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On average, California residents spend about $210 per month on electricity. That adds up to $2,520 per year.
That’s 9% higher than the national average electric bill of $2,312. The average electric rates in California cost 30 ¢/kilowatt-hour (kWh), so that means that the average electricity customer in California is using 701 kWh of electricity per month, and 8,412 kWh over the course of the year.
This data is aggregated over the past 1 month.
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Solar saves you money by reducing or eliminating your monthly electric bill. The amount that you can save with solar in California is based on two factors: how much you spend on electricity now and how much of your electric bill you can offset with solar.
Based on the intensity and amount of sunlight hours in California, the average electricity customer in California will need a 7.0 kilowatt (kW) solar panel system to offset 100% of their annual electricity consumption of 8,412 kWh per year. On the EnergySage Marketplace, solar shoppers in California pay an average of $19,000 for a 7.0 kW solar panel system prior to incentives.
The savings from offsetting 100% of an electric bill with solar can add up fast! Assuming an 4.4% annual increase in electricity prices and that you install your system with a $0-down loan, you can expect to save $2,500 in your first year, $13,700 over five years, $30,800 over 10 years, and $78,100 over 20 years on electric bills in California. Over your system’s lifetime you’ll save more by financing your solar system with a cash purchase, but you won’t start saving in year one. Learn more about how to finance your solar panel system.
Monthly electric bills are a product of how much electricity you use per month and your electric rate. In California, the average monthly electric bill for residential customers is $210/month, which is calculated by multiplying the average monthly consumption by the average electric rate: 701 kWh * 30 ¢/kWh.
Electric bills are designed to cover all of the costs of producing the electricity that you use, of running and maintaining the electrical grid to help prevent outages, and of any public benefit funds that promote things like renewable energy and energy efficiency. These costs are rolled into both fixed charges (i.e., monthly customer charges) and variable charges (i.e., ¢/kWh that you use). While fixed charges will remain the same from month to month, the portion of variable charges on your bill each month will change based on how much electricity you use. As a result, there are two ways to reduce your bills: by either using less electricity or by reducing the cost of electricity, by installing solar for instance.
The easiest way to compare the cost of electricity from one region to another is to look at the electricity rate. Residential rates in the U.S. range from 6 ¢/kWh to 71 ¢/kWh depending upon where you live, what types of power plants provide your electricity, and when during the day or year you’re consuming electricity.
The average residential electricity rate in California is 30 ¢/kWh, which is 31% higher than the national average rate of 23 ¢/kWh.
Solar panel systems help you save money by reducing your monthly electric bills. Although a $50 or $100 electric bill might not seem like much when you pay it each month, those bills add up quickly over ten, twenty or even thirty years: if you pay $100 per month in electricity now, you’ll pay over $72,000 on electricity over the next thirty years!
|EXISTING ELECTRIC BILL||10 YEAR COST||20 YEAR COST||30 YEAR COST|
Assuming a 4.4% annual increase based on inflation and average annual electric rate increases.
Installing solar allows you to reduce or even eliminate your electric bill: when you pay upfront for solar panels, you are effectively paying today for the electricity you’ll use over the next 25 or even 30 years. Calculating your savings from investing in solar is as simple as subtracting the amount you pay for solar from what you would have paid for electricity otherwise.
We know electric bills add up over time, and going solar is a great way to save money while helping the environment. When you sign up on the EnergySage Marketplace, you'll be able to receive and compare solar quotes side-by-side from qualified solar installers in your area. We're here to help along the way - talk with one of our Energy Advisors to learn more about your unique quotes, any local solar incentives you may be eligible for, or any other questions about saving on electric bills with solar.
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