Regional Analysis

San Diego Solar & Battery Economics: SDG&E Rate Analysis (2026)

Updated July 2026 • 7 min read

San Diego Gas & Electric (SDG&E) territory features some of the highest per-kWh electricity rates in the continental United States. For San Diego residents, home batteries yield significant bill savings under NEM 3.0.

1. SDG&E High Retail Rates Explained

With summer peak pricing reaching $0.65+/kWh under schedules like TOU-DR1 and EV-TOU-5, power purchased from the grid in San Diego is extremely costly. High baseline rates shorten battery payback windows relative to other territories.

2. Battery Economics in San Diego

Because the price spread between super-off-peak (overnight/midday) and peak evening hours is wide ($0.45+ spread), a home energy battery discharging 10–13 kWh daily saves a significant amount per billing cycle compared to grid dependence.

3. Sources & Methodology

Sources: SDG&E Schedule EV-TOU-5 and TOU-DR1 rate filings; CPUC Annual Electric Rate Reports (2026).

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