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2024 PG&E Rate Increases: What You Need to Know
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If you're a PG&E customer, you've probably noticed the 2024 PG&E rate increases reflected in your monthly energy bills. Here, we'll go over the specifics of the rate hikes and offer solutions on how to protect yourself from further unexpected increases to your monthly bills by switching to solar and home battery storage with Sunrun.
Understanding PG&E rate increases
As of January 1st, 2024, PG&E increased rates for both residential customers and commercial customers.
How much is the PG&E rate increase for typical residential customers?
From 2020 to Sept 2023, PG&E rates have increased 51% for most PG&E households, and 67% for households enrolled in CARE1. On January 1st, 2024, rates increased another ~18%1. That means the average residential customer will pay nearly $400 more this year1.
The California Public Utilities Commission (CPUC) approved PG&E's rate hikes for 2024.
Why did PG&E increase rates?
According to PG&E, the intention of this rate increase is to fund necessary investments in infrastructure. Significant investments were made in undergrounding electric lines to decrease wildfire risk. Along with undergrounding the power lines, overall upgrades were made to the power grid for better reliability. Part of this increase also helps cover the financial burdens from past wildfire liabilities and the company’s financial recovery. Consistent rate increases have raised some concerns about the ongoing financial impacts on PG&E customers.
As the #1 residential solar and storage company, Sunrun is committed to helping our customers navigate the challenges posed by utility company rate increases. We offer innovative solar plans that can help you take control of your energy costs and reduce your dependence on the grid. By harnessing the power of the sun, you can enjoy affordable energy while minimizing the impact of the most recent rate increase on your bills.
Why is my PG&E bill so high?
Many PGE customers often wonder why their bills are so high. Several factors contribute to the high cost of PG&E rates, most notably, high usage times.
What are the PG&E high usage times?
PG&E has different rates depending on the time of day and the demand for electricity. During the "peak hours" of 4pm - 9pm, typically in the evenings when energy use goes up, the rates are higher. Consequently, if you consume a significant amount of energy during these peak times, your electricity bill will likely be higher than if you primarily use power during off-peak hours.
Another factor contributing to high average customer bills is excessive energy consumption. Running multiple major appliances simultaneously, constantly keeping lights on, or having inefficient electricity usage habits can naturally result in higher bills. It's important to be mindful of your energy usage and take steps to reduce it where possible.
Protect yourself from increased costs by choosing solar and home battery storage with Sunrun
Take back control of your power. At Sunrun, we understand the frustration of high energy bills. With our Sunrun Solar Subscription Plan, you’ll get maximum protection from utility rate hikes with a Sunrun solar and battery system. With the ability to lock in your price, you can enjoy reliable, affordable power for the next 25 years.
Imagine being able to reduce your reliance on the grid and reduce the impact of the next rate increase! With our home battery storage, you can store excess energy generated during the day and use it when the sun isn't shining, ensuring a continuous supply of electricity for your household.
Switching to solar not only will save you money on your utility bills, but can reduce your carbon footprint. With Sunrun, you can make a positive impact on the environment while enjoying the benefits of renewable energy. Take a step towards a greener and more cost-effective future by getting a personalized, free solar quote today
At Sunrun, we pride ourselves on being America's #1 provider of solar energy solutions. Our team of experts is dedicated to delivering top-notch installation services to ensure your solar and battery system operates at its full potential. We have the knowledge and experience to handle all aspects of the installation process, from assessing your home's suitability for solar to securing the necessary permits.
Don't let rising rates catch you off guard. Choose Sunrun and take control of your energy future. Contact us today to learn more about how our solar and home battery storage solutions can protect you from rate hikes.
FAQs
Did PG&E increase rates?
Yes, PG&E increased rates by approximately ~18% in 20241. This hike was implemented to fund infrastructure upgrades, wildfire risk reduction, and financial recovery efforts following past liabilities.
Why Is electricity so expensive in California?
Electricity in California is expensive due to several factors, including the high cost of maintaining and upgrading aging infrastructure, investments in wildfire prevention, state regulations for renewable energy, and the financial recovery of utilities like PG&E from past liabilities. These factors drive up operational costs, which are passed on to consumers.
What are the PG&E high usage times?
PG&E's high usage times typically fall between 4pm and 9pm. during peak demand periods. During these hours, electricity rates are higher due to increased demand on the grid, especially in the summer months when air conditioning use is at its peak.
Sources
1. Why 16-million homes in California are about to pay more for electricity