Free California Electric Bill Review
Why Is My
Electric Bill
So High?
California utility rates have increased over 40% since 2022 — and new fixed charges mean you're paying more even when you use less. Find out exactly what's driving your bill and what you can actually do about it.
Why California Electric Bills
Keep Going Up
Your bill isn't high because you're using more electricity. For most California homeowners, usage has stayed flat or decreased — but the bill keeps climbing. Here's exactly what's driving it in 2026 and why it's not going to fix itself.
The New Fixed Base Services Charge
PG&E now charges a mandatory Base Services Charge of $25+ per month — regardless of how much electricity you use. Even if you went completely off-grid, you'd still owe this fee as long as you're connected to the PG&E system. SMUD and SCE have similar fixed infrastructure charges that don't appear on your bill as a single line item but are baked into your rate structure.
$25–$32/mo minimum — before you use a single watt
Tiered Rate Increases Since 2022
PG&E's residential electricity rates have increased over 40% since 2022. The California Public Utilities Commission has approved multiple rate increases to fund wildfire mitigation, grid hardening, and infrastructure upgrades — costs that are passed directly to ratepayers. Tier 2 rates (which kick in after your baseline usage) now regularly exceed $0.44–$0.55/kWh during peak hours.
40%+ rate increase in 3 years
Time-of-Use Peak Hours Are Expensive
Under PG&E's Time-of-Use rate plans, electricity costs significantly more during peak hours — typically 4pm–9pm on weekdays. This is exactly when most families are home cooking, running appliances, and charging devices. Without a battery to store cheap off-peak power, you're buying the most expensive electricity of the day during the hours you need it most. Home battery storage solves this directly.
Peak rates up to 3x off-peak in some plans
NEM 3.0 Changed the Solar Math
If you already have solar and your bill is still high, NEM 3.0 is likely why. California's new net metering rules reduced the credit solar customers receive for exporting power to the grid by up to 75%. That means your existing solar system is earning far less for the energy it sends back — and you're still buying peak-hour power at full price. Battery storage under NEM 3.0 is no longer optional for most homeowners — it's the fix.
Export credits cut up to 75% under NEM 3.0
This Is a Structural Problem — Not a Usage Problem
California's utility rate structure has fundamentally changed. Fixed charges, peak pricing, and reduced solar export credits mean that even conservation-minded homeowners are paying more every year. The homeowners seeing real relief are the ones who have locked in their energy cost with a Prepaid Lease or paired solar with battery storage to eliminate peak-hour purchases entirely. In Sacramento (SMUD) and across PG&E territory, the math now strongly favors taking control of your energy cost rather than waiting for rate relief that isn't coming.
The Bill Decoder —
What Each Charge Actually Means
Most utility bills are designed to be confusing. Here's a plain-English breakdown of every major charge on your bill by utility — and which ones you can actually reduce with solar and battery storage.
Pacific Gas & Electric (PG&E)
Serves Northern and Central California including Fresno, Stockton, Bakersfield, Sacramento suburbs, Folsom, Elk Grove, and surrounding areas.
| Charge | Typical Amount | What It Actually Means |
|---|---|---|
| Base Services Charge Can't Reduce | $25–$32/mo | Mandatory fixed fee for being connected to the grid. You pay this even if you use zero electricity. Solar does not reduce this charge. |
| Generation Charge (Tier 2) High Impact | $0.44–$0.55/kWh | The cost of the electricity itself above your baseline allowance. This is the biggest driver of high bills — and the charge solar reduces most directly. |
| Baseline Allowance (Tier 1) | $0.28–$0.32/kWh | Your first block of electricity at a lower rate. Once you exceed this, every additional kWh jumps to Tier 2 pricing. |
| TOU Peak Hours (4–9pm) High Impact | Up to $0.55/kWh | If you're on a Time-of-Use plan, electricity costs significantly more 4–9pm weekdays. A home battery stores cheap solar and dispatches it during these hours — eliminating this charge entirely. |
| Delivery Charge | ~$0.08–$0.12/kWh | The cost to physically move electricity from power plants to your home through PG&E's grid infrastructure. This charge persists even with solar. |
| Public Purpose Program Surcharge | ~$0.01–$0.02/kWh | Funds low-income programs (CARE/FERA), energy efficiency rebates, and renewable energy development. Mandatory for all ratepayers. |
| NEM True-Up (Annual) | Varies widely | If you have existing solar on NEM 2.0 or NEM 3.0, this is your annual settlement — what you owe after netting your solar production against your usage. Under NEM 3.0, export credits are significantly lower, making large true-up bills common without battery storage. |
Sacramento Municipal Utility District (SMUD)
Serves Sacramento city and county. Publicly owned — generally lower rates than PG&E but still rising. Excellent battery rebate program still active in 2026.
| Charge | Typical Amount | What It Actually Means |
|---|---|---|
| Customer Charge Can't Reduce | ~$13–$17/mo | SMUD's fixed monthly connection fee. Lower than PG&E's Base Services Charge but still mandatory regardless of solar production or usage. |
| Energy Charge (Summer Peak) High Impact | ~$0.22–$0.30/kWh | Summer rates (June–September) are significantly higher than off-peak. Sacramento's 100°F+ summers drive enormous A/C loads during peak pricing hours — this is where most SMUD customers feel the pain. |
| Energy Charge (Off-Peak / Winter) | ~$0.12–$0.18/kWh | SMUD's off-peak and winter rates are among the most reasonable in California. The problem is summer — when you're using the most power at the highest rate. |
| Solar and Storage Export Credit (SSR) | Varies by time | SMUD's export rate for solar customers is more favorable than PG&E's NEM 3.0. However, pairing with a battery still maximizes value by storing solar for peak-hour self-consumption instead of exporting at lower rates. |
| Powerwall Rebate Opportunity Save Up To $5,400 | Up to $5,400/unit | SMUD's battery rebate program offers up to $5,400 per Tesla Powerwall installed — one of the best battery incentives in the state. Verify current amounts at smud.org before installation. |
Southern California Edison (SCE)
Serves inland Southern California including parts of Riverside County, San Bernardino, and parts of Fresno and Tulare counties on the eastern boundary.
| Charge | Typical Amount | What It Actually Means |
|---|---|---|
| Minimum Daily Charge Can't Reduce | ~$0.87/day (~$26/mo) | SCE's minimum daily charge applies regardless of usage or solar production. Like PG&E's Base Services Charge, this is unavoidable while connected to the grid. |
| TOU-D-Prime Peak Rate High Impact | ~$0.45–$0.57/kWh | SCE's peak pricing window (4–9pm) is among the highest in the state. Households running A/C, EV charging, or major appliances during these hours are paying top dollar for every kWh. |
| Off-Peak Rate | ~$0.28–$0.34/kWh | SCE's off-peak rate is more reasonable — shifting usage to morning hours or storing solar in a battery for evening dispatch directly reduces the delta between peak and off-peak costs. |
| NEM 3.0 Export Credit | ~$0.02–$0.05/kWh | Under NEM 3.0, SCE customers receive very low compensation for solar power exported to the grid. This makes self-consumption with battery storage critical to maximizing ROI on any new solar installation. |
| CARE / FERA Discount Check Eligibility | 20–30% bill reduction | Income-qualified SCE customers may be eligible for significant bill discounts. If you're on CARE or FERA, your actual usage cost without the discount is considerably higher — solar savings should be calculated against the undiscounted rate. |
What California Homeowners
Are Doing About It
There's no single solution that works for every household — the right option depends on your utility, your credit, your bill, and how much you want to invest upfront. Here's an honest look at every path available to California homeowners right now.
Prepaid Solar Lease
Pay one discounted upfront amount — typically 30% less than cash price — with no monthly payments and no tax liability required. A third party owns the system initially, claims the federal tax credit, and passes the savings directly to you. After 5 years, you own the system outright. This is the cleanest financing option for homeowners who want maximum long-term savings without a loan.
- 30% upfront discount — no tax credit needed
- No monthly payments — one and done
- Full ownership after 5 years
- No credit score requirement
- Available in PG&E, SMUD, SCE, Pioneer territory
Solar + Battery Storage
Under NEM 3.0, solar alone no longer offsets your bill the way it used to. Pairing solar with a home battery — Tesla Powerwall, SolarEdge, or Enphase — stores your midday solar production and dispatches it during expensive peak hours (4–9pm), eliminating your highest-cost grid purchases entirely. This is the strategy that delivers real savings in 2026.
- Eliminates peak-hour grid purchases (4–9pm)
- SMUD rebate up to $5,400 per Powerwall
- Tesla VPP: $440/yr per Powerwall enrolled
- 8–9 year payback period (solar + battery)
- Backup power during outages
Power Purchase Agreement (PPA)
A PPA lets you go solar with zero upfront cost — you simply pay a fixed rate per kWh for the solar power your system produces, typically lower than your current utility rate. We offer LightReach, GoodLeap, and EnFin PPAs. Best fit for homeowners who want immediate bill relief without a capital investment and aren't concerned with eventual ownership.
- $0 down — no upfront cost
- Pay only for the solar power you use
- Locked rate protects against utility increases
- 650+ credit score typically required
- Battery-only lease also available via LightReach
SGIP Battery Rebate
California's Self-Generation Incentive Program (SGIP) offered significant rebates on home battery installations — but all ratepayer budgets closed at the end of 2025. The program continues under the RSSE AB 209 waitlist for equity customers and high fire-risk areas. If you live in a high fire-risk zone or qualify for low-income rates, it's worth checking your eligibility. Standard SGIP rebates are no longer available for new applicants.
- RSSE AB 209 waitlist — equity customers only
- High fire-threat district priority
- Standard budget: fully closed 12/31/25
- CARE/FERA customers may still qualify
- Check current status before planning
GridGen — $0 Down, No Credit Check, Billed Through Your Utility
If your home is served by Pioneer Community Energy, you have access to a program most solar companies don't even know exists. GridGen installs solar + a Tesla Powerwall 3 with zero upfront cost, no credit check, and no separate financing — your system cost is added directly to your existing utility bill over 25 years. Most households pay less than their current bill from day one.
- $0 upfront — no loan, no lease paperwork
- No credit check required
- Tesla Powerwall 3 included
- Billed through your existing PG&E bill
- 25-year term — most pay less than current bill
Available in: El Dorado Hills · Loomis · Rocklin · Lincoln · Auburn · Granite Bay
See If You Qualify for GridGen →| Option | Upfront Cost | Credit Required | You Own It | Best For |
|---|---|---|---|---|
| Prepaid Lease | 30% off cash price | ✓ None needed | After 5 years | Max savings, no tax liability needed |
| Solar + Battery (Cash) | Full price (~$50–70K) | ✓ None needed | ✓ Immediately | Maximum long-term ROI |
| PPA / LightReach | ✓ $0 down | 650+ score | ✗ Never | Immediate savings, no capital outlay |
| Solar Loan (Financed) | ✓ $0 down | 720+ for best rate | ✓ Immediately | Ownership with no upfront cash |
| GridGen (Pioneer only) | ✓ $0 down | ✓ None needed | ~ After 25 years | Pioneer territory, no credit, no cash |
| Battery Only (LightReach Lease) | ✓ $0 down | 650+ score | ✗ Leased | Existing solar owners on NEM 2.0/3.0 |
We'll review your bill, confirm your utility territory, and tell you exactly which option delivers the most value for your home — no pressure, no pitch.
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Frequently Asked Questions
Honest answers to the questions California homeowners ask most before requesting a bill review or solar estimate.
Yes — completely free, no catch. We review your utility, usage, and rate plan and tell you what's driving your bill. We'll also tell you whether solar or battery storage makes financial sense for your situation — and if it doesn't, we'll say that too.
We're a California-based solar advisor, not a call center. Our goal is to earn your trust, not pressure you into a sale. If you're not a good fit for any of our programs, we'll tell you honestly and explain why. No follow-up calls unless you ask for one.
This is the most common question we get in 2026. PG&E introduced a mandatory Base Services Charge of $25–$32/month that you pay regardless of usage. Even if you used zero electricity, you'd still owe this fee while connected to the grid.
On top of that, PG&E's Tier 2 rates — which kick in above your baseline usage allowance — now reach $0.44–$0.55/kWh during peak hours. Even modest evening usage is being billed at the highest rate structure in state history.
The short answer: you're not imagining it. The rate structure has fundamentally changed. Request a free bill review and we'll walk through your specific charges line by line.
If you installed solar before April 2023, you were likely on NEM 2.0 — which gave you a fair credit for solar power exported to the grid. Under NEM 3.0, those export credits were cut by up to 75%. Your system is still producing the same power, but you're earning far less for what it exports.
The solution is battery storage. Instead of sending midday solar to the grid at a low rate and buying peak power back at $0.50+/kWh, a battery stores that energy and dispatches it in the evening — eliminating your most expensive grid purchases entirely.
SMUD customers also have access to up to $5,400 per Powerwall in rebates — making battery storage even more cost-effective in Sacramento territory.
It depends on which option you choose — and this is exactly what we help you figure out in the bill review.
Prepaid Lease: No credit score required. You pay a discounted upfront amount and own the system after 5 years. Because it's not a loan, there's no credit check.
PPA / LightReach: Requires a 650+ credit score. $0 down, monthly payment based on your solar production.
Solar Loan: Best rates at 720+. $0 down, you own the system immediately.
GridGen (Pioneer territory only): No credit check at all. Billed through your utility bill. Available in El Dorado Hills, Loomis, Rocklin, Lincoln, Auburn, and Granite Bay.
The federal Residential Clean Energy Credit (ITC) expired for individual homeowners at the end of 2025. You cannot claim the 30% tax credit on your personal taxes for a solar system installed in 2026.
However, the tax credit is still available to third-party system owners. With a Prepaid Lease, the leasing company claims the credit and passes the 30% savings to you as an upfront discount — no tax liability required.
Any solar company still advertising "30% tax credit for homeowners" in 2026 is either misinformed or misleading. We'll always give you the accurate picture.
For a solar plus battery system in California, the typical payback period is 8–9 years depending on your utility, usage, and financing method. After payback, the system produces essentially free energy for the remaining 15–17 years of its warranted life.
A solar-only cash purchase without battery typically pays back faster — around 6–7 years — but leaves you exposed to peak-hour grid costs and true-up bills under NEM 3.0.
We'll run your specific numbers in the free bill review so you can see a realistic payback projection for your home.
We serve homeowners across Northern and Central California in PG&E, SMUD, SCE, and Pioneer Community Energy territories. Our service cities include Sacramento, Fresno, Bakersfield, Stockton, Folsom, Elk Grove, Rocklin, El Dorado Hills, Loomis, Lincoln, Brentwood, Antioch, Vallejo, Fairfield, Visalia, and more.
Not sure if we cover your address? View our full service area map or call us at (209) 216-8180 and we'll confirm in 30 seconds.
We'll tell you. Not every home is a good solar candidate — shading, roof orientation, low usage, short remaining tenancy, or bill amounts below the threshold where solar pencils out are all legitimate reasons we might advise against it.
We're not a national sales organization with a quota. We're a California-based advisor with 10 years and 400+ closed deals. Our reputation depends on giving honest advice — not closing every lead. If solar isn't right for you right now, we'll tell you why and what to watch for in the future.
We Serve 20 Communities Across Northern & Central California
PG&E, SMUD, SCE, and Pioneer Community Energy territories. View our full service area map to find your city.