Electricity rate as of 2026-05-01. Sun hours: TurbineGenerator.org NREL-based data for San Diego. 5.7 hours per day fixed-tilt annual average. San Diego tied with Fresno for the highest peak sun hours of any major California city.. Cost per watt: EnergySage marketplace data, May 2026, San Diego County. Range: $2.20 to $2.90 per watt for cash purchase depending on equipment tier and installer.. Payback estimate assumes zero federal residential credit (Section 25D expired December 31, 2025) and current utility net-metering tariffs.

Net metering in San Diego

SDG&E NEM 3.0 Solar Billing Plan (effective April 15, 2023). Export credits are time-varying avoided-cost rates averaging $0.05 to $0.08 per kWh. SDG&E did not receive the ACC Plus adder available to PG&E and SCE customers. Community Choice Aggregator customers (San Diego Community Power, Clean Energy Alliance) retain their NEM status through SDG&E; billing and export credits remain on SDG&E. Export credit data as of June 2026; verify at sdge.com/nem.

Available programs

Solar incentives in San Diego, CA for 2026

Incentives available in CA

Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).

Active solar incentives in CA
Program	Benefit	Eligibility	Status	Source
San Diego Solar Equity Program (SDSEP) Local/State Incentive	Covers nearly 100% of solar installation costs for income-qualified homeowners. Includes up to $3,500 toward electrical panel upgrade and up to $1,000 contractor bonus for providing 40 hours of solar job training. 10-year program funded at $1 million per year. Funding is limited per annual cycle; verify current availability at sdsolarequity.org before signing any contract. Program does not guarantee funding until application is approved.	Income-qualified San Diego homeowners. Funded by SDG&E shareholder funds at $1 million per year over a 10-year program. Contact sdsolarequity.org for income thresholds and application.	Active	DSIRE (opens in new tab)
DAC-SASH (Disadvantaged Communities Single-Family Solar Homes) Local/State Incentive	$3 per watt upfront rebate, maximum 5 kW system (up to $15,000). Administered by GRID Alternatives. Active through 2030. Funding available through statewide program. Apply through GRID Alternatives at gridalternatives.org/what-we-do/program-administration/dac-sash.	SDG&E territory homeowners in CPUC-designated disadvantaged communities. Income qualification required. Target neighborhoods include Barrio Logan, Logan Heights, and National City. Contact gridalternatives.org.	Active	DSIRE (opens in new tab)
CPUC Self-Generation Incentive Program (SGIP) -- Equity and Resiliency Local/State Incentive Waitlisted as of 2026-06-29. Apply early; verify at dsireusa.org.	Approximately $150 to $200 per kWh of battery storage for qualifying low-income and medical-baseline SDG&E customers. Fully reserved as of early 2026. Waitlist is maintained and position is preserved when funding reopens. Apply early at cpuc.ca.gov/sgip. Do not sign a contract based on this incentive without confirmed waitlist reservation.	SDG&E residential customers who are income-qualified (at or below 80% AMI) or have medical-baseline status. $280 million state budget fully reserved as of early 2026; waitlist active.	Waitlisted	DSIRE (opens in new tab)
California Solar Property Tax Exclusion Local/State Incentive	Excludes the added home value from solar installation from property tax assessment. A typical San Diego residential system adds $15,000 to $25,000 in home value, all excluded from reassessment. Sunsets December 31, 2026 under current California law (Revenue and Taxation Code Section 73). A solar system installed and permitted by December 31, 2026 locks in the exclusion for the life of the system. Systems installed in 2027 may not qualify if the Legislature does not extend the exemption. Verify at ftb.ca.gov.	All California homeowners installing solar systems. Applies automatically upon permit filing.	Active	DSIRE (opens in new tab)
AB 1124 Permit Fee Cap Local/State Incentive	Solar permit fee capped at $450 for systems under 15 kW. Statewide California law. No expiration date. California law. Applies to all AHJs including the City of San Diego DSD.	All California addresses. No AHJ in California may charge more than $450 for a standard residential PV permit.	Active	DSIRE (opens in new tab)

Data last verified June 29, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.

California property-tax exclusion sunsets December 31, 2026. Solar systems installed and permitted by December 31, 2026 lock in the exclusion for the life of the system under current California law (Revenue and Taxation Code Section 73). Systems installed in 2027 may not qualify if the Legislature does not extend the exemption. Verify current legislative status at ftb.ca.gov before signing a contract.

Why San Diego homeowners are moving now

After the January 2025 wildfires, battery storage became a priority

SDG&E holds the highest average residential electricity rate of any major utility in the continental United States at approximately 46 cents per kWh. At that rate, every kilowatt-hour of solar you generate and consume yourself saves nearly three times the national average. The extreme rate means that even under NEM 3.0's unfavorable export credits of 5 to 8 cents per kWh, San Diego solar systems sized for self-consumption deliver some of the strongest economics in California. Battery attachment rates for new SDG&E solar installations exceeded 50 percent by 2024 because the math is unambiguous: storing solar for evening discharge at 45 to 62 cents per kWh (peak TOU) is worth six to nine times more than exporting it at 6 to 8 cents. San Diego's military communities -- residents near 32nd Street Naval Station, Miramar, and Camp Pendleton -- drive above-average homeownership rates and solar adoption in neighborhoods like Serra Mesa, Santee, and Kensington.

Source: SDG&E 2026 residential rate data; EnergySage battery attachment data SDG&E territory 2024; OhmSnap SDG&E Solar Guide 2026 (2026).

Illustrative example

What does a typical San Diego solar system actually cost and save?

Zero federal residential credit applied (Section 25D expired December 31, 2025). Figures are estimates based on market data as of 2026-06-29. Your numbers depend on your roof, your utility, and your bill.

System inputs

System size: 6.67 kW
Gross cost ($2.48/W): $16,540
Federal residential credit: $0 (expired Dec 31, 2025)
California property-tax exclusion: system value excluded from reassessment: Applied
AB 1124 permit fee cap: permit cost capped at $450: Applied
Estimated net cost: $16,540

Estimated outcomes

Annual savings range: $2,200 to $3,200
Estimated payback: 6 years

San Diego, SDG&E territory: a 6.67 kW system at $2.48 per watt costs approximately $16,540 gross. No cash rebate reduces this cost for most market-rate homeowners in 2026 (income-qualified customers may qualify for SDSEP or DAC-SASH). No federal residential credit applies (Section 25D expired December 31, 2025). At SDG&E's blended rate of approximately 46 cents per kWh, each kilowatt-hour you consume from your own solar avoids a 46-cent grid charge. Under NEM 3.0, power exported to the grid earns only 5 to 8 cents per kWh. The optimal strategy is maximum self-consumption: size the system to cover daytime usage and add battery storage to shift excess solar into evening hours when TOU rates reach 45 to 62 cents per kWh. Without a battery, annual savings for a home consuming most production during the day range from approximately $2,200 to $3,200, producing an estimated payback of approximately 6 years. Adding a battery improves the payback for homes with significant evening load. All figures assume zero federal residential credit, 5.7 peak sun hours per day, current SDG&E rate schedule, and NEM 3.0 export credits. These are estimates; contact an advisor for a site-specific calculation.

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Neighborhoods we serve

Solar in San Diego: high-adoption areas, equity zones, and post-fire demand corridors

High-adoption neighborhoods

Established solar saturation; higher installers per block, active neighbor referrals, and permit history at LADBS.

North Park
Kensington
Serra Mesa
Santee
Rancho Bernardo

Equity program target areas

Designated disadvantaged communities (DAC) eligible for SGIP equity resiliency, DAC-SASH, and other income-qualified programs. Income verification required.

Barrio Logan
Logan Heights
National City

Post-fire and growth corridors

Wildfire-affected and adjacent neighborhoods where battery storage demand surged following the January 2025 fires. Rebuilding homeowners and proximate neighbors with elevated grid-resilience priorities.

Chula Vista
Escondido
El Cajon

LOCAL INSTALL PHOTO -- SAN DIEGO -- TO BE PROVIDED

Permitting and interconnection

How solar permitting works in San Diego

Authority Having Jurisdiction (AHJ)

Permit office: City of San Diego Development Services Department (DSD) for properties within the City of San Diego. Unincorporated San Diego County has its own permitting authority.
SolarAPP+ status: SolarAPP+: Same-day approval
Permit fee: City of San Diego DSD: records fee $20 plus plan check fee $179 to $268 plus inspection fee $242; additional hourly charges for structural, brush management, or historic review. California AB 1124 caps residential solar permit fees at $450 for systems under 15 kW. DSD participates in SolarAPP+ enabling same-day approval for qualifying systems.
Typical contract-to-energization: 6 to 12 weeks. SolarAPP+ eligible systems receive same-day permit. Standard DSD review: 3 to 8 weeks for permit and interconnection. SDG&E interconnection adds 4 to 8 weeks after permit. Express plan check is not available for single-family or duplex projects at DSD.

We handle the permit and interconnection filings

LADBS permit application and plan set preparation
SolarAPP+ submission for qualifying systems
LADWP or SCE interconnection application
Inspection coordination and utility sign-off
Certificate of Completion delivery to homeowner

DSD does not offer express plan check for residential solar. SolarAPP+ is the fastest path for qualifying standard systems. Properties requiring brush management, structural, zoning, or historic review incur additional hourly charges and longer timelines beyond the base fee. Confirm your AHJ by address -- properties outside the City of San Diego are handled by County or other city building departments.

Your local San Diego advisor

One advisor. No door-knockers. No shared leads.

Serving San Diego and surrounding CA communities

Book Your Free In-Home Inspection

North Park, San Diego REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial with bill comparison and NEM 3.0 self-consumption strategy details]

System: 6.5 kW rooftop solar, SDG&E territory, NEM 3.0

Kensington, San Diego REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning battery decision driven by NEM 3.0 economics]

System: 7.0 kW rooftop solar plus battery storage, SDG&E territory

Rancho Bernardo, San Diego REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial from established solar neighborhood]

System: 8.2 kW rooftop solar, SDG&E territory

For business owners and property managers

Commercial Solar in San Diego: Section 48E Before July 4, 2026

SDG&E's commercial electricity rates mirror its residential rates as some of the highest in the United States, making San Diego one of the strongest commercial solar ROI markets in the country. The federal Section 48E commercial investment tax credit (30% base credit for projects starting construction by July 4, 2026) combined with MACRS accelerated depreciation creates a closing window for SDG&E commercial customers. Warehouses, retail centers, office buildings, and multi-family properties across San Diego County benefit from the same 5.7 peak sun hours that make residential solar compelling. After July 4, 2026, the Section 48E construction-start window closes.

See commercial solar options

Commercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.

Schedule a Free Commercial Assessment

San Diego solar questions

What San Diego homeowners ask

City-specific answers. Every number references your utility and your permit office.

Does SDG&E have the highest electricity rates in the US?

Yes. SDG&E (San Diego Gas and Electric) holds the highest average residential electricity rate of any major utility in the continental United States as of 2026, at approximately 46 cents per kWh. On-peak TOU rates (4pm to 9pm weekdays) reach approximately 45 to 62 cents per kWh. This high rate is the primary reason San Diego has some of the strongest solar economics in California despite NEM 3.0 reducing export credits to 5 to 8 cents per kWh. Every kilowatt-hour you generate and consume yourself saves roughly 46 cents -- nearly three times the national average savings per kilowatt-hour.

Is solar worth it in San Diego under NEM 3.0?

Yes, but the strategy matters. Under NEM 3.0 (Solar Billing Plan), SDG&E export credits average only 5 to 8 cents per kWh -- a fraction of the 46-cent retail rate. The right approach is to size your system to cover daytime consumption rather than to maximize exports. Pairing with battery storage lets you use solar-generated power during evening peak hours (4pm to 9pm) when the grid rate reaches 45 to 62 cents per kWh, instead of drawing from the grid. Battery attachment rates for new SDG&E solar installations exceeded 50 percent by 2024 for exactly this reason. An independent advisor will size your system for your specific usage pattern.

How much does solar cost in San Diego in 2026?

A typical residential solar system in San Diego costs approximately $2.48 per watt installed (EnergySage May 2026 data). The average system size in San Diego is about 6.67 kW, sized for self-consumption under NEM 3.0, producing a gross pre-incentive cost of approximately $16,500. No federal residential credit applies in 2026 -- the Section 25D credit expired December 31, 2025. Battery storage adds approximately $10,000 to $15,000. Income-qualified homeowners may qualify for the San Diego Solar Equity Program (up to 100% coverage) or DAC-SASH ($3 per watt, max $15,000).

How fast can I get a solar permit in San Diego?

The City of San Diego Development Services Department (DSD) participates in SolarAPP+ and offers same-day approval for qualifying standard residential systems under 15 kW. After the permit, SDG&E interconnection approval typically adds 4 to 8 weeks. Total contract-to-energization timeline is 6 to 12 weeks. Properties requiring structural, brush management, historic review, or zoning approval take longer and incur additional hourly DSD charges beyond the base permit fee.

What equity programs are available for solar in San Diego?

Income-qualified San Diego homeowners have two main pathways. The San Diego Solar Equity Program (SDSEP) covers nearly 100% of installation costs, plus up to $3,500 for panel upgrades, funded by SDG&E shareholder funds ($1 million per year). DAC-SASH provides $3 per watt upfront (max 5 kW, up to $15,000) for homeowners in CPUC-designated disadvantaged communities including Barrio Logan, Logan Heights, and National City, administered by GRID Alternatives and active through 2030. The SGIP equity and resiliency battery program is waitlisted as of early 2026 but the waitlist remains open. Contact sdsolarequity.org or gridalternatives.org to verify current eligibility and availability.

More solar resources for California:

California solar guide All cities

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Solar Installers in San Diego, CA: Your 2026 Guide