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Increasing Commercial Electricity Rates for California Businesses

Increasing Electricity Rates for California Businesses

A Wake-Up Call for a Sustainable Future

Increasing commercial electricity rates have already pushed many California businesses to invest in sustainable technology like commercial solar and energy storage systems. Revel Energy knows the importance of staying ahead of increasing rates, helping many California businesses drastically reduce their future electricity bills with solutions tailored to fit their exact needs.

A recent whitepaper by Energy Toolbase has shed light on the upward trend of electric bill costs in California, particularly for businesses within investor-owned utility territories. In this blog post, we’ll dive into the key findings of this study, compare similar findings in our past studies, and discuss how your business can mitigate the impact of these rising electricity costs.

Rising Tide of Commercial Electricity Rates

According to the Energy Toolbase whitepaper, the retail electric bill costs in California’s big three IOUs; Pacific Gas & Electric (PGE), Southern California Edison (SCE), and San Diego Gas & Electric (SDGE) – have seen a Compound Annual Growth Rate (CAGR) between 28% to 63% from 2014 to 2023. On a cumulative basis, commercial customer bills have increased anywhere from 47% to 104%, depending on the utility.

While the study covered both residential and commercial utility customers, there were significant differences between the rate growth between those customers and what IOU they were served by. An example noted in their conclusion, the 10-year cumulative cost increase for commercial customers in SDGE (104%) was more than double the cumulative increase for PGE residential (46.7%) and SCE commercial (47.8%) customers.

California’s electricity cost inflation has spiked significantly in the last three years, averaging all three IOU territories from 2020 to 2023, the brief period has seen a 75% increase for commercial customers.

Why Are Electricity Rates Increasing?

Top View - Corporate Business Park Rooftop Commercial Solar - Irvine, CA

The study attributes the rise in commercial electricity rates to many factors such as; fuel / energy cost, changes in demand, infrastructure investments, regulatory / policy changes, and environmental mandates. New frameworks, such as the NEM 3 / net billing tariff, introduce more variables to consider when calculating inflation for utility bills and avoided costs from solar + storage projects in the future.

What is clear is that this trend is likely to continue. While past performance is not a guarantee of future results, the study suggests that it’s safe to assume that rates and costs will continue escalating in California over the next decade.

Many businesses are taking avoiding action and considering sustainable upgrades like commercial solar and energy storage, contact us to learn how much your business can save with solar

Increasing Rates for Both IOU & Municipal Utility Customers

Using anonymized data from other commercial businesses, our team conducts various IOU-specific and municipal rate studies to show these cost increases. Our studies from the perspective of businesses acting on their increasing electricity bills show why so many businesses are re prioritizing to reduce future costs. This Energy Toolbase whitepaper falls right in line with what our team reported and what we continue to hear from businesses throughout California.

Future-Proof your Business by Creating Capital Through Sustainability

While this outlook may not seem to be ideal, there are actionable steps your business can take to mitigate the impact of these increasing rates:

Install An On-Site Commercial Solar System

  • Commercial solar energy modules provide considerable savings on electricity bills while reducing the carbon footprint of a building. Utilizing available rooftop space is the most effective way to reduce electricity costs while increasing property value, solar carports or canopies are viable options as well.

Implement an Energy Storage System (ESS)

  • Depending on facility electricity demand, an ESS can drastically reduce electricity bills by peak shaving demand charges. When paired with solar, an ESS can store excess energy that can be used later when the sun is down to reduce reliance from the utility.

The trend of rising commercial electricity rates in California is undeniable and is pushing many businesses to consider alternatives. However, with strategic investments in clean energy solutions, your business can not only mitigate the impact of these rising costs but also contribute to a more sustainable future. As experts in commercial solar and energy storage solutions, our expert team is here to help your business make the transition. Contact us today to learn how you can future-proof your California business against rising electricity rates.

Revel Energy Commercial Solar Icon

Commercial grade rooftop solar is ideal for: manufacturing, warehousing, logistics, industrial, retail, hospitality buildings and more with over 10,000 sq. ft. rooftops.

Revel Energy Solar Canopy Icon


Free standing carport solar generates added solar power for properties with limited rooftop space. Added benefits include shading and protection for employees vehicles.

Revel Energy Energy Storage System Icon

Crucial for reducing peak demand charges. Automated to supply electricity when your panels won’t. Energy storage is ideal for businesses that incur significant peak charges.

As the popularity of electric vehicles increase, so does the demand for on-site charging. This sustainable amenity has become a parking lot fixture for competitive employers.



CSLB #1106092


Client Testimonial: Kelemen Company

Corporate Business Park in Irvine, CA has created significant electricity cost savings through commercial solar installed across the 5-building business park.

Client Testimonial: Tice Gardner & Fujimoto LLP

See how this CPA firm saved on electricity and gained valuable tax credits through commercial solar that they used to keep cash in the businesses.






– CSLB #1106092

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