Electricity rates in Arizona

Households in Arizona pay an average of 15.18¢ per kilowatt-hour, below the national average of 18.34¢. That is down 0.3% from 15.23¢ in the same month a year earlier.

What that price means in practice

A price per kilowatt-hour is hard to feel. Here is the same number expressed as money. The most expensive item in the table below is electric furnace, which at 15.18¢ costs about $2,493 a year in Arizona against $3,012 at the national average — a saving of $519 a year for the identical appliance used in the identical way.

Widen that to the five heaviest users in a typical home and the gap compounds: about $6,198 a year in Arizona versus $7,488 nationally. None of that is a difference in how much electricity you use. It is the same consumption at a different price.

What appliances cost to run in Arizona

Estimated annual cost at 15.18¢ per kilowatt-hour, using typical wattage and usage. Open any appliance to adjust both.

Prices here moved -0.3% over the past year. See how rare a fall like Arizona’s was this year.

A statewide average is not what any single household pays. Find the rate on your own bill to see how far Arizona’s average sits from yours, or read why the spread between states is this wide.

Business electricity rates in Arizona

Businesses do not pay the residential rate. EIA publishes commercial and industrial averages separately, and the gap between them is one of the larger and less discussed differences in US electricity pricing.

Residential

15.18¢

homes

Commercial

12.47¢

shops, offices, restaurants

Industrial

7.73¢

manufacturing, large plant

A small business in Arizona paying the commercial average of 12.47¢ pays about 18% less per kilowatt-hour than a household here. On a commercial refrigeration or HVAC load running most of the day, that difference compounds into real money — a single 3 kW load running 12 hours a day comes to roughly $1,639 a year at the commercial rate.

Commercial and industrial customers are usually billed on demand charges and time-of-use tariffs as well as per kilowatt-hour, so a real bill will not match a flat average. Treat these as a baseline for comparing states, not as a quote.

Statewide average across all residential customers in Arizona for June 2026. Your own utility’s price may differ, and the figure excludes fixed charges and taxes. Source: EIA Electric Power Monthly, Table 5.6.A.