Californians pay some of the highest electricity rates in the country. In 2022, only residents of Hawaii and Massachusetts paid more, on average, for a kilowatt-hour of electricity.
The only thing keeping California's power bills close to the national average was the fact that Golden State residents used a lot less electricity than the average American.
If you're a Californian looking to lower your energy budget, you have several ways to do it. Here's more info on energy costs in California, plus ways to cut your electric bills and save energy around the home.
What's the average electricity bill in California?
The table below shows the average electric bill in California in 2022, according to data from the Energy Information Administration:
Average electric bill in California
| Average electricity price (in cents per kilowatt-hour) | Average monthly usage (kWh) | Average electric bill | |
| California | 25.84 | 535 | $138.29 |
| United States | 15.04 | 899 | $135.25 |
There are a variety of reasons why Californians pay more for electricity than many other states, including wildfire damage, inflation and rising labor costs. Utilities are investing in renewable energy infrastructure and scaling up to prepare the grid for increased usage as the state moves towards electrification and away from gas.
Another reason you might pay higher electricity bills in California is because of time-of-use rates, which charge more for the electricity your home uses during the time each day when demand is highest. That's typically in the evening when people are coming home from work and turning on lights and electronic devices. Solar production also drops when the sun goes down.
"California has moved predominantly to time of use pricing for consumers, which makes it more expensive to use energy between 5 p.m. and 9 p.m.," said Ben Brown, CEO of virtual power plant Renew Home. "It's a great way to take advantage of lower costs during the rest of the day, but if folks aren't really thoughtful about how to shift their usage, they're going to get hit with higher average energy bills."
Residents of California can lower those high electric bills through a variety of methods, ranging from small daily changes to larger investments in energy efficiency.
Getting solar panels in California
One of the most significant ways to cut your electricity bills -- and have a more energy-efficient home -- is to install solar panels. With sunny, mild weather in much of the state and solar-friendly policies, California has more solar panels than any other state and nearly 2,000 installers in operation.
Purchasing solar panels outright can be a big upfront investment, but the long-term energy savings can be worth it. Plus, tax credits from the Inflation Reduction Act and other solar incentives can seriously reduce the cost. You can also finance solar panels, effectively swapping out your monthly electric bill for your solar loan during the roughly 10-year average payback period.
Electric bill assistance in California
Californians can take advantage of several assistance programs that can lower electricity bills, including:
Residents of California can also take advantage of rebates and other programs to lower electricity costs:
Energy-saving tips for Californians
In addition to bigger energy efficiency investments like installing solar and upgrading appliances, you can save on your electric bill by shifting when and how you're using energy in your home. These simple, everyday adjustments can cut your energy usage and, sometimes, the rate you're paying for electricity.
Behavioral changes
Small changes in how you do things like washing clothes, lighting your home and even cooking dinner can cut down on energy use. Habits like changing out incandescent bulbs for LEDs, putting electronics on standby, keeping the oven door closed when baking and cleaning your dryer can add up to a big difference in your electricity bill.
If you're charged time-of-use rates, observing your habits and shifting electricity use away from periods when rates are high can also put a dent in your monthly energy costs.
"I would start with the small stuff -- just thinking about your own personal patterns, like when you usually do the laundry or the dishes," Brown said. "Are these things easy for you to change that pattern slightly?"
A home energy audit
Changing how you use electricity is only half the battle when it comes to saving energy. An energy-efficient home will minimize the heating and cooling lost through openings like doors and windows, meaning your HVAC system uses less energy keeping the interior comfortable.
"There's a lot of things that folks can do around energy-efficient appliances while taking advantage of rebates in the Inflation Reduction Act, plus tax credits for more efficient water heaters, HVAC systems, heat pumps and other appliances that can reduce energy usage," Brown said.
A home energy audit conducted by your utility or a third-party professional can assess the structure's energy efficiency and point out areas like appliances, doors and windows, insulation and HVAC systems where upgrades and repairs could make a big difference in energy usage. Plus, the IRA provides a tax credit of up to $150 to help cover the costs of an audit.
Smart technology
If your electronics are plugged in, they're drawing tiny amounts of electricity, even when they're not turned on or in standby mode. This "phantom power" or "vampire energy" can add up over time. Smart plugs, power strips and surge protectors can cut way down on that extra energy use.
"Smart plugs and smart power strips are pretty inexpensive, and they're really helpful in terms of reducing the vampire energy stuff that adds up over the year," Brown said, noting that using smart plugs for small appliances like DVRs and coffee makers can save an average of $432 per household over a year.
Smart thermostats can meaningfully lower the portion of your electricity bills that comes from heating and cooling your home. Features like occupancy sensors, energy reports and mobile apps that allow you to control the thermostat remotely can help keep your space comfortable while reducing energy usage.
Smart thermostats can even help you avoid rate hikes during peak times.
"We spend nearly half of our energy use on heating and cooling our homes. It's a no-brainer to automatically shift that out of really expensive periods," Brown said.
Virtual power plants
Cutting your home's energy use automatically translates to savings on your monthly bills. Virtual power plants, which pool different energy sources together to supply utilities with electricity or to slash demand, can actually pay you to reduce your usage during peak times.
"A virtual power plant is a way for homes across the United States to shift their energy usage against times when the grid is strained, or energy prices are really high on the grid, and earn rewards and earn money by saving energy when it's really expensive to produce it," Brown said.
Brown said the rewards for joining a virtual power plant are particularly beneficial for households with solar panels or electric vehicles, but those aren't required to participate in a virtual power plant.
"You can save a lot of money, but also help contribute to the broader shift of usage, which is a very valuable resource to stabilizing the grid, reducing blackouts and reducing the costs of maintaining the grid," he said.
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