State electricity profile · 2024

Arizona Electricity

Arizona's residential electricity rate is 14.91¢/kWh, 9.5% below the US average. Keep scrolling for the commercial and industrial breakdown and generation mix, per EIA filings.

14.91¢/kWh
Residential rate
-9.5%
vs US average
20%
Renewable
3.1M
Customers

The verdict · 2024

Arizona's residential electricity runs 14.91¢/kWh - 9.5% below the 16.48¢/kWh national average, cheaper than 49% of states, with 20% of its power from renewables.

Rate is the EIA state average across all 3.1M residential customers, a benchmark for comparing states, not the rate on any single bill. Source: EIA Form-861.

What Arizona's Electricity Data Tells Us

For 2024, EIA data puts Arizona's residential electricity rate at 14.91¢/kWh, covering 3.1M metered households in the state, versus a national residential average of 16.48¢/kWh, a difference of 9.5% below. Commercial customers pay 12.23¢/kWh while industrial buyers pay 7.90¢/kWh, reflecting the cost differentials that come from voltage level, load factor, and contract length across EIA Form-861 survey respondents. The residential sector sold 40.4M MWh across the year, generating about $6.0B in utility revenue, a useful yardstick for sizing local demand against the grid mix that serves it.

natural gas dominates Arizona's generation mix, supplying 45.3% of in-state production, followed by nuclear at 26.6% and solar supplying 13.4%. Add up every renewable category, solar, wind, hydro, geothermal, and biomass, and you get 19.8% of Arizona's generation, a figure that matters because each renewable megawatt-hour displaces fuel costs that otherwise flow through to retail bills. Expansion headroom remains: cost curves for wind and solar have fallen faster than fossil alternatives for most of the last decade.

Looking back across EIA records, residential prices in Arizona moved from 12.15¢/kWh in 2016 to 14.91¢/kWh in 2024, a 22.7% shift over that window. Comparable-priced neighbors include Colorado, Texas, Nevada, which gives a peer set for sanity-checking local quotes. For anyone negotiating a supplier contract, weighing an energy-efficiency upgrade, or modeling a household budget, the combination of current rate, multi-year trend, and generation mix offers a sturdier footing than any single data point on its own.

-9.5%

vs the US residential average

49%

of states have higher residential rates

20%

renewable share, below the US mix

3.1M

residential customers served

How Arizona compares

Residential
Arizona 14.91¢
US average 16.48¢
-10% vs benchmark
Commercial
Arizona 12.23¢
US average 12.75¢
-4% vs benchmark
Industrial
Arizona 7.90¢
US average 8.13¢
-3% vs benchmark

Cents per kWh, EIA Form 861. Pick a benchmark above to compare Arizona against the US average or a peer state.

Residential Price History

Year Price Change
2024 14.91¢/kWh +6.3%
2023 14.02¢/kWh +7.7%
2022 13.02¢/kWh +3.8%
2021 12.54¢/kWh +2.2%
2020 12.27¢/kWh -1.3%
2019 12.43¢/kWh -2.7%
2018 12.77¢/kWh +2.7%
2017 12.44¢/kWh +2.4%
2016 12.15¢/kWh -

Energy Generation Mix

How Arizona generates its electricity. Renewable sources account for 19.8% of generation.

  • Natural Gas45.3%
  • Nuclear26.6%
  • Solarrenewable13.4%
  • Coal8.1%
  • Hydrorenewable4.4%
  • Windrenewable2.1%
  • Other0.2%
  • Pumped Storage0.1%

Market Overview

Residential Revenue

$6.0B

Commercial Revenue

$4.4B

Residential Sales

40.4M MWh

Residential Customers

3.1M

Frequently Asked Questions

How much does electricity cost in Arizona?
Residential electricity in Arizona costs 14.91¢/kWh (2024), which is 9.5% below the national average. Commercial rate: 12.23¢/kWh. Industrial rate: 7.90¢/kWh.
How much of Arizona's electricity is renewable?
Renewable sources account for 19.8% of Arizona's electricity generation (2024). The top source is natural gas at 45.3%.
Are electricity prices going up in Arizona?
From 2016 to 2024, residential electricity in Arizona changed from 12.15¢/kWh to 14.91¢/kWh (+22.7%).
What are commercial and industrial electricity rates in Arizona?
Commercial electricity in Arizona costs 12.23¢/kWh and industrial costs 7.90¢/kWh (2024).
What is the cheapest energy source in Arizona?
Arizona's electricity generation is led by natural gas at 45.3% of the mix, followed by nuclear at 26.6% (2024). Nationally, natural gas and renewables like wind and solar tend to have the lowest marginal generation costs.
Where does RateWatt's Arizona electricity data come from?
All electricity price and generation data comes from the U.S. Energy Information Administration (EIA), the official federal statistics agency for energy data. Data is updated annually.

Using Arizona's numbers

This is the state average, use it as a benchmark, not a quote for your address.

  • Arizona sits 9.5% 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. Your actual rate depends on your utility, plan, and usage, see our disclaimer.

Source: U.S. Energy Information Administration, Electricity (Retail Sales and State Electricity Profiles). See our methodology for details. Retrieved and formatted by RateWatt Editorial

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. State prices and generation mix are pulled directly from the EIA's published tables for this state. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-05-15.