How Do I Read My PG&E Bill to See If Solar Makes Sense?
The short answer: Focus on your total kWh usage, your rate plan, and your total charges. If you're using 500+ kWh monthly and paying $150+, solar almost certainly makes financial sense. This guide walks you through every section of your PG&E bill and shows you exactly what to look for.
Why Your Bill Matters for Solar Decisions
Your PG&E bill contains everything needed to determine:
- Whether solar makes financial sense for you
- What size system you need
- How much you'll save
- Your optimal rate plan after going solar
Let's decode it section by section.
Section 1: Account Summary
What You'll See:
Account Number: 1234567890
Service Address: 123 Main St, Sacramento, CA
Billing Period: Jan 15 - Feb 14 (31 days)
Amount Due: $347.82
Due Date: March 5, 2026
What Matters for Solar:
Total Amount Due
This is your monthly electricity cost. For solar evaluation:
- Under $100/month: Solar may have limited benefit
- $100-150/month: Borderline—worth exploring
- $150-250/month: Good solar candidate
- $250+/month: Excellent solar candidate
Billing Period Days
Note whether it's a 28-day or 33-day billing period. Compare bills using daily averages for accuracy.
Section 2: Electric Charges Detail
This is the most important section. Here's what a typical breakdown looks like:
ELECTRIC CHARGES
Generation: $142.35
Transmission: $28.47
Distribution: $156.89
Public Purpose Programs: $12.34
Nuclear Decommissioning: $1.23
Competition Transition Charge: $0.87
Energy Cost Recovery: $5.67
─────────────────────────────
Total Electric Charges: $347.82
What Each Part Means:
Generation (40-50% of bill)
The cost to produce electricity. This is what solar directly replaces—your panels generate power instead of buying it from power plants.
Transmission (10-15% of bill)
Moving electricity from power plants to local substations. Solar reduces this because your power doesn't travel long distances.
Distribution (30-40% of bill)
Local delivery from substations to your home. Even with solar, you pay minimal distribution charges for grid connection.
Public Purpose Programs
Funds low-income assistance, energy efficiency, and renewables. Solar reduces this proportionally.
Nuclear Decommissioning
Legacy costs for shutting down old nuclear plants. Small amount, reduced with solar.
Key Insight: When you go solar, you eliminate or dramatically reduce ALL of these charges except a minimal distribution/connection fee ($12-20/month).
Section 3: Usage Summary
What You'll See:
USAGE SUMMARY
Total Usage: 823 kWh
Average Daily Usage: 26.5 kWh
Average Temperature: 52°F
Same Period Last Year: 756 kWh
Critical Numbers for Solar:
Total Usage (kWh)
This is THE most important number. It determines:
- System size needed
- Total savings potential
- Whether solar makes sense
Rule of thumb: Every 1 kW of solar produces ~125-150 kWh/month in California. Divide your usage by 135 for approximate system size needed.
Example: 823 kWh ÷ 135 = 6.1 kW system
Average Daily Usage
Useful for comparing months with different billing periods.
Same Period Last Year
Shows whether your usage is increasing (common) or stable. Rising usage = rising bills = better solar economics.
Section 4: Time-of-Use Breakdown
If you're on a TOU plan (most PG&E customers), you'll see:
TIME-OF-USE DETAILS
kWh Rate Charges
Peak (4-9 PM) 312 $0.55 $171.60
Off-Peak 486 $0.42 $204.12
Super Off-Peak 25 $0.35 $8.75
─────────────────────────────────────────
Total 823 $384.47
What This Tells You:
Peak Usage Percentage
In this example: 312 ÷ 823 = 38% of usage is at peak rates
If more than 30% of your usage is at peak rates, you're paying a premium. Solar + battery dramatically cuts this by using stored power during peak hours.
Off-Peak Dominance
High off-peak usage is actually good for solar—it means you use power when the sun is shining (before 4 PM) or late evening.
Rate Differentials
Note the spread: 55¢ peak vs. 35¢ super off-peak. That's a 57% difference. Battery storage lets you arbitrage this spread.
Section 5: Rate Plan Information
What You'll See:
RATE SCHEDULE: E-TOU-C
Baseline Quantity: 250 kWh
Baseline Rate: $0.38/kWh
Over-Baseline Rate: $0.48/kWh
Understanding Your Rate Plan:
Common PG&E Residential Plans:
E-TOU-C (Time-of-Use, 4-9 PM Peak)
- Default plan for most customers
- Peak hours: 4-9 PM every day
- Best for: Customers who can shift usage to daytime
E-TOU-D (Time-of-Use, 5-8 PM Peak)
- Shorter peak window
- Higher peak rates than E-TOU-C
- Best for: Customers with very flexible schedules
E-ELEC (Electric Home)
- For all-electric homes
- Different rate tiers
- Best for: Homes without gas service
EV Rate Plans
- Optimized for electric vehicle charging
- Super off-peak overnight rates
- Best for: EV owners
Baseline Allowance
Your baseline allocation is the amount of "cheap" electricity before higher tiers kick in. Going solar means you don't worry about exceeding baseline.
Section 6: Usage Graph/History
Most bills include a 13-month bar graph showing usage history:
MONTHLY USAGE COMPARISON
Jan: ████████ 756 kWh
Feb: █████████ 823 kWh
Mar: ███████ 698 kWh
Apr: █████ 523 kWh
May: ██████ 612 kWh
Jun: █████████ 845 kWh
Jul: ████████████ 1,124 kWh
Aug: █████████████ 1,267 kWh
Sep: ██████████ 978 kWh
Oct: ███████ 712 kWh
Nov: ██████ 634 kWh
Dec: ███████ 689 kWh
What This Reveals:
Seasonal Patterns
Summer spikes (June-September) indicate heavy AC usage—exactly when solar produces the most.
Annual Total
Add all months for your yearly usage. This determines your ideal system size.
Example: 9,661 kWh/year ÷ 1,500 kWh per kW in California = 6.4 kW system needed
Peak Month
Your highest month (August: 1,267 kWh in the example) shows maximum demand. Size your system to cover this.
How to Calculate Your Solar Potential
Step 1: Find Your Annual Usage
Add 12 months of kWh or check the "usage history" section. Example: 9,661 kWh/year
Step 2: Determine System Size
Divide by 1,400-1,600 (California's typical production per kW): 9,661 ÷ 1,500 = 6.4 kW system
Step 3: Estimate System Cost
Average California cost: $3.20-3.80 per watt before incentives 6.4 kW × $3.50 × 1,000 = $22,400 gross cost
Step 4: Apply Tax Credit
$22,400 × 30% = $6,720 tax credit Net cost: $15,680
Step 5: Calculate Payback
Annual bill: ~$4,200 $15,680 ÷ $4,200 = 3.7-year payback
Step 6: Calculate 25-Year Savings
Without solar (with rate increases): ~$150,000 With solar: ~$20,000 (system cost + connection fees) Savings: $130,000
Red Flags in Your Bill
Watch for these indicators that make solar even more valuable:
1. Usage Over 101% of Baseline
Your usage was 147% of baseline this month
This means you're paying premium rates for nearly half your electricity.
2. Medical Baseline Notice
If you qualify for medical baseline (life-support equipment), solar can provide essential backup power too.
3. CARE/FERA Discount
CARE discount applied: -$52.34
Even with assistance discounts, solar may make sense—discounts don't prevent rate increases.
4. Year-Over-Year Increases
If usage is similar but costs are higher, rate increases are hitting you.
What to Bring to a Solar Consultation
For the most accurate quote, gather:
- 12 months of bills (or access to your PG&E online account)
- Your rate plan name (E-TOU-C, E-TOU-D, etc.)
- Annual kWh usage total
- Highest month's usage
- Any planned changes (EV purchase, pool, home addition)
A good solar company will analyze your actual usage patterns, not just estimate from square footage.
Key Takeaways
- Total kWh usage determines your system size
- Total cost determines your savings potential
- TOU breakdown shows how much you pay for peak vs. off-peak
- Seasonal patterns reveal when you need power most (usually aligns with solar production)
- Rate plan affects optimization strategies
- $150+/month bills generally indicate strong solar economics
Frequently Asked Questions
Where do I find my total kWh on the bill?
Look for "Total Usage," "Total kWh," or "Usage Summary." It's typically on page 1 or 2.
What if I don't have 12 months of bills?
Log into pge.com and download your usage history. You can see 24+ months of data online.
Does my bill show my rate per kWh?
Yes, but it's often blended across time periods. The TOU breakdown section shows rates for each period.
What's a "good" average rate to compare to solar?
If your blended rate exceeds 30¢/kWh (most PG&E customers are above 40¢), solar makes strong financial sense.
Should I change rate plans before going solar?
Wait until after installation. Your solar installer will help optimize your rate plan for your new production/consumption patterns.
What if my usage changes after going solar?
Systems are designed with buffer room. If you add an EV or major appliance, you can often expand your system later (though it's cheaper to include it initially).
Get Your Bill Analyzed for Free
Not sure what your PG&E bill is telling you? Upload it for a free analysis:
- We'll identify your usage patterns
- Calculate your ideal system size
- Show your expected savings
- Recommend optimal rate plans post-solar
No pressure, no obligation. Just clear answers about whether solar makes sense for your situation.
[Upload Your Bill] | [Calculate Your Savings]
Silva Bros Solar: Helping PG&E customers understand their bills—and escape them.
