Wiktor Wise
California's electricity rates are among the highest in the country, with an average rate of 31.66 cents per kWh. This is significantly higher than the national average of 20 ¢/kWh. However, there are several ways to reduce your electricity bill in California. For instance, you can install solar panels, take advantage of community solar projects, or use more efficient appliances. Additionally, California offers various assistance programs for income-qualified households, such as the Energy Savings Assistance Program (ESA) and the California Alternative Rates for Energy (CARE) discount program. By exploring these options and making energy-efficient choices, California residents can find ways to lower their electricity costs.
| Characteristics | Values |
|---|---|
| Average electricity rate in California | 30-31.66 ¢/kWh |
| Average electricity customer's usage in California | 864.15 kWh/month |
| Average monthly bill in California | $155.45 |
| Cheapest electricity rates in the US | North Dakota, 10.21 ¢/kWh |
| Most expensive electricity rates in the US | Hawaii, 42.34-42.69 ¢/kWh |
| Average electricity bill in the US | $2,514/year |
| Average electricity usage in the US | 855 kWh/month |
| California's solar power generation | 5,206 thousand megawatt-hours (highest in the US) |
| Ways to reduce electricity bill | Using less electricity, installing solar panels, subscribing to a community solar farm, using more efficient appliances, purchasing smart thermostats, using Time-of-Use rate plans |
| Discount programs in California | California Alternative Rates for Energy (CARE), Family Electric Rate Assistance (FERA), Medical Baseline Rate Program, Energy Savings Assistance Program (ESA), community solar projects |
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What You'll Learn
California's solar farms and small-scale solar power systems
California has been home to some of the world's largest solar facilities over the past 20 years. The state has been a leader in solar power, with many large-scale solar farms and small-scale solar power systems.
One of the earliest large-scale solar facilities in California was the 354 MW Solar Energy Generating Systems plant in San Bernardino County, which held the record for the largest such facility until 1991. Since then, there has been a sharp increase in solar development, with the state adopting feed-in tariffs to encourage the solar power industry and proposing initiatives to create a small-scale solar market. By the end of 2013, California had 490 MW of concentrated solar power and 5,183 MW of photovoltaics capacity in operation.
Some of the notable large-scale solar farms in California include:
- Topaz Solar Farm: A 550 MW power station in San Luis Obispo County, which held the title of the world's largest PV power plant when it was completed in November 2014.
- Desert Sunlight Solar Farm: A 550 MW facility in Riverside County, constructed by First Solar and operational since 2014.
- Solar Energy Generating Systems plant: A 354 MW facility located in San Bernardino County, which held the record for the largest solar facility until 1991.
- Ivanpah Solar Electric Generating System: A 392 MW solar thermal plant located in San Bernardino County near the Nevada border, surpassing the SEGS plant in 1991.
- Redwood Solar Cluster: A group of four smaller solar-generating stations located in Kern County, amounting to a total of 100 MW.
- California Flats Solar Project: A 280 MW photovoltaic power plant located in Monterey County, opened in May 2019.
In addition to these large-scale projects, California has also focused on small-scale solar power systems. The state has the technical potential to install 128.9 GW of rooftop solar panels, which would generate about 74% of the total electricity used in California in 2013. This approach is environmentally desirable as it conserves land by utilising existing structures for panel installation.
California also offers various incentives and programs to encourage the adoption of solar power. The statewide Self-Generation Incentive Program (SGIP) is the largest solar and storage incentives program in the US, providing services valued at over $1 billion annually. Additionally, the California Solar Initiative aims to install additional solar power capacity, including the Million Solar Roof Initiative.
On March 5, 2018, utility-scale solar energy met 50% of California's total electrical power demand, and on May 2, 2022, renewable energy sources met 100% of the state's electrical demand for the first time.
To reduce electricity costs, Californians can take advantage of solar power systems, either by installing their own or subscribing to a community solar farm. The average solar shopper in California pays around $13,000 for a 5.7 kW solar panel system, and with a $0-down loan, they can expect significant savings over time on their electric bills. For renters or those unable to install solar panels, community solar projects offer a way to receive a fixed discount on energy purchases with minimal upfront costs.
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Discount programs for income-qualified households
California has several discount programs for income-qualified households to help them pay for their electricity bills. Here are some of the notable programs:
California Alternate Rates for Energy (CARE)
The California Alternate Rates for Energy (CARE) program offers a discount on your electric bill, with the percentage depending on the number of customer accounts the electrical company has. Electrical companies with 100,000 or more customer accounts in California offer a 30% to 35% discount, while those with fewer than 100,000 customer accounts provide a 20% discount. Income limits for this program may be adjusted annually based on inflation.
Family Electric Rate Assistance (FERA)
The FERA program is another option for income-qualified households. It provides an 18% monthly discount on electric bills. Families with slightly higher incomes than the CARE allowances are typically eligible for FERA.
Energy Savings Assistance Program (ESA)
The Energy Savings Assistance Program (ESA) offers no-cost weatherization services for renters and homeowners who income-qualify for CARE. This includes providing energy-efficient appliances and equipment, such as refrigerators, furnaces, attic insulation, and low-flow showerheads.
Community Solar Projects
Community solar projects allow you to subscribe to a shared solar farm and receive a fixed discount on the energy you purchase from the project. Signing up is usually free, and you can save 5-15% on your electric bill.
Single-family Affordable Solar Homes (SASH)
The Single-family Affordable Solar Homes (SASH) program is a California initiative that offers free home solar systems to low- or fixed-income families. This can help reduce your electricity costs by generating your own power.
To find out more about these programs and determine your eligibility, you can contact your utility company, visit their websites, or explore community agency resources. These programs aim to provide financial relief to income-qualified households in California by reducing their electricity expenses.
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Time-of-use residential rate plans
Time-of-use (TOU) residential rate plans are designed to give customers more control over their energy costs. TOU plans are based on the time of day and the season, with lower rates during off-peak and super off-peak periods, and higher rates during peak hours when energy resources are in demand. This means that electricity prices are typically lower early in the day, overnight, and on weekends, while summer bills are likely to be higher than in winter.
The TOU rate plan is ideal for customers who can manage their energy habits and shift their energy usage to lower-cost times. For example, customers can save money by doing laundry and running the dishwasher overnight, and by adjusting their schedules to do everyday tasks at different times. TOU plans are also designed to support California's clean energy policies by encouraging energy usage when solar power is contributing to the power grid.
Customers can use the Rate Plan Comparison Tool to compare their current rate plan with TOU plans and see which works best for them. The tool provides a personalized comparison, taking into account the seasonal and monthly breakdown of projected costs.
In addition to TOU plans, there are other ways for California residents to reduce their electricity costs. These include:
- Installing solar panels: Solar panel systems can help reduce monthly electric bills, and there are incentives and rebates available for those who install solar.
- Community solar projects: It's usually free to sign up for a community solar project, and customers receive a fixed discount on any energy they buy from the project.
- Energy efficiency programs: All customers can check their local utility's website for residential energy efficiency programs to reduce costs, and there are also no-cost weatherization services available for income-qualified customers.
- Discounts: Customers can get discounts when purchasing smart thermostats and other products that help reduce energy usage.
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Community solar projects
California has been dedicating over $1 billion towards low-income and community renewable energy programs since 2007. The state's community solar programs have resulted in over 13,365 approved projects and 430 MW of solar capacity online or in process.
Community solar programs help support local renewable energy jobs and project development in California, connecting you directly to clean energy projects in your community. With community solar, you can subscribe to a share of a solar farm near you. If you have an electric bill, you can support renewables without installing anything on your property – and save money!
Virtual net metering (VNM) is a bill crediting system for community solar. It refers to when solar energy is not used on-site but is instead externally installed and shared among subscribers. In this case, you receive credits on your electric bill for excess energy produced by your share of a solar garden.
On average, most community solar subscribers in California receive a 5-15% discount off of traditional electricity costs over the course of a year. Signing up for community solar is extremely simple – all you need to do is enter your zip code to see a list of open community solar projects near you.
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Energy-efficient appliances
California has some of the highest electricity rates in the country, with an average residential rate of 30 ¢/kWh, 53% higher than the national average. Thus, it is important to be mindful of your energy usage and consider investing in energy-efficient appliances.
One of the biggest energy-consuming appliances is the HVAC system, which includes air conditioners and electric heaters. These appliances use a lot of energy to maintain a selected temperature and can account for up to 50% of your home's energy usage. To reduce energy costs, consider using your HVAC system less often, improving your home's thermal efficiency by sealing cracks and upgrading insulation, or switching to a more efficient system, such as a tankless water heater.
Another energy-draining appliance is the electric water heater, which is commonly found in homes. These heaters use a lot of electricity to constantly keep a large tank of water hot, contributing to a significant portion of your energy usage. To reduce this drain, you can opt for a more energy-efficient model, such as a tankless water heater, which only heats water on demand.
Refrigerators are another appliance that consumes a significant amount of energy over time due to being constantly turned on. Upgrading to a newer model with lower energy consumption watts can help reduce your energy bills. Additionally, consider recycling your old refrigerator responsibly.
For laundry, upgrading to a more energy-efficient washer and dryer can make a difference. Also, consider adopting smarter laundry habits, such as always washing full loads and air-drying clothes during the summer instead of using the dryer.
When it comes to cooking, traditional electric ovens can be some of the worst offenders for high energy consumption. Air fryers are a more energy-efficient alternative, as they heat up a smaller space and have faster preheat times. Microwaves are another energy-efficient option for cooking or reheating meals, as they heat only the food and not the air space inside.
California offers various programs to assist income-qualified individuals in improving their energy efficiency. The Energy Savings Assistance Program (ESA) provides no-cost weatherization services and energy-efficient appliances to eligible renters and homeowners. Additionally, California Alternative Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) Programs offer monthly discounts on electric bills for income-qualified utility and CCA customers.
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Frequently asked questions
There are a few ways to reduce the cost of your electricity bill in California. You can use less electricity, or you can reduce the cost of your electricity by installing solar panels.
On average, you will break even on your solar investment in 5.92 years in California, after which you may not owe anything on your electric bills.
Yes, you can save 5-15% on your electric bill by subscribing to a community solar farm. You can also take advantage of Time-of-Use (TOU) plans, which offer lower rates during off-peak hours.
Yes, California offers several programs to help reduce energy costs, including the California Alternative Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) Programs, which provide monthly discounts for income-qualified utility and CCA customers. You can also look into the Energy Savings Assistance Program (ESA), which provides no-cost weatherization services for income-qualified customers, and the Community Renewables Program, which allows you to work with developers on renewable energy projects in your community.
