California electricity rates exploded since COVID, far outpacing inflation

It's a drum we beat most days but a recent report by Energy Toolbase, one of the most trusted financial modeling platforms in the solar industry, has published its analysis into the inflation of California's electricity rates over the past decade.

This is what the analysis found:

The state’s electricity inflation far outpaced generation inflation, averaging 15.3% per year from the 2020 through 2023, or 45.9% during the whole three-year period.
Astonishingly, over the whole analysis period, San Diego Gas & Electric increased by 104%, while the Consumer Price Index (CPI) rose by 28% over the same period.
This general electricity pricing inflation rate is 271% higher than the general inflation rate of 16.9% over the same period.

While this doesn't come as a surprise to us, the numbers are still eye-watering. Read more on this report here.

Fix your electric costs with solar!

Unsurprisingly, we believe solar is the key. The truth is, most businesses that switched to solar in 2020 have not only avoided the majority of these cost increases, they also most likely have started to see their return on investment.

What they didn't get though was the extra 10% tax credit, which is now available.

This additional 10% is based on your location, and happily, your city probably qualifies for the so called Energy Community Bonus Tax Credit.

See more on the additional 10% tax credit: Additional 10% tax credit boost in 2023.
Check the map: Which cities qualify for the extra 10% tax credit?

We're urging all our customers to see what this could mean for their solar project, as it appears unlikely this window of opportunity will be open for very long.