As we reported last month, there was a new utility rate hike in the works that was set to be voted on at the end of November. At the time, there was some discussion surrounding how large the actual increase would be, given that PG&E was looking for one value and the California Public Utilities Commission (CPUC) was interested in countering with another value. Specifically, the utility was requesting a 26% increase, and the CPUC countered with two alternative rate increases, one of 9% and one of 13%.
Since our last article on the issue, the vote has passed and the new utility rate hike has been approved – the final rate hike is 12.8%, just shy of the 13% proposed by the CPUC. So, what does this mean for utility customers going into 2024? Simply put, your energy bills are going up. Let’s take a look at why this is happening, and what you can do about it.
Unfortunately, your energy bill will increase in 2024. Thanks to the new utility rate hike, you’re likely to pay roughly $30 or more extra per month starting on January 1st, 2024. You can use some back of the napkin math to get an idea of just how much you will be paying per month in 2024. Simply take the value from your previous bill and move the decimal point over one space to the left and you’ll have an idea of what 10% of your bill is. Your monthly increase will be slightly higher than that amount, due to the fact that the actual rate increase is 12.8%.
Now, some of you may be lucky enough to pay less than $300 a month for power, although the number of people with low energy bills is shrinking every day, but you have to remember that this is a monthly increase, and it will scale with the price of power and the energy needs of you and your community. So, in the summer months, when prices go up? You’re going to see even higher bills for the same amount of power as you’ve used before – and by the end of 2024, you’ll have paid hundreds more for the power you needed with no additional value provided to you.
Now, here is where we can finally offer some good news. Yes the utility is charging you more for the same product, and yes it could cost you more to power your home in the new year, but there is a way to get around the new utility rate hike. If you’re interested in avoiding a future where you pay hundreds more annually for power, you need to consider investing in solar energy. Think of it this way – right now you’re already renting power from the utility, and it costs you quite a bit. Starting next year, they’re going to raise the rates and you’ll be paying more per month, but getting no additional benefits to compensate you! Instead, you could spend that energy-rent money on a low cost monthly payment with a defined end date, and be done with your energy bills once and for all!
This is why solar is such a strong investment in the face of cost increases like the new utility rate hike. Instead of paying more for less, you’re actually paying less for more! You get a system which will provide you with clean, renewable energy for decades to come, plus the additional benefits of a 30% tax credit and thousands of dollars in added property value. Plus there are additional savings opportunities connected to solar, like whole home electrification and the many federal and state programs designed to help you save money on those energy efficiency conversions.
Beat the new utility rate hike with Solar + Storage!
With a storage enabled solar system, you’ll be able to bank power when it’s cheap and easy to do so, and utilize it when the price of electricity goes up – such as in the evenings or at night. When it comes to combating the increased costs that come with a utility rate hike, there’s no better tool than a solar system paired with a battery storage solution. There’s still time to get set up with solar before your monthly energy bills begin to increase – schedule an appointment today and avoid the new utility rate hike!
