California's Energy Bills
Are Out of Control.
Here's How to Fix Yours.
Whether you're on PG&E, SMUD, SCE, or SDG&E, the playbook is the same: solar, battery storage, and smart electric upgrades, done in the right order. This guide shows you that order, utility by utility, so every dollar goes toward lowering your bills for good.
Serving PG&E · SMUD · SCE · SDG&E territories across California
Why Do California Electric Bills
Keep Climbing, No Matter Your Utility?
California electric bills keep climbing because rates keep rising year after year. PG&E's average residential rate has more than doubled in 10 years, and it's still going up.
It doesn't matter whether your bill comes from PG&E, SDG&E, SCE, or SMUD. Every major California utility now uses Time-of-Use (TOU) rates that charge the most in the evening, from 4 to 9pm on PG&E, SCE, and SDG&E, and 5 to 8pm on weekdays for SMUD. That's exactly when most families are home cooking dinner, running appliances, and cooling the house.
According to the CPUC's Public Advocates Office, average residential rates rose 104% at PG&E, 83% at SCE, and 71% at SDG&E over the last 10 years. At PG&E's pace of roughly 7% a year, a $250 monthly bill becomes about $350 in five years without any change in your usage. Meanwhile, NEM 3.0, which took effect for new PG&E, SCE, and SDG&E solar customers in April 2023, cut the credit for solar sent back to the grid by roughly 75% for typical systems.
The result: piecemeal fixes, like efficiency upgrades alone or solar without a battery, no longer move the needle the way they once did. The homeowners winning against rising bills treat their home as one complete energy system, not a collection of disconnected upgrades.
California Utility Rate Comparison| Utility | Avg Residential Rate | 10-Year Rate Increase | Peak Window | Solar Export Rules | Battery Priority |
|---|---|---|---|---|---|
| SDG&E | 39.7¢/kWh | +71% | 4–9pm daily | NEM 3.0 | Essential |
| PG&E | 38.6¢/kWh | +104% | 4–9pm daily | NEM 3.0 | Essential |
| SCE | 31.4¢/kWh | +83% | 4–9pm daily | NEM 3.0 | Essential |
| SMUD | 12.9–37.7¢/kWhby season and time, plus $27/mo fixed charge | — | 5–8pm weekdays | Solar & Storage Rate | Recommended |
PG&E, SCE, and SDG&E rates and 10-year increases: Cal Advocates Q1 2025 Rates Report (average residential rates, excluding the California Climate Credit). SMUD: SMUD 2026 Residential Rate Guide, Time-of-Day rate. Your actual rate depends on your plan, season, and usage.
SMUD customers: SMUD's rates are lower than the big three utilities, but new solar customers are on SMUD's Solar and Storage Rate, which pays a flat 9.6¢ per kWh for exported solar. That's well below SMUD's summer peak price of about 37.7¢, which is why a battery adds real value in Sacramento.
SMUD's battery rebate is $300 per kWh, up to $6,000 per household (about $3,240 for one Powerwall 3), and Tesla owners who enroll in SMUD's Virtual Power Plant earn $440 a year for one Powerwall. See the details in our SMUD battery rebate guide, or run your numbers with the SMUD rebate calculator. Program amounts change. Verify current figures at smud.org.
What Order Should You Go All-Electric In?
The 5-Step Sequence That Cuts Your Bills
Start with solar, add a battery, then electrify everything else. Going all-electric isn't one purchase. It's a sequence, and each step makes the next one cheaper to run. Here's the order that works in every California utility territory.
Solar is the foundation. Your panels produce electricity during the day and cut what your home buys from the grid. On PG&E, SCE, and SDG&E (NEM 3.0) and on SMUD's Solar and Storage Rate, utilities pay far less for the solar you send back to the grid than they charge you for power. That's why solar works best when it's paired with a battery that stores your extra solar for later instead of selling it cheap. See your solar savings.
A home battery stores your extra solar during the day and powers your home through the evening peak, 4 to 9pm on PG&E, SCE, and SDG&E and 5 to 8pm on weekdays for SMUD. That's when grid power costs the most, so you buy little to none of it. A battery also keeps your home running during PSPS shutoffs and grid outages. For most California homes going solar today, a battery is what makes the savings work.
Heating and cooling are among the biggest electric loads in a California home, especially in hot inland areas. A smart thermostat pre-cools your home before the evening peak, using cheaper power, then coasts through the expensive hours with minimal grid draw. Every major California time-of-use rate rewards this. It works with every utility.
A Level 2 home charger lets you charge your EV during your utility's cheapest off-peak hours, usually overnight on an EV rate plan. That typically costs far less per mile than gasoline. With solar and a battery, your system can cover much of that charging. Off-peak hours and EV rates vary by utility, so compare plans in the EV rate table below.
Gas lawn equipment is the last fossil-fuel holdout in most California homes, and the state is closing that door. Under California's AB 1346, new gas-powered mowers, leaf blowers, and trimmers made from 2024 on can't be sold in California. When your gas mower dies, your next one will almost certainly be electric. Robot mowers are the quietest, lowest-maintenance replacement, and on a solar home they run on power you make yourself. Learn more in our gas-free lawn guide.
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Does Solar Still Make Sense in California?
The Honest Answer, by Utility
Yes, but the strategy has changed. Solar in California is no longer about selling power back to the grid. It's about using your own solar at home, and a battery is what makes that possible.
Before April 2023, PG&E, SCE, and SDG&E solar customers could send extra solar to the grid during the day and get close to full retail credit for it. That was NEM 2.0, and it made solar-only systems easy wins. NEM 3.0 cut those export credits by roughly 75% for typical systems, so sending power to the grid now earns far less than buying it back in the evening. SMUD made a similar change in 2022 with its Solar and Storage Rate, which pays a flat 9.6¢ per kWh for exported solar.
The fix is simple: keep your solar at home. A properly sized battery stores your daytime solar and powers your home through the evening peak, the exact hours you'd otherwise pay the most for grid power. The savings still work. They just work differently than they did before. See what a battery saves on your bill.
Old Net Metering vs. Today's Rules: What Changed
- Export credits near the retail rate
- Solar-only systems made sense on their own
- Battery added backup, not much bill savings
- Ended April 2023 (PG&E, SCE, SDG&E) and March 2022 (SMUD)
- Existing customers are grandfathered for a limited time
- Export credits far below what you pay for power
- Solar plus battery delivers the strongest savings
- Using your own solar at home is the strategy
- Battery charges from solar, powers your evenings
- System design matters more than ever
The Prepaid Lease: Solar + Powerwall at 30% Off
Most of our California customers choose our prepaid lease. You pay a discounted amount for your solar and battery system, 30% below the regular price, either in cash or with a loan.
The leasing company owns the system for the first 6 years and handles insurance, monitoring, and maintenance. At the 6-year mark, ownership transfers to you at no additional cost, and the manufacturer and workmanship warranties transfer with it. Homes in qualifying energy community zones can get an extra discount on top of the 30%.
Best Strategy by California Utility
The right system design depends on your utility. Here's the honest breakdown:
Want to Know What Solar + Battery Looks Like for Your Home?
We'll review your utility bill, run the numbers for your utility and usage, and show you exactly what you'd save before you commit to anything.
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Which Smart Thermostat Saves the Most Money
on California Time-of-Use Rates?
For most California homes on time-of-use rates, the Ecobee Premium and Nest Learning Thermostat are the top two picks. Both let you schedule around your utility's peak hours, and both are ENERGY STAR certified. The strategy is simple: pre-cool your home before the evening peak using cheaper power, then coast through the expensive hours. Heating and cooling make up almost half of the average home's energy bill, according to ENERGY STAR, so that's where scheduling pays off most.
| Thermostat | Peak-Hour Scheduling | Room Sensors | ENERGY STAR | Utility Discounts | Best For | Shop |
|---|---|---|---|---|---|---|
| Nest Learning | ✓ | Add-on | ✓ | Often eligible* | Simplicity | Shop |
| Ecobee Premium | ✓ | ✓ Included | ✓ | Often eligible* | Multi-room | Shop |
| Amazon Smart | ✓ | No | ✓ | Limited* | Budget | Shop |
*Smart thermostat rebates and instant discounts change often and vary by utility and model. Check the PG&E, SCE, SDG&E, or SMUD rebate marketplace for current offers before you buy. Links are affiliate links; we may earn a commission at no cost to you.
Which Electric Appliances Replace Gas
in a California Home?
Four appliances replace almost every gas line in a typical home: a heat pump water heater, a heat pump for heating and cooling, a heat pump dryer, and an induction range. Heat pump water heaters can be two to three times more efficient than conventional electric water heaters, according to the U.S. Department of Energy.
Rebates depend on your utility. SMUD's Go Electric program currently offers up to $4,000 for a heat pump water heater, up to $3,000 for heat pump HVAC, and up to $750 for induction cooking. PG&E, SCE, and SDG&E customers should check their utility's rebate portal, since statewide program funding changes often.
Appliance rebates vary by utility and program funding. Confirm current amounts with your utility before you buy. This is an affiliate link; we may earn a commission at no cost to you.
What's the Best Home EV Charger for
California Time-of-Use Rates?
The best home EV charger is a Level 2 charger you can schedule, so your car only charges during your utility's cheapest hours. On a time-of-use plan, when you charge matters as much as what you charge with. The same miles can cost two to three times more if you plug in during the evening peak.
Every major California utility offers an EV rate plan with lower prices during off-peak hours. Pair a scheduled charger with the right plan, and your EV costs far less per mile than gas. With solar and a battery, your own system can cover much of that charging too. See what solar would save on your bill.
| Charger | Max Output | Installation | Scheduling | Non-Tesla Compatible | Energy Monitor | Best For | Shop |
|---|---|---|---|---|---|---|---|
| ChargePoint Home Flex | 50A / 12kW | Hardwired or plug-in | ✓ | ✓ | ✓ | Universal | Shop |
| Emporia Level 2 | 48A / 11.5kW | Hardwired | ✓ | ✓ | ✓ Built-in | Energy Data | Shop |
| Tesla Wall Connector | 48A / 11.5kW | Hardwired | ✓ | ✓ w/ adapter | Limited | Tesla Owners | Shop |
| Lectron L1/L2 Portable | 40A / 9.6kW | Plugs into a NEMA 14-50 | LED only | ✓ J1772 | No | No Electrician* | Shop |
Output figures are maximum rated capacity. Actual charging speed depends on your EV's onboard charger. Hardwired chargers need a licensed electrician and a dedicated 240V circuit. *If you already have a NEMA 14-50 outlet. Links are affiliate links; we may earn a commission at no cost to you.
If your garage already has a NEMA 14-50 outlet (the 240V outlet used for RVs and some electric ranges), the Lectron Level 1/2 portable charger plugs right in. No electrician, no permit, and no panel upgrade. It delivers up to 9.6kW, which adds roughly 25 to 30 miles of range per hour for most EVs. It's ETL certified and works with any J1772 EV. It also plugs into a standard household outlet for slower Level 1 charging.
Off-Peak EV Charging Rates by California Utility
EV rate plans and prices change periodically. Verify current rates with your utility before switching plans. SMUD figures are from its current residential rate guide and EV rates page; SMUD's EV discount requires the EV to be registered at your service address. Links go to each utility's official rate page.
What's the Best Battery Backup for a
California Home That Doesn't Have Solar Yet?
A portable power station is the fastest way to start, and a Powerwall with solar is the way to finish. You don't have to wait for a full solar installation to protect your home from the next shutoff. For many California homeowners, a portable station is step one on the path to whole-home backup.
PG&E, SCE, and SDG&E all run Public Safety Power Shutoff programs during fire weather. An analysis of utility-reported data found California utilities cut power to customers more than 3.2 million times from 2013 to 2020. The average shutoff lasted about 41 hours, and the longest ran nearly 7 days. Heat waves strain the grid statewide too, including in SMUD territory.
BLUETTI's lineup runs from compact stations for essentials to large-capacity units that can power a refrigerator, CPAP, and lights. For longer shutoffs, larger models can add expansion batteries or recharge from portable solar panels. Some customers also qualify for a SCE or PG&E portable battery rebate.
buying guide on our
BLUETTI page
All-Electric Home California:
Frequently Asked Questions
Straight answers to the questions California homeowners ask most about going all-electric, across PG&E, SMUD, SCE, and SDG&E territories.
An all-electric home runs entirely on electricity, with no natural gas or propane. That means a heat pump for heating and cooling, a heat pump water heater, an induction range, a heat pump dryer, and an EV charged at home. Paired with rooftop solar and a battery, an all-electric home can produce much of its own energy and sharply cut its monthly bills.
It depends on which upgrades you choose and how you pay for them. Most homeowners spread the upgrades out over time, starting with solar and a battery. Our prepaid lease takes 30% off solar and Powerwall, with extra savings for homes in qualifying energy community zones.
Appliance rebates vary by utility. SMUD's Go Electric program currently offers up to $4,000 for a heat pump water heater and up to $3,000 for heat pump HVAC. PG&E, SCE, and SDG&E customers should check their utility's rebate portal for current offers. Get a free estimate for your home.
Yes, for most homeowners, when it's paired with solar and a battery. California's electric rates are among the highest in the country. According to the CPUC's Public Advocates Office, SDG&E averages about 39.7 cents per kWh and PG&E about 38.6 cents.
Every kWh your own solar and battery supply is a kWh you don't buy at those rates, and those rates keep climbing. PG&E's average residential rate has risen 104% in 10 years, according to the Cal Advocates 2025 rates report. Charging an EV at home off-peak also costs far less per mile than gasoline.
NEM 3.0 is the billing rule for new PG&E, SCE, and SDG&E solar customers since April 2023. It cut the credit for solar sent back to the grid by roughly 75% for typical systems.
It doesn't mean solar stopped working. It means the strategy changed. The goal now is to use your own solar at home instead of exporting it. A battery stores your extra daytime solar and powers your home during the 4 to 9pm peak, when grid power costs the most. SMUD made a similar change in 2022 with its Solar and Storage Rate, so a battery adds value in Sacramento too.
Yes, when it's paired with a battery. California's electric rates are among the highest in the continental U.S. and keep rising, so producing your own power protects you from those increases.
The key change since NEM 3.0 is that a battery is now what makes the savings work for PG&E, SCE, and SDG&E customers. A solar-only system earns far less for exported power than it did before April 2023. Solar with a battery sidesteps that by using your solar at home. Read the full breakdown by utility.
SDG&E has the highest average residential rate of California's three big investor-owned utilities, at about 39.7 cents per kWh. PG&E is close behind at about 38.6 cents, and SCE averages about 31.4 cents, according to the CPUC's Public Advocates Office.
SMUD, Sacramento's public utility, is much lower. Its current time-of-day rates range from about 12.9 to 37.7 cents per kWh by season and time, plus a $27 monthly fixed charge, per the SMUD rate guide. SDG&E and PG&E customers have the strongest financial case for solar and a battery.
Five swaps cover most homes. Replace the gas furnace with a heat pump, the gas water heater with a heat pump water heater, the gas range with induction, the gas dryer with a heat pump dryer, and the gas car with an EV charged at home.
You don't need to replace everything at once. Most homeowners swap each appliance when the old one wears out, and time it around available rebates. Solar and a battery can be added at any stage, and adding them first makes every later electric upgrade cheaper to run.
About 12 to 24 hours on essentials, without solar recharging. A Powerwall 3 holds 13.5 kWh, so runtime depends on what you power: the fridge, lights, Wi-Fi, and outlets go much further than central AC.
With rooftop solar, a Powerwall recharges every day, so it can keep going through a multi-day shutoff. Larger homes or heavy loads often use two Powerwalls. Our Powerwall calculator sizes your system, and our home backup power guide compares it with portable options.
Not for new customers. Since March 1, 2022, new SMUD solar customers are on the Solar and Storage Rate, which pays a flat 9.6 cents per kWh for exported solar. Customers approved before then can stay on net metering through 2030.
That 9.6-cent export credit is well below SMUD's summer peak price of about 37.7 cents, which is why a battery adds real value. SMUD's battery rebate is $300 per kWh, up to $6,000 per household, and Tesla owners in SMUD's Virtual Power Plant earn $440 a year for one Powerwall. See the Solar and Storage Rate and our SMUD battery rebate guide. Verify current amounts at smud.org.
The Ecobee Premium and the Nest Learning Thermostat are the top two picks. Both let you pre-cool your home before the evening peak and coast through the expensive hours, and both are ENERGY STAR certified.
The Ecobee Premium includes a room sensor, which makes it the better choice for larger homes with hot and cold spots. The Nest is simpler to set up and works well with Google Home. Rebates and instant discounts change often, so check your utility's marketplace before you buy. For a lower-cost start, Kasa smart plugs can schedule plug-in appliances around peak hours.
Power your internet equipment from a battery, and consider Starlink. Your modem and router go dark the moment the grid does, and cable or cell service can fail in a long shutoff.
Starlink connects by satellite, so it doesn't depend on neighborhood lines or cell towers. The standard kit draws about 75 to 100 watts, which a Powerwall handles easily and a portable station can run for many hours. See our Starlink power outage guide for runtimes by battery.
You pay a discounted amount for your solar and Powerwall, 30% below the regular price, in cash or with a loan. The leasing company owns and maintains the system for 6 years, then ownership transfers to you at no additional cost.
During those 6 years, the system is insured, monitored, and maintained for you, and the manufacturer and workmanship warranties transfer to you with ownership. Homes in qualifying energy community zones can get an extra discount on top of the 30%. Because it's structured as a paid-off purchase, it can also qualify for PG&E's battery rebate if you're eligible.
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All of California
We design solar, battery storage, and home energy systems across PG&E, SMUD, SCE, SDG&E, and Pioneer territory. Every page below includes rate data, local bill benchmarks, and options built for that utility.
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