California Electric Rates Are Forecast to Keep Climbing Through 2029 Here's What It Could Mean for Your Home

California Electric Rates Are Forecast to Keep Climbing Through 2029
Here's What It Could Mean for Your Home

If your electric bill already feels heavy, the state's own forecast says the trend is not over.

The problem: rates rising faster than inflation
An October 2026 report to the Legislature from the California Public Utilities Commission (CPUC) projects residential rates at the big utilities will grow slightly faster than inflation through 2029. The report assumes inflation of 3.2%. That is a forecast, not a final rate decision. But it is the state's own planning view.

What the forecast says, utility by utility

The report estimates average bundled residential rates in cents per kilowatt-hour (kWh):

-SCE: 33.3 cents in 2025 to 38.5 cents in 2029, about 16% higher.

-PG&E: 35.7 cents in 2025 to 40.8 cents in 2029, about 14% higher.

-SDG&E: 37.3 cents in 2025 to 46.7 cents in 2029, about 25% higher.

That works out to roughly 4% a year for SCE and PG&E and about 6% a year for SDG&E.

What that could look like on your bill
Here is a simple illustration using the report's numbers and a home that uses 500 kWh a month. Your own usage and rate plan will differ.

-SCE: about $166 a month in 2025 versus about $192 in 2029.

-PG&E: about $179 versus about $204.

-SDG&E: about $187 versus about $234.

That is roughly $25 to $47 more every month, before any other changes to your plan.

What is behind the increases
The report points to wildfire-related costs, the cost of rooftop solar programs, and spending on the distribution grid as the main cost drivers. It estimates PG&E's wildfire-related revenue requirement for 2026 at $3.8 billion, about 18% of its total. None of those are costs you can negotiate. But you can change how much power you buy at retail prices.

Why it matters to you
Every kWh you generate and store at home is a kWh you are not buying at the utility's rate. When rates climb, that gap grows.

How third-party ownership (TPO) works
In a TPO program, a company installs, owns and maintains the solar and battery system at your home. You pay for the power it produces without buying, leasing, or financing equipment. Many programs are designed to come in below utility rates, with savings of up to 40% depending on your home and program.

Here is what a TPO solar and battery program can offer:

-Less grid power purchased at retail prices

-Solar power stored for the expensive evening hours

-A battery that can provide backup power during an outage

New SCE solar customers are on Net-Billing, which is why a battery is now the norm. See what your options look like before the next rate change arrives.

To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org

CPUC, 2026 SB 695 Report (Oct. 2026): https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/office-of-governmental-affairs-division/reports/2026/2026-sb-695-report---final.pdf