SDG&E Rate Increases 2026: What San Diego Homeowners Need to Know
August 7, 2026
SDG&E customers in San Diego continue to face some of the highest electricity rates in the United States. If you have opened your bill this summer and felt sticker shock, you are not alone. SDG&E rates have increased significantly over the past few years, and 2026 is no exception.
How Much Have SDG&E Rates Increased?
SDG&E rates have risen more than 40% since 2020. The average residential customer now pays around $0.40 to $0.55 per kilowatt-hour, depending on the time of use. Summer rates are even higher, with peak TOU rates exceeding $0.60 per kWh in the evening hours.
For a typical San Diego home using 900 kWh per month, that means a monthly bill of $360 to $495. Just five years ago, that same usage cost around $250.
Why Are Rates Going Up?
Several factors drive SDG&E rate increases:
- Wildfire mitigation costs: SDG&E passes the cost of fire hardening and undergrounding power lines directly to customers.
- Infrastructure upgrades: Grid modernization and renewable energy integration require massive capital investments.
- Natural gas prices: Although California is moving toward renewables, natural gas still sets the marginal price of electricity.
- Regulatory changes: NEM 3.0 and other CPUC decisions have restructured how costs are distributed among ratepayers.
How Solar Locks In Your Energy Costs
When you install solar, you generate your own electricity from the sun. Every kWh your panels produce is a kWh you do not buy from SDG&E at $0.40+. Over the 25-year life of a solar system, this adds up to tens of thousands of dollars in savings.
With a $0 down solar program, many San Diego homeowners start saving money the very first month. Your solar payment replaces your SDG&E bill at a lower, fixed rate.
Adding a Battery Maximizes Savings
Under NEM 3.0, exporting solar to the grid pays very little. A Tesla Powerwall stores your excess daytime solar energy for use at night. Instead of selling cheap and buying expensive, you use your own stored energy.
What Should San Diego Homeowners Do?
If your monthly SDG&E bill is over $100, solar is almost certainly worth exploring. The higher your bill, the more you save. Book a free consultation to get a custom savings analysis based on your actual energy usage and roof.