How Much Is The Average Electric Bill in California?

California has higher-than-average electricity rates, which has many residents looking into alternative energy sources like solar. So, how much is the average electric bill in California, and should you make the switch to solar? Below, we’ll discuss these costs and how you may be able to decrease your monthly bill.

Man and Women looking at bill

Factors like regulation policies, changes in energy production, and market dynamics can influence electricity rates. Understanding these changes may help you prepare for future costs. Below is a look at the future of electricity costs in California and strategies that may help lower your bill.

Electricity bill will upward line

Will Electricity Costs Change in the Future?

Electricity costs in California have increased more rapidly than the national average in recent years, and utility companies in the state want to increase them even more. Estimates indicate that residents in certain areas could experience rate hikes ranging from 32% to 50% between 2022 and 2026. These price hikes could result in an average electric bill of almost $500 for homeowners by the end of the decade. 

How to Reduce Your Electricity Bill

With electricity costs only expected to rise, you can implement a few strategies that may lower your monthly bill, such as

  • Upgrade to energy-efficient appliances.
  • Switch to LED light bulbs because they’re more energy-efficient.
  • Unplug your electronics when they’re not being used.
  • Caulk windows, seal gaps around doors, and insulate attics and crawl spaces to prevent air leaks.
  • During the day, open your curtains for natural sunlight instead of turning on your lights.
  • Install a smart thermostat that will automatically adjust the temperature based on your needs.
  • Switch to greener energy sources like solar panels.
Person changing lightbulb
Roof with solar panels

How Does Solar Affect the Average Electric Bill in California?

Switching to solar panels may lower your average electric bill in California. However, many factors affect your overall savings, such as 

  • Home location and size
  • Energy usage
  • Local electricity rates
  • Panel quality/installation fees
  • Government rebates, programs, and incentives

Estimating the Potential Monthly Savings With Solar

It can be difficult to calculate the average electric bill in California with solar panels since so many factors can affect savings. However, this simplified guide can help you determine your savings if you switch to solar. 

  • 1. Look at your recent electricity bills to find your average monthly kilowatt-hours (kWh) energy usage.
  • 2. Find the average cost per kWh of electricity in your city. You may be able to find this on your bill, or you can look up local data.
  • 3. Research the cost of solar installation for your home, including the cost of add-ons like solar batteries. The total cost may vary based on factors like home size and energy needs.
  • 4. Estimate solar system output considering location and panel orientation.
  • 5. Calculate potential monthly savings by subtracting solar-generated energy costs from your current bill.

Savings can still vary based on financing costs, government incentives, and electric rate changes. Contact a certified solar company to discuss your options and find more accurate data for your home.

Roof with solar panels and palm trees
Tiled roof with solar panels

Calculate the Cost of Solar Panels for Your Specific Home

If you’re considering the switch to solar, use our free solar calculator to determine the cost of panels for your home. By inputting information like your home’s size, location, and usage, you can quickly estimate the price of a system for your home. This may also help you determine the potential monthly savings of installing solar. 

According to the EIA, the average electric bill in California in 2022 was $138.29. While it’s not the highest cost compared to other states, it’s higher than the national average and is only expected to increase. However, just because you’re a California resident doesn’t mean this is what your bill will be. The average bill amount comes from all home types, from small apartments to mega-mansions. Because of this, your electricity bill may be lower if you live in an apartment or higher if you live in a large home.