San Diego Gas & Electric (SDG&E) has the highest residential electricity rates of any investor-owned utility in the United States — $0.30–$0.55/kWh depending on usage and time of day. SDG&E customers under NEM 3.0 with battery storage have the strongest solar economics in California.
Key facts for SDG&E solar customers:
- SDG&E is under CPUC NEM 3.0 — exports earn avoided cost (~$0.02–$0.08/kWh). Battery storage is essential to capture value from SDG&E's very high rates during self-consumption.
- SDG&E interconnection submitted by installer through SDG&E's portal. Typical timeline: 4–10 weeks.
- SDG&E administers SGIP battery incentive in its territory. Equity Resiliency budget particularly relevant for San Diego backcountry VHFHSZ homeowners.
- SDG&E TOU-DR1 rate: on-peak is 4–9 PM daily at $0.50+/kWh. Discharging battery storage during this window generates maximum bill savings.
- San Diego's 5.5–6.0 peak sun hours/day (higher in East County) maximizes production relative to system cost.
Even under NEM 3.0, SDG&E solar + battery paybacks of 7–9 years are common for well-sized systems in San Diego — among the fastest in California. SDG&E's rate trajectory shows continued increases, further improving the financial case for solar.