What the New California Rate Decision Means for You — And Why More People Are Turning to Solar

Utility rates have increased for some Community Choice Aggregator (CCA) customers in California. The cause is a recent decision by the California Public Utilities Commission (CPUC). This has left many homeowners and small business owners wondering:

“Why did my bill increase?”
“Is this permanent?”
“And is it finally time to go solar?”

Here’s a simple Q&A to explain what happened and what it means for you.

❓ Q1: What exactly did the CPUC do?

The CPUC changed the way a certain fee on your bill is calculated.
The issue isn’t just what they changed — it’s when.

They adjusted the charges after 2025 rates were already approved, which means people suddenly saw higher bills with little warning.

❓ Q2: Who is affected?

This mainly affects customers who get their electricity from Community Choice programs (CCAs) — local organizations that buy cleaner power on your behalf instead of the big utilities.



If you’re in a CCA area (like San Diego, Chula Vista, Imperial Beach, National City, Encinitas, La Mesa) or in other parts of the state including LA County, Marin, Sonoma, Riverside, the Bay Area, etc. your rates already increased without warning.

❓ Q3: Why is this more controversial than all the other rate increases?

Two big reasons:

1. The change was retroactive.

Rates that were already approved were changed after the fact, which is usually not allowed under California law.

2. The change raised bills unexpectedly.

Customers, cities, and local programs suddenly had to budget for higher electricity costs.

This is why CalCCA (the group that represents CCAs) is now suing the CPUC to reverse the decision.

❓ Q4: If CalCCA wins the lawsuit, whose rates go up or down?

Here’s the simplest way to understand it:

• CCA customers (the ones who just saw higher bills) would likely see their bills go back down.
• Utility customers (PG&E, SCE, SDG&E) would likely see their bills go up, because the original formula would be restored.

In other words:
CalCCA is fighting for CCA customers, not for utilities.

❓ Q5: What does this mean for everyday homeowners and small business owners?

The biggest takeaway is this:



Utility rates in California are becoming less stable and more unpredictable.

When rates can be changed suddenly — even after approval — budgeting becomes harder and long-term planning becomes uncertain.

People are realizing that they have very little control over what utilities charge.

❓ Q6: How does having solar help in this time?

Solar gives you predictability.

Instead of being caught off guard by sudden increases, you can lock in decades of steady, predictable energy costs.

Solar with battery storage gives you even more control.

Batteries help you avoid expensive evening rates and keep your home or business running during outages.

Rising rates shorten the payback period.

Every time utility prices go up, the return on solar gets better and faster.

❓ Q7: Do I need to understand the CPUC decision to know whether solar makes sense?

Not at all.

Here’s the plain truth:
California utility rates rise almost every year — and now they’re rising even without warning.

Solar helps you take control of something that is otherwise uncontrollable.

❓ Q8: What’s the next step if I want to explore solar?

You can reach out to a trusted local solar company like Asgard Energy for:

• A personalized savings estimate
• A side-by-side comparison with your current bills
• Options for solar, batteries, EV charging, or backup power

We offer free energy audits with no obligation.

🌞 Final Takeaway

This recent energy rate change is a reminder of how unpredictable California electricity pricing has become. For many homeowners and small businesses, solar is no longer just an eco-friendly choice — it’s a financial shield against rising and unpredictable bills.

Whether you are a small business owner or homeowner, If you’ve been thinking about solar, there has never been a better time to take a closer look.

*NOTE: Small business owners can take advantage of the 30% federal tax credit until July 4, 2026 and you must be fully installed by December 31, 2027