Use Commercial Solar to avoid Future Rising Electricity Costs

Projected Electricity Costs $5000 / Month

If you average $5000 / month in electricity bills, your business is projected to spend at least $1,600,000 on electricity costs over the next 20 years. Below is a breakdown.

  • 2025 – $67,531
    • 5 year total spend – $318,548
  • 2030 – $78,286
    • 10 year total spend – $687,833
  • 2035 – $90,755
    • 15 year total spend – $1,115,935
  • 2040 – $105,210
    • 20 year total spend – $1,612,222

For businesses paying $5,000 a month, It’s no secret that projected electricity costs are rising… rapidly for California businesses. With electricity rates expected to rise significantly higher than the historical 3% year over year average, businesses are now scrambling to get costs under control.

Since 1990, California’s industrial and commercial electricity rates have risen on average by 3%. Some years as high as 20%. Other years saw a pull back, it is reasonable to project deflation years are long behind us. 

This year, 2021, California electricity customers are expected to take on rate increases as much as 10-15% before summer rates even hit. Summer rates are traditionally the highest electricity rates for the state and many businesses are feeling the pain now.

Below is a table laying out your future energy costs based on historical averages applied to your current average monthly electricity bill. 

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If your average monthly electricity bill ranges from $3,000 to $50,000 - we've calculated here how much you'll spend over the next 20 years.

California Commercial and Industrial Electricity Rate Growth

Industrial rates (in red) apply most commonly to manufacturers, plastics industry, aerospace, and other similar industries. These businesses are some of the states highest electricity users and they pay a premium for it.

Commercial rates apply mostly to flex space, office building, retail and other similar industries. These are generally smaller businesses or multi-tenant spaces with moderate electricity usage. A lot of these businesses do not have the luxury of running earlier hours to avoid peak TOU pricing.

Historical California Commercial & Industrial Energy Rates - 1990 through 2020

Controlling Cost With Commercial Solar

Solar is uniquely suited to help demand on the grid, as events of high demand are typically when businesses are operating and the sun is shining, utilities access overproduction from existing solar systems. Utilities reward owners of solar systems that contribute during these events with credits at the value that the energy was produced. 

This is called Net Energy Metering and these credits cover significant energy costs accrued when that solar system isn’t generating energy. Conveniently for utilities, solar systems across the grid help alleviate energy costs for everyone by offsetting this demand. However, changes are coming for this important program, learn more here: Net Energy Metering Explained.

California businesses have options for lowering their electricity bills. The most effective and widely accepted is commercial solar, sometimes paired with energy storage if applicable. Solar developers like Revel Energy offset their customers’ energy usage by an average of 60-80% depending on the project profile (typically usage versus square footage of roof space).

Below are some examples of California businesses that lower their electricity bills with commercial solar.






– CSLB #1106092

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Revel Energy | Commercial Solar Energy Solutions