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