Understanding Utilities in Tempe

Here’s what typical utility costs look like in Tempe. For most households, monthly utilities include electricity, water, trash, natural gas, and recycling. The average household spends $200–$350 per month on utilities in Tempe, with costs varying based on home size, season, and usage patterns.

Utilities cost in Tempe can fluctuate significantly throughout the year. Electric bills often spike in the scorching summer months as air conditioning runs constantly to keep homes comfortable in the desert heat. Water usage also tends to rise for irrigation and pools. In winter, natural gas costs increase as furnaces and heaters work harder.

Monthly Utility Estimates

Wondering how much your monthly bills might run? Here’s a quick breakdown for a typical home in Tempe:

Utility Estimated Monthly Cost
Electricity $100 – $250
Water $50 – $80
Natural Gas $20 – $50
Trash & Recycling $30 – $40
Total $200 – $420

Estimates reflect a mid-size household in a single-family home.

Keep in mind these are just averages. Your actual utility expenses will depend on factors like the size and age of your home, the efficiency of your appliances and HVAC system, and your family’s usage habits. If you have a pool, work from home, or keep your thermostat set very low, expect to see higher bills.

A father sits on a couch in a ranch home living room in Tempe, AZ while his daughter plays nearby on a hot day.
Keeping cool in the summer heat is a constant challenge – and expense – for Tempe families.

Seasonal Utility Changes in Tempe

In desert cities like Tempe, utility costs can swing dramatically between the mild winters and scorching summers. While natural gas bills for heating remain relatively low from November through March, electricity usage skyrockets in June, July and August. It’s not uncommon for air conditioning to drive electric bills up 2–3x compared to spring, as residents keep their homes cool in the intense 100°F+ heat.

Water costs also vary seasonally in Tempe. Dry summers mean higher irrigation needs for lawns and landscaping. Pools and swamp coolers further increase H2O usage. According to city data, the average Tempe household uses 30% more water in July than January. So expect your combined water/sewer/trash bill to swell accordingly in the hottest months.

Here’s a quick stat to illustrate the summer spike: Electric bills in Tempe often double in July compared to April. While spring and fall provide a nice respite, be prepared for some sticker shock as the mercury rises. Check out our guide on How High Summer Energy Bills Can Get in Tempe for more details.

How to Save on Utilities in Tempe

While utility costs in Tempe can add up quickly, especially in summer, there are several ways for savvy residents to keep bills under control:

  • Sign up for off-peak billing programs like SRP’s Time-of-Use plan or APS’s Saver Choice to get lower rates for using electricity during non-peak hours
  • Take advantage of solar panel incentives and tax credits to generate your own clean, affordable energy
  • Install a smart thermostat to optimize your AC usage and avoid wasting energy cooling an empty house
  • Plant shade trees near your home to provide natural cooling and reduce the load on your air conditioner
  • Upgrade to energy-efficient appliances, especially for high-usage items like refrigerators, washing machines, and dishwashers

🏆 Tip: Check if your utility provider offers rebates for installing an energy-efficient AC unit. With cooling driving such a large portion of electric bills, even a small efficiency boost can lead to major savings.

For more ideas, read our guide on Hidden Fees to Watch Out for When Living in Tempe. A few small adjustments can help keep more money in your pocket as temperatures soar.

FAQs About Utility Costs in Tempe

What is the average electric bill in Tempe during summer?
For a typical single-family home, expect to pay $200-$350 per month for electricity in June, July and August. Bills can spike even higher for large homes or inefficient AC units.

Do HOAs cover any utilities?

In most cases, no. While HOA fees often include shared amenities and exterior maintenance, individual residences are typically responsible for their own electric, water and gas. However, some condo and townhome communities may include certain utilities like trash in the monthly dues. Always verify with your HOA directly.

Is water more expensive in Tempe than nearby cities?
Water rates in Tempe are comparable to other municipalities in the Phoenix metro area. However, some smaller suburbs like Gilbert and Chandler have slightly lower costs due to newer infrastructure and lower population density. For a full comparison, see our guide on Internet and Streaming Costs in Tempe.

Smarter Utility Planning in Tempe

For Tempe residents, utility costs are a significant part of the monthly budget – but they don’t have to break the bank. By understanding seasonal swings, taking advantage of off-peak hours, and making energy-smart upgrades, you can keep bills manageable even in the peak of summer.

Of course, utilities are just one piece of the cost-of-living puzzle. As you’re budgeting for life in Tempe, make sure to factor in housing, transportation, food and entertainment too. With a little planning and savvy, you can enjoy all this vibrant desert city has to offer without sweating your wallet.