Solar America › California Electric Rates › SDG&E
California · Updated September 2026
Why your SDG&E bill is so high
At 46.4 cents all-in, San Diego households pay more per kilowatt-hour than anywhere else in the continental United States — roughly two and a half times the national average. Here is what is on the bill and why.
46.4¢All-in residential rateRanked #1 by Solar Power World · Inc. 5000 · 20,000+ installations
Estimate what solar does against your SDG&E bill
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An estimate from your own numbers, not a quote, and not a savings figure. It assumes 400 W panels, an 80% system derate and no roof constraints. Your real number depends on orientation, roof area and your utility’s export credit. Savings are not guaranteed.
The numbers
Where SDG&E stands right now
| Measure | Current | Detail |
|---|---|---|
| Bundled residential average | 46.4¢ | Effective April 2026 — delivery and generation from SDG&E |
| Previous bundled average | 45.7¢ | January 2026, itself up 11.4% from 41.0¢ in October 2025 |
| Delivery only (CCA customers) | 28.8¢ | Up from 28.2¢; add your CCA's generation rate on top |
| Typical range by time of use | ~38–55¢ | On-peak 4–9pm is the most expensive window; summer runs higher |
| US average for comparison | ~18¢ | SDG&E runs roughly two and a half times the national figure |
| Customers served | ~1.53 million | San Diego County and southern Orange County |
| Structure | Investor-owned | Rates set through California Public Utilities Commission proceedings |
Bundled residential average of 46.4¢/kWh effective April 2026, from SDG&E Advice Letters 4791-E and 4791-E-A. Delivery-only customers on a CCA pay about 28.8¢/kWh for delivery plus their CCA's generation rate.
Why it moved
What is actually driving this
Wildfire mitigation and grid hardening
California utilities have spent heavily on undergrounding lines, inspection programmes and fire-prevention infrastructure. Those costs are recovered through rates over decades and sit largely in the delivery charge.
Delivery outweighs generation
At 28.8¢ delivery-only against a 46.4¢ bundled average, more than half of what a San Diego household pays is for moving the power, not producing it. That portion does not fall when wholesale prices do.
The rate has moved fast
The bundled residential average went from 41.0¢ in October 2025 to 45.7¢ in January 2026 to 46.4¢ in April 2026. That is roughly 13% in six months.
Time of use makes the peak expensive
SDG&E residential plans price 4pm to 9pm highest year-round, and summer above winter. Households that cannot shift usage out of that window pay the top of the range.
What a roof does against it
Production against a 46.4¢ rate
This part of California averages about 5.4 peak sun hours a day, so a kilowatt of panels produces roughly 1,576 kilowatt-hours a year. A 9 kW system makes around 14,184 kilowatt-hours annually — about $5,120 of SDG&E electricity a year at the current rate.
That is production value, not a savings figure. What you actually keep depends on how much of it you use directly versus export, what SDG&E credits exports at, and what you pay for the system. Under a power purchase agreement there is no upfront cost and you buy the production at an agreed rate instead.
The residential federal tax credit (25D) ended for property placed in service after December 31, 2025.
You will still see ads promising a 30% credit that “ends December 31.” Read the date on them. If you buy a system today as a homeowner, you cannot claim that credit. What remains under 48E applies to the owner of the system — which, under a PPA, is us. SolarAmerica does not provide tax advice; talk to your tax professional about your situation.
Every figure here is an estimate built from published rates and modeled production. It is not a savings guarantee, and no solar company can honestly give you one. Your actual result depends on your roof, your usage and what your utility charges next year.
Who you would be working with
SolarAmerica
We design your system and manage the project; installation is performed by vetted licensed partners in your area. SolarAmerica is not itself the installing contractor.
SDG&E questions
The things people actually ask
What is SDG&E's electricity rate per kWh in 2026?
SDG&E's bundled residential average is 46.4 cents per kilowatt-hour effective April 2026, covering both delivery and generation. That figure comes from SDG&E's own Advice Letters 4791-E and 4791-E-A. If you buy generation from a Community Choice Aggregator instead, SDG&E's delivery-only average is about 28.8 cents and your CCA's generation rate is added to it. Actual rates range roughly 38 to 55 cents depending on time of day and season.
Why is SDG&E so much more expensive than other utilities?
Two reasons dominate. First, more than half the bill is delivery rather than generation, and California's wildfire mitigation programme — undergrounding, inspections, fire-prevention infrastructure — is recovered through delivery rates over decades. Second, rates have risen fast: the bundled residential average went from 41.0 cents in October 2025 to 46.4 cents by April 2026. At roughly two and a half times the US average of about 18 cents, San Diego pays more per kilowatt-hour than anywhere else in the continental United States.
How many customers does SDG&E serve?
San Diego Gas & Electric serves approximately 1.53 million electric customers and about 380,000 gas customers across San Diego County and southern Orange County. It is an investor-owned utility whose rates are set through California Public Utilities Commission proceedings rather than wholesale auctions.
Can I reduce my SDG&E bill by switching suppliers?
Partially. San Diego has Community Choice Aggregation, so you can buy the generation portion from a CCA while SDG&E continues to deliver the power. That changes generation only — SDG&E's delivery charge of about 28.8 cents per kilowatt-hour applies either way, and delivery is the larger half of the bill. Shifting usage out of the 4pm to 9pm peak window and reducing what you buy are the levers that touch the delivery side.
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