Residential customers of Pacific Gas and Electric (PG&E) will see another increase in their electricity rates as California’s largest utility raises prices by 2.7% or around $6 per month. Starting October 1, this rate hike is the fourth part of a series of increases approved by the California Public Utilities Commission.
PG&E has increased residential utility rates by 54% since 2020. This is not only happening in California, homeowners across the country are experiencing increases in the cost of electricity. Utility prices are increasing due to infrastructure upgrades, increased energy demand and transitioning to renewable sources.
California homeowners can expect even higher utility bills on top of recent price hikes. This article will outline the recent PG&E rate increases and how it could impact your home. Thankfully, homeowners can go solar and see significant savings. Solar energy can provide financial protection against these increasing costs. The long-term savings and stability solar provides make it an increasingly attractive option while utility rates will continue to rise.
PG&E’s Electric Rate Increase
PG&E’s electric rates are increasing again, following a recent approval by California regulators. The hike will add about $6 to the average monthly residential electricity bill. The average PG&E residential monthly bill will be around $212 starting in October. Homeowners are likely to pay more than this average. Californians pay some of the highest electricity rates in the country.
PG&E’s residential utility rates have increased 54% since 2020, despite the company’s 2023 profits surging to over $2.2 billion. This is part of PG&E’s effort to recover nearly $944 million in wildfire mitigation and storm-related costs. Prior to the October 1 increase, PG&E implemented a 13% rate increase in January — raising the average monthly bill by around $34 for the typical residential customer. Electric rates rose by $4 in April and gas rates rose by around $6 in September.
All PG&E customers — from residential to commercial and industrial users — have been affected. Households across Northern and Central California are seeing considerable hikes in their power bills. Looking ahead, PG&E has announced that it would aim to keep combined gas and electric bill increases to an average of 3% each year until 2026. However, given the previous history of rate rises, customers should be prepared for more increases.
These rate hikes are mostly due to infrastructure upgrades, including wildfire mitigation initiatives such as burying power lines, as well as system maintenance and the switch to renewable energy sources. These hikes will have an especially substantial impact on low-income households, who may have to choose between energy and other basic requirements.
How Will The September 2024 PG&E Price Increase Affect Homeowners?
Homeowners can expect to pay around $6 more per electric bill starting on October 1, 2024. While $6 more per month might sound minimal, this translates to $72 per year — on top of the previous increases over the past five years. The October increase follows price hikes of $34 in January and $4 in April.The combined annual cost increase in 2024 is estimated to be more than $500 based on the implemented increases. Overall, the cost of electricity is rising in California which will increase monthly expenses for homeowners and businesses. This leaves less money for homeowners to use for groceries, mortgage payments and lifestyle or recreational purchases. Increased expenses will impact homeowners across PG&E’s service areas, including the San Francisco Bay Area — where household expenses remain high in general. Residential utility rates have gone up by 54% since the utility came out of bankruptcy in 2020.
Higher utility bills won’t just impact your wallet, but can affect your lifestyle. Many homeowners might look for other ways to save money on utility bills or reduce energy consumption. This may translate to using less electricity, gas or hot water.
How Solar Can Protect Homeowners from Price Increases
As utility rates continue to increase, many homeowners have turned to solar energy to take back control over their electricity costs. A home solar panel system can protect consumers from rising and expensive utility costs through producing clean energy.
Enact offers homeowners custom solar and storage battery systems designed for their energy needs. Our customers across California have saved thousands of dollars in electricity costs. Here’s how a custom solar system can help your household save money on utility bills:
Reduced Reliance on the Grid
By generating your electricity, you can significantly reduce your dependence on utility-provided power. This means less exposure to future rate hikes and more predictable energy costs. A custom solar system designed on the Enact platform is created with your energy consumption in mind. Enact customers have seen their system produce up to 100% of their electricity needs.
Long-Term Savings
While going solar can be an investment, solar panels provide enormous savings over their 25-year lifespan. As PG&E’s electricity prices increase, the payback period for homeowners of solar improves — as the value of offset expenses will surpass the initial cost of the system. Exact savings and payback period can vary depending on location, energy usage and local electricity rates.
Protection Against Future Rate Increases
As utility prices are increasing, so will the energy savings of solar owners. Even if this price increase seems minimal, utility prices typically increase over time. The sooner you go solar, the sooner you can protect your wallet from future hikes. Cash saved from electricity bills can be utilized to meet other needs or be invested elsewhere.
California homeowners are feeling the pressure of rising electricity costs, especially with the recent price hikes from PG&E. As utility rates continue to climb, investing in a home battery system offers a smart solution to reduce dependence on the grid and protect against fluctuating energy bills.
Whether paired with a solar energy system or installed on its own, home batteries provide a way to store electricity when rates are low, typically during off-peak hours and use that stored energy when rates spike during peak periods.
For homeowners with solar panels, a home battery is even more advantageous. It allows them to store excess energy generated during the day and use it in the evening when solar panels aren’t producing electricity and utility rates are higher. This maximizes savings, making the most of the solar investment while also providing backup power in the event of an outage.
Even without solar, a home battery helps reduce exposure to rate hikes by enabling time-of-use management. With California’s frequent heatwaves and ongoing concerns about grid stability, having a battery also ensures that critical appliances remain operational during blackouts.
As PG&E rates continue to rise, adding a home battery system is an effective way for homeowners to gain more control over their energy consumption, safeguard against rising costs and increase energy independence.
How Californians Can Save Money With Enact Solar
As PG&E electricity rates continue to rise, now is the perfect time for California homeowners to explore solar energy solutions with Enact. Going solar can significantly lower your utility bills, and Enact makes the process simple and stress-free. Our platform offers custom-designed solar panel systems tailored to your home’s energy needs, helping you maximize savings while reducing your carbon footprint.
Getting started with Enact is easy. Schedule a free consultation with one of our experienced Energy Advisors, who will assess your energy usage and recommend a solar system designed specifically for your home. You’ll receive a personalized proposal showing how much energy your system can produce and how much you can save on future utility bills.
Enact also offers flexible equipment and financing options, allowing you to choose the best solution for your budget. Whether you prefer to pay upfront or finance your solar installation, we provide transparent pricing and flexible payment plans. Plus, Enact partners with trusted local installers to ensure your solar system is expertly installed and fully compliant with California regulations.
Take control of your energy costs and protect yourself from PG&E’s price hikes. With Enact, you can go solar in just ten weeks and start saving. To get started, schedule a free consultation today and see how Enact can help you achieve long-term energy savings.