back 7-10 degrees Farenheit from its normal setting can save you up to 10% a year on heating and cooling costs.

Do energy-intensive tasks during off-peak hours

Electricity rates are higher during peak hours. For APS, that’s 4pm to 7pm Monday through Friday. At SRP, peak hours vary by season, with winter on-peak being weekdays from 5–9 AM and 5–9 PM from November through April. Summer on-peak rates in SRP are  2–8 PM from May through October. If you consume more energy throughout this time bracket, your monthly electricity bill will be on the higher end of the spectrum. 

To save money on your utility bill, try to wait until off-peak times before doing energy-intensive tasks, such as laundry or using the dishwasher. For even more savings, consider switching off unnecessary appliances during on-peak hours. 

Use energy-efficient appliances where possible

Energy-efficient appliances can make a significant difference in reducing electricity costs. While it may cost a bit of money to invest in new appliances, the savings on your electricity bill will help to offset the additional cost in the long-term. 

To start, check the rated power of your household appliances and see if there are more energy efficient alternatives out there. When buying appliances, look for those with the Energy Star label. These are rated for energy-efficiency and can help you reduce your power consumption. For example, a traditional fan consumes around 50 to 70 watts of power while an Energy Star certified fan will only consume around 20 to 25 watts. 

Consider energy-efficient lighting

It’s not just appliances that can be more energy-efficient, but lighting too. Luckily, switching to energy-efficient lighting, such as LED lights, is a lot more affordable than investing in new appliances and it’s as easy as changing a lightbulb. According to the Department of Energy, around 15% of a home's electricity usage is eaten up by lighting, and the average household can save up to $225 per year on their energy bill by switching to LED light bulbs. 

While we’re at it, don’t forget the most affordable and abundant light source of all - natural lighting! Keep those windows open during the day and save the lights for evening. 

Invest in solar energy

One of the best ways you can reduce your electricity bill in Arizona is by switching to solar power. As the sunniest state in the country, Arizonans enjoy more than 300 days of sunshine each year. That's a lot of opportunity to be generating clean, renewable electricity - why not make the most of it? 

While an upfront investment is required to install solar panels, the cost savings add up to be worth it over time. Solar panels generally last between 25 to 30 years and most homeowners will break even on their investment within the first ten years. This means that after paying back your solar panels, you can still enjoy another 15 to 20 years of free electricity. How’s that for a reduced monthly bill? And don’t forget the added resale value of your home as more and more shoppers look for energy efficient properties when house hunting. 

Better yet, most Arizona homeowners are eligible for various solar incentives, tax credits, and rebates that can help reduce installation costs and increase the payback period. Beyond the cost savings, you’ll also have the added satisfaction of reducing your carbon footprint and contributing to a greener future. 

Keep Reading: Do Solar Panels Increase Home Value?

Insulate your home to reduce AC costs

Properly insulating your home can help reduce air conditioning costs and further lower your electric bill. Good insulation reduces the strain on your AC unit by keeping hot air out in the summer and cold air out during the winter. 

Here’s how it works: when you use heating or cooling, your AC unit runs at full capacity until the set temperature is reached. It then goes into standby and resets to maintain the temperature. If your home isn't properly insulated, the hot or cool air from the system will leak outside and your AC will struggle to maintain the temperature. This means it’ll keep running without going into standby, consuming more energy. 

Insulating  your home should start with the walls, attic and crawl spaces, but don’t forget those windows. If replacing windows isn’t in the budget, there are thermal films available that can dramatically improve the thermal performance for older windows at a fraction of the cost. 

Make energy saving a habit

It might take a bit of practice in the beginning, but getting into the habit of energy-efficient practices can make a big difference in reducing your monthly electric bill. Best of all, everyone in your home can get involved and contribute to the effort. 

Here are some simple energy-saving habits you can practice to reduce your bill: 

• Be aware of peak utility hours and try to move as much of your energy use into off-peak hours as possible. 
• Unplug electronics when they're not in use
• Switch off lights when you leave a room
• When running the AC, only cool or heat the rooms you're in and only set the thermometer to the desired temperature. 
• Consider shutting doors and vents in unused rooms. 
• Close the curtains during hot days to keep the home cooler 
• Wash clothes in cold water 
• Hang clothes outside instead of using a dryer. You’d be surprised how fast clothes dry in our summer heat.
• Use the eco-friendly settings on dishwashers and washing machines.

These habits may seem simple, but they all add up, and when you practice them regularly you could see great savings on your monthly bill. 

Install ceiling fans

During hot summer months, ceiling fans can enhance the effect of your air conditioning unit and help you reduce energy consumption. Switching on the fan can circulate cool air from the air conditioner around the house and reduce the time needed to cool your whole home. 

They also create a breeze which can help you cool down, allowing you to turn up the thermostat a few degrees and save more energy while still staying cool. Be sure to turn fans off when you leave a room to keep that energy-efficiency going. 

Similar Reading: Maximizing Solar Efficiency in Extreme Heat: A 2024 Guide

Use smart home technologies

There’s a whole world of smart home technologies out there designed to reduce electricity consumption and help you cut down on energy bills. For example, smart power strips can recognize when a device isn’t in use and automatically switch off the power, helping you save on ‘phantom loads’. 

Smart thermostats are another great technology that can lower electricity bills. These devices learn your habits and automatically adjust the temperature in your home to conserve energy. They even know when you are home and when you are away and adjust system performance to maximize savings. Consider where you can adopt smart home technologies to be more energy-efficient and watch your electricity bill drop without even trying. 

Design your home with energy-efficiency in mind

Many homes these days are designed with energy-efficiency in mind. Considering the Arizona heat, below are some ways you can design an energy-efficient home in Arizona that helps keep your home cool during the hotter months and reduce your electric bill: 

• Landscaping: Plant deciduous trees with high, spreading crowns on the south side of your home. These can shade your roof in summer while allowing the sun’s heat to reach your home in winter. Be aware that if you’re interested in adopting solar energy, it’s best to avoid shading your roof as this can affect the efficiency of your solar panels. 

• Windows: To keep your home cool, use medium-colored curtains with white plastic backings. Close curtains or blinds during hot days to stop heat from entering your home. Consider installing awnings on south or west-facing windows to create shade and reduce heat buildup. 

• Cool roofs: Standard roofs can reach temperatures of up to 150 degrees in the summer. Cool roofs are designed to reflect sunlight and can help lower roof temperatures by up to 50 degrees. This can reduce reliance on the AC, helping you save energy and money.

Switch to renewable energy and reduce your electricity bill

The best way to lower - or even eliminate - your electricity bill in Arizona is to make the switch to solar power. With abundant sunlight all year long, you can generate enough solar energy to power your entire home all year long. Best of all, solar panels will start paying for themselves from the moment you switch them on. 

See More: Solar Panels ROI: Calculating Your Average Returns

If you’d like to see how much money solar power can save your household, get in touch with the team at Sun Valley Solar Solutions for a free, no-obligation consultation. We’ll assess your home’s location, analyze your energy usage patterns, and give you an idea of how much you can save on your monthly energy bill as well as expected ROI. Contact us now and discover why thousands of homeowners in Arizona have switched to solar and never looked back.