What is the Average Electric Bill in Phoenix, AZ?

Average Electric Bill in Phoenix

The average electric bill in Phoenix, AZ is higher than the national average due to a combination of factors, including above-average temperatures. In 2014, the U.S. Energy Information Administration reported the average monthly electricity bill in Arizona was $120.51. That’s 5.6% higher than the national average of $114.11.

You might be thinking—HOLY COW that sounds like a lot. Or, WHAT THE HECK why is my electricity bill so much higher? There are a variety of factors that influence electricity costs, including the size of your home, if you have a pool, and if your home is updated with energy-efficient appliances, windows, etc.


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Electricity Rates: What is the Cost of Electricity in Phoenix?

The average electricity rate in Arizona is 12.20 cents per kWh, that’s an increase of 4.6% since February of 2017.

So, how many watts does it really take to power your AC system? On average, a central AC will use 3,000 to 5,000 watts of power per hour during the hottest months of the year. More energy efficient HVAC units use less watts to accomplish the same thing. In addition, an energy efficient home wastes less energy and therefore results in less energy consumption overall.

If your AC uses 3,500 watts and you run it 8 hours a day at 12.20 cents per kWh, you can expect to spend $3.42 per day, or $103.91 per month.

Now, let’s say you’re running an older, outdated HVAC unit that uses 5,000 watts of power for the same 8 hours a day at 12.20 cents per kWh. Given this scenario, you can expect to pay $4.88 per day, or $148.45 per month. That’s around $45 more per month to run a less efficient unit.

Learn how a Home Energy Audit can uncover BIG savings

How Do Arizona Energy Rates Compare to Other US States?

It’s easy to assume electricity rates are the same no matter where you live in the US, but the truth is that energy costs vary, and by a lot. For instance, as of February 2018, electricity rates in Hawaii are the highest in the nation at 31.52 cents per kWh. Louisiana maintains the lowest energy rates in the US at just 8.94 cents per kWh.

Phoenix and the rest of Arizona rank mid-range for electricity rates, coming in at #27 compared to all US states. Although Arizona is closer to the cheaper side, just 1.84 cents more than the 10th cheapest state.

Arizona didn’t make the list for cheapest or most expensive energy costs in the nation. Still, in case you’re interested, we included the top-ranking states for most and least expensive energy rates.

The 10 cheapest states (in order from cheapest to more expensive) include:

  1. Louisiana

  2. North Dakota

  3. Washington

  4. Nebraska

  5. Missouri

  6. Arkansas

  7. Oklahoma

  8. Idaho

  9. Tennessee

  10. Kentucky

The 10 most expensive states for energy costs (in order from most to less expensive) include:

  1. Hawaii

  2. Massachusetts

  3. Rhode Island

  4. Connecticut

  5. Alaska

  6. New Hampshire

  7. California

  8. New York

  9. Vermont

  10. Maine

What Factors Influence Cost of Electricity in Phoenix?

Perhaps one of the biggest contributing factors to the cost of electricity in Phoenix is the age and energy efficiency of your HVAC unit. A larger home with a bigger pool can cost LESS to operate than a smaller home with a smaller pool if the larger home has a new and energy efficient HVAC system.

In fact, it’s not uncommon for a new AC system to bring energy bills down by hundreds of dollars—hence why this discussion board on city-data.com is filled with Arizona natives who report their new HVAC unit is paying for itself in electricity savings.

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Other contributing factors to electricity costs in Phoenix include:

  • Inadequate insulation levels [Learn more]

  • Unbalanced room pressures

  • Outdated appliances

  • Old incandescent bulbs

  • Non-energy efficient windows

  • No window tint

HELP! I Live in a 600-sq. foot apartment and my bill is over $200!?

Small spaces with high electricity bills almost always have an old and inefficient HVAC system, unsealed windows and doors, and/or inadequate insulation. By identifying and fixing these issues you can decrease your electricity bill by as much as 80%!

Learn more about how to lower your electric bills

How to Lower Your Electricity Bill in Phoenix with a Home Energy Audit

A home energy audit, also called a home energy assessment, involves using specific tools to measure the overall efficiency of your home. Or, more specifically, where your home is losing energy and needs some help.

From old and outdated HVAC units that consume a lot of power to produce mediocre results, to lack of insulation letting drafts, hot air and moisture inside, there are many things a home energy audit can point out.

Identifying weak points allows you to make necessary changes that literally pay for themselves overtime in energy savings. The solution might be as simple as adding window tint to reduce heat penetration.

Do you think your home is wasting energy? Find out by setting up a free consultation.

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