Understanding the electricity landscape in San Jose is crucial for residents aiming to manage their energy expenses effectively. This guide delves into the primary energy providers, current rate structures, average costs, and strategies to reduce electricity bills in 2025.
Disclaimer
The electricity rates and information provided here are based on publicly available data as of 2025. Rates and policies may change, so we recommend verifying current details directly with SJCE, PG&E, or other providers.
Energy Providers in San Jose
San Jose’s electricity services are primarily managed through a partnership between:
- San José Clean Energy (SJCE): A Community Choice Aggregator (CCA) operated by the City of San José, SJCE provides electricity generation services, offering cleaner energy options to residents.
- Pacific Gas and Electric Company (PG&E): PG&E handles the transmission and distribution of electricity, delivering power to homes and businesses and maintaining the electrical infrastructure. PG&E
Average Electricity Costs in San Jose
a rough estimate for 400 kWh residential usage in San Jose is likely between $120 and $190 per month, probably closer to the higher end depending on your specific rate plan.
However, actual bills can vary based on usage patterns, rate plans, and additional charges. According to EnergySage, the average monthly electricity bill in San Jose is about $261, based on an average usage of 864 kWh per month at a rate of 30¢/kWh.
Understanding Rate Structures
Time-of-Use (TOU) Rates
Both SJCE and PG&E employ Time-of-Use (TOU) rate structures, where electricity prices vary depending on the time of day:
- Peak Hours (4:00 p.m. – 9:00 p.m.): Higher rates due to increased demand.
- Off-Peak Hours (Before 4:00 p.m. and After 9:00 p.m.): Lower rates, encouraging usage during these times.
Shifting energy usage to off-peak hours can lead to cost savings.
SJCE Rate Options
SJCE offers several rate plans to accommodate different customer needs:
- GreenSource: The default service providing 60% renewable energy at competitive rates.
- TotalGreen: An option for customers who prefer 100% renewable energy, available at a slightly higher cost.
- SJ Cares: A discounted rate program for income-qualified customers, offering a 10% discount on electricity generation charges.
Customers can compare these options to PG&E’s bundled service to determine the most cost-effective plan.
PG&E Rate Plans
PG&E provides various rate plans, including:
- E-TOU-C: A TOU rate plan with peak pricing from 4:00 p.m. to 9:00 p.m. every day.
- E-TOU-D: A TOU rate plan with peak pricing from 5:00 p.m. to 8:00 p.m. on weekdays.
- EV2-A: A TOU rate plan designed for electric vehicle owners, offering lower rates during off-peak hours.
- E-ELEC: A rate plan for all-electric homes, combining home and vehicle energy use with lower prices during off-peak hours.
Renewable Energy and Net Energy Metering
SJCE is committed to providing clean energy to deliver 100% carbon-neutral electricity to all customers by 2030.
SJCE offers a Net Energy Metering (NEM) program for customers with rooftop solar panels. As of March 1, 2025, SJCE pays $0.0380375 per kWh for any excess solar energy produced and fed back into the grid, which is 25% higher than PG&E’s compensation rate.
Strategies to Reduce Electricity Costs
Residents can lower their electricity bills by:
- Utilizing Off-Peak Hours: Run high-energy appliances during off-peak times to take advantage of lower rates.
- Improving Energy Efficiency: Upgrade to energy-efficient appliances, LED lighting, and enhance home insulation.
- Installing Solar Panels: Consider solar energy solutions to reduce reliance on the grid and benefit from NEM programs.
- Participating in Assistance Programs: Explore available rebates and incentives for energy efficiency, as well as discount programs like SJ Cares.
Go Solar and Save on Electricity
One of the most effective ways to reduce electricity bills is by switching to solar energy. Solar panels offer long-term savings, reduce reliance on the electrical grid, and increase environmental sustainability. For tailored solar solutions and more information, explore our solutions and get a free solar quote.
