With summer on the horizon, San Jose residents are facing a tough reality: rising energy bills. As if the heat wasn’t enough, recent rate hikes from PG&E and Santa Clara’s utility providers are adding to the burden. For many, this means adjusting to higher monthly costs and finding ways to keep energy consumption under control.
One of the areas where you can make a significant impact is your HVAC system. If your system is inefficient or not well-maintained, it could be costing you more than it needs to.
Here’s how you can manage the effects of these rising costs, all while staying cool during the summer months.
Rising Energy Costs: The Impact on San Jose Households
In 2024, PG&E implemented a 13% increase in residential electricity rates, with the average customer facing an additional $33 per month. And it’s not stopping there: further rate hikes are expected, with a possible $5.50 increase for residential customers in January 2026. Meanwhile, Santa Clara residents are dealing with a 5% increase in electricity rates starting in 2025.
These changes are part of broader trends across California, driven by infrastructure improvements, wildfire mitigation efforts, and the rising costs of clean energy. As energy rates climb, many households in San Jose are feeling the financial pinch.
How Your HVAC System Affects Your Energy Bills
While rate hikes are unavoidable, the efficiency of your HVAC system plays a major role in how much energy you use—and ultimately, how much you pay. An inefficient or poorly maintained HVAC system could be driving up your bills without you even realizing it.
The summer heat in San Jose puts significant strain on HVAC systems, making them work harder to cool homes. If your system is outdated, underperforming, or hasn’t been properly maintained, it might be using more energy than it should.
What You Can Do to Keep Your Energy Bills Down
Although the rising cost of energy is unavoidable, there are several ways you can help reduce your home’s energy consumption—and keep those energy bills from skyrocketing:
1. Regular HVAC Maintenance
A well-maintained HVAC system is more energy-efficient. Scheduling regular maintenance helps ensure that your system is running smoothly, including tasks like cleaning filters, checking refrigerant levels, and ensuring proper airflow. These small steps can make a big difference in keeping your energy consumption—and bills—lower.
2. Consider an Energy-Efficient Upgrade
If your HVAC system is old or inefficient, upgrading to a newer, energy-efficient model can lead to long-term savings. Modern HVAC systems are designed to consume less energy while providing better cooling, which could make a noticeable difference on your monthly bill.
3. Mind Your Home’s Insulation
Proper insulation can also help reduce your energy consumption. Sealing windows, doors, and ductwork ensures that your HVAC system doesn’t have to work overtime to keep your home comfortable. Simple fixes like this can reduce your system’s workload and ultimately help you save on energy.
4. Be Aware of Peak Hours
PG&E and other utilities offer Time-of-Use (TOU) rate plans, meaning that electricity is more expensive during peak hours (usually from 4:00 p.m. to 9:00 p.m.). By shifting energy-intensive tasks like cooling to off-peak hours, you can avoid paying higher rates. Simple habits, like pre-cooling your home in the morning, can help keep your energy consumption in check.
Why It’s Worth the Effort
While the rising cost of energy in San Jose might feel like an inevitable burden, making small adjustments to your HVAC system and energy habits can go a long way in managing those rising costs. Regular maintenance, upgrading to more efficient systems, and optimizing your home’s insulation are all steps that can help you save on energy bills—even as utility rates climb.
At the end of the day, staying informed and proactive about your HVAC system can help you navigate these challenging times, keeping your home comfortable without the sky-high bills.
