California Electric Bills Are Rising Fast — Here’s What Homeowners Should Know

Written By Metin Saglam

California homeowners have seen their electric bills rise sharply over the last decade—and the trend is only accelerating. A new 10-year study from Energy Toolbase reveals just how dramatically utility rates have climbed, and why more families are turning to solar and battery storage to protect themselves.

Electric Bills Are Up 47%–104% in 10 Years

Energy Toolbase examined electric bill inflation across PG&E, SCE, and SDG&E. Their findings show:

  • 3.9% – 7.4% average yearly inflation depending on utility

  • 47% – 104% cumulative increase over 10 years

  • Bills rose faster than general inflation (28%)

SDG&E customers saw the steepest increases, but every major utility experienced significant cost spikes—especially from 2020–2023, when inflation, natural gas prices, and wildfire-related costs surged.

Why Rates Are Rising So Quickly

Several long-term pressures are pushing electricity prices upward:

  • Higher natural gas and wholesale energy prices

  • Rising demand from EVs and electrification

  • Massive utility spending on wildfire prevention

  • New state programs and regulatory mandates

  • Grid upgrades and infrastructure modernization

Utilities spent $11 billion on wildfire mitigation alone from 2021–2022—costs that ratepayers will absorb over the next 15 years.

NEM 3.0 Changed the Game for Solar Customers

Under NEM 3.0, exported solar electricity is worth about 75% less than under NEM 2.0. Export prices are now based on the CPUC’s Avoided Cost Calculator—not retail value.

However, export values are still projected to rise 1.8%–7.4% annually for the next nine years.

Why Solar + Battery Storage Is Now the Best Strategy

At Ally Electric & Solar Inc., we design every system to help homeowners stay ahead of rising utility costs. Under today’s rules, solar + storage provides the strongest long-term savings, because:

  • Batteries prevent low-value exports

  • You use power from your battery during expensive peak hours

  • You protect your home during outages

  • You maximize payback under electrification-focused TOU rates

With utility rates climbing faster than ever, adding battery storage alongside solar isn’t just smart—it’s essential.

Take Control of Your Energy Costs

Electricity prices will continue rising for years to come. But you can protect yourself.

Ally Electric & Solar Inc. has over 24 years of experience helping Bay Area homeowners gain energy independence with high-quality solar and battery systems including Enphase Energy, Tesla Powerwall 3, EP Cube Canadian Solar, SimpliPHI 6.6 Battery & FranklinWH.

Metin Saglam
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