California Electricity Rates: A Decade of Data
The data is blunt: California’s average residential electricity price climbed from 17.39¢/kWh in 2016 to about 32.83¢/kWh year-to-date in 2026 (through May) — roughly +89% in ten years, per the U.S. Energy Information Administration. Over the same span the U.S. average rose about 44%. So California didn’t just stay expensive; it pulled further ahead. Here is the trend, and what it means if you’re weighing solar.
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- CA residential price: 17.39¢ (2016) → 31.97¢ (2024) → 32.83¢ (2026 YTD) — about +89% in a decade (EIA).
- The gap over the US average widened: from ~1.4× in 2016 to ~1.8–1.9× in 2024–2026.
- CA electricity rose far faster than inflation — roughly twice the CPI increase over the same years.
- Rate history is not a promise about the future, but it is the single biggest driver of whether solar pays off.
The numbers: California vs the US
These are EIA residential average retail prices (revenue ÷ sales), the apples-to-apples series. Note this is the residential figure — the “all-sector” average you sometimes see (~27¢ for CA in 2024) blends in cheaper commercial and industrial power and is lower.
| Year | California | US average | CA vs US |
|---|---|---|---|
| 2016 | 17.39¢ | 12.55¢ | 1.39× |
| 2024 | 31.97¢ | 16.48¢ | 1.94× |
| 2026 YTD | 32.83¢ | 18.11¢ | 1.81× |
Source: EIA Electric Power Monthly, Table 5.6.A & Table 5.6.B (residential; 2026 = year-to-date through May) and EIA-861 annual figures.
Rates vs inflation
The honest comparison isn’t just “prices went up” — everything did. But California electricity outran general inflation by a wide margin. From 2016 to 2024, the U.S. Consumer Price Index rose roughly 32% (BLS); California residential electricity rose about 84% over the same window — more than twice as fast. In inflation-adjusted terms, your power really did get more expensive, not just nominally.
Rewind your electric bill
Enter your current monthly bill and pick a year. The tool applies the change in California’s residential rate to show what the same electricity would have cost you back then — a concrete way to feel the trend in the table above.
Bill rewind
What the same power cost at older California rates.
Uses CA residential average price: 17.39¢ (2016), ~22¢ (2020, approx.), 31.97¢ (2024) vs 32.83¢ (2026 YTD), per EIA. Assumes identical usage; a real bill also moved with your consumption, plan and fixed charges. Historical comparison, not a projection.
Why California rates climb
The data doesn’t explain itself, so here’s the context behind the curve, briefly: rising transmission and distribution spending, wildfire mitigation and liability costs baked into utility rates, and time-of-use pricing that concentrates cost in the evening. Those are structural, not one-off — which is why the line has kept climbing rather than snapping back.
History is a trend, not a guarantee
A decade of steep increases doesn’t promise the next decade looks the same — rates can flatten, and no one can guarantee a future number. But when you evaluate solar, the rate you’re avoiding is the whole game. A homeowner in a 1.8×-national-average market has a very different math than one paying the US average. See is solar worth it in California.
What this means for an LA homeowner
Three takeaways from the data:
Your rate is the reason solar pencils out
Solar’s value is the retail rate it offsets. At 33¢+/kWh, every self-consumed kWh is worth far more than in a cheap-power state — that’s why California leads the nation in rooftop solar.
LADWP vs SCE still differ
The state average hides big differences between utilities. Check what you actually pay in LA electricity rates and the average California bill.
Rising rates cut both ways
If rates keep climbing, an owned solar system offsets a growing cost. If they flatten, you still locked in against a high 2026 rate. Neither outcome is guaranteed — but both favor having generation you own.
Frequently asked
How much have California electricity rates risen?
California’s average residential price rose from 17.39¢/kWh in 2016 to about 32.83¢/kWh year-to-date in 2026 (through May) — about +89% in a decade, per EIA. The U.S. average rose about 44% over the same period, so California pulled further ahead.
Why is the number sometimes shown as ~27¢ instead of ~33¢?
Because there are two EIA series. The residential average is ~33¢/kWh (32.83¢ year-to-date through May 2026). The all-sector average — which blends in cheaper commercial and industrial power — was ~27¢ for California in 2024. For a homeowner, the residential figure is the right one.
Did rates rise faster than inflation?
Yes. From 2016 to 2024 the U.S. Consumer Price Index rose roughly 32% (BLS), while California residential electricity rose about 84% — more than twice as fast. So power got more expensive in real, inflation-adjusted terms, not just nominally.
Does this mean my bill will keep going up?
Not guaranteed. A decade of steep increases is a trend, not a forecast — rates can flatten and no future number is certain. But the drivers (grid spending, wildfire costs, time-of-use pricing) are structural, and the historical direction has been consistently up.
How does this affect whether solar is worth it?
Enormously. Solar’s value is the retail rate it lets you avoid. In a market paying ~1.8× the national average, each kWh of solar you use is worth far more than in a cheap-power state — which is why California leads the country in rooftop adoption. See is solar worth it in California.
Related reading
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Get a free estimatePrepared by Cali Energy, July 2026. This article is for general educational purposes only and is not legal, tax, financial, engineering, or utility advice. Rates, incentives, codes, permit requirements, equipment specifications, prices, and program terms may change; figures and timelines are estimates, not guarantees. Confirm current requirements with the applicable utility, AHJ, program administrator, manufacturer, or a licensed professional. See our Content Disclaimer. Cali Energy · 19201 Parthenia St Unit E, Northridge, CA 91324 · CSLB #1032379 (B, C-10, C-39)