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Serving over 5 million households in California, Pacific Gasoline & Electrical (PG&E) is the biggest investor-owned utility within the US. As such, when PG&E raises electrical charges or updates its price plans, households from Santa Barbara to Eureka really feel the consequences.
On this article, we’ll discover how a lot electrical energy prices for PG&E prospects in 2024, the varied price plans and adders, and a few steadily requested questions. Understanding how a lot electrical energy prices and the varied methods to purchase it could assist you to create a plan for decreasing your electrical energy invoice with out sacrificing the comforts and perks of dwelling within the twenty first century.
Soar to a bit:
Let’s begin with a recap of PG&E electrical charges at the moment and the place we will count on them to go within the close to future.
What are PG&E residential charges in 2024?
The common bundled electrical price for PG&E residential prospects is 45 cents per kWh as of January 1, 2024, in line with the most recent electrical price report. Nonetheless, the associated fee per kWh of electrical energy ranges from 34 to 72 cents per kWh relying in your price plan and the time of yr.
In October 2023, the common electrical energy price was 27 cents per kWh in California, in line with the EIA. So, PG&E electrical charges are:
Markedly above the state common
~2.5 instances the nationwide common of 17 cents per kWh
Competing with San Diego Gasoline & Electrical‘s charges for the very best within the nation
Within the greater image, PG&E electrical charges have elevated sharply in recent times, and are anticipated to proceed rising at round 10.4% per yr by 2026, in line with the 2023 Senate Invoice 695 report filed by the California Public Utilities Fee (CPUC).
The chart under exhibits the common bundled residential price on the finish of every yr from 2019 to the most recent submitting in 2023, as reported by PG&E, and the charges forecasted by the CPUC within the Senate Invoice 695 report.
The disconnect between the electrical charges recorded by January 2024 (44.8 cents/kWh) and the place they’re forecasted to finish up (36.6 cents/kWh) is probably going because of various knowledge assortment and reporting strategies between PG&E and the CPUC.
PG&E’s knowledge exhibits the common residential price elevated from 25 to 44.8 cents per kWh from 2019 to 2024 – a 79% improve in lower than 5 years. In the meantime, the Senate Invoice 695 report forecasted nominal charges reaching 42 cents per kWh by 2026 after three extra years of double-digit annual price will increase.
What’s the common PG&E price hike?
Residential electrical charges for PG&E prospects elevated, on common, 7.8% per yr 2015-2024. In simply 10 years the common price of electrical energy elevated 24.5 cents per kWh, including $147 per thirty days to the electrical invoice of a house owner utilizing 600 kWh per thirty days (across the state common).
For context, utility charges nationwide elevated at a median price of three% per yr — so PG&E charges usually are not solely a lot increased, they’re rising 2-3 instances sooner than the nationwide common.
12 months
Common bundled residential price (cents/kWh)
Change from earlier yr (%)
2015
20.3
4.7%
2016
22.0
8.3%
2017
23.1
5.1%
2018
23.3
1.1%
2019
25.0
7.4%
2020
26.3
5.1%
2021
28.6
8.7%
2022
33.8
18.1%
2023
38.2
13.2%
2024
44.8
17.2%
Common annual price improve
7.8%
If we return to 2008 — the oldest knowledge obtainable from PG&E — the common annual price improve over the past 16 years is nearer to six% — twice the nationwide common. With 6% price hikes per yr, an electrical energy invoice would double each 12 years, which implies a $200 month-to-month invoice at the moment could be a $400 month-to-month invoice by 2036 and an $800 month-to-month invoice by 2048.
So, with charges rising at the very least by 2026, it’s price contemplating all the choices for decreasing your important electrical energy prices. Let’s begin by analyzing PG&E’s residential price plans.
PG&E Tiered Fee Plan (E-1)
The primary and most elementary PG&E tariff schedule to think about is the Tiered Fee Plan, often known as E-1, wherein the price of electrical energy is dictated by your utilization throughout the billing interval.
For instance, as of January 2024, electrical energy prices 42 cents per kWh till you attain your month-to-month Baseline Allowance, after which the value jumps to 53 cents per kWh.
What’s baseline electrical energy utilization?
The Baseline Allowance is an allotment of important electrical energy utilization that’s cheaper than the remainder of the electrical energy used throughout a billing cycle.
For PG&E prospects, the Baseline Allowance is predicated on 4 issues:
Your billing territory (P-Z)
The billing season (Summer season or Winter)
Your heating service (all electrical, primary electrical, or gasoline)
The variety of days within the month
So, should you dwell in Santa Cruz (Territory “T”) and have primary electrical service, your baseline allowance for summer season months could be 6.5 kWh per day (based mostly on this chart). In a 30-day month like June, that quantities to 195 kWh.
In the event you used 500 kWh throughout the month of June, the primary 195 could be billed at 42 cents per kWh and the remaining 305 could be billed at 53 cents per kWh, placing your month-to-month invoice round $207.
PG&E Tiered charges instance invoice
Utilization
Fee*
Price
Tier 1
195 kWh
36 cents per kWh
$82
Tier 2
305 kWh
45 cents per kWh
$162
Complete
500 kWh
–
$244
*Primarily based on Baseline Allowance of 195 kWh
In keeping with PG&E, the Baseline Allowance is designed to be 50-70 p.c of the common utilization for every territory, so most Tiered Fee prospects can count on to pay Tier 2 pricing for a considerable chunk of their electrical energy utilization – which provides up shortly.
PG&E’s SmartRate™ Add-On
One approach to decrease your PG&E electrical energy price is thru the SmartRate™ add-on plan. On this plan, you primarily volunteer to scale back your electrical energy consumption throughout SmartDays™.
In the event you enroll within the SmartRate™ program, the trade-off goes one thing like this:
You’ll obtain a credit score price round $0.008 (.8 cents) per kWh for your whole utilization that’s not between 4-9 pm throughout billing intervals that function at the very least one SmartDay occasion.
When SmartDay occasions are known as, you may be charged an additional 60 cents per kWh for all utilization between 4-9 pm.
So, let’s say you employ 500 kWh exterior of 4-9 pm throughout a June billing cycle wherein at the very least one SmartDay occasion known as. You’d obtain a $4 invoice credit score (500 kWh x $0.008) for being enrolled within the SmartRate™ program.
Now, let’s say you employ 3 kWh to dry a load of laundry within the 4-9 pm window on a SmartDay occasion. That 3 kWh will price you an additional $1.80 (3 kWh x $0.60). On this situation, you would need to maintain your SmartDay consumption under 6.67 kWh in an effort to break even for the month.
So, the SmartRate™ add-on is comparatively high-risk and low-reward, however it may be added onto choose price plans to decrease your electrical energy prices.
Talking of price plans… let’s check out the Time-of-Use (TOU) price schedules that PG&E affords
PG&E Time-of-Use Charges 2024
PG&E affords two time-of-use price plans as of January 2024, though some prospects could also be on legacy plans which might be not supplied to new prospects. The present plans are often called TOU-C and TOU-D and there are some key variations to notice.
The TOU-C plan has a Peak Pricing window of 4 to 9 p.m. and decrease charges for utilization under the Baseline Allowance
The TOU-D plan has a Peak Pricing window of 5 to eight p.m. and doesn’t have decrease charges for utilization under the Baseline Allowance
PG&E TOU-C vs TOU-D price plans
TOU-C
TOU-D
On-Peak hours
4 to 9 pm day by day
5 to eight pm solely on non-holiday weekdays
Peak value (summer season)*
62 cents/kWh
59 cents/kWh
Off-peak value (summer season)*
53 cents/kWh
45 cents/kWh
Decrease charges for Baseline Allowance?
Sure
No
Eligible for SmartRate™ add-on?
No
Sure
Summer season months
June-September
June-September
Winter months
October-Could
October-Could
*Charges as of Jan 1, 2024 rounded to nearest complete cent and topic to alter.
Let’s take a better take a look at every plan.
E-TOU-C
Electrical energy charges within the TOU-C price schedule vary from 38 to 62 cents per kWh, based mostly on the season, hour, and Baseline Allowance.
Prospects on this plan pay 10.6 cents much less for the kWhs of their Baseline Allowance. Nonetheless, the tradeoff is a Peak pricing window that stretches from 4 to 9 p.m. and stays in place throughout weekends and holidays.
The engaging function of PG&E’s TOU-C plan is you can pay as little as 38 cents per kWh beneath your Baseline Allowance throughout off-peak hours within the winter. So, when you have comparatively low electrical energy consumption and the flexibility to keep away from utilizing electrical energy throughout the night, then the TOU-C plan will help you pay much less for electrical energy.
Nonetheless, should you aren’t cautious together with your consumption, you’ll find yourself paying 62 cents per kWh for a hefty portion of your electrical energy!
E-TOU-D
PG&E’s TOU-D price schedule is pretty simple. Off-peak electrical energy prices 45 cents per kWh in the summertime and 46 cents per kWh within the winter with no credit score on your Baseline Allowance.
In the meantime, Peak charges are 59 cents per kWh in the summertime and 50 cents per kWh within the winter, and are solely in impact from 5 to eight pm throughout non-holiday weekdays. That implies that electrical energy consumption throughout weekends and holidays is billed utilizing Off-Peak charges.
With no Baseline Allowance, charges are literally a bit increased in PG&E’s TOU-D schedule. Nonetheless, the shorter three-hour Peak window is simpler to keep away from (or abdomen) than the five-hour window within the TOU-C schedule.
So, if you understand your common electrical energy consumption is far increased than your Baseline Allowance, the quick Peak window of the TOU-D schedule might show the lesser of two evils, particularly should you can shift consumption to Off-Peak hours and weekends.
PG&E EV price plans 2024
Whereas less expensive and cleaner than fueling a gasoline automotive, charging an electrical car (EV) to drive 37 miles per day (the nationwide common) provides round 300 kWh to your month-to-month electrical energy consumption. Given this further utilization, PG&E affords particular EV charging price plans that encourage prospects to cost throughout Off-Peak hours to decrease their prices and assist stabilize the grid.
There are three PG&E price plans to think about in case you are charging an EV at residence:
EV2-A is a plan that bundles your house and EV charging consumption into one price schedule
EV-B separates your house and EV charging consumption into two price schedules
E-ELEC is a plan for patrons with excessive consumption because of residence electrification upgrades like EV charging, battery storage, electrical warmth pumps (for water and/or local weather management), and photo voltaic panels
Which PG&E EV charging price plan is greatest?
EV2-A
EV-B
E-ELEC
Base cost?
No
No
~$15 per thirty days
Separate meter for EV charging?
No
Sure
No
Greatest time to cost
12 am to three pm
11 pm to 7 am
12 am to three pm
Worst time to cost
4 to 9 pm
2 to 9 pm
4 to 9 pm
Off-peak value* (summer season)
34 cents/kWh
36 cents/kWh
42 cents/kWh
Eligible for SmartRate™ add-on?
Sure
No
No
Summer season months
June-September (4 months)
Could-October (6 months)
June- September (4 months)
*Charges as of Jan 1, 2024 rounded to the closest cent and topic to alter.
Let’s take a better take a look at every plan.
EV-2A
The EV-2A price schedule applies to each residence and EV charging consumption and options the low Off-Peak charges of 34 cents per kWh year-round. Partial Peak charges run from 3 to midnight, with a 5-hour window of Peak charges between 4 and 9 pm.
As well as, the EV-2A plan presently has no primary month-to-month cost and is eligible for the SmartRate™ add-on.
PG&E’s EV-2A price plan is most advantageous for patrons who can shift their residence and EV charging utilization to the ample Off-Peak hours of midnight to three pm. For instance, should you do business from home and might do most of your heating, cooling, laundry, and EV charging within the morning, you might be able to purchase most of your electrical energy on the comparatively low value of 34 cents per kWh.
EV-B
Essentially the most notable function of the EV-B price schedule is that it requires a separate meter for EV charging, which implies your house utilization and EV charging are billed on completely different price schedules.
The good thing about this plan is you can cost your EV at 34 cents per kWh within the winter (the bottom price supplied by PG&E) and 36 cents per kWh in the summertime throughout the Off-Peak hours of 11 pm to 7 am.
The downside is that should you do have to cost throughout summer season Peak hours, you’ll find yourself paying 72 cents per kWh (the very best value per kWh of any PG&E plan).
PG&E’s EV-B plan is most advantageous for patrons who can limit their EV charging to in a single day hours and have increased family utilization than they’ll’t simply shift out of Peak hours. The thought is to mix a family price schedule that has extra forgiving Peak charges with the EV-B’s low Off-Peak charging charges.
E-ELEC
The E-ELEC plan is a jack-of-all-trades that applies to PG&E prospects with a number of of the next residence electrification upgrades:
EV charging
Battery storage
Warmth pump water heater
Warmth pump local weather management
And, in line with PG&E, all photo voltaic house owners beneath the NEM 3.0 Photo voltaic Billing Plan can be transitioned to the E-ELEC price schedule in December 2024 (though different messaging says December 2023).
The thought behind this plan is to pay a ~$15 primary month-to-month cost in trade for charges which might be decrease, on common, the TOU-C and TOU-D plans, which will be fairly advantageous for patrons with excessive electrical energy utilization.
For instance, when you have a warmth pump HVAC system, it’s probably cheaper to pay $15 per thirty days in an effort to decrease your winter Off-Peak charges to 37 cents per kWh as an alternative of 46-49 cents per kWh within the TOU-C and TOU-D plans. (Professional tip: In the event you use greater than 167 kWh per thirty days to warmth your house with a warmth pump within the winter, the E-ELEC plan turns into extra economical than the TOU-D plan.)
Frankly, the E-ELEC price schedule will not be the most suitable choice for owners that solely have EV charging and not one of the different residence electrification upgrades, because the Off-Peak charges usually are not as little as the opposite EV charging plans. Nonetheless, when you have a number of residence electrification upgrades – or photo voltaic beneath the Photo voltaic Billing Plan – this can be your best choice.
PG&E photo voltaic price plans
In April 2023, PG&E and California’s different main investor-owned utilities (SCE and SDG&E) adopted a Web Billing Construction affectionately often called NEM 3.0. Whereas present photo voltaic house owners had been grandfathered into their NEM 1.0 and NEM 2.0, new photo voltaic house owners who utilized for interconnection after April 14, 2023 are topic to the brand new Photo voltaic Billing Plan.
In keeping with PG&E, photo voltaic house owners beneath the Photo voltaic Billing Plan can be mechanically transferred to the E-ELEC price schedule in both December 2023 or 2024 (relying on which info you take a look at).
How a lot does PG&E pay for solar energy?
The important thing function of PG&E’s Photo voltaic Billing Plan is export charges (compensation for extra photo voltaic manufacturing pushed onto the grid) which might be, on common, 75% decrease than the value of shopping for electrical energy from the grid. These charges hover round 4-6 cents throughout the morning and early afternoon and might exceed $2 per kWh throughout sure peak home windows in September.
For instance, the chart under exhibits the E-ELEC import charges versus the NEM 3.0 export charges for August weekdays.
Below this billing construction, photo voltaic house owners earn between 6 and seven cents per kWh of electrical energy produced throughout peak photo voltaic manufacturing hours of 10 am to 2 pm (hours 10-14) whereas paying 64 cents per kWh for electrical energy pulled from the grid throughout summer season Peak hours when their photo voltaic manufacturing is winding down.
Clearly, shopping for for 64 cents and promoting for six.5 cents isn’t an ideal deal. Nonetheless, utilizing battery storage, photo voltaic house owners can retailer and use their low-cost photo voltaic manufacturing and nearly keep away from interacting with the grid altogether.
Higher but, new consumption-only batteries designed particularly for this function price roughly two-thirds of the value of conventional backup batteries.
Workforce up with an Vitality Advisor to discover customized photo voltaic and battery options.
Photo voltaic + battery vs PG&E grid
Let’s say you’re a PG&E buyer with a median month-to-month utilization of 750 kWh per thirty days. Does it make extra sense to pay for photo voltaic and battery or purchase electrical energy from the PG&E grid?
Effectively, to offset your consumption you’d want a 6 kW photo voltaic system, which, at $4.5 per Watt would price $27,000 – or $18,900 after claiming the 30% federal photo voltaic tax credit score.
To retailer your photo voltaic manufacturing to make use of throughout nights and evenings, you’d want a 6 kWh consumption-only battery. Whereas battery costs fluctuate, it’s reasonable to count on a gross value round $8,500, or $5,950 after the 30% tax credit score (presumably decrease should you declare the SGIP rebate.)
That places the online price of your system at $24,850. The chart under exhibits how the price of photo voltaic and battery stacks up in opposition to PG&E charges rising at 3% yearly over the subsequent 20 years (which is deliberately conservative).
Over 20 years, electrical energy from photo voltaic and consumption-only battery is round 25-40% of price of shopping for electrical energy from the PG&E grid. Right now’s batteries are warrantied for 10-15 years (and lasting for much longer), so even when it is advisable exchange your battery after 15 years, you’ve already saved upward of $40,000 – way over what batteries will price within the late 2030s.
Decrease your electrical energy prices with photo voltaic
With above-average electrical energy charges (even for California), PG&E prospects have a ton of potential to scale back their important electrical energy prices. Whereas selecting a PG&E price schedule that fits your consumption habits can shave down your month-to-month invoice, nothing is as price efficient as offering your personal electrical energy with photo voltaic panels and battery storage.
Continuously requested questions on PG&E electrical charges
What’s the new price for PG&E in 2024?
The common residential electrical price for Pacific Gasoline & Electrical (PG&E) prospects is 45 cents per kWh, as of January 1, 2024. Nonetheless, the associated fee per kWh ranges from 34 to 72 cents per kWh relying on the speed schedule, season, and time of day.
How a lot does PG&E pay per kWh?
Within the Photo voltaic Billing Plan (often called NEM 3.0), PG&E compensates photo voltaic house owners at a median price round 8 cents per kWh. That is markedly decrease than the common price of 45 cents per kWh to import (or purchase) electrical energy from the grid.
Nonetheless, utilizing battery storage, photo voltaic house owners can retailer and use their very own electrical energy to keep away from shopping for and promoting from the grid at unfavorable charges.
What are the most cost effective PG&E hours?
Electrical energy is most cost-effective throughout the Off-Peak hours between midnight and seven am in all of PG&E’s Time-of-Use and EV charging price schedules. Nonetheless, this Off-Peak window stretches from midnight to three pm within the TOU-C, TOU-C, EV2-A, and E-ELEC plans.
It’s price noting that the price of electrical energy doesn’t change all through the day within the E-1 residential Tiered Fee Plan.
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