State electricity profile · EIA monthly through May 2026
Arizona Electricity
As of May 2026, residential electricity in Arizona costs 15.23¢ per kWh (-3.1% vs May 2025). EIA publishes these figures monthly and this page follows them. Arizona's 2025 annual residential electricity rate is 15.32¢/kWh, 11.4% below the US average. The rate runs below the national average on a mix that is still only 24% renewable. Commercial, industrial and generation-mix figures follow.
- 15.23¢
- May 2026 rate
- -3.1%
- year over year
- 15.32¢/kWh
- Residential rate
- -11.4%
- vs US average
- 24%
- Renewable
- 3.2M
- Customers
Verify with EIA → · Methodology
15.32¢/kWh residential, 12.47¢/kWh commercial
In the U.S. Energy Information Administration's 2025 annual-frequency retail-sales series, Arizona's residential average revenue per kWh is 15.32¢/kWh, with a commercial average of 12.47¢/kWh and an industrial average of 8.10¢/kWh; a separate EIA generation series for 2025 reports 24% of the state's generation from renewables.
- 11.4% below the US average vs national residential average
- 24% renewable generation
The verdict · 2025
Arizona's residential electricity runs 15.32¢/kWh - 11.4% below the 17.30¢/kWh national average, cheaper than 52% of other states, with 24% of its power from renewables.
This is EIA state average revenue per kWh across 3.2M reported residential customers, a benchmark for comparing states, not the tariff on any single bill. Source: EIA retail-sales API, annual frequency.
Annual rate change
What changed in the 2025 annual EIA period
- Arizona's residential average rose from 14.91¢/kWh to 15.32¢/kWh between the 2024 and 2025 annual-frequency EIA retail-sales periods, a change of +2.7%.
- Arizona's industrial average rose from 7.90¢/kWh to 8.10¢/kWh between the 2024 and 2025 annual-frequency EIA retail-sales periods, a change of +2.5%.
- Arizona's commercial average rose from 12.23¢/kWh to 12.47¢/kWh between the 2024 and 2025 annual-frequency EIA retail-sales periods, a change of +2.0%.
Who generates Arizona's electricity
Arizona has 430 operable generating units on EIA's inventory totalling 39,073 MW of net summer capacity. The largest single plant is Palo Verde , a nuclear station operated by Arizona Public Service Co , rated 3,937 MW.
Balancing authorities keep supply and demand matched on the grid; the largest here by capacity are Salt River Project, Arizona Public Service Company and Western Area Power Administration - Desert Southwest Region.
Showing the 16 largest of 195 operable plants in Arizona by net summer capacity.
| Plant | Operator | Technology | County | MW |
|---|---|---|---|---|
| Palo Verde | Arizona Public Service Co | Nuclear | – | 3,937 |
| Springerville | Tucson Electric Power Co | Conventional Steam Coal | – | 1,633 |
| Glen Canyon Dam | U S Bureau of Reclamation | Conventional Hydroelectric | – | 1,312 |
| Santan | Salt River Project | Natural Gas Fired Combined Cycle | – | 1,286 |
| Harquahala Generating Project | New Harquahala Generating Co, LLC | Natural Gas Fired Combined Cycle | – | 1,043 |
| Hoover Dam (AZ) | U S Bureau of Reclamation | Conventional Hydroelectric | – | 1,040 |
| Red Hawk | Arizona Public Service Co | Natural Gas Fired Combined Cycle | – | 1,026 |
| West Phoenix | Arizona Public Service Co | Natural Gas Fired Combined Cycle | – | 929 |
| Coronado | Salt River Project | Conventional Steam Coal | – | 762 |
| Agua Fria | Salt River Project | Natural Gas Steam Turbine | – | 741 |
| Desert Basin | Salt River Project | Natural Gas Fired Combined Cycle | – | 704 |
| Mesquite Generating Station Block 2 | Mesquite Power LLC | Natural Gas Fired Combined Cycle | – | 624 |
| Mesquite Generating Station Block 1 | Salt River Project | Natural Gas Fired Combined Cycle | – | 620 |
| Ocotillo | Arizona Public Service Co | Natural Gas Fired Combustion Turbine | – | 615 |
| Eleven Mile Solar Center | Eleven Mile Solar Center, LLC | Solar Photovoltaic | – | 600 |
| Harquahala 2 | Copia Power | Batteries | – | 600 |
| Operating company | Plants | Net summer MW |
|---|---|---|
| Arizona Public Service Co | 20 | 8,089 |
| Salt River Project | 18 | 7,807 |
| U S Bureau of Reclamation | 3 | 2,606 |
| Tucson Electric Power Co | 9 | 2,529 |
| AES Clean Energy | 7 | 2,089 |
| New Harquahala Generating Co, LLC | 1 | 1,043 |
| RWE Clean Energy | 9 | 755 |
| Copia Power | 2 | 750 |
| Mesquite Power LLC | 1 | 624 |
| Eleven Mile Solar Center, LLC | 1 | 600 |
Operable units only, from EIA's generator inventory as reported for 2026-05. Capacity is net summer rating, which is what a unit can reliably deliver in peak conditions rather than its nameplate figure. Ownership and operatorship can differ; the company shown is the one EIA records as operating the unit.
Market Overview
Residential Revenue
$6.0B
Commercial Revenue
$4.7B
Residential Sales
39.1M MWh
Residential Customers
3.2M
What Arizona's Electricity Data Tells Us
Residential customers in Arizona pay 15.32¢/kWh in 2025, across 3.2M metered households, placing the state 11.4% below the national residential average of 17.30¢/kWh. Commercial rates sit at 12.47¢/kWh while industrial buyers pay 8.10¢/kWh. These sector averages describe recorded revenue per kWh; this dataset alone does not establish why they differ. Annual residential sales total 39.1M MWh on roughly $6.0B in utility revenue. Sales and revenue are reported retail-series measures and should not be treated as a local load forecast.
Arizona's industrial rate ranks 31 of 51 while its residential rate ranks 27, so the gap between what a factory and a household pay is narrower here than in most states. No single fuel reaches half of Arizona's in-state generation. Natural gas leads at 42.9%, with nuclear at 25.5% close enough behind that the mix reads as a balance rather than a clear lead. It is the leading fuel in 26 states. Renewable fuels (solar, wind, hydro, geothermal and biomass) account for 24.0% of Arizona's electricity output. These shares describe in-state generation, not a utility-specific customer bill.
Looking back across EIA records, residential prices in Arizona moved from 12.15¢/kWh in 2016 to 15.32¢/kWh in 2025, a 26.1% shift over that window. States charging a similar rate include Virginia, Oregon, Florida, a useful peer set for a sanity check. Because gas sets the price of the marginal megawatt-hour on a grid built around it, Arizona's residential rate tracks the fuel market with a lag: a gas-price winter shows up on bills months later, and a cheap gas year works its way through the same way. A state average sitting modestly under the national one is the easiest kind to misread, because the spread between utilities inside Arizona can be wider than the gap to the national figure it is being compared against.
-11.4%
Cheaper vs the US residential average
52%
of states have higher rates — Mid-range cost
24%
Moderate renewable — below the 25% US mix
3.2M
residential customers served
Energy Generation Mix (2025)
How Arizona generates its electricity, from the EIA generation series for 2025 (separate from the 2025 retail-sales price figures above). Renewable sources account for 24.0% of generation.
- Natural Gas42.9%
- Nuclear25.5%
- Solarrenewable17.4%
- Coal7.5%
- Hydrorenewable4.0%
- Windrenewable2.6%
- Pumped Storage0.1%
Residential Price History
Arizona residential average revenue per kWh moved from 12.15¢/kWh in 2016 to 15.32¢/kWh in 2025 (26.1% over the window).
- Arizona residential avg
- 15.32¢/kWh 26.1% since 2016
- 2016 → 2025
- Arizona residential: 2016, 12.2¢
- Arizona residential: 2017, 12.4¢
- Arizona residential: 2018, 12.8¢
- Arizona residential: 2019, 12.4¢
- Arizona residential: 2020, 12.3¢
- Arizona residential: 2021, 12.5¢
- Arizona residential: 2022, 13¢
- Arizona residential: 2023, 14¢
- Arizona residential: 2024, 14.9¢
- Arizona residential: 2025, 15.3¢
Source: U.S. Energy Information Administration, retail-sales API · annual frequency. Arizona full trend →
Arizona Average Price by Sector and Year (¢/kWh)
The chart above tracks households only. In 2025, Arizona households paid 15.32¢/kWh while businesses paid 12.47¢/kWh, a 22.9% residential premium, a moderate household-versus-business gap. Every year EIA has published is below, so a single year can be read across all three sectors rather than assembled from three separate EIA queries.
| Year | Residential | Commercial | Industrial |
|---|---|---|---|
| 2025 | 15.32¢/kWh | 12.47¢/kWh | 8.10¢/kWh |
| 2024 | 14.91¢/kWh | 12.23¢/kWh | 7.90¢/kWh |
| 2023 | 14.02¢/kWh | 11.79¢/kWh | 8.11¢/kWh |
| 2022 | 13.02¢/kWh | 10.80¢/kWh | 7.86¢/kWh |
| 2021 | 12.54¢/kWh | 10.33¢/kWh | 6.79¢/kWh |
| 2020 | 12.27¢/kWh | 10.11¢/kWh | 6.07¢/kWh |
| 2019 | 12.43¢/kWh | 10.25¢/kWh | 6.28¢/kWh |
| 2018 | 12.77¢/kWh | 10.64¢/kWh | 6.55¢/kWh |
| 2017 | 12.44¢/kWh | 10.50¢/kWh | 6.45¢/kWh |
| 2016 | 12.15¢/kWh | 10.41¢/kWh | 6.07¢/kWh |
Average revenue per kilowatt-hour, U.S. Energy Information Administration annual-frequency retail-sales series. Revenue per kWh is what customers in each sector actually paid on average, not an advertised tariff rate. Years with no EIA figure for a sector show —.
Where Arizona's residential rate sits nationally
2025 average revenue per kWh across every reporting state
15.32¢/kWh Top 50% most affordable More affordable than 52% of 50 other states
all reporting states, equal-width bands
Each bar spans 5¢/kWh. Taller bars contain more states; the dashed marker locates this state. Hover, focus or tap a bar for its exact count and share.
Source U.S. Energy Information Administration, retail-sales API · 2025 annual frequency
How Arizona compares
Average revenue per kWh, EIA retail-sales API. Pick a benchmark above to compare Arizona against the US average or a peer state.
States with Similar Electricity Prices
Other states led by natural gas
These grids also report natural gas as their largest generation share in the latest EIA mix — a different peer set from the price neighbors above.
Frequently Asked Questions
How much does electricity cost in Arizona? ▼
Where does Arizona's residential electricity rate rank nationally? ▼
How much of Arizona's electricity is renewable? ▼
Are electricity prices going up in Arizona? ▼
What are commercial and industrial electricity rates in Arizona? ▼
Which energy sources generate the most electricity in Arizona? ▼
Where does RateWatt's Arizona electricity data come from? ▼
Using Arizona's numbers
Arizona is mid-transition, which is the phase where prices are hardest to predict: it is paying to run the old fleet and to build the new one at the same time, and the rate above sits in the middle of that.
- Arizona sits 11.4% below the national average, see exactly where it lands among all 50 states. See the rankings
- Check the multi-year trend before you judge the rate, a low price rising fast can cost more over a decade than a steady one. Arizona price trend
- Compare Arizona side by side with the US average and peer states using the tool above, then estimate your own bill from your monthly kWh. Cost calculator
Figures are EIA state averages by sector, computed as revenue divided by sales, so delivery and taxes are inside them but not broken out. Your actual rate depends on your utility, plan, and usage, see our disclaimer.
Read with Arizona: cheapest states for electricity
Where Arizona's figures come from
Every price and generation figure on this page is drawn from the EIA series below, and from nothing else.
Utilities serving Arizona
The 26 utilities that reported bundled residential service in Arizona to EIA Form 861 (2024), largest first. Entity prices below are Form 861 averages for that release, not the same survey as the 2025 retail-sales statewide average above, and not a household tariff. What an individual household pays depends on which of these serves its address.
| Utility | Ownership | Customers | Avg ¢/kWh |
|---|---|---|---|
| Arizona Public Service Co | Investor Owned | 1.3M | 16.45¢ |
| Salt River Project | Political Subdivision | 1.1M | 13.46¢ |
| Tucson Electric Power Co | Investor Owned | 412.7K | 15.63¢ |
| UNS Electric, Inc | Investor Owned | 95.2K | 16.02¢ |
| Trico Electric Cooperative Inc | Cooperative | 52.5K | 14.17¢ |
| Sulphur Springs Valley E C Inc | Cooperative | 46.0K | 13.49¢ |
| Mohave Electric Cooperative, Inc. | Cooperative | 41.0K | 11.20¢ |
| Tesla Inc. | Behind the Meter | 40.2K | 12.17¢ |
| Navopache Electric Coop, Inc | Cooperative | 40.1K | 13.43¢ |
| Sunrun Inc. | Behind the Meter | 40.1K | 13.72¢ |
| Electrical Dist No3 Pinal County | Political Subdivision | 32.0K | 13.93¢ |
| Navajo Tribal Utility Authority | State | 27.0K | 16.63¢ |
| City of Mesa - (AZ) | Municipal | 15.3K | 16.93¢ |
| SunPower Capital, LLC | Behind the Meter | 11.5K | 15.96¢ |
| USBIA-San Carlos Project | Federal | 11.4K | 19.49¢ |
Showing the 15 largest of 26 reporting utilities. The 3 serving 100.0K+ residential customers link to a full profile. Presence in EIA Form 861 is not evidence that a utility is available at a given address or that a customer may choose it.
Related
Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from the U.S. Energy Information Administration (EIA). Consult a qualified professional before making decisions based on this data.
Every figure on RateWatt is rendered directly from official U.S. Energy Information Administration (EIA) data, no number is typed in by an editor. Statewide prices use the EIA retail-sales annual series (2025). Generation mix uses a separate EIA generation series (2025). Utility rows use Form EIA-861 (2024) and are not averaged into the statewide retail-sales figure. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2025.