By Alejandra Paladino, REALTOR® | Moving to Arizona
If you're considering moving to Arizona, you've probably heard about the summer electric bills. Let me be upfront with you: they're real. Arizona summers are extreme, and your air conditioner will run nearly non-stop from May through September. A typical Phoenix metro household can expect to pay $250 to $500 per month in electricity during peak summer and for larger homes, those bills go even higher.
But here's what most people don't know before they move here: Arizona homeowners have significantly more control over those bills than they realize. The difference between a neighbor paying $500 a month and one paying $280 for the same size home often comes down to a handful of smart choices some free, some modestly priced, and some that pay for themselves within a single summer.
I share this with every buyer I work with because understanding your utility costs before you move is part of making a truly informed relocation decision. And knowing how to manage them makes Arizona's summers genuinely livable not just survivable.
Here's everything you need to know.
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First: Understand What's Actually Driving Your Bill
Your AC accounts for 60 to 70% of your summer electricity usage. All the LED bulbs and smart power strips in the world won't move the needle if you're bleeding electricity through an inefficient cooling system.
This is the most important thing to understand about Arizona electricity costs: it's almost entirely about the air conditioner. Unlike colder climates where heating, water heating, and lighting are all significant contributors, Arizona's summer bill is dominated by one thing cooling. Every strategy on this list is designed to either make your AC work less or work more efficiently.
A typical summer electricity breakdown: AC makes up 50 to 70% of total usage, with water heating, appliances, and lighting making up the remainder.
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The Free Wins: Tips That Cost Nothing
1. Raise Your Thermostat Even a Degree or Two Makes a Significant Difference
This is the most impactful free change you can make.
For every one degree you raise your thermostat, you can save 2 to 3 percent on energy cooling costs. SRP estimates you could save up to 3% on cooling costs for each degree over 80. That savings could really add up when your summer electric bill is $300 or more.
DOE guidance notes that each degree you raise your thermostat above 72°F can reduce cooling costs by up to 3%. Many Arizona utilities interpret this as roughly a 6 to 8% increase in cooling costs when homeowners set their thermostat below 78°F during peak summer heat.
The practical takeaway: setting your thermostat at 78°F instead of 72°F could reduce your cooling costs by 15 to 18%. On a $400 summer bill, that's $60 to $72 per month in savings just by adjusting a number. Keeping your thermostat at 82°F may not sound cool enough, but when the temperature outside is over 110, coming inside to an 80° room still feels plenty cool. Many experienced Arizona residents keep their thermostats at 80 to 82°F during the day and report being completely comfortable especially with ceiling fans running.
2. Switch Your Thermostat Setting from "ON" to "AUTO"
Switch the setting on your thermostat from "ON" to "AUTO" for a quick savings boost. On the AUTO setting, your fan will only engage when it's time to cool the place down, rather than remaining constantly in motion.
This one takes about 10 seconds to do and costs nothing. The "ON" setting runs your fan continuously even when the AC isn't actively cooling. The "AUTO" setting only runs the fan when cooling is needed. The energy difference adds up significantly over a month of continuous summer operation.
3. Close Your Blinds and Curtains During the Day
Closing your curtains and/or blinds reduces the amount of sunlight and heat streaming into your home. It's easy to do and won't cost you a thing.
West-facing and south-facing windows are the most significant heat contributors during Arizona afternoons. Closing blinds and curtains on the sunny side of your home during peak hours typically 10 AM to 6 PM meaningfully reduces how hard your AC has to work. Yes, it feels a little cave-like. You'll get over it.
4. Run Appliances at Night
Heating up water for laundry actually consumes a huge amount of energy throughout the year. Whenever possible, wash your laundry in cool or cold water. Kitchen appliances are notoriously inefficient and add heat to your home. When you are using your kitchen during the day, your AC has to work harder. The best thing to do is to keep your cooking limited to the morning and evening.
Your oven, dishwasher, dryer, and even cooking on the stovetop all add heat inside your home forcing your AC to work harder to compensate. Shifting these activities to early morning or evening hours reduces the peak cooling load during the hottest part of the day.
5. Use Ceiling Fans Strategically and Turn Them Off When You Leave
Set ceiling fans to rotate counter-clockwise to create a breeze that makes you feel cooler. Turn off when you leave fans cool people, not rooms.
Ceiling fans allow you to feel comfortable at a higher thermostat setting effectively giving you the sensation of a room that's 4 to 6 degrees cooler without actually lowering the AC setting. But the key word is "feel" fans only work when you're in the room. Running fans in empty rooms wastes electricity without any benefit. Turn them off when you leave.
6. Seal Air Leaks Around Doors and Windows
The first thing you need to do is ensure that the cool air from your AC is not escaping outside. This means closing and locking all windows, then shutting blinds and drapes to further deter heat transfer. Check your fireplaces to ensure that air is not escaping through a chimney flue. You can buy home efficiency kits that help you seal up your doors and windows even better.
Installing shades on sunny windows, planting shade trees, and caulking around doors, windows, and sill plates can help reduce cooling costs.
A quick walk around your home feeling for air movement near doors, windows, and electrical outlets tells you where you're losing cool air. Weatherstripping, caulk, and door sweeps are inexpensive fixes that pay for themselves quickly.
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The Arizona Insider Strategy: Pre-Cool Before Peak Hours
This is the tip that separates experienced Arizona residents from newcomers and it works remarkably well once you get the rhythm of it.
Here's the concept: instead of running your AC hard during peak hours (typically 3 PM to 8 PM on weekdays when electricity costs the most on time-of-use plans), you pre-cool your home before peak hours start, then raise the thermostat a few degrees during peak hours so the AC runs minimally or not at all.
How to do it in practice:
Step 1: Cool your home down before 3 PM. In the hour or two before peak hours begin, set your thermostat lower than usual say 74 to 76°F and let your AC cool the home down. Your home's thermal mass (the walls, floors, and furniture) absorbs that coolness and holds it.
Step 2: Raise the thermostat at 3 PM. When peak hours begin, raise your thermostat to 80 to 82°F. Your home won't immediately feel warmer it will coast on the coolness it stored. The AC may not need to run at all for the first hour or two.
Step 3: Let the temperature drift up gradually. Because your home is well-sealed and the cooler air is already inside, the temperature rises slowly even as the AC runs minimally. You might go from 76°F at 3 PM to 80°F by 5 PM while the AC barely runs and you're paying off-peak rates for what little it does run.
Step 4: Resume normal cooling after 8 PM. Once peak hours end and off-peak rates kick back in, lower your thermostat back to your comfort setting and let the AC bring the house back down.
Why it works: Thermal mass. Your walls, floors, furniture, and even the air itself hold temperature. A well-insulated home pre-cooled to 76°F at 2 PM won't reach 82°F until hours later even with the AC running at reduced capacity. You're essentially using the off-peak cheap electricity to "bank" coolness that carries you through the expensive peak window.
The real-world savings: Households on SRP Time-of-Use or APS Time-of-Use plans that specifically practice pre-cooling report peak-hour AC run time dropping by 50 to 70% during the 3 PM to 8 PM window. On a $400 summer bill, shifting that load to off-peak hours and reducing peak-hour run time can save $80 to $150 per month.
Tips to make it work better:
Close all blinds on west-facing windows before peak hours begin this dramatically slows heat gain during the hottest afternoon hours and makes your pre-cooled air last longer.
Run ceiling fans during peak hours they make a 80°F room feel like 75°F, so you're comfortable at a higher thermostat setting without any AC running.
Avoid heat-generating activities during peak hours cooking, running the dishwasher, doing laundry these all add heat inside and force the AC to kick on. Save them for after 8 PM.
If you have a smart thermostat, program this schedule in set it to pre-cool to 76°F by 2:45 PM, raise to 80 to 82°F at 3 PM, and return to comfort setting at 8 PM. Once programmed, you never have to think about it again.
This strategy is specifically powerful because it combines two benefits: you're using less electricity during peak hours (the AC runs less) AND you're paying lower rates for whatever electricity you do use (off-peak pricing). It's the closest thing to a "cheat code" for Arizona summer electricity bills.
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The Game Changer: Switch to a Time-of-Use Billing Plan
This is the tip that most new Arizona residents don't know about and it can produce some of the most significant savings of anything on this list.
Sign up for an off-peak billing plan like APS Cool Cash or SRP Time-of-Use to get lower rates for shifting electricity usage outside of 3 PM to 8 PM on weekdays
Both of Arizona's major utilities APS (Arizona Public Service) and SRP (Salt River Project) offer time-of-use billing plans that charge significantly less per kilowatt-hour during off-peak hours and more during peak hours (typically 3 PM to 8 PM on weekdays during summer).
Each month, you'll find a box on page one of your bill that shows your current plan and the plan that would save you the most money based on your energy usage over the past 12 months.
The strategy: if you can shift electricity-heavy activities running the dishwasher, doing laundry, charging electric vehicles, running the pool pump to after 8 PM or before 3 PM on weekdays, you can dramatically reduce your bill without reducing your comfort. Many Arizona households save $50 to $150 per month simply by switching plans and adjusting when they run appliances.
Both major electric utilities in Phoenix APS and SRP offer optional time-of-use plans. Take advantage of off-peak hours usually at night and on weekends.
Action step: Call APS or SRP, explain your household's schedule, and ask which billing plan saves you the most based on your usage patterns. This call takes 15 minutes and the savings are immediate.
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The Moderate Investment Wins: Low Cost, High Return
Install a Smart or Programmable Thermostat
Smart thermostats can help save money on cooling costs and make it easier to manage your energy use. Install a smart or programmable thermostat to automatically optimize your AC settings and save energy.
A smart thermostat Nest, Ecobee, or a comparable brand runs $150 to $250 installed and typically pays for itself within one Arizona summer. The key benefit: it automatically raises the temperature when you're away and lowers it before you return, eliminating the constant full-cooling of an empty house.
Many Arizona utilities also offer rebates for smart thermostat installation reducing the out-of-pocket cost further. Check APS.com or SRP.net for current rebate programs before purchasing.
Change Your AC Filter Monthly During Summer
Monthly filter changes are non-negotiable during dust season February through May, check your filter every 3 to 4 weeks. A clogged filter restricts airflow, forcing your blower motor to work harder and reducing cooling capacity by 15 to 25%. At $0.15 per kWh, that's $60 to $100 monthly in wasted electricity for a typical home.
This is the simplest maintenance task with the most immediate impact. A dirty filter makes your AC system work harder to push air through, increasing energy consumption dramatically. In Arizona's dusty environment, this happens faster than in cleaner-air climates. Set a monthly reminder from May through September a $5 to $15 filter change prevents $60 to $100 in wasted monthly electricity.
Have Your AC Professionally Serviced Before Summer
Annual coil cleaning: your outdoor condenser coils dissipate heat. When coated in dust, they can't release heat efficiently, causing your compressor to run longer and hotter. Professional coil cleaning costs $75 to $150 and pays for itself in one month of summer operation. Condensate drain clearing prevents safety shutoffs or water damage.
A pre-summer AC tune-up typically $100 to $150 is one of the highest-return investments an Arizona homeowner can make. The technician cleans the condenser coils, checks refrigerant levels, clears the condensate drain, and ensures the system is operating at peak efficiency before the five months of continuous heavy use begin. A system running at 85% efficiency versus 95% efficiency on a $400 monthly bill costs you $40 more per month more than enough to justify the annual tune-up cost.
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The Bigger Wins: Investments That Pay Long-Term
Upgrade to a High-SEER AC Unit
A modern 16-plus SEER AC unit can cut cooling costs 30 to 40% compared to a 10-year-old unit.
SEER stands for Seasonal Energy Efficiency Ratio the higher the number, the more efficiently the unit cools. An older 10-SEER unit running against a new 18-SEER unit produces the same cooling at dramatically lower electricity consumption. If your AC system is approaching 10 to 15 years old in Arizona where systems work harder and wear faster than in milder climates upgrading before it fails completely is the financially smarter choice. You choose the timing and the unit rather than replacing an emergency failure at emergency pricing in July.
Ensure Your Attic Insulation Is Adequate
Proper insulation can keep your home cool longer, reducing the workload on your AC unit. Consider adding attic insulation or checking existing insulation levels.
In Arizona, attic temperatures can exceed 150°F on peak summer days. If your attic insulation is inadequate, that heat radiates down through your ceilings and forces your AC to work continuously to compensate. Attic insulation upgrades typically $1,000 to $3,000 depending on attic size can meaningfully reduce cooling loads and are among the higher-return home improvements in Arizona's climate.
New construction homes in Gilbert, Queen Creek, and the surrounding East Valley typically include radiant barrier roofing and adequate insulation as standard features one of the specific advantages of newer construction in Arizona's extreme climate.
Consider Solar
Take advantage of solar panel incentives and tax credits to generate your own clean, affordable energy. Arizona ranks in the top 5 states for rooftop solar potential.
Arizona gets more sun than almost any state in the country making it one of the nation's best environments for rooftop solar to actually produce meaningful energy offsets. The federal solar investment tax credit of 30% applies to qualifying Arizona solar installations, and some Arizona utilities offer additional incentives.
Solar is a larger investment typically $15,000 to $30,000 for a residential system before incentives but for homeowners planning to stay long-term, the 7 to 12-year payback period followed by decades of dramatically reduced utility bills makes it one of the most financially compelling home improvements available in the state.
If you're buying a home with existing solar panels, understand whether the system is owned or leased leased solar transfers to the buyer and affects the sale process in specific ways that need to be disclosed and understood before closing.
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The New Construction Advantage: Built for Arizona's Climate
If you're moving to Arizona and buying a new construction home in the East Valley Gilbert, Queen Creek, San Tan Valley, or the surrounding communities you're getting a specific and meaningful advantage on electricity costs built right into the home.
Choosing new construction homes in Gilbert can lead to estimated utility savings of $150 to $250 per month compared to older builds, particularly during the intense Arizona summer. These savings stem from advanced insulation and high-efficiency HVAC systems that older homes lack.
New construction homes in Arizona's master-planned communities are built to current energy codes significantly more stringent than even 10 years ago. What this means in practice:
Radiant barrier roofing a reflective layer beneath the roof that blocks heat from radiating through the ceiling into the living space. Standard in most Arizona new construction. Dramatically reduces attic temperatures compared to homes without it.
High-SEER HVAC systems new construction homes come with high-efficiency AC units (typically 16-SEER or higher) versus the aging 10 to 12-SEER systems common in older resale homes.
Dual-pane low-E windows modern window technology that significantly reduces solar heat gain compared to single-pane windows common in pre-2000 construction.
Better insulation and air sealing new construction building envelopes are tested and sealed to current standards, eliminating the air leakage that makes older homes expensive to cool.
The $150 to $250 per month difference in summer electricity between a new construction home and a comparably sized 2005 resale home is real and over five years, that's $9,000 to $15,000 in additional utility costs for the older home buyer. It's a factor worth including in any new-versus-resale comparison.
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Your Arizona Electric Utility: APS or SRP?
Which utility serves you depends entirely on your home's location you don't choose between them.
APS (Arizona Public Service) serves most of Maricopa County including Gilbert, most of Queen Creek, Scottsdale, Peoria, and the majority of the Phoenix metro.
SRP (Salt River Project) serves portions of the East Valley including Mesa, Tempe, Chandler, and portions of Gilbert and Queen Creek depending on your specific address.
Both offer time-of-use billing plans. When you move to your new Arizona home, call your utility provider, describe your household schedule, and ask which plan saves you the most money based on your usage patterns. This one call consistently produces meaningful savings for households that shift even a modest amount of electricity usage to off-peak hours.
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What to Expect Your First Arizona Summer
I tell every buyer I work with: budget $250 to $400 per month in electricity from June through September for a typical Phoenix metro home. This is the honest number not the worst case, not the best case, but the realistic range for a typical 2,000 to 2,500 square foot home with a reasonably efficient AC system.
With the strategies in this guide time-of-use billing, smart thermostat, thermostat at 78 to 80°F, closed blinds during peak hours, monthly filter changes many households bring that number down to $150 to $250. New construction buyers with high-SEER systems and radiant barrier roofing often do better still.
The first summer is always the learning curve. The second summer, having calibrated your specific home's behavior, most Arizona residents report feeling genuinely in control of their utility costs and far less surprised by the bill.
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Frequently Asked Questions: Arizona Electric Bills
What is the average electric bill in Arizona in summer?
While homeowners in Ohio worry about $150 summer bills, Phoenix residents are looking at $400 to $600 monthly hits from June through September for a typical home without optimization. With the strategies in this guide, most households can reduce this to $150 to $300 depending on home size and AC efficiency.
What temperature should I set my thermostat in Arizona summer?
Set your thermostat to 78°F during the day and use ceiling fans to feel cooler while saving energy. Many experienced Arizona residents keep it at 80 to 82°F during peak hours with ceiling fans running and report being comfortable. Every degree above 78°F saves approximately 2 to 3% on cooling costs.
What is the best billing plan for APS or SRP in summer?
Sign up for an off-peak billing plan like APS Cool Cash or SRP Time-of-Use to get lower rates for shifting electricity usage outside of 3 PM to 8 PM on weekdays. Call your utility, describe your household's schedule, and ask which plan saves you the most based on your usage patterns.
Does new construction really save on electricity in Arizona?
Yes new construction homes in Gilbert and the East Valley can lead to estimated utility savings of $150 to $250 per month compared to older builds during the intense Arizona summer, due to modern insulation, high-SEER AC systems, radiant barrier roofing, and dual-pane windows.
Is solar worth it in Arizona?
Arizona ranks in the top 5 states nationally for rooftop solar potential. With the 30% federal tax credit and Arizona's sun exposure, solar payback periods of 7 to 12 years are common followed by decades of significantly reduced utility bills. For long-term homeowners, it's one of the highest-return home improvements available in the state.
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Ready to Move to Arizona?
Understanding your electricity costs before you move and knowing exactly how to manage them is part of making a truly informed relocation decision. Arizona summers are real. So is the ability to manage your bills intelligently.
I help buyers across the Phoenix metro find the right home for their budget, their lifestyle, and their long-term financial picture including understanding the total monthly cost of homeownership beyond just the mortgage payment.
If you're considering moving to the East Valley Gilbert, Queen Creek, Chandler, San Tan Valley, or anywhere in the surrounding communities I'd love to be your local expert and guide.
Let's talk about making your Arizona move the right one.
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Work With Alejandra
Alejandra Paladino, REALTOR®**
eXp Realty
Call or Text: [480.382.0519]
Book a Free Call: [zoomtoarizona.com]
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Search Arizona Homes: [azalejandra.com]
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