SDG&E Electricity Rates & NEM 3.0 Analysis: The Complete 2026 Guide
SDG&E Electricity Rates & NEM 3.0 Analysis: The Complete 2026 Guide
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San Diego Gas & Electric (SDG&E) holds the title of offering the most expensive residential electricity rates in the United States. With summer peak rates frequently climbing above $0.64 per kWh, San Diego homeowners face massive monthly utility bills.
Under NEM 3.0, traditional solar without battery storage is no longer enough. Sending daytime solar to the grid yields pennies ($0.05 - $0.08 / kWh), while evening electricity costs peak retail rates.
Current SDG&E TOU-DR1 Rates (Summer 2026)
- On-Peak (4:00 PM – 9:00 PM): $0.62 – $0.68 / kWh
- Off-Peak (6:00 AM – 4:00 PM): $0.42 – $0.48 / kWh
- Super Off-Peak (Midnight – 6:00 AM): $0.24 – $0.28 / kWh
Financial Payback Comparison: Solar Only vs. Solar + Battery
- Solar Only System (8.5 kW): ~$14,875 Net Investment | 9.0 Years Payback
- Solar + Battery System (8.5 kW + 13.5 kWh): ~$20,550 Net Investment | 4.7 Years Payback
Step-by-Step Action Plan for San Diego Homeowners
- Battery Size: Install 10 kWh to 15 kWh to cover the 4 PM - 9 PM peak block.
- Tax Credit: Claim the 30% Federal Clean Energy Credit (IRS Form 5695).
- SGIP Rebates: Check if your ZIP code qualifies for medical baseline or equity rebates.
Run Your Free San Diego Solar & Battery ROI Audit
Rate and payback figures above are illustrative examples based on publicly reported rate ranges, not a live lookup of your bill — confirm current rates with SDG&E before making a decision.