California’s current export-compensation system is formally the Net Billing Tariff (NBT). San Diego Gas & Electric refers to it as the Solar Billing Plan. It generally applies to customers who submitted a qualifying interconnection application after April 14, 2023.

Electricity generated and used onsite avoids a retail purchase. Excess generation exported to the grid earns an hourly Energy Export Credit based on its value to the grid. Those credits are usually lower than retail rates, but they are not a fixed five-to-eight-cent value and can rise during high-value late-summer evening hours.

The Required SDG&E Rate Structure

The California Public Utilities Commission currently identifies EV-TOU-5 as the required Time-of-Use rate for SDG&E residential customers on the Net Billing Tariff.

A project model must distinguish among:

• solar energy used immediately in the home
• energy exported and credited at the applicable hourly value
• electricity imported at the current EV-TOU-5 price
• battery charging and discharging losses
• fixed charges and minimum bill components

Quoting a single SDG&E rate or payback period without the customer’s current tariff and interval usage is not a reliable 2026 analysis.

When a Battery May Improve Solar Value

A battery can move midday solar production into evening household use. It may also allow selected exports during higher-value periods when the system, interconnection agreement, and operating controls permit them.

That does not mean every home should install the same battery size or that storage always shortens payback. The result depends on:

• hourly household demand and seasonal usage
• solar production, orientation, and shading
• battery energy capacity and power output
• round-trip efficiency, reserve settings, and degradation
• installed price and financing terms
• current EV-TOU-5 import prices and hourly export credits
• the value the homeowner places on outage backup
• actual approved SGIP funding, if any

A Defensible 2026 Evaluation

1. Download at least 12 months of interval data. Size storage against the home’s actual evening load rather than a generic 10-to-15-kWh recommendation.
2. Model solar-only and solar-plus-storage separately. Use the same production estimate and current tariff assumptions.
3. Apply hourly export credits. Annual averages can hide both low-value midday exports and higher-value evening periods.
4. Use real installed quotes. Include permitting, interconnection, electrical upgrades, equipment, labor, and financing.
5. Separate backup value from bill savings. Resilience can be valuable, but it is not a utility-bill credit.
6. Check live SGIP availability and eligibility. Do not count a public program rate as certain until a reservation is approved. See GridPermit’s current SGIP battery rebate guide for which budget categories are still open in 2026.
7. Run conservative scenarios. Test lower exports, higher costs, battery degradation, and changes in household usage.

The CPUC’s current Net Billing overview explains the statewide tariff structure and required utility rate plans. Confirm the customer’s current SDG&E tariff and Solar Billing Plan details directly with SDG&E.

Federal Tax-Credit Warning for 2026 Installations

Do not automatically deduct a 30% residential federal credit from a 2026 installation. The IRS currently states that the Residential Clean Energy Credit is not available for property placed in service after December 31, 2025. Check the project’s actual placed-in-service date against the current IRS guidance and obtain tax advice where appropriate.

Looking for city-specific permit requirements rather than tariff analysis? See GridPermit’s verified SDG&E city guides.

This page is an evaluation framework, not a live rate lookup, savings guarantee, tax opinion, or project-specific financial model. Confirm current SDG&E rates, export credits, charges, and system assumptions before making a decision.