How Solar + Storage Protects Businesses From California’s Rising Utility Rates
If you're running a business in California, you already know the truth: utility rates aren’t just high, they’re unpredictable, unstable, and increasing faster than most companies can budget for.
Electricity costs in California have climbed over 80% in the last decade, and the next decade is forecasted to be even more aggressive. Utilities are dealing with wildfire liabilities, grid upgrades, infrastructure costs, and new regulations, and commercial customers are the ones paying for it.
The result?
Businesses across Southern California are fighting an uphill battle with operational expenses they cannot control.
But there is a solution that gives you control back, commercial solar paired with battery storage. Together, they reduce exposure to rising rates, protect your operations, and create predictable long-term savings.
This article breaks down why rates keep rising, how it directly impacts commercial facilities, and how solar + storage keeps your business stable, resilient, and ahead of future costs.
Why California Utility Rates Keep Rising
California utilities face a perfect storm of challenges:
Wildfire-related costs
Grid modernization
Infrastructure upgrades
Retiring older generation plants
Clean energy mandates
Peak load strain
EV demand growth
Operating and labor expenses
Every year, utilities file additional rate increases to cover these costs, and commercial customers absorb the impact.
Businesses pay more for:
Energy (kWh)
Demand charges
Time-of-use (TOU) peak rates
Seasonal surcharges
Transmission & distribution fees
Non-bypassable charges
Even if your business uses less electricity, you might still pay more because the rate structure itself changes.
This is exactly why California businesses are turning to solar + storage: you can’t control the utility, but you can control how much you rely on it.
How Rising Utility Rates Impact Commercial & Industrial Businesses
For commercial and industrial facilities, electricity isn’t optional; it’s a core operational requirement.
Rising utility rates create major challenges:
1. Higher Operating Costs
Energy is often one of the top three operating expenses for:
Manufacturing
Warehousing
Cold storage
Hospitality
Retail centers
Office buildings
Car dealerships
Municipal facilities
When rates go up 5–12% per year, budgets get squeezed fast.
2. Unpredictable Forecasting
When rates are unpredictable, so is cash flow. CFOs can’t budget accurately, and long-term planning becomes difficult.
3. Increased Risk of Downtime
California’s grid is under stress. More outages are happening, both planned and unplanned.
Downtime costs money, and some industries simply cannot afford it.
4. Reduced Competitive Position
Energy-heavy businesses may lose margins to out-of-state competitors with lower utility costs.
5. Higher Future Costs for EV Fleets
With transportation electrification accelerating, electricity demand will grow. Businesses that plan ahead will benefit. Those who wait will pay more.
Rising utility rates hit every part of the business. Solar + battery solutions help stabilize these impacts long-term.
How Solar + Battery Storage Protects Your Business
Commercial solar alone reduces energy consumption costs. But batteries take it further by shielding your facility from rate spikes, demand charges, and TOU penalties.
Together, they dramatically reduce exposure to long-term utility increases.
1. Lower kWh Costs With On-Site Generation
Every kilowatt-hour you produce with solar is one you’re not buying from the utility.
Solar offers a predictable cost per kWh for 25+ years, something utilities cannot match.
2. Battery Storage Avoids Peak Rate Windows
California’s highest rates occur during late afternoon and early evening TOU periods.
A battery discharges during those hours so your facility barely pulls from the grid.
This eliminates your exposure to the highest-cost energy.
3. Demand Charge Reduction
Batteries fire instantly when your facility hits a load spike, preventing the utility from logging a high demand event.
This protects you from recurring monthly penalties.
4. Protection From Rate Hikes
Solar + storage locks in your electricity cost for decades.
Instead of paying whatever the utility decides, your business operates from a stable, predictable energy source.
5. Backup Power for Critical Loads
A properly designed BESS provides resilience during outages, a growing concern across California.
6. EV-Friendly Energy Infrastructure
As fleets shift to EVs, having on-site solar + storage makes your charging infrastructure affordable and predictable.
This reduces the cost of electrification long-term.
The Financial Benefits of Solar + Storage
Businesses invest in solar + battery systems for one primary reason: long-term financial control.
✔ Lower Monthly Bills
Commercial clients typically see significant reductions in both:
Energy charges
Demand charges
✔ Predictable Future Costs
Lock in your energy rate for decades, instead of letting utilities dictate it.
✔ Higher Property Value
Buildings with solar + storage systems are more attractive for tenants and buyers.
✔ Incentives Reduce Net Cost
Federal and state incentives can cover 30–60% of project costs when stacked properly.
✔ Strong ROI
Commercial facilities often see returns in 3–6 years, depending on load profile and incentives.
California Incentives for Solar + Storage
California and the federal government offer strong incentives to help businesses control costs:
Federal Incentives
30% Investment Tax Credit (ITC)
Additional ITC bonus adders
Accelerated depreciation (MACRS)
California Incentives
Utility-specific solar programs (when available)
SGIP for commercial battery storage, which can provide six-figure incentive amounts
Local and municipal programs
These incentives drastically improve ROI and shorten payback periods.
Burge Energy handles the full process so you don’t miss out on any available funding.
Operational & Reliability Benefits
A well-designed solar + storage system gives your business more than savings:
Backup power during outages
Reduced strain on the electrical infrastructure
Support for EV charging demand
Smarter load management
Better resilience during extreme heat events
Cleaner, more efficient operations
For facilities that rely heavily on uptime, solar + storage becomes both a financial and operational asset.
Technical Considerations for Commercial Systems
To engineer a system that protects your operation, Burge Energy evaluates:
Historical load profile
TOU rate structure
Solar production modeling
Peak demand events
Ideal battery duration (2-hour, 4-hour, etc.)
Interconnection requirements
Roof layout and structural load
Electrical infrastructure capacity
Backup load requirements
There is no one-size-fits-all approach.
Commercial systems must be engineered around real operational needs — not generic estimates.
Why Burge Energy Is the Right Partner
Businesses work with Burge Energy for a simple reason: we understand the realities of commercial energy in California.
We bring:
Deep experience in commercial solar, battery storage, and EV infrastructure
Accurate modeling and engineering
Honest communication, no inflated projections
A full turnkey EPC process from start to finish
High-quality workmanship and long-term reliability
Real-world understanding of commercial operations and cost pressures
We don’t guess. We engineer solutions that actually solve the financial and operational challenges your facility faces.
California utility costs are rising faster than businesses can adapt. Solar + storage gives you the control, stability, and long-term protection you need to stay ahead of those increases. If you want predictable energy costs and the ability to weather future rate hikes, now is the time to take action.
To explore Solar, Battery Storage, or EV Charging solutions for your facility, schedule a consultation with Burge Energy today.