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).

Why Is My California Electric Bill So High? PGE, SCE, SDGE Explained

If you're in California and your electric bill feels crazy high — you're not imagining it. California has some of the highest residential electric rates in the country, and they've been climbing faster than inflation for years. The average PG&E customer pays over 41 cents per kWh, SCE customers pay around 34 cents, and SDG&E customers pay close to 46 cents — compared to a national average closer to 17 cents. Here's why the bills are so high, what's driving the increases, and what California homeowners can actually do to lower them.

The Core Reasons California Rates Are So High

1. Wildfire costs

California's investor-owned utilities (PG&E, SCE, SDG&E) were found liable for major wildfires in 2017-2019, including the catastrophic Camp Fire. PG&E filed for bankruptcy in 2019 under the weight of wildfire settlements. The utilities are now legally required to spend billions on wildfire mitigation — tree trimming, undergrounding power lines, upgrading equipment, Public Safety Power Shutoffs (PSPS) — and those costs get passed through to ratepayers.

2. Grid infrastructure upgrades

California's electric grid was mostly built 40-70 years ago. It wasn't designed for today's electrified economy — EV charging at scale, heat pumps replacing gas furnaces, growing data-center and cannabis-industry load, rooftop solar interconnections. Modernizing the grid to handle it all is extraordinarily expensive and gets recovered through rates.

3. Clean-energy mandates

California has some of the most aggressive renewable energy and climate mandates in the country. Meeting them requires buying more renewables at contracted long-term prices, building out storage, and maintaining backup capacity. These aren't bad policies, but they do cost money that shows up on your bill.

4. The new $24/month fixed charge

In 2024-2025, California utilities began rolling out a new income-graduated fixed charge — approximately $24/month for middle-income households. It's a flat fee that you pay regardless of how much electricity you use. The goal was to restructure rates so low-usage customers (including solar owners) contributed more to grid fixed costs. For the median household, it adds $288/year to the bill whether you use 1 kWh or 1,000 kWh. See our $24 fixed charge explainer.

5. Time-of-Use (TOU) peak rates

California utilities moved almost all residential customers to Time-of-Use rates, meaning the price of electricity varies by hour. Peak hours (typically 4 PM-9 PM) cost dramatically more than off-peak — SCE peak rates reach 58-74 cents per kWh during summer, for example. If your family uses most of its electricity in the evening (cooking, TV, AC, laundry), you're consuming during the most expensive hours.

Utility-Specific Factors

Why your PG&E bill is so high

PG&E has been raising rates consistently since emerging from bankruptcy. The wildfire-mitigation surcharge is large. If you live in a high-fire-risk area (Tier 2 or Tier 3 HFTD zones), more wildfire-related costs flow through to your rate. PG&E's 2026 general rate case added additional increases on top of annual adjustments. Our PG&E vs SCE vs SDG&E rate comparison has the full breakdown.

Why your SCE bill is so high

SCE serves most of Southern California. Their TOU-D and TOU-D-Prime schedules have extremely high summer peak rates. The 2026 rate case added approximately 12.9% on top of already elevated 2025 rates. Summer AC consumption hits you during peak hours, compounding the pain. See our SCE rate increase 2026 guide.

Why your SDG&E bill is so high

SDG&E has the highest residential rates in California — and among the highest in the continental US. San Diego's reliance on imported power, grid constraints, and wildfire mitigation all combine to push rates above both PG&E and SCE on a per-kWh basis.

Why your LADWP bill might also be rising

LADWP, a municipal utility, has historically been cheaper than the IOUs — but it's rolling out its own rate increases to fund grid modernization and clean-energy targets. The gap between LADWP and PG&E/SCE/SDG&E has narrowed.

What You Can Actually Do

1. Solar + battery. Under NEM 3.0, a correctly sized solar + battery system offsets 70-90% of typical California household consumption. It doesn't eliminate the bill (the fixed charge and any grid purchases not covered by solar still apply), but most homeowners see their monthly bill drop from $250-$350 to $30-$80. See if you qualify for solar.

2. Switch to the right TOU plan. Different utility tariffs fit different usage patterns. An all-electric home with EV charging might do better on an EV-specific TOU plan with extremely low overnight rates. Call your utility and ask about rate plan analysis.

3. Shift consumption off-peak. Run dishwashers, laundry, pool pumps, and EV charging during off-peak hours (typically overnight or midday depending on TOU plan). The difference between peak and off-peak can be 4-6x per kWh.

4. CARE / FERA assistance. If your household income qualifies, the CARE program gives you a 30-35% discount on your utility bill. FERA gives ~12% for slightly higher incomes. Apply through your utility's website — takes about 10 minutes.

5. Basic efficiency. LED lighting, smart thermostats, insulation upgrades, heat pump water heaters. Not as transformative as solar, but meaningful reductions.

Frequently Asked Questions

Why are California electric rates so high compared to other states?

Wildfire costs, grid infrastructure upgrades, clean-energy mandates, TOU peak pricing, and the new fixed charge all contribute. The national average residential rate is roughly 17 cents/kWh; California IOU averages are 34-46 cents/kWh.

Why did my PGE bill suddenly spike?

Typical causes: the new $24 fixed charge rolled out, summer AC usage hit during peak TOU hours, or a scheduled rate increase took effect. Check your bill for the line items — the "energy charges" section shows how much you consumed and at what rate tier.

When will California electric rates go down?

Honestly, probably not anytime soon. Wildfire mitigation and grid-modernization costs are recurring for the foreseeable future. The CPUC projects 6-12% annual rate increases through 2028 as a baseline.

Can solar actually eliminate my California electric bill?

Almost — not quite. Even with a well-sized solar + battery system, you'll still pay the $24 fixed charge plus any grid purchases during extreme weeks. Typical California household goes from $250-$350/month to $30-$80/month after solar. That's meaningful savings; not zero.