Figure: Average PG&E residential electricity rates by year. Rates have surged from around $0.11/kWh in 2000 to over $0.30/kWh in recent years, with especially steep jumps in the last decade (data from PG&E and U.S. EIA).
PG&E’s Soaring Electricity Rates in California (10-Year Overview)
If you’re a California homeowner, you’ve likely noticed your Pacific Gas & Electric (PG&E) bills getting higher each year. In fact, PG&E’s residential electricity rates have skyrocketed over the past 10 years. Just since 2020 alone, the average price per kilowatt-hour (kWh) that homeowners pay jumped by roughly 50%. An 8% rate hike in early 2023 was a big contributor to this surge, but it was hardly the first – PG&E has implemented increase after increase in previous years as well.
Looking back a full decade, the numbers are even more startling. Around 2014, PG&E’s baseline residential rate was only about $0.13 per kWh (with second-tier usage around $0.15). Today, those rates are roughly $0.33 and $0.42 per kWh – nearly triple what they were 10 years ago. Put another way, if you used a certain amount of electricity that cost you $60 per month back then, that same usage would cost around $150 per month now. Over the last decade, PG&E’s price hikes have averaged almost 10% every year – far outpacing normal inflation. (For context, if rates had only risen with inflation, they might be around half of what they are today!) PG&E’s electricity pricing has clearly been on a steep upward trajectory, putting more and more strain on Bay Area residents’ budgets.
How Rising PG&E Rates Impact Bay Area Homeowners’ Bills
What do these percentage increases actually mean for your monthly electric bill? In short: a lot. Even if your home’s energy use hasn’t changed much, you’re paying significantly more due to the higher rates. For example, an average household using ~500 kWh per month would have paid around $100 for electricity in 2019, but now that same usage costs nearly $200. That’s nearly double your bill in just five years, an increase most families certainly feel in their wallets. These relentless PG&E rate increases have been “far beyond inflation”, meaning energy costs are rising faster than salaries or the cost of other goods. Many Bay Area homeowners are finding that even with conscientious energy conservation – LED bulbs, efficient appliances, turning off devices – their bills keep climbing because the price per unit of power is so high.
If this trend continues, it’s not hard to imagine today’s $150 monthly bill becoming $300 or more in the future. In fact, projections based on recent history show that a $150 bill could exceed $350 a month in another 10 years if nothing changes. PG&E’s rate hikes show no sign of stopping, either – the company has already floated plans for additional increases in coming years. For homeowners, this creates a lot of uncertainty and frustration. Planning a household budget is tough when you can’t predict how high your electric bill will be next year or five years from now. Thankfully, there is a way to push back against these rising costs: going solar.
Solar Energy Savings in California: A Bright Solution to Rising Costs
Installing a solar energy system on your home is an effective way to take control of your energy costs. Solar panels allow you to produce a large portion of your electricity right on your roof, so you don’t have to buy as much (or any, in some cases) from PG&E’s grid. The result? Lower monthly bills and big savings long-term. Each kilowatt-hour of solar power you use is a kilowatt-hour you don’t have to purchase from PG&E at $0.30–$0.40 cents. Especially in California, where sunlight is abundant, solar energy savings can really add up over the years.
Think of going solar as locking in an affordable rate for power. While PG&E’s prices might rise 6–10% every year, the cost of energy from your solar panels remains essentially fixed. Once the panels are installed, the sun’s energy is free! Many California homeowners find that their solar system pays for itself in just 5–8 years, after which the electricity it produces is pure savings. In fact, one recent analysis found that the average California household will spend over $74,000 on electricity in the next 25 years if they stick with the utility, but by installing solar they could save around $55,000 of those costs over the system’s life. That’s tens of thousands of dollars back in your pocket. It’s no wonder California leads the nation in solar installations – when utility rates are this high, solar makes great financial sense.
Using Solar with Battery Backup for Maximum Benefit
While solar panels generate power during the day, adding a battery backup (home energy storage) takes your savings and energy security to the next level. A battery allows you to store excess solar energy produced in the midday hours and use it later on, such as in the evening or during the night. This means you can further reduce the amount of electricity you draw from PG&E, especially during peak rate times. For example, many Bay Area residents are on Time-of-Use plans where electricity costs are highest in the late afternoon and evening. With a home battery, your solar panels charge the battery during the day, and then you use that stored energy during peak hours – avoiding those expensive PG&E rates for running your lights, A/C, or EV charger in the evening. Essentially, solar with battery backup lets you use more of your own cheap solar power and buy even less power from the grid.
The benefits of a battery aren’t just financial. Batteries provide backup power during outages, which is a big plus in California where wildfire-prevention shutoffs or storms can knock out electricity. Instead of sitting in the dark or firing up a generator, you can keep essential appliances running on your battery. This added energy security comes with the peace of mind that you’re protected from both power outages and future rate spikes. By combining solar panels with a battery storage system, you create a home power solution that shields you from PG&E’s rising costs and keeps your family powered through anything.
Long-Term Financial Stability and Peace of Mind
Investing in solar (and a battery) isn’t just about cutting one bill – it’s about creating long-term financial stability for your household. When you own a solar power system, you’re effectively pre-paying for 25+ years of electricity at a much lower fixed cost. You’ll be far less vulnerable to the “rate shock” of future PG&E increases. Instead of dreading the utility bill each month, you can enjoy more predictable and manageable energy costs. Many homeowners also view solar as a smart investment: not only do you save money each month, but solar panels can increase your property value and make your home more attractive if you ever sell. It’s an improvement that pays for itself and then continues to pay dividends.
Moreover, if you finance a solar energy system with a fixed monthly loan payment, that payment remains steady over time – unlike PG&E bills which tend to climb unpredictably. Once the loan is paid off, you’ll potentially have little to no electric bill apart from a small connection fee. With solar, you’re building equity (in the form of an energy-producing asset on your roof) rather than throwing money at the utility company. Over the life of a solar system, the savings are substantial, and you gain the comfort of knowing that no matter how much PG&E raises rates, the impact on you will be minimal. It’s like locking in gas at $2/gallon for the next 25 years while the price at the pump keeps rising. In short, solar panels and batteries provide a hedge against future energy inflation, giving California homeowners much-needed financial peace of mind along with clean power.
Choosing a Trusted Local Partner (Infinium Solar Roofing and Electric)
When you’re ready to make the switch to solar, picking the right installation partner is key. For Bay Area residents, a local, all-in-one provider like Infinium Solar Roofing and Electric is a smart and trustworthy choice. Why local? A Bay Area solar installer understands the specific needs of our region – from city permitting rules to PG&E interconnection processes and the importance of backup power for wildfire season. Infinium Solar Roofing and Electric isn’t just any solar company; they uniquely combine solar panel installation, battery storage, and roofing services under one roof (pun intended!). This all-in-one approach means you get a seamless experience – if your roof needs an upgrade or repair before going solar, Infinium can handle it without having to bring in outside contractors. The same team designs your system, installs the panels, upgrades your electrical panel if needed, and sets up your battery backup. Everything is coordinated for quality and safety, and you have a single point of contact from start to finish.
As a local Bay Area company, Infinium Solar Roofing and Electric has built a strong reputation one homeowner at a time. Neighbors trust Infinium because they deliver honest advice, professional workmanship, and ongoing support. Going solar is a significant project, and working with a provider that is part of the community means they’ll be there for you years down the road. Infinium’s team can monitor your system, perform maintenance, and be on call if you ever have questions – something you might not get with big national installers. By choosing a reputable local installer, you’re not only supporting a Bay Area business, but also ensuring you get a solar-plus-battery system tailored to your home’s needs and backed by people who genuinely care about your results.
Conclusion: Take Control of Your Energy Future
PG&E’s decade of rate increases has made one thing clear: the cost of doing nothing will only continue to rise. Luckily, homeowners have options to fight back against climbing utility bills. Switching to solar power – especially with a battery backup – is a proven way to offset these rising costs and gain stability. You can produce your own clean electricity, dramatically cut your monthly bills, and insulate yourself from future rate hikes that are outside your control. Instead of feeling squeezed by each PG&E price increase, you could be saving money with solar energy and even sending excess power back to the grid. The sooner you make the switch, the more you stand to save over the long run.
If you’re in the Bay Area and looking for a reliable partner to guide you through the process, consider reaching out to Infinium Solar Roofing and Electric. With their all-in-one solar, battery, and roofing services, they make it easy to transition to a more affordable and sustainable energy future. In the face of ever-increasing PG&E rates, going solar is not just an eco-friendly choice – it’s an economic no-brainer for California homeowners. Take control of your energy today, and enjoy the confidence of knowing that sunshine (with a little help from Infinium) has your back against utility rate hikes for decades to come.