Richer people pay more: California’s dramatic change to electricity bills

Some higher-income residents - who already enjoy subsidies for solar - oppose paying more than low-income households

California will soon become the first state to determine residents' electricity fees based on their income as part of a new effort to spur households toward full electrification and bring down the state's soaring electricity costs for low-income Californians.

Electricity bills are made up of fixed costs as well as fees that vary based on the amount of electricity residents use. Last year, the state passed a law giving the California public utilities commission a 1 July 2024 deadline to determine a fixed charge for household electric bills based on people's income.