California residents are facing higher electricity bills as Pacific Gas and Electric Company, or PG&E, continues to increase the cost of electricity, sparking concerns over affordability and long-term impacts. While electricity rates have stayed relatively stable in the past, many homeowners now fear the broader consequences rising costs will have on their household budgets and economic stability.
The average residential electricity rate in California was 30.22 ¢/kWh (energy consumption metric) as of 2025, 87% higher than the national average. In addition, California’s commercial electricity rate is 23.13 ¢/kWh, which is 81% higher than the national average.
In previous years, electricity costs were significantly lower, easing the financial burden on residents. The median cost of electricity in California in 2020 was 22.00 ¢/kWh. However, just five years later, the rates are as high as 30.55 ¢/kWh. As a result, the average household spends an estimated $183 per month solely on electricity.
California residents, particularly those in the Bay Area, have experienced the harsh implications of this rise in electricity costs. While the Bay Area houses the tech industry and some of the wealthiest communities in the U.S., many residents—especially those in middle and lower-income households—struggle to keep up with their monthly electricity bill. In areas like East Palo Alto and Menlo Park’s Belle Haven neighborhood, families face increased financial strain as rising electricity costs add to the already high living expenses. “The increase is causing us not to be able to be financially stable, and we are having some problems,” an anonymous Belle Haven resident said. While she said her family manages, she expressed the difficulty they face every month, “[We are] scrambling to make the payment on time.”
With residents beginning to voice their frustrations, online campaigns and protests have emerged against PG&E, calling for lower rates and more transparency in the company’s pricing plans. For instance, the “No PG&E Bailout” protest advocated for action and attention regarding the lack of affordability and accountability in PG&E’s rate increases.
“Watching my single mom be forced to choose between feeding my baby sister and paying our electricity bill, along with rent, is heartbreaking,” an anonymous student said. “I work almost every day of the week to help pay the bills because everything is so expensive now.”
Factors such as high wind speeds and extreme climate events have further angered residents. With the increasing number of wildfires, PG&E faces lots of backlash and criticism over fire-related utility failures and its use of PSPS (Public Safety Power Shutoffs). In areas prone to wildfires and high wind speeds, residents face frequent power outages, which can lead to increased disruptions in daily life.
As electricity rates become increasingly unaffordable, many question the reasons behind the sharp rise in costs. PG&E cites various factors for the price inflation, including infrastructure upgrades, wildfire and natural disaster protection, and increased demand. In 2023, PG&E released a statement claiming that “More than 85% of PG&E’s proposed increase was to reduce risk in PG&E’s gas and electric operations.” They also expressed their efforts in updating safety measures by “placing 1,230 miles of power lines underground in PG&E’s highest fire-risk areas,” which “eliminates nearly 98% of risk of wildfire ignition from electrical equipment,” ultimately saving customers “billions of dollars.”
As the cost of traditional electricity continues to rise, many residents who once turned to solar are facing obstacles as well. The widely sought-after solution of solar energy, once seen as the alternative to the grid, is now presenting challenges as well. While solar users typically see cost reductions by opting out of regular grid electricity for self-generated power and natural energy, new costs, policy changes, and technological limitations have rebuked these expectations. Many homeowners now find themselves facing unexpected expenses for maintenance, insurance, and other unavoidable charges from utility companies.
With the rising awareness around the complications of solar and the backlog to get panels installed, many residents are stuck between two increasingly expensive options: traditional electricity and solar, neither of which offers the cost relief or budget-friendly plans anymore.
Overall, California residents are increasingly burdened by soaring electricity prices, with many struggling to adapt to rising rates. As both regular grid energy and solar options present new financial challenges, the future implications and affordability of energy remain uncertain.
