Residential Electricity Pricing
Electricity pricing in California
In California and several other states, the more electricity you use, the more you pay per kWh. This is due to something called tiered utility pricing (see chart below).
The price of the first two tiers is dictated by law. Everyone receives the same amount of electricity at this base price, no matter this size of your home or home much electricity you consume. However, if you use more electricity than is covered in these first two tiers, you can be charged more per kWh. Higher tiers are not regulated by law, and the rates have been increasing far faster than the lower tiers. If the average rate increase for the lower two tiers is 10%, tier 3 and above prices can increase up to 50% at the discretion of the utilities. See rising electricity rates.
A Sungevity home solar system lowers electricity bills
As your home solar system starts generating power, you will automatically use less electricity from the grid because solar energy will be powering your home. Solar will reduce the most expensive electricity usage first, so that you end up paying only for lower-cost electricity. If today, your electricity usage is high enough to be in the higher priced-tiers, going solar can have an impressive impact. For example, a solar system designed to supply 50% of your demand could actually reduce your electricity bill by 60% or more.
To start generating your own power, enter your address in the brown box above for a free quote in 24 hours. You can also call us at 877.257.8648.