Summer AC bills in Ahwatukee Foothills can feel relentless, and many homeowners look to solar for relief. But under Arizona Public Service (APS)'s current policies, simply putting panels on your roof isn't enough to maximize savings. The game has changed, and understanding how to pair solar with a battery is the key to truly slashing your electricity costs.
Benchmark Cost Analysis
Solar & Battery Installation Costs in Ahwatukee Foothills
A properly sized solar and battery system for a typical home here costs around $23,500 before incentives. After applying all available tax credits, the net cost drops to approximately $15,450.
While a solar-only system seems cheaper upfront (around $7,050 net), its poor return on investment under net billing makes it an impractical choice for most families. The higher initial investment in a battery system delivers far greater long-term savings and energy independence.
Incentives & Tax Credits
Arizona's Solar Incentives for 2026
Ahwatukee Foothills homeowners can take advantage of powerful incentives that lower the cost of going solar:
- Federal Solar Tax Credit: A 30% credit on the total cost of your solar and battery system. For a $23,500 system, that’s a $7,050 credit on your federal taxes.
- Arizona State Tax Credit: A state credit of 25% of the system cost, capped at $1,000.
- Property & Sales Tax Exemptions: You pay zero sales tax on your solar equipment, and the value it adds to your home is exempt from property taxes.
Net Metering: Arizona Public Service (APS)
Net Billing (2024)
Critical 🔋
Understanding APS Net Billing in 2026
The old one-to-one net metering is gone. APS now uses a 'Net Billing' system, which drastically reduces the value of energy you send back to the grid. They buy your excess solar power for a low 'avoided cost' rate (around 6-8¢ per kWh) but sell it back to you later during peak hours for as much as 25-30¢. Without a battery, you're forced to sell low and buy high, which significantly erodes your savings.
A home battery solves this. Instead of exporting your valuable solar energy for pennies, you store it. When the sun goes down and APS rates spike, you use your own stored, free energy, effectively bypassing their high prices entirely.
Projected Savings
Real Savings with a Solar & Battery System
Installing a solar-plus-battery system can eliminate a huge portion of your $170 average monthly electric bill. By using your stored solar power during peak evening hours, you could see monthly savings of around $75 per month ($899 annually). A solar-only system, in contrast, offers meager savings of just over $50 per month because most of its production is sold back to APS for a pittance. The battery is what unlocks the significant financial benefits and insulates you from future APS rate hikes.