As demand grows, the cost of electricity in for businesses increases.

While 2025 offered a temporary plateau for some ratepayers due to bill restructuring and one-time adjustments, the long-term trend has resumed its upward climb. Many businesses are fighting these returning rate hikes sustainably through commercial solar and energy storage solutions with Revel Energy.

For a majority of utility customers in California, businesses included, the average commercial retail price of electricity has increased by roughly 90% from 2005 to 2026.

This volatility is driven by a collision of factors: massive infrastructure spending to “harden” the grid against wildfires, and a surge in demand from electrification and data centers. While some utilities saw flat rates last year, rates through 2026 are projected to rise much higher than previous averages, with Southern California Edison (SCE) alone proposing revenue increases that could drive rates up by nearly 13%.

Learn how 2026 electricity costs are increasing for businesses in California, as companies prepare for this new wave of infrastructure-driven hikes from investor-owned utilities such as SCE, SDGE & PGE.