Beatrice Lang
California has some of the highest electricity rates in the United States. As of 2024, California's electricity prices were the second highest in the nation, with PG&E charging an average residential rate of $0.397 per kilowatt-hour. This is a 128% increase over the last decade. The average electric rate in California is 30 ¢/kilowatt-hour (kWh), which is 47% higher than the national average rate of 20 ¢/kWh. On average, California residents spend about $260 per month on electricity, which is 5% higher than the national average.
| Characteristics | Values |
|---|---|
| Average electricity rate | 30 ¢/kWh |
| Average monthly electric bill | $260/month |
| Average monthly consumption | 870 kWh |
| Average yearly consumption | 10440 kWh |
| Average yearly spending | $3,120 |
| Average yearly spending nationally | $2,960 |
| % higher than national average | 5% |
| Projected spending over 25 years | $168,900 |
| Projected spending over 30 years | $93,000 |
| Average rate for PG&E customers | $0.397 per kilowatt hour |
| Average rate for San Diego Gas and Electric customers | $0.383 per kilowatt hour |
| Average rate for Southern California Edison customers | $0.338 |
| CARE discount | 20-35% |
| FERA discount | 18% |
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What You'll Learn
California's electricity prices are the second-highest in the US
California's electricity prices are the second-highest in the United States, with an average residential rate of $0.397 per kilowatt-hour. This is a dramatic increase from the previous decade, with rates having risen by 128%. The average electricity customer in California uses 870 kWh of electricity per month, resulting in an average monthly electric bill of $260. This is 5% higher than the national average electric bill.
There are several factors contributing to California's high electricity prices. One of the main factors is the cost of renewable energy sources, such as solar power. While solar power can help reduce monthly electric bills, the upfront cost of installing solar panel systems can be significant. On average, a 5.8 kW solar panel system in California costs $13,000 before incentives. However, investing in solar can lead to substantial savings over time, especially with the state's abundant sunlight hours.
Additionally, the state's investor-owned utilities have played a role in driving up electricity prices. PG&E, in particular, has been noted for its dramatic rate increases, with a 20% hike in residential electricity rates for about 16 million Californians in 2024. PG&E's rates are significantly higher than those of other utilities in the state, such as San Diego Gas and Electric, and Southern California Edison.
To assist residents with the high cost of electricity, California offers various programs and discounts. The state's Alternative Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) Programs provide monthly discounts of 20-35% and 18%, respectively, for income-qualified utility customers. Additionally, the Energy Savings Assistance Program (ESA) offers no-cost weatherization services for income-eligible renters and homeowners, providing energy-efficient appliances and improvements to reduce energy costs.
While California's electricity prices are among the highest in the nation, there are efforts to mitigate the financial burden on residents through energy efficiency programs and renewable energy initiatives. By encouraging the adoption of solar power and providing assistance to those in need, the state aims to balance the high cost of electricity while promoting a cleaner energy future.
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PG&E's 20% rate hike in February 2024
California has some of the highest electricity rates in the country. The average residential electricity rate in California is 30 ¢/kWh, which is 47% higher than the national average rate of 20 ¢/kWh. On average, California residents spend about $260 per month on electricity, adding up to a yearly cost of $3,120.
PG&E, or the Pacific Gas and Electric Company, provides utility services to residents across Northern and Central California. In February 2024, PG&E announced a 20% rate hike, marking the fifth or sixth rate increase for the utility in 2024. This increase added about $34.50 to the monthly bills for typical households, which use about 500 kilowatt-hours of electricity each month, according to the company's estimates.
The rate hike was approved by the California Public Utilities Commission and is intended to help fund vegetation management and extend the operation of the Diablo Canyon Power Plant in San Luis Obispo County. PG&E also attributes the increase to expenses incurred from responding to emergencies, including 15 major storms that hit Northern California in the winter of 2023.
PG&E customers have expressed outrage over the continuous rate hikes, with some struggling to keep up with their bills. While there was a 9% electric rate decrease in July 2024, the cumulative effect of these increases has resulted in higher overall costs for residents. It is important to note that income-eligible customers can apply for discounts through programs like the California Alternate Rates for Energy (CARE) Program or the Family Electric Rate Assistance (FERA) Program.
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Discounts and assistance programs for customers
The average residential electricity rate in California is 30 cents per kilowatt-hour (kWh), which is 47% higher than the US national average of 20 cents per kWh. The average monthly electric bill for residential customers in California is $260 per month.
California has a Low-Income Oversight Board (LIOB), which advises the PUC on energy low-income assistance programs. The state also offers the California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) financial assistance programs. These programs help income-qualified families of all sizes lower their monthly energy bills.
California Alternate Rates for Energy (CARE)
The CARE program offers a monthly discount on energy bills for qualifying nonprofit group-living facilities. Electrical companies with 100,000 or more customer accounts in California offer a 30%–35% discount on bills. Companies with fewer than 100,000 customer accounts offer a 20% discount. The program is funded through a rate surcharge paid by all other utility customers.
To qualify for CARE, you must meet the income limits, which may be adjusted annually for inflation. You may also be eligible if you are enrolled in public assistance programs such as:
- Medicaid/Medi-Cal
- Women, Infants and Children Program (WIC)
- Healthy Families A & B
- National School Lunch’s Free Lunch Program (NSL)
- Food Stamps/SNAP
- Low-Income Home Energy Assistance Program (LIHEAP)
- Supplemental Security Income (SSI)
- Temporary Assistance for Needy Families (TANF)
Family Electric Rate Assistance (FERA)
Families whose household income slightly exceeds the CARE allowances will qualify to receive FERA discounts, which apply an 18% discount to their electricity bill. FERA is available for customers of Southern California Edison, San Diego Gas and Electric Company, and Pacific Gas and Electric Company.
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Solar systems can reduce electricity costs
The average electricity rate in California is 30 cents per kilowatt-hour (kWh), which is 47% higher than the national average of 20 cents per kWh. This means that the average electricity customer in California is using 870 kWh of electricity per month, resulting in a monthly electric bill of $260. Over 25 years, this will amount to $168,900.
- Reducing monthly electric bills: Solar panels can offset a significant portion of a home or business's energy demand, leading to substantial savings over time. Even if solar panels only reduce the bill by half, the savings can amount to thousands of dollars over the lifespan of the solar system.
- Locking in electricity rates: Transitioning to solar energy allows individuals to lock in their electricity rates for the lifespan of the system, protecting them from volatile utility rate increases.
- Reducing dependence on fossil fuels: Solar power, combined with battery energy storage systems, can reduce a company's or household's reliance on fossil fuels, which are subject to price spikes and supply fluctuations.
- Increasing home value: Solar panels are viewed as valuable upgrades, with studies showing that solar homes can increase in value by an average of $15,000.
- Reducing greenhouse gas emissions: Each kilowatt-hour (kWh) of solar energy generated helps reduce greenhouse gas emissions, such as CO2, and other dangerous pollutants.
The upfront costs of installing a solar system can be high, but the payback period is often less than 10 years, and the long-term savings can be significant, especially in areas with high electricity rates like California.
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California's solar farms generated the most megawatt-hours in April 2025
California has been making significant strides in solar energy production, and this trend continued in April 2025. The state's solar farms played a pivotal role in this achievement, generating a substantial amount of megawatt-hours during that month.
California has consistently ranked among the top states embracing solar power, and this commitment bore fruit in April 2025. The state's solar farms were pivotal in this accomplishment, harnessing the abundant sunlight to generate a significant amount of energy measured in megawatt-hours. This contribution reinforced California's leadership in renewable energy and set a precedent for future solar energy production.
While specific data on megawatt-hours generated by solar farms in April 2025 is not readily available, we can extrapolate from subsequent reports. According to ChooseEnergy.com's August 2025 solar energy generation report, California produced 24.1% of the nation's total solar energy in that month. This equates to 38,965 thousand megawatt-hours, with California being the top contributor.
In the preceding months, California's solar generation had already surpassed that of natural gas, marking a pivotal moment in the state's energy landscape. Between April 2024 and April 2025, solar energy production in the state experienced a notable increase. During this period, California's total solar generation reached 83.1 terawatt-hours, with solar accounting for approximately 33.9% of the state's electricity.
California's solar farms have been instrumental in this success, with large-scale installations like the Topaz Solar Farm, Desert Sunlight Solar Farm, and California Valley Solar Ranch contributing significantly to the state's renewable energy goals. The state's battery storage capacity has also played a pivotal role, enabling the storage of excess solar energy during non-peak hours for discharge when demand is high. This integration of solar power and battery storage has allowed California to effectively manage its electrical grid and maintain a stable supply of renewable energy.
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Frequently asked questions
As of May 2024, California had the highest electricity prices in the contiguous United States. The average electricity rate in the state is 30 cents per kilowatt-hour (kWh), which is 47% higher than the national average of 20 cents per kWh.
California's electricity rates are high due to various factors, including the state's reliance on costly fossil fuels and the slow pace of state approvals for rate changes. Additionally, the cost of shipping oil to the state can impact electricity prices.
California's electricity rates are among the highest in the nation, second only to Hawaii. The average residential electricity rate in the state is $0.397 per kilowatt-hour, with San Diego Gas and Electric charging $0.383 and Southern California Edison charging $0.338.
