Electricity has always been expensive in California, but things are getting out of control. In 2024, PG&E became the most expensive electricity provider in the state.
The points they use to justify price hikes are complicated—grid upgrades, wildfire costs, infrastructure improvements. But the reasoning doesn’t change the fact that you’re paying more every month.
PG&E’s business model depends on customers staying hooked on the grid. If you want to beat them, you have to get unhooked. The only way to do that is with solar panels.
Solar panels turn the empty space on your roof into your own, personal power plant so you can generate electricity for yourself. It’s the best way to save money on your bills and take control back from the utility giants.
How Solar Panels Save You Money
Solar panels work by turning sunlight into electricity. You can use them to power anything that runs on electricity, like your lights, appliances, outlets, well pumps, and more. That means you buy less electricity from PG&E, or even none at all, depending on the size of your solar power system and how much electricity you use.
What About Net Metering?
Net metering is a solar incentive that allows you to send the excess power your solar panels generate to the electric grid in exchange for credits. Your credits accumulate, and you can use them to pay for the grid-generated electricity you have to use at night and when it’s too cloudy for your solar panels to generate much.
In 2023, California implemented policy changes that significantly reduced the value of net metering. Under the new policy, NEM 3.0, you’re still credited for sending excess solar power to the grid but at a much lower rate.
With solar battery storage, you can beat PG&E here, too.
Batteries Put You in Control
Solar batteries allow you to store the excess electricity your solar panels generate so you can use it yourself instead of sending it to the grid. You can charge your battery during the day when there’s plenty of sunlight and use your stored power in the evenings, when time-of-use electric rates kick in, saving you money.
A battery is an added cost when installing solar panels for your home, but in most cases, it’s worth it.
- Gives you more control over how and when you use your solar power
- Avoids expensive time-of-use electric rates
- Reduces your reliance on PG&E
- Provides backup power during a grid outage
How Much Can You Save?
When you install solar panels, your exact savings will depend on a lot of factors, including how much electricity you consume, how much electricity you generate, and how you finance your solar panels.
Most of our customers offset the majority of their electric bill with solar. If you stay connected to the grid, you’ll always have to pay service charges, but your electricity usage charges will go way down—sometimes to $0.
For this example, let’s assume you’re paying $250 a month on electricity (about average in California). If you cover 80% of that with solar power, you’ll save $200 a month. That’s $2,400 a year. Considering solar panels last for at least 25 years, you’ll save $60,000 over the course of their lifespan. And that’s without taking into account future PG&E price hikes that are bound to happen.
Does It Matter How You Pay?
There are a few ways to pay for solar panels, and your financing decision will impact your overall savings.
- Cash – The easiest and most profitable way to go solar. With a cash payment, you don’t have any fees or interest to worry about. You’ll see the fastest return on your investment and the greatest overall savings.
- Loan – Solar loans are a great option if you want to install solar without making a big upfront investment. There are plenty of options with varying terms, and we can help you compare them. Your loan payment should be less than what you’re currently paying for electricity, so you start saving money from day one.
- Lease – A solar lease is an option, but it has the lowest return. With a lease, you rent your solar panels from a third party and pay a monthly fee to use them. It can be an affordable path toward using clean energy, but at the end of the day, you’re just transferring power from PG&E to a leasing company instead of taking control yourself. Owning solar panels with a cash payment or loan is almost always a better option.
Ready to Take Control?
Installing solar panels is about more than saving money. It’s about taking control of a vital resource and ensuring you have reliable, affordable access to electricity that doesn’t depend on an aging grid, utility giants, or shifting policy.
Six Rivers Solar installs residential grid-tied and off-grid solar systems that put you in control. If you’re interested, give us a call. We offer free, no-pressure consultations and can help you decide if solar panels make sense for your home on the North Coast.
