PG&E Rates Keep Rising: How California Homeowners Can Fight Back with Solar

If you live in Northern or Central California, you know the feeling. You open your PG&E bill, and the number is higher than last month. Again. PG&E residential rates have increased by over 100% in the last decade, and the California Public Utilities Commission (CPUC) has already approved additional rate hikes through 2026 and beyond.

Why Does PG&E Keep Raising Rates?

PG&E's rate increases are driven by several factors that aren't going away anytime soon:

• Wildfire liability costs — PG&E declared bankruptcy in 2019 after devastating wildfires. Ratepayers are still covering those costs through surcharges on every bill.
• Grid modernization — Burying power lines and upgrading infrastructure costs billions, and those costs get passed directly to customers.
• Tiered rate structures — The more electricity you use, the higher your per-kWh rate. Families in larger homes or with EVs often hit Tier 2 and Tier 3 pricing, where rates can exceed $0.50 per kWh.
• Time-of-Use (TOU) plans — PG&E's default TOU plans charge peak rates between 4–9 PM, exactly when most families are cooking dinner and running appliances.

What PG&E Customers Are Actually Paying

As of early 2026, PG&E's average residential rate sits around $0.39–$0.45 per kWh — one of the highest in the nation. For a household using 900 kWh per month, that's a monthly bill of $350–$405 before any fees or surcharges.

Compare that to the national average of about $0.16 per kWh. PG&E customers pay roughly 2.5x the national average.

How Solar Stops the Bleeding

Solar panels let you generate your own electricity instead of buying it from PG&E at ever-increasing rates. Here's what changes:

• Lock in your energy cost — A solar system has a fixed cost. Once installed, your "rate" is effectively $0 for the electricity it produces for the next 25–30 years.
• Eliminate top-tier pricing — Solar offsets your highest-cost kWh first. Even a modestly sized system can keep you out of Tier 2 and Tier 3 entirely.
• Battery storage for TOU optimization — Pair solar with a battery to store daytime energy and use it during peak hours, avoiding PG&E's highest TOU rates.
• Federal tax credit — The 30% federal Investment Tax Credit (ITC) reduces the cost of your system significantly.

Real Numbers: PG&E Customer Savings

A typical PG&E customer with a $350/month bill who installs a 8 kW solar system can expect:

• Monthly savings of $280–$320
• Annual savings of $3,360–$3,840
• 25-year savings of $84,000–$96,000 (accounting for rate increases)
• System payback in 5–7 years

Stop Waiting for PG&E Rates to Come Down

They won't. Every year you wait is another year of paying premium prices for electricity you could be generating yourself. The best time to go solar was five years ago. The second best time is now.

See how much you could save with a free savings estimate, or check if you qualify for solar today.