Power bills in California increasing

Power bills in California have jumped nearly 50% in four years. 

California is at the center of a growing electricity affordability crisis with surging rates. Residents are facing some of the highest electricity prices in the nation, with costs rising much faster than in most other states. For many families, keeping the lights and air conditioning on now feels like paying another rent bill each month, and the pressure isn’t expected to ease anytime soon.

Behind the headlines are some powerful trends: aging grid infrastructure, wildfire prevention, and surging demand are all converging to drive rates even higher. While experts point to ways communities and policymakers can soften the blow, the challenges are real—especially for those already struggling with the basics of daily life.

• Electricity prices in California have increased by over 20% since 2021, and the state's average residential rates now exceed 31 cents per kWh—more than double the US average.
• PG&E customers have seen a staggering 43% rise in rates over the past three years, while Southern California Edison rates are up 25% in the same period.
• Since 2013, inflation-adjusted distribution costs have grown by 42%, due to the need for grid upgrades and major spending on wildfire prevention.
• New grid investments, strict regulations, and rising costs from climate risks—like wildfires—continue to push rates higher, with distribution costs in California jumping 18% since 2021 alone.
• California’s electricity bills now average around $1,947 per year, nearly double what households paid in 2010 and much higher than the rest of the country.
• Experts expect demand to keep growing, especially as more electric vehicles and new technologies plug into the grid, which will likely mean even more investments and higher bills in the years ahead.
• Policymakers are looking at solutions like promoting rooftop solar, boosting energy efficiency, and redesigning rate structures to help families weather the storm and ensure that affordable, reliable electricity isn't out of reach.

The solution is solar rooftops to secure low payments for years to come. The problem is that the tax credits for solar expire at the end of 2025.

The stakes are high for everyone in California, but especially for homeowners. Keeping electricity affordable in this era of rising costs and climate change is not just about cheaper bills—it's about securing a healthy, sustainable future for all.