Electricity Rates in California
Average residential electricity cost, utility comparison, and solar savings potential for California homeowners.
California Electricity Cost Overview
The average residential electricity rate in California is $0.28 per kWh, which is 75% above the national average of $0.16/kWh.California homeowners pay an average of $256 per month for electricity, based on typical usage of 913 kWh per month.
California electricity rates have increased over 40% in the past 5 years, driven by wildfire mitigation costs and grid infrastructure upgrades. Rates are projected to continue rising, making solar an increasingly attractive investment for homeowners.
Major Electric Utilities in California
| Utility Company | Avg Rate ($/kWh) | Customers | Est. Monthly Bill |
|---|---|---|---|
| Pacific Gas & Electric (PG&E) | $0.30 | 5.5M | $274 |
| Southern California Edison (SCE) | $0.27 | 5M | $247 |
| San Diego Gas & Electric (SDG&E) | $0.32 | 1.4M | $292 |
California has a deregulated electricity market, which means you can choose your electricity supplier. Shopping for a competitive rate can lower your bill.
How Solar Compares to California Electricity Rates
Without Solar
- Monthly bill: $256
- Annual cost: $3,072
- 25-year cost: $76,800
- Rate trend: Rising 2-5% annually
With Solar
- Monthly savings: $243
- Annual savings: $2,916
- 25-year savings: $50,000
- Rate: Locked in for 25+ years
Electricity Rates FAQ - California
The average residential electricity rate in California is $0.28 per kilowatt-hour (kWh), which is 75% above the national average of $0.16/kWh. The average monthly electric bill is approximately $256.
With solar panels, California homeowners can reduce their electricity costs by approximately 95%, saving around $243 per month or $50,000 over 25 years. The 30% federal tax credit further reduces the upfront cost.
The largest electric utilities in California include Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E). Rates vary between utilities, so your exact cost depends on your provider and usage.
Yes, electricity rates in California have been increasing over time, following national trends of 2-5% annual increases. This upward trend makes solar panels an increasingly attractive investment since they lock in your energy costs for 25+ years.
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