Quick Answer
SDG&E customers benefit from solar + battery despite NEM 3.0 because of extremely high rates ($0.35-$0.55+/kWh). While exports only earn $0.05-$0.08/kWh, every kWh you use yourself saves the full retail rate. With a battery to capture peak hour value, expect 7-10 year payback and 70-90% bill reduction. Batteries often pay for themselves in just 5-7 years at SDG&E rates.
SDG&E Overview
From my experience:SDG&E has some of the highest rates in the country, which is actually good news for solar customers. Even with NEM 3.0's reduced export credits, the math still works because every kWh you use yourself saves you $0.40-0.50+. I always tell SDG&E customers: batteries aren't optional here, they're essential to capture that peak-hour value.
San Diego Gas & Electric serves San Diego County and parts of Orange County. With rates averaging $0.35-0.50+/kWh—among the highest in the nation—solar makes financial sense even under NEM 3.0's reduced export credits.
SDG&E Rate Reality
SDG&E's peak rates can exceed $0.50/kWh in summer. Even with NEM 3.0's reduced export credits, using your own solar power saves the full retail rate. Batteries maximize this self-consumption benefit. (Source: utility tariff filings and DSIRE Database)
NEM 3.0 Details
How NEM 3.0 Works at SDG&E
- Export credits: ~$0.05-0.08/kWh (varies by time)
- Self-consumption: Worth full retail ($0.35-0.50+)
- Time-of-use required: Mandatory TOU rates
- Peak hours: 4-9 PM are most expensive
Time-of-Use Rates
| Period | Summer Rate | Winter Rate |
|---|---|---|
| On-peak (4-9 PM) | $0.45-0.55+ | $0.35-0.45 |
| Off-peak | $0.30-0.40 | $0.28-0.35 |
| Super off-peak | $0.25-0.30 | $0.25-0.30 |
Battery Strategy
Why Batteries Are Essential
- Store daytime solar: Use it during expensive 4-9 PM peak
- Avoid low export credits: Use power yourself instead
- Peak savings: $0.50+ value vs $0.06 export credit
- 5-7 year battery payback: At SDG&E's high rates
Battery ROI
At SDG&E rates, a battery storing $5-8/day in peak-hour savings can pay for itself in 5-7 years. The combination of solar + battery under NEM 3.0 is often better economics than solar alone under old NEM 2.0. (Source: utility tariff filings and DSIRE Database)
Solar Economics
SDG&E Solar Scenarios
| System | Bill Reduction | Payback |
|---|---|---|
| Solar only | 40-60% | 8-12 years |
| Solar + battery | 70-90% | 7-10 years |
The Bottom Line
SDG&E solar still makes sense—especially with batteries. The nation's highest rates mean significant savings from self-consumption. Focus on using your own solar power; let batteries handle peak hours.
[Editor's Note, Jan 2026]:Utility rates and policies change frequently. SDG&E rates are among the highest and most variable in the nation. Verify current rates on your bill before making decisions.
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