Electricity Rates in California (2026)
The average residential electricity rate in California is 28.0 cents/kWh, which is 75% above the national average of 16.0 cents/kWh. Higher electricity costs make solar panels an especially smart investment in California, as the savings are more significant.
California Average
28.0¢
per kWh
National Average
16.0¢
per kWh
Utility Companies in California
| Utility Provider | Avg Rate | Service Area |
|---|---|---|
| Pacific Gas & Electric (PG&E) | 30.0¢/kWh | Northern & Central California |
| Southern California Edison (SCE) | 27.0¢/kWh | Southern California (excluding LA & San Diego) |
| San Diego Gas & Electric (SDG&E) | 36.0¢/kWh | San Diego area |
| Los Angeles Department of Water and Power (LADWP) | 20.0¢/kWh | City of Los Angeles |
| Sacramento Municipal Utility District (SMUD) | 16.0¢/kWh | Sacramento area |
Electricity Rate History in California
| Year | Avg Rate (cents/kWh) | Change |
|---|---|---|
| 2020 | 20.0¢ | -- |
| 2021 | 22.0¢ | +10.0% |
| 2022 | 25.0¢ | +13.6% |
| 2023 | 26.0¢ | +4.0% |
| 2024 | 27.0¢ | +3.8% |
| 2025 | 28.0¢ | +3.7% |
Source: U.S. Energy Information Administration (EIA) residential electricity rate data.
How Electricity Rates Affect Solar Savings in California
Your electricity rate directly determines how much you save with solar panels. Every kilowatt-hour your solar system produces offsets energy you would otherwise buy from the grid at 28.0 cents/kWh.
With California's above-average rates, solar panels provide exceptional value. Homeowners typically see faster payback periods and higher lifetime savings compared to states with lower electricity costs. A typical 6kW system in California can save you $50,000 over 25 years.
California's net metering policy allows you to earn credits for excess solar energy sent to the grid, further enhancing your savings. This is especially valuable during summer months when your system produces more than you consume.
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