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TOU Rate Structure

Solar ROI for San Diego Gas & Electric (SDG&E) Customers

San Diego Gas & Electric (SDG&E) charges an average of $38.0¢/kWh. Peak rates reach $58.0¢/kWh with off-peak at $14.0¢/kWh, creating strong battery arbitrage value. A 7 kW solar system produces a $61,952 NPV over 25 years.

$13,573
Net System Cost
$61,952
25-Year NPV
4 years
Payback Period
$0.125/kWh
Solar LCOE

San Diego Gas & Electric (SDG&E) Rate Structure

ParameterRate
Average residential rate$38.0¢/kWh
Peak rate$58.0¢/kWh
Off-peak rate$14.0¢/kWh
Peak/off-peak spread$44.0¢/kWh
Rate structureTOU
Export credit policyNEM 3.0 avoided cost ($0.05-0.09/kWh)

Solar System Economics

A 7 kW solar system for a San Diego Gas & Electric (SDG&E) customer costs $19,390 before incentives. The 30% federal ITC saves $5,817. The net out-of-pocket cost is $13,573.

At San Diego Gas & Electric (SDG&E)'s $38.0¢/kWh average rate, the system saves $4,256 in year one, producing 11,200 kWh. The solar LCOE of $0.125/kWh is 67% below San Diego Gas & Electric (SDG&E)'s current rate.

Battery Storage for San Diego Gas & Electric (SDG&E) Customers

$8,400
Battery Net Cost
$4
Daily Arbitrage
$1,463
Annual Arbitrage
$10,238
25-Year Battery NPV

With San Diego Gas & Electric (SDG&E)'s TOU rate structure, a 13.5 kWh battery generates $1,463/year in TOU arbitrage by storing solar during off-peak hours and discharging during peak. The 25-year NPV of $10,238 makes battery storage a strong addition to solar for San Diego Gas & Electric (SDG&E) customers.

FAQ: Solar for San Diego Gas & Electric (SDG&E) Customers

How much can San Diego Gas & Electric (SDG&E) customers save with solar?
A typical 7 kW solar system saves San Diego Gas & Electric (SDG&E) customers approximately $4,256/year in electricity costs. Over 25 years, the NPV of savings after system costs is $61,952.
What is San Diego Gas & Electric (SDG&E)'s rate structure?
San Diego Gas & Electric (SDG&E) uses a time-of-use (TOU) rate structure with peak rates of $58.0¢/kWh and off-peak rates of $14.0¢/kWh. The $44.0¢/kWh peak/off-peak spread creates significant value for battery storage — TOU arbitrage alone is worth $1,463/year.
Does San Diego Gas & Electric (SDG&E) offer net metering?
NEM 3.0 avoided cost ($0.05-0.09/kWh)
Should San Diego Gas & Electric (SDG&E) customers add battery storage?
Yes — for San Diego Gas & Electric (SDG&E) customers with TOU rates, a 13.5 kWh battery adds $10,238 in NPV through TOU arbitrage. Daily arbitrage value is $4.

Other Utilities in California

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