California Electricity Rates 2026 — Cost per kWh & Savings
The average electricity rate in California (CA) is $0.2722/kWh, ranking #50 among US states. The average monthly bill is $184 for 676 kWh of usage.
Calculate Your California Electric Bill
Electricity Savings Tips for California
California has the highest electricity rates in the continental US. PG&E rates exceed $0.35/kWh in some tiers. This makes solar panels extremely attractive — typical payback is 4-6 years. Time-of-use rates are mandatory for solar customers under NEM 3.0. A battery system (like Tesla Powerwall) can maximize savings by storing cheap solar energy for expensive evening hours.
Primary Utility: PG&E, SCE, SDG&E
California has a deregulated electricity market. This means you can shop for competitive electricity supply rates from third-party providers while your local utility (PG&E, SCE, SDG&E) still handles delivery. Shopping for a lower supply rate can save 10-20% on your bill.
Solar Energy in California
California receives an average of 5.5 peak sun hours per day. This is excellent for solar energy production. A typical 6 kW system would produce approximately 9636 kWh per year, potentially offsetting your entire electric bill. At $0.27/kWh, a solar system that produces 9636 kWh/year saves approximately $2623/year. With the 30% federal tax credit, typical payback is 4-6 years.