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SDG&E Has the Highest Rates in the Country. Here's What San Diego Homeowners Can Do

6 min read

San Diego Gas & Electric isn't just expensive — it's the most expensive investor-owned utility in the entire United States. SDG&E residential rates regularly exceed $0.45–$0.55 per kWh, with peak TOU rates hitting $0.65 or more.

Why SDG&E Rates Are So High

  • Small customer base, big infrastructure costs — SDG&E serves a smaller territory than PG&E or SCE, so infrastructure costs are spread across fewer ratepayers.
  • Wildfire costs — San Diego County's fire-prone terrain means massive spending on fire prevention, including undergrounding power lines.
  • CPUC-approved increases — The CPUC has approved consistent rate hikes for SDG&E, with more in the pipeline.

The Silver Lining: Best Solar ROI in California

Here's the counterintuitive truth: the higher your utility rate, the better solar pays off. San Diego homeowners see the fastest payback periods and highest lifetime savings of any market in California — often in the country.

  • San Diego sun — 266 sunny days per year, excellent solar irradiance
  • High offset value — Every kWh your panels produce offsets electricity worth $0.45–$0.55
  • Payback period — As fast as 4–5 years for SDG&E customers

SDG&E Customer Savings Example

For a San Diego home with a $400/month SDG&E bill:

  • A 7–9 kW solar system can offset 85–95% of usage
  • Monthly savings: $340–$380
  • Annual savings: $4,080–$4,560
  • 25-year savings: $100,000–$115,000+

Don't Let SDG&E Keep Winning

Every month without solar is a month where SDG&E profits from California's highest rates at your expense. Take control of your energy costs.

Calculate your savings or see if you qualify for solar.

See How Much You Could Save

Get a free, personalized savings estimate for your home. No commitment, no pressure — just real numbers.