Installing solar panels on your home in San Diego can significantly lower your monthly electric bills from San Diego Gas & Electric (SDG&E). Here’s how:
Generating Your Own Electricity
Solar panels allow you to generate your own clean electricity from the abundant San Diego sunshine. This electricity directly offsets the power you would normally have to purchase from SDG&E at much higher rates.
The average residential electricity rate from SDG&E is currently around 37% higher compared to other U.S. cities. But with solar, you can generate electricity at a much lower cost, typically around 8 cents per kilowatt-hour (kWh) over the 25+ year lifespan of the system. This is less than half of SDG&E’s current residential rates.
Net Metering Credits
When your solar panels produce more electricity than you use, the excess is sent back to SDG&E’s grid. Through their net metering program, SDG&E provides bill credits for this excess solar generation.
You can then use these credits to offset your electricity usage from the grid at night or during less sunny months. This further reduces your bills.
However, SDG&E is changing its net metering program in 2024. The credits for excess solar sent to the grid will be reduced by about 75% compared to current rates. So it’s best to go solar soon to lock in the more favorable rates for 20 years.
Avoiding Rising Utility Rates
Another key benefit of going solar in San Diego is avoiding SDG&E’s rapidly increasing electricity rates. From 2017 to 2022 alone, SDG&E’s rates rose by 41%.
By generating your own solar power at a fixed, low cost, you insulate yourself from unpredictable utility rate hikes for decades to come. Your savings will continue to grow every year as SDG&E’s rates increase.
Battery Storage for Extra Savings
Adding a home battery system to your solar panels can boost your savings even further. Batteries allow you to store excess solar energy produced during the day and use it at night during SDG&E’s expensive “peak” hours from 4-9pm.
This maximizes your self-consumption of solar and minimizes expensive grid power. SDG&E is also incentivizing solar battery systems to help support the grid during peak times.
How Much Can You Save?
Based on the average San Diego household’s electricity usage, switching to solar can save you around $1,637 per year on your utility bills. Over 20 years, that adds up to over $31,000 in electricity cost savings.
The exact amount you save depends on factors like your energy usage, solar system size, electricity rate plan, and whether you install battery storage. Get quotes from multiple local solar installers to see your potential savings.
In summary, going solar is one of the best ways to drastically reduce your SDG&E electricity bills. With San Diego’s high utility rates and abundant sunshine, solar can reliably lower your energy costs for decades while helping the environment. Take advantage of SDG&E’s current net metering rates and solar incentives to maximize your long-term savings.