Solar in San Diego on SDG&E in 2026 only makes financial sense paired with a battery — NEM 3.0 dropped export credits about 75% and SDG&E has the highest residential rates in the continental US, so self-consuming what you produce is now where the savings live. Solar + battery in San Diego pays back in 7–9 years. Solar alone pays back in 12–15.
SDG&E rate context
SDG&E residential rates are the most expensive in the continental US — peak Time-of-Use rates routinely exceed $0.55–$0.60/kWh in summer afternoons. That's the good news for solar: every kWh you self-consume is enormous savings. The bad news: NEM 3.0 export credits are around $0.05–$0.10/kWh average, so unsaved exports are nearly worthless.
Why batteries became mandatory
Pre-NEM 3.0, you'd export midday at retail rate and pull back at night for free (net zero). Now you export at 7 cents and buy back at 50+ cents. The only fix is to store your midday production and discharge it during the 4pm–9pm peak window. A 10–13 kWh battery covers most San Diego households for the peak period.
SDG&E service area
SDG&E covers all of San Diego County and southern Orange County. There's no municipal utility option in San Diego proper. SDG&E's solar page walks through the rate plans you'll choose between (EV-TOU-5 is most common for solar households).
HOA reality
California Civil Code 714 protects you. San Diego HOAs in Carmel Valley, La Jolla, Rancho Bernardo, 4S Ranch, and Scripps Ranch generally approve in 2–3 weeks. The strictest I've encountered are some Rancho Santa Fe sub-HOAs that want fully concealed wiring — but they still can't reject the install itself.
Roof types and microclimates
San Diego is a roofing patchwork. Coastal zones (La Jolla, Pacific Beach, Encinitas) trend Spanish tile and stucco; inland (Poway, Escondido, Ramona) more comp shingle. The marine layer matters for production modeling — coastal homes lose 8–12% annual production to fog/overcast versus inland. I model coastal and inland systems differently.
Real payback math
Carmel Valley home, 8 kW solar + 13 kWh battery, $380/mo summer bill: $44k pre-credit, $30.8k after 30% federal ITC. Bill offset ~$3,800/yr. Payback 8.1 years.
Same home, solar-only 8 kW: $24k pre-credit, $16.8k after credit. Bill offset ~$1,400/yr (most exports lost to NEM 3.0). Payback 12 years.
The battery isn't optional anymore in this math.
SGIP — California's battery rebate
The Self-Generation Incentive Program offers $150–$1,000/kWh battery rebates depending on income tier and equity tier. A standard-tier residential rebate is around $150–$200/kWh — meaningful but not transformative. Equity-tier (low-income or in a high-fire-threat district) gets up to $1,000/kWh. Worth checking eligibility on every San Diego quote.
EV households change the math
If you have an EV (and 28% of San Diego households do as of 2025), solar + battery + EV charging on EV-TOU-5 is the strongest possible play. You charge the car off solar mid-day or off the battery overnight at super-off-peak rates. Payback drops to 6–7 years.
Permits and timeline
San Diego County uses SolarAPP+ for standard residential — permit in 1–3 days. SDG&E PTO averages 4–6 weeks. HOA 14–21 days. Total contract-to-operating: 8–10 weeks.
Want a real San Diego number?
Send address + last 12 months SDG&E bills. I'll model with battery and without so you can see the difference. San Diego solar page or request a quote.