Why is My PG&E Bill So High? (Your HVAC System is the Likely Culprit)

Your PG&E Bill Shouldn’t Be a Monthly Shock

You open your PG&E bill and do a double-take. $450? $600? $800? For a moderate Bay Area home?

You’re not imagining things. PG&E rates have increased 127% since 2010, making California’s electricity the most expensive in the continental U.S. But here’s what most homeowners don’t realize:

30-50% of your energy bill goes to heating and cooling. And if your HVAC system has common issues, you could be wasting $100-$300 every single month.

Let’s find out if your HVAC system is silently draining your wallet—and what to do about it.

The Reality of Bay Area PG&E Rates (2025)

Current Residential Rates

Electricity:

• Baseline tier: $0.42/kWh
• Tier 2 (101-400% of baseline): $0.54/kWh
• Peak hours (4-9 PM): Up to $0.62/kWh

For context: National average is $0.16/kWh. PG&E is 3-4x higher.

Natural Gas:

• Winter rates: $2.50-$3.20/therm
• Summer rates: $2.20-$2.80/therm
• Monthly customer charge: $15-$25

Translation: A 3-ton AC running 8 hours on a hot day = $15-$20 in electricity
A furnace heating your home for 12 hours on a cold day = $8-$12 in gas

How HVAC Impacts Your Bill

Typical Bay Area Home Energy Breakdown

Annual energy costs for average 2,000 sq ft home:

Total bill: $3,600/year

• Heating & Cooling: $1,440 (40%)
• Water heating: $540 (15%)
• Appliances: $720 (20%)
• Lighting: $360 (10%)
• Electronics: $540 (15%)

HVAC is your biggest energy expense.

Monthly HVAC Costs by Season

Summer (June-September) - East Bay Valley:

• Well-maintained AC: $180-$250/month
• Poorly maintained AC: $300-$450/month
• Difference: $120-$200/month wasted

Winter (November-March) - Peninsula:

• Efficient furnace: $80-$120/month
• Inefficient furnace: $150-$220/month
• Difference: $70-$100/month wasted

That’s $1,000-$2,400 wasted per year on a poorly maintained HVAC system.

The 7 HVAC Issues Costing You Money

Issue #1: Leaky Ductwork (The Silent Bill Killer)

Impact: 20-40% of conditioned air lost

How it happens: Ducts in your attic or crawlspace develop gaps and holes over time:

• Seams separate at joints
• Tape degrades and fails
• Rodents create holes
• Poor installation from the start

Where you lose money:

• Cool air escapes into your 120°F attic (summer)
• Warm air leaks into your 40°F crawlspace (winter)
• System runs 50-80% longer to compensate
• You’re literally air conditioning your attic

Real Bay Area example:

• Walnut Creek home: $380/month summer bill
• Duct sealing service: $800
• New summer bill: $240/month
• Savings: $140/month = Payback in 6 months

Signs you have leaky ducts:

• ✗ Some rooms much hotter/colder than others
• ✗ High energy bills despite moderate use
• ✗ Dusty home (negative pressure pulls in dust)
• ✗ HVAC runs constantly but house isn’t comfortable
• ✗ Attic feels cool in summer (AC leak) or warm in winter (heat leak)

Cost to fix: $600-$1,500 for professional duct sealing
Annual savings: $1,000-$2,000
Payback period: 6-18 months

Issue #2: Dirty or Frozen Coils

Impact: 20-50% efficiency loss

What happens: Your AC has two coils:

• Evaporator coil (indoor): Absorbs heat from your home
• Condenser coil (outdoor): Releases heat outside

When dirty:

• Reduced heat transfer
• Compressor works harder
• Higher energy consumption
• Potential system failure

Real Bay Area example:

• San Jose home: $420/month July bill
• Coil cleaning: $250
• New July bill: $280/month
• Savings: $140/month

Signs you have dirty coils:

• ✗ Ice on indoor unit or refrigerant lines
• ✗ Reduced airflow from vents
• ✗ System runs constantly
• ✗ Indoor coil looks gray/black instead of copper
• ✗ Outdoor coil clogged with cottonwood, dust, or debris

Bay Area culprits:

• Cottonwood season (May-June) clogs outdoor coils
• Dusty East Bay summers
• Pet hair accumulation
• Pollen buildup

Cost to fix: $150-$300 for professional cleaning
Annual savings: $800-$1,500
Frequency needed: Every 1-3 years

Issue #3: Incorrect System Sizing (Too Big or Too Small)

Impact: 15-40% wasted energy

Oversized System (Common Problem): Many HVAC installers use “rules of thumb” instead of proper load calculations:

• “500 square feet per ton”
• “Just match the old system size”
• “Bigger is better”

What happens with oversized AC:

• Short cycles (runs 5-10 minutes, shuts off)
• Never removes humidity
• Wears out faster
• Uses more electricity per cooling delivered
• Less comfortable

Undersized System:

• Runs constantly
• Can’t maintain temperature
• Wears out faster
• High energy bills from continuous operation

Real Bay Area example:

• Peninsula home: 1,800 sq ft with 4-ton AC (should be 2.5 tons)
• Bill: $320/month despite only cooling to 76°F
• Replaced with properly sized 2.5-ton system
• New bill: $190/month
• Savings: $130/month

Signs of improper sizing:

• ✗ System cycles on/off every 5-10 minutes (oversized)
• ✗ Never shuts off, can’t reach setpoint (undersized)
• ✗ High bills despite minimal use
• ✗ Humidity problems (sticky feeling despite AC running)

Cost to fix: Requires system replacement: $5,000-$12,000
Annual savings: $1,000-$2,500
Payback period: 3-7 years (but includes new efficient equipment)

Prevention: Always demand Manual J load calculation before installation.

Issue #4: Ancient, Inefficient Equipment

Impact: 50-70% higher energy costs vs. modern systems

Age matters: If your system is 10+ years old, it’s using significantly more energy than today’s models.

Efficiency comparison:

Old AC (10 SEER, typical 15-year-old system):

• 3,800 kWh per cooling season
• Cost at $0.50/kWh: $1,900

Modern AC (16 SEER, today’s minimum):

• 2,375 kWh per cooling season
• Cost at $0.50/kWh: $1,188
• Savings: $712/year

Premium AC (20 SEER, variable-speed):

• 1,900 kWh per cooling season
• Cost at $0.50/kWh: $950
• Savings: $950/year vs. old system

Real Bay Area example:

• Livermore home with 1998 AC (11 SEER)
• Summer bills: $480-$550/month
• Upgraded to 18 SEER heat pump
• New summer bills: $280-$320/month
• Savings: $200-$230/month = $1,000/summer

How to check your system age: Look for the serial number on outdoor unit. First 4 digits = month/year manufactured. Example: 0508XXXXX = May 2008

Cost to replace: $5,000-$15,000 depending on system
Annual savings: $800-$2,000
Federal tax credit: Up to $2,000 (heat pumps)
PG&E rebates: $500-$2,000

Issue #5: Dirty Air Filters (The Easiest Fix)

Impact: 5-15% wasted energy

What happens: A clogged filter restricts airflow, forcing your system to work harder.

Progression:

• Clean filter: Normal operation
• Moderately dirty (2-3 months): 5-10% efficiency loss
• Very dirty (6+ months): 15-25% efficiency loss
• Severely clogged: System freezes up, potential damage

Real Bay Area example:

• San Mateo home: $240/month heating bill
• Hadn’t changed filter in 8 months
• Changed filter (cost: $15)
• New bill: $205/month
• Savings: $35/month = $420/year from a $15 filter

Signs of dirty filter:

• ✗ Reduced airflow from vents
• ✗ Ice on indoor unit
• ✗ Dusty home
• ✗ System runs longer
• ✗ Filter visibly dark/clogged

Filter change schedule:

• Standard 1” filters: Every 30-60 days
• Pleated 1” filters: Every 60-90 days
• 4” media filters: Every 6-12 months
• HEPA filters: Per manufacturer (usually 6-12 months)

Bay Area consideration: During wildfire season, change filters more frequently.

Cost: $5-$30 per filter
Annual savings: $200-$500
ROI: 1,000%+

Issue #6: Thermostat Issues and Poor Usage Habits

Impact: 10-25% wasted energy

Common thermostat problems:

1. Old Manual Thermostat:

• No programming = same temp 24/7
• You’re heating/cooling when you’re asleep or away
• Wastes 15-25% of energy

2. Wrong Thermostat Settings:

• Fan set to “ON” instead of “AUTO” (runs fan continuously)
• Costs $30-$50/month extra
• No energy benefit

3. Temperature Swings:

• Turning system off while away, cranking it on return
• Forces system to work harder
• Actually uses MORE energy than maintaining moderate temp

Real Bay Area example:

• Oakland home: Old thermostat, no programming
• Winter bill: $180/month
• Installed programmable thermostat: $120
• Set to 62°F at night, 68°F morning/evening
• New bill: $130/month
• Savings: $50/month = $600/year

Optimal settings for Bay Area:

Summer:

• Away: 78-80°F
• Home: 74-76°F
• Night: 76-78°F

Winter:

• Away: 62-64°F
• Home: 68-70°F
• Night: 65-67°F

Cost to fix: $100-$350 for programmable/smart thermostat
Annual savings: $300-$800
Payback: 4-12 months

Issue #7: No Maintenance (The Slow Decline)

Impact: 5% efficiency loss per year without maintenance

What happens without maintenance:

• Coils get dirty
• Refrigerant slowly leaks
• Electrical connections loosen
• Parts wear out prematurely
• Efficiency drops each year

Example progression:

• Year 1: New 16 SEER system
• Year 3 (no maintenance): Effective 14.4 SEER (10% loss)
• Year 5 (no maintenance): Effective 13.6 SEER (15% loss)
• Year 7 (no maintenance): Effective 12.8 SEER (20% loss)

Real Bay Area example:

• Fremont home: Never maintained 8-year-old AC
• Summer bill: $380/month
• Professional tune-up: $150
• Restored to 90% of original efficiency
• New bill: $310/month
• Savings: $70/month = $350/summer

What maintenance includes:

• Clean/inspect coils
• Check refrigerant charge
• Tighten electrical connections
• Lubricate motors
• Test capacitors
• Inspect ductwork
• Measure airflow
• Test safety controls

Cost: $150-$250 per visit
Frequency: Annually (spring for AC, fall for heating)
Annual savings: $300-$800
ROI: 2-5x the cost

The Mild Climate Paradox

Bay Area homeowners often pay MORE despite using HVAC less. Here’s why:

Problem #1: Neglect Due to Light Use

“I barely use my AC, so I don’t maintain it.”

Result:

• When you DO need it (heat waves), it’s 30% less efficient
• Emergency repair costs during heat wave
• Paying premium rates during peak hours

Solution: Maintain even if you use it infrequently

Problem #2: Mismatched Equipment for Climate

Many Bay Area homes have oversized systems designed for Phoenix or Texas.

Why:

• National HVAC installers use one-size-fits-all approach
• “Bigger is better” mentality
• No Manual J calculation

Result:

• Short-cycling in moderate weather
• Poor humidity control
• Higher bills despite mild weather

Solution: Right-size for Bay Area’s mild climate

Problem #3: Missing the Shoulder Seasons

Bay Area has LONG shoulder seasons (spring/fall) with perfect weather.

Mistake:

• Running HVAC when opening windows would suffice
• Not using programmable thermostat to avoid this

Real example:

• Redwood City home ran AC in May when outdoor temp was 68°F
• Simply opening windows saved $120 that month

Solution: Smart thermostat with outdoor temp sensor, or just pay attention

Your High Bill Diagnosis Checklist

DIY Checks (Free)

Check Your Filter:

• ☐ Remove and inspect
• ☐ Can you see light through it?
• ☐ If not, replace immediately

Check Your Thermostat:

• ☐ Is fan set to AUTO (not ON)?
• ☐ Do you have a schedule programmed?
• ☐ Is temperature reasonable?

Check Outdoor Unit:

• ☐ Is it running when it should be?
• ☐ Is it clear of debris?
• ☐ Are coils visibly dirty?

Check Your Bills:

• ☐ Compare to last year same month
• ☐ Sudden spike or gradual increase?
• ☐ Check kWh usage, not just cost (rates increase)

Check Vents and Registers:

• ☐ Are they open and unblocked?
• ☐ Is airflow strong or weak?
• ☐ Do some rooms get no air?

Not sure what’s causing the problem? Try our HVAC Diagnostic Tool to identify common issues based on your symptoms.

Professional Assessment ($0-$150)

Free Energy Audit Options:

• PG&E Home Energy Checkup: Free for income-qualified
• Peninsula Clean Energy: Free for San Mateo County residents
• Silicon Valley Clean Energy: Free for Santa Clara County residents

HVAC Professional Assessment ($0-$150):

• System efficiency test
• Duct leakage test
• Refrigerant charge check
• Airflow measurement
• Thermostat calibration

What they’ll find: Most Bay Area homes have 2-4 of the issues listed above.

Call us for free assessment: (510) 391-5597

Real Bay Area Case Studies

Case Study 1: The $800/Month Shock

Location: Walnut Creek, 2,400 sq ft
Problem: August bill hit $823

Issues found:

1. Severely leaky ductwork (35% loss)
2. Dirty outdoor coil (completely clogged)
3. Low refrigerant charge
4. 22-year-old 10 SEER AC

Solutions:

1. Duct sealing: $1,200
2. Coil cleaning: $250
3. Refrigerant charge: $350
4. System replacement: $11,500 (but got $3,000 in rebates)

Results:

• Next August bill: $312
• Savings: $511/month in summer
• Annual savings: $3,500+
• Investment: $13,300 - $3,000 rebates = $10,300
• Payback: 3 years

Case Study 2: The Hidden Duct Disaster

Location: San Jose, 1,800 sq ft
Problem: $450/month summer bills, some rooms hot

Issues found:

1. Disconnected duct in attic (30% of cool air going to attic)
2. Undersized return duct
3. Dirty evaporator coil

Solutions:

1. Duct repair and sealing: $900
2. Additional return duct: $600
3. Coil cleaning: $200

Results:

• Summer bill dropped to $240/month
• Savings: $210/month
• Investment: $1,700
• Payback: 8 months

Case Study 3: The “It’s Only 15 Years Old” System

Location: Redwood City, 2,000 sq ft
Problem: $380/month heating bills in winter

Issues found:

1. 80% AFUE furnace (low efficiency for age)
2. Never maintained (coils dirty, burners inefficient)
3. Poorly sealed ductwork

Solutions:

1. Replaced with 95% AFUE furnace: $6,500
2. Duct sealing: $800
3. Total: $7,300 with $600 rebate = $6,700

Results:

• Winter bills: $190/month average
• Savings: $190/month × 5 months = $950/year
• Additional gas savings year-round (water heater share)
• Payback: 7 years

Your Action Plan to Lower Your PG&E Bill

Immediate Actions (Today - This Week)

1. Change Your Air Filter ($5-$20)

• Expected savings: $20-$40/month
• Takes 5 minutes

2. Check Thermostat Settings (Free)

• Set fan to AUTO
• Review temperature schedule
• Expected savings: $30-$50/month

3. Clear Outdoor Unit (Free)

• Remove leaves, debris
• Trim vegetation to 2 feet clearance
• Expected savings: $10-$20/month

4. Close Blinds on Hot Days (Free)

• West-facing windows especially
• Expected savings: $15-$30/month

Total potential savings: $75-$160/month

Short-Term Actions (This Month)

5. Schedule Professional Tune-Up ($150-$250)

• Annual maintenance
• Expected savings: $30-$70/month
• Payback: 2-4 months

6. Install Programmable Thermostat ($100-$350)

• Smart scheduling
• Expected savings: $25-$60/month
• Payback: 4-12 months

7. Seal Obvious Air Leaks ($50-$150 DIY)

• Weatherstrip doors
• Caulk windows
• Insulate attic access
• Expected savings: $15-$40/month

Total potential additional savings: $70-$170/month

Long-Term Actions (This Year)

8. Professional Duct Sealing ($600-$1,500)

• If you have leaky ducts
• Expected savings: $100-$200/month
• Payback: 6-15 months

9. Coil Cleaning ($150-$300)

• If not done in 2+ years
• Expected savings: $40-$80/month
• Payback: 2-6 months

10. System Replacement ($5,000-$15,000)

• If 15+ years old or oversized
• Expected savings: $150-$300/month
• Rebates: $2,000-$10,000
• Payback: 3-7 years

Total potential savings with all improvements: $300-$600/month

The Math: Is It Worth It?

Scenario: Typical Bay Area Home

Current annual HVAC costs: $3,600
With common issues: Actually spending $5,400 (wasting $1,800/year)

Improvements:

1. Filter changes: $60/year → Saves $400
2. Annual maintenance: $200/year → Saves $600
3. Programmable thermostat: $200 → Saves $500/year
4. Duct sealing: $1,000 → Saves $1,500/year

Total investment: $1,460 first year, then $260/year
Total annual savings: $3,000/year
Net savings year 1: $1,540
Net savings year 2+: $2,740/year

Over 10 years: Save $26,700

When to Repair vs. Replace

Repair if:

• ✅ System less than 10 years old
• ✅ Repair cost less than $500
• ✅ No major breakdowns history
• ✅ System properly sized for home

Replace if:

• ❌ System 15+ years old
• ❌ Repair costs exceed $1,500
• ❌ Multiple breakdowns
• ❌ Energy bills consistently high
• ❌ System improperly sized
• ❌ Uses R-22 refrigerant (obsolete)
• ❌ Less than 13 SEER (for AC)

Rule of thumb: If repair cost × system age in years > $5,000, replace.

Example: $800 repair on 12-year-old system = $9,600. Replace.

Available Bay Area Rebates and Incentives

Federal (2025)

• Heat pump installation: Up to $2,000
• High-efficiency AC/furnace: Up to $600
• Duct sealing: Up to $600
• Smart thermostat: Included in overall credit

California/PG&E

• Energy Upgrade California: $500-$3,000
• Income-qualified programs: Up to $10,000
• High-efficiency equipment: $500-$2,000

Local Programs

Peninsula Clean Energy (San Mateo County):

• All-electric upgrades: $1,000-$4,000
• Heat pumps: Additional $500-$2,000

Silicon Valley Clean Energy (Santa Clara County):

• High-efficiency systems: $1,500-$5,000

TECH Clean California (Regional):

• Whole-home upgrades: $4,000-$10,000

We handle all rebate applications for you.

Get Your Free HVAC Bill Assessment

Is your HVAC system wasting your money?

We’ll provide:

• Complete system inspection
• Efficiency testing
• Duct leakage assessment
• Coil condition check
• Refrigerant charge verification
• Thermostat evaluation
• Detailed savings projection
• Rebate calculation
• Priority-ranked recommendations

Call Bay Area Climate Control: (510) 391-5597
Online: Request Free Assessment

No obligation. No pressure. Just honest answers about your HVAC system’s impact on your PG&E bill.

Frequently Asked Questions

Q: How much should I expect to pay for HVAC energy costs in the Bay Area?
Typical range: $150-$350/month during peak seasons (summer in valleys, winter on coast). If you’re paying significantly more, something’s wrong.

Q: Is my high bill due to PG&E rate increases or my HVAC system?
Both. Rates have increased, but if your kWh usage is also up (not just cost), your system is the problem.

Q: Should I just replace my old system to save money?
If it’s 15+ years old and bills are high, yes. If it’s 8-12 years old, start with maintenance and duct sealing first.

Q: How often should I have my HVAC system serviced?
Annually. Spring for AC, fall for heating. With PG&E rates, the savings from proper maintenance pay for the service 3-5 times over.

Q: Can solar panels help with my high HVAC bills?
Yes. Solar can offset HVAC electricity costs. But fix HVAC inefficiencies FIRST, then size solar appropriately. Don’t use solar to cover up wasteful systems.

Q: Are there payment plans for HVAC repairs/replacement?
Yes. We offer 0% financing for 12 months and extended payment plans for major work.

Q: What’s the single most cost-effective thing I can do?
Change your air filter monthly and schedule annual maintenance. Combined cost: $250-$350/year. Typical savings: $800-$1,500/year.

Take Control of Your PG&E Bill

Your HVAC system might be wasting $100-$300 every month. With Bay Area’s high energy rates, you can’t afford inefficient equipment.

Bay Area Climate Control
Carrier Factory Authorized Dealer
Serving the Bay Area Since 2010

Phone: (510) 391-5597
Emergency: 24/7 Available
Online: Request Service

Service Area: Alameda • Contra Costa • San Francisco • San Mateo • Santa Clara Counties

Stop wasting money. Start saving today.