Why Are Electricity Costs So High in Fresno?
The main culprit? Pacific Gas & Electric (PG&E) — one of the largest utilities in California and the primary provider for Fresno and the Central Valley.
PG&E Rates Keep Climbing
As of March 2025, PG&E’s residential rates are:
- Tier 1: $0.41/kWh
- Tier 2: $0.51/kWh
- Time-of-Use Peak (4pm–9pm): $0.63/kWh
- Blended Summer Average: Around $0.44/kWh
- Blended Winter Average: Around $0.40/kWh
That averages out to about $0.42/kWh across the year for a typical homeowner, and even higher if you use most of your energy during peak hours — which is exactly when people are home, cooking, doing laundry, and running air conditioners.
Why Are Rates Going Up?
There are a few reasons PG&E’s rates keep increasing:
- Aging infrastructure and wildfire prevention costs
- Rising demand for electricity as homes electrify
- Profit structure: the more energy you use, the more you pay
This creates a situation where homeowners are punished for using energy — even as modern lifestyles depend more and more on it.
How Much Electricity Does a Typical Home Use?
In Fresno, homes range from 1,200 sq. ft. to over 3,000 sq. ft., with energy usage that typically falls between 12,000 and 18,000 kilowatt-hours (kWh) per year.
Here’s a rough breakdown:
Home Size | Estimated Annual Usage |
1,000–1,500 sq. ft. | 11,000–13,000 kWh |
1,500–2,000 sq. ft. | 13,000–15,000 kWh |
2,000–2,500 sq. ft. | 15,000–17,000 kWh |
2,500+ sq. ft. | 17,000–20,000+ kWh |
So when you multiply your usage by the utility rate (let’s say $0.42/kWh), you’re looking at $5,000–$8,000+ over 10 years — just to keep the lights on.
Solar Brings the Cost Down — Dramatically
Now let’s flip the script.
What Does Solar Cost?
With current technology and financing options, you can install a fully functional solar + battery system that powers nearly your entire home, with 95%–99% grid independence.
Here’s the cost breakdown:
- All-in solar cost per kWh (with installation, permitting, batteries, etc.): $0.18 to $0.22/kWh
- That’s less than half the cost of utility power.
Example:
Let’s say you install a solar system that produces 17,000 kWh/year. Your loan payment is $263/month, or $3,156/year.
$3,156 ÷ 17,000 = $0.185/kWh
That’s 56% cheaper than buying from PG&E.
And the best part? That payment is fixed — unlike PG&E rates, which increase almost every year.
Why Batteries Matter Under NEM 3.0
Under California’s Net Energy Metering 3.0 policy (NEM 3), exporting excess solar to the grid isn’t nearly as valuable as it used to be. Homeowners are paid pennies on the dollar for exported energy — which means you don’t want to send your power back to the grid anymore.
Batteries Solve That
By installing battery storage (like Tesla Powerwall, Neovolta, Enphase, or SolarEdge Home Battery), you store the extra energy your panels make during the day, then use it at night when the sun goes down.
We recommend sizing your batteries at 2–3x the size of your solar system.
Example:
- 8 kW solar system
- 20–24 kWh of battery storage
This ensures you make it through the night without pulling from the grid — even during the hottest summer days when AC is running nonstop.
Why Solar Is a Better Investment Than Ever in Fresno
Let’s take a step back and ask: what other purchase can do this?
Factor | Grid Power | Solar + Battery |
Cost per kWh | ~$0.42 | ~$0.18–$0.22 |
Monthly Bill | $260+ | ~$263 (fixed loan) |
Annual Spend | $3,123 | ~$3,100 (with battery) |
25-Year Cost (no changes) | $78,075 | ~$77,500 (then free) |
Long-Term Cost | Keeps increasing | Goes to $0 after payoff |
Grid Reliability | Unpredictable | 24/7 backup with storage |
Value-Add to Home | Minimal | Increases resale value |
The numbers speak for themselves.
Financing Options Make Solar Accessible
You don’t need tens of thousands in cash to go solar. In fact, most homeowners in Fresno choose one of these options:
1. Solar Loans
- 20–25 year terms
- Fixed monthly payment
- 30% Federal Tax Credit applies
- System is yours, adds value to home
2. PPA (Power Purchase Agreement)
- Third party owns the system
- You pay for the power it produces (at a discount)
- No maintenance responsibilities
- May not qualify for tax credit
3. Lease
- Similar to PPA
- Often includes escalators (annual increases)
- Can complicate home sale
4. Cash Purchase
- Pay up front
- No monthly payment
- Fastest return on investment
- All tax benefits go to you
Every situation is different. At Supreme Solar and Electric, we help you compare your actual bill and your savings forecast so you can pick the best path forward.
You Don’t Need the Perfect Roof
Some homeowners worry their home isn’t ideal for solar. But here’s the truth:
- Got trees? You can remove them and save more on solar than you’ll spend cutting them down.
- Bad roof angle? East and west-facing roofs still produce great results in Fresno’s sunny climate.
- No roof space? Ground-mount systems work just as well.
- Old electrical panel? We handle upgrades as part of your installation.
There are very few homes in Fresno where solar doesn’t make sense.
Fresno’s Climate Makes It Ideal for Solar
We’d be remiss if we didn’t mention how good the weather is for solar.
Fresno gets over 270 days of sun per year, and solar panels here generate an average of:
- 1,550 to 1,850 kWh per kilowatt installed
That’s some of the highest yield potential in the nation.
Compare that to cities like Seattle, where the average yield is closer to 1,100–1,300 kWh/kW. Fresno homeowners simply get more for every solar dollar they spend.
Final Thoughts: If You Own a Home in Fresno, Solar Isn’t a Maybe — It’s a Must
Let’s recap:
- Fresno households are paying more for electricity than anywhere else in the country
- PG&E rates are only going up
- You can install solar and batteries for 40%–60% less than PG&E rates
- Financing options make it accessible with little to no upfront cost
- Fresno’s weather is perfect for solar
- Most systems pay for themselves in under 10 years — then produce free electricity for another 15–20 years
So if you’re a Fresno homeowner and you haven’t gone solar yet, it’s time to ask the question:
Why not?
The numbers make sense. The technology is here. And your future self will thank you for locking in a lower cost of energy today.
Ready to See How Much You Can Save?
At Supreme Solar and Electric, we specialize in helping Fresno homeowners get off the PG&E rollercoaster. We’ll design a system specifically for your home, budget, and energy goals — with honest numbers and clear recommendations.
📞 Call us for a free custom proposal
📩 Or click here to schedule your consultation
Let’s take your electric bill from sky-high to sunshine-powered.