How does the California Rate Relief Program work?

We install solar panels on your roof at no cost out of pocket. Instead of paying your utility company a different amount every month, you pay a fixed monthly payment that is typically 30 to 50% less than what you are currently paying. The program covers 100% of the cost for solar panels, backup batteries, and installation.

Who qualifies for the Rate Relief Program?

California homeowners with SCE, PG&E, or SDG&E as their utility provider, monthly electric bills of $150 or more, and a credit score of 650 or above typically qualify. Renters are not eligible for this program.

Is there any cost to the homeowner?

There is $0 out of pocket cost. The program covers the full cost of solar panels, battery storage, and professional installation. Instead of paying your utility company, you simply pay a lower, fixed rate for the power generated by the system on your roof.

What happens if something breaks?

The program includes a comprehensive 25-year bumper-to-bumper warranty. If a panel breaks, it gets fixed. If an inverter fails, it gets replaced. All maintenance and repairs are covered at no cost to you for 25 years.

Which utility companies are supported?

The program currently supports homeowners with Southern California Edison (SCE), Pacific Gas & Electric (PG&E), San Diego Gas & Electric (SDG&E), Moreno Valley Utility (MVU), and Los Angeles Department of Water and Power (LADWP).

The New $24 Fixed Charge on Your California Electric Bill, Explained

If you've noticed a new line item on your California electric bill that wasn't there before, this is probably it. Starting in late 2025 and rolling into early 2026, PG&E, SCE, and SDG&E all added a monthly fixed charge of approximately $24 to every residential electric bill. Here's what it actually is, why it exists, whether you can reduce it, and how it affects the math on solar.

What Is It?

The fixed charge is a flat monthly fee that appears on your bill regardless of how much electricity you use. Use 50 kWh or 1,500 kWh — you pay the same $24. It's separate from your per-kWh usage charges.

The charge was authorized by the California legislature through AB 205, signed into law in 2022, and implemented by the California Public Utilities Commission (CPUC) starting in late 2025. You can read the full CPUC decision on the CPUC Rate Reform page.

Why Does It Exist?

The stated purpose is to make electricity pricing more "equitable." The idea: by shifting some grid maintenance costs from per-kWh charges to a flat fee, the per-kWh rate drops slightly for everyone. In theory, this helps low-usage households pay less overall.

In practice, the per-kWh reduction has been modest — roughly 2 to 5 cents per kWh depending on the utility and rate plan. For households that use a moderate amount of electricity (600+ kWh per month, which is most households with air conditioning), the net effect is a higher total bill.

Critics of the fixed charge argue it penalizes energy conservation — if you invest in efficiency upgrades to reduce your usage, you're still stuck paying the $24 every month. Supporters argue it more fairly distributes the cost of maintaining grid infrastructure.

How Much Is It by Utility?

Utility	Standard	CARE	FERA
PG&E	~$24.15/mo	~$6/mo	~$12/mo
SCE	~$24.15/mo	~$6/mo	~$12/mo
SDG&E	~$24.15/mo	~$6/mo	~$12/mo

Amounts are approximate and subject to annual adjustment by the CPUC. CARE and FERA are income-based discount programs.

Can You Avoid or Reduce It?

You can't opt out of the fixed charge. It applies to every residential grid-connected customer. However, there are two ways to pay less.

CARE or FERA enrollment. If your household income qualifies, you can reduce the fixed charge to $6 to $12 per month. Check your utility's CARE/FERA eligibility page — many qualifying households haven't applied. Links: PG&E CARE/FERA, SCE CARE/FERA, SDG&E assistance programs.

Go completely off-grid. Technically, if you disconnect from the utility entirely (no grid connection at all), you wouldn't pay the fixed charge. In practice, going fully off-grid in California requires significant battery storage (typically 40+ kWh), a backup generator, and is prohibitively expensive for most households. This is not a realistic option for the vast majority of homeowners.

How Does the Fixed Charge Affect Solar?

If you have solar panels (or are considering them), the fixed charge still applies. Even if your solar system produces 100% of the electricity you use, you'll still pay the $24 monthly fixed charge to the utility for your grid connection. This is true whether you own the system, lease it, or have a PPA.

That said, $24 per month ($290 per year) is a small fraction of most households' total energy costs. If your bill is $250 per month, the fixed charge represents less than 10%. The other 90%+ is consumption-based charges that solar directly offsets.

To put it in perspective: without solar, a typical SCE household pays about $3,000 to $4,500 per year in electricity. With solar (assuming 70-90% offset), you'd pay the $290 annual fixed charge plus perhaps $300 to $900 in remaining grid charges. The fixed charge is a real cost but not a deal-breaker for solar economics.

Will the Fixed Charge Go Up?

Probably. The CPUC has the authority to adjust the fixed charge annually, and utilities have signaled they'd like it higher. Some energy policy analysts expect it to reach $30 to $40 per month within the next few years. There's no cap written into the legislation.

This is worth factoring into any long-term energy planning. If the fixed charge climbs to $40/month ($480/year), that's a meaningful cost — but it also means the per-kWh rates may come down slightly in exchange, since the fixed charge is meant to shift costs from per-kWh to flat fees. How that trade-off shakes out depends on your usage level.

What Should You Actually Do?

First, find the fixed charge on your most recent bill and confirm you're paying the standard amount. Then check whether you qualify for CARE or FERA to reduce it. Beyond that, the fixed charge is largely out of your control — it's a cost of being connected to the grid in California.

The actionable decision for most homeowners is whether to address the other 90% of their bill — the consumption-based charges — through efficiency upgrades, rate plan optimization, or solar. The fixed charge makes that decision slightly more complex but doesn't fundamentally change the calculus. If your bill is $200+ per month, the consumption portion is still where the real savings opportunity lives.