PG&E Electric Rates in 2026: Peak Hours & Rate Plans

Serving over 5 million households in California, Pacific Gas & Electric (PG&E) is the largest investor-owned utility in the US. As such, when PG&E raises electric rates or updates its rate plans, households from Santa Barbara to Eureka feel the effects.

As of March 2026, PG&E lists its “average” bundled residential electricity rate as 39.25 cents per kilowatt-hour (kWh). To put that in perspective, that’s double the national average of roughly 19 cents per kWh. Between baseline adjustments and the introduction of the mandatory Base Services Charge (a fixed monthly grid fee), your choice of plan determines how much control you have over your energy bills.

 

Jump ahead:

• PG&E Rate Plans & Peak Hours
• What to Watch For
• Frequently Asked Questions

 

 

2026 PG&E Rate Plans at a Glance

Here is a simplified look at the main residential options available right now:

Rate Plan	Peak Hours	Price per kWh	Strategic Advantage
E-TOU-C (Standard Time-of-Use)	4 PM – 9 PM Everyday	Lowest: 37 cents Highest: 52 cents	A “Baseline Allowance” gives you deeply discounted rates on your first ~300 kWh of monthly usage.
E-TOU-D (Time-of-Use Option D)	5 PM – 8 PM Weekdays Only	Lowest: 35 cents Highest: 48 cents	No peak hours on weekends. You can run heavy appliances all Saturday and Sunday at lower off-peak rates.
E-ELEC (Home + EV/Battery)	4 PM – 9 PM Everyday	Lowest: 28 cents Highest: 54 cents	Lower overall usage rates in exchange for a higher fixed monthly charge. Ideal if you use 800+ kWh/mo.
E-1 (Traditional Tiered)	None (Price is based usage tiers)	Lowest: 33 cents Highest: 41 cents	You pay the same rate whether you run the dryer at 6 PM or 2 AM. (Not recommended for solar).

 

What to Watch for in 2026

PG&E is currently seeking approval for a series of rate hikes from 2027 to 2030. If approved, customers who are already paying some of the highest power prices in the U.S. would continue to see their monthly bills increase through the end of the decade.

Another change to watch out for is how PG&E structures your bill. While energy generation rates saw minor dips, transmission and distribution delivery costs continue to climb. Furthermore, the mandatory Base Services Charge acts as a flat fee just to stay connected to the grid.

Because PG&E rates are structured to charge more during peak evening windows, standard behavior modifications (like turning off lights) only go so far.

Why Solar is the Ultimate Solution

If you want to permanently shield yourself from volatile utility adjustments, generating your own power is the most reliable path forward.

• For NEM 1.0 or 2.0 Customers: If your solar system was grandfathered into older net metering rules, you receive a near 1-to-1 retail credit for the excess power you send back to the grid. Sticking to a plan like E-TOU-C allows your solar array to completely wipe out expensive daytime and evening peak costs.

• For NEM 3.0 Customers (New Solar): Under current California rules, daytime export credits are reduced. Because of this, pairing solar panels with a home battery system is essential. By storing your excess daytime solar power and using it to run your home during the expensive 4 PM – 9 PM window, you completely bypass PG&E’s highest tiers.

Instead of renting expensive power from a utility monopoly month after month, solar lets you own your energy infrastructure—locking in low, predictable costs for decades.

 

 

Frequently asked questions about PG&E electric rates

What is the average PG&E electricity rate in 2026?

The average residential electricity rate for a PG&E bundled non-CARE customer is 39.25 cents per kilowatt-hour (kWh), according to rate schedules from March 1, 2026. This average makes PG&E territories some of the most expensive regions for power in the United States.

What are the peak hours for PG&E Time-of-Use (TOU) plans?

Peak hours depend on your specific PG&E plan:

• Plan E-TOU-C: Peak hours are 4 PM to 9 PM every day (both weekdays and weekends).

• Plan E-TOU-D: Peak hours are 5 PM to 8 PM on weekdays only. Weekends and holidays are entirely off-peak.

• Plan E-ELEC (Electric Home): Peak hours are 4 PM to 9 PM every day.

What is the new PG&E fixed monthly charge?

The Base Services Charge is a mandatory fixed monthly fee applied to specific residential rate plans, such as the E-ELEC (Electric Home) option. This fee covers basic infrastructure, grid maintenance, and connection costs. While it lowers the variable rate you pay per kilowatt-hour, you must pay this fixed amount every month regardless of how little energy you pull from the grid.

How does PG&E NEM 3.0 affect new solar customers?

Under the current Net Energy Metering (NEM 3.0) rules, the credit rate PG&E pays you for sending excess solar energy back to the grid has dropped by roughly 75% compared to legacy rules. Because daytime export credits are significantly lower, the only way to maximize your financial return under NEM 3.0 is to pair your solar panels with a home battery backup system to store your energy and avoid pulling grid power during peak evening hours.

Which PG&E rate plan is best if I have solar?

The best rate plan depends entirely on when your system was activated:

• NEM 1.0 or 2.0 (Activated before April 2023): E-TOU-C is generally best because its Baseline Allowance provides a safety net of cheap power if you exceed your solar generation.

• NEM 3.0 (Activated after April 2023): E-ELEC is mandatory. This plan features lower off-peak rates, making it highly economical when paired with a smart home battery that can discharge power between 4 PM and 9 PM.

Why are PG&E electric bills so high?

PG&E rates are exceptionally high due to the utility company’s aggressive, multi-billion-dollar investments in upgrading transmission infrastructure, maintaining wildfire mitigation plans, and modernizing a grid capable of handling state-mandated home and vehicle electrification. Because these structural costs are rolled into consumer pricing, electricity rates remain volatile.