Electricity Rates in California (2026)
National average: 16.72¢/kWh · Source: EIA, January 2026
California Has the Highest Rates in the Continental U.S.
At 31.41 cents/kWh, California tops the continental U.S. for electricity rates. PG&E (northern), SCE (southern), and SDG&E (San Diego) charge rates that reflect massive infrastructure investments (including wildfire mitigation), aggressive clean energy mandates, and high operating costs. PG&E's rates alone increased roughly 40% between 2020 and 2025. The generation cost is not the problem; California has abundant solar and wind. The delivery and policy costs are what drive the rate.
Net Billing (NEM 3.0) Has Changed the Solar Equation
California's 2023 shift from NEM 2.0 to NEM 3.0 (Net Billing) dramatically reduced the value of exported solar electricity for new rooftop solar customers. Under NEM 2.0, solar exports were credited at the full retail rate. Under NEM 3.0, export credits are based on much lower wholesale-equivalent values. This has made battery storage nearly essential for new solar installations to capture the full value of self-generated electricity.
Calculate Any Appliance Cost in California
Most Expensive Appliances to Run in California
Monthly costs at 31.41¢/kWh using typical wattage and hours:
| Appliance | Watts | Hrs/Day | Monthly Cost |
|---|---|---|---|
| Tankless Water Heater | 27000W | 1h | $254.42 |
| Electric Furnace | 10000W | 8h | $753.84 |
| Electric Car Charger (Level 2) | 7200W | 4h | $271.38 |
| Hot Tub | 6000W | 4h | $226.15 |
| Clothes Dryer | 5000W | 1h | $47.12 |
| Electric Water Heater | 4500W | 3h | $127.21 |
| Garage Workshop Heater | 4000W | 4h | $150.77 |
| Central Air Conditioner | 3500W | 8h | $263.84 |
| Electric Oven | 2500W | 1h | $23.56 |
| Dishwasher | 1800W | 1h | $16.96 |
| Hair Dryer | 1800W | 0.15h | $2.54 |
| Electric Pressure Washer | 1800W | 0.5h | $8.48 |
| Space Heater | 1500W | 8h | $113.08 |
| Electric Baseboard Heater | 1500W | 8h | $113.08 |
| Infrared Heater | 1500W | 6h | $84.81 |
Tips for Reducing Your Electricity Bill in California
- California's tiered and time-of-use rates mean the kWh you save at the margin is more valuable than the average. Efficiency improvements save at your highest-tier rate.
- Battery storage paired with solar is now the recommended approach under NEM 3.0. Store solar energy during the day and use it during expensive evening peak hours (4-9 PM).
- California has extensive rebate programs through utility and state programs (TECH Clean California for heat pumps, SGIP for batteries). Use them; the incentives are substantial.
- If you have not yet switched to a time-of-use plan, compare your options. TOU plans with off-peak overnight rates can save 20-30% if you shift EV charging and laundry to off-peak hours.
Frequently Asked Questions About California Electricity
California's high rates reflect several compounding factors: massive utility infrastructure spending on wildfire prevention (undergrounding lines, vegetation management), aggressive clean energy mandates requiring rapid renewable buildout, high cost of living that affects utility operating expenses, and the legacy costs of PG&E's bankruptcy. Generation itself is relatively cheap (abundant solar and wind), but delivery and policy costs push the total rate above 30 cents.
The average California household pays about $180-$250/month. Inland areas (Central Valley, Inland Empire) with heavy summer AC use can see bills of $300-$500+. Coastal areas with mild climates have lower consumption but pay the same high rate. PG&E customers in the northern Central Valley face some of the highest bills due to both extreme heat and high rates.
Solar alone (without battery) has a longer payback under NEM 3.0, typically 9-12 years instead of 5-7 under NEM 2.0. Solar paired with battery storage has a payback of 7-10 years because you self-consume more of your generation during expensive peak evening hours rather than exporting at low wholesale credits. At 31+ cents/kWh, every kWh you self-consume is very valuable. Solar + storage is still one of the best investments for California homeowners.
Compare Neighboring Rates
See how California compares to other states in the Pacific region:
Electricity rate data sourced from the U.S. Energy Information Administration (EIA), average residential retail price, last updated January 2026. Your actual rate depends on your utility, plan, and usage tier. See our full disclaimer.