San Diego Gas & Electric · CPUC NEM 3.0
SDG&E net metering, explained for homeowners.
Net metering under San Diego Gas & Electric follows the CPUC's NEM 3.0 rules in place since April 2023 — but SDG&E comes with a twist that changes the calculus. SDG&E carries some of the highest residential electric rates in the country, so even after NEM 3.0 cut export credits roughly 75%, offsetting your own sky-high usage still produces strong returns. The export rate is now an hourly avoided-cost value rather than full retail, which means the smart SDG&E system self-consumes its production instead of selling it back. Against the nation's most expensive grid power, every kilowatt-hour you use from your own panels and battery is worth a lot. Helios models your specific SDG&E rate and the owner signs off on every design.
San Diego Gas & Electric
How net metering works on SDG&E.
San Diego Gas & Electric is a CPUC-regulated investor-owned utility, so its residential solar customers are on NEM 3.0 (the Net Billing Tariff) for systems interconnected after April 2023. The export-compensation change mirrors SCE and PG&E: credits fell from roughly full retail under NEM 2.0 to hourly avoided-cost values averaging about 75% lower.
What sets SDG&E apart is the retail side of the equation. SDG&E's residential rates are routinely among the highest in the United States, and its time-of-use plans push the priciest hours into the late afternoon and evening. That means the value of avoiding a kilowatt-hour from the grid is unusually high here — which strengthens solar economics even though export credits are low.
The right design under SDG&E NEM 3.0 maximizes self-consumption: cover your daytime load directly, then store the surplus to offset the expensive evening peak. Because SDG&E's rates are so steep, the savings from displacing grid power can be larger than in any other SoCal territory. We model your exact SDG&E rate schedule so the payback reflects your real bill.
Storage on SDG&E
Should you add a battery?
On SDG&E, a battery makes a strong case — arguably the strongest in Southern California. SDG&E's nation-leading rates mean the power you offset with stored solar is worth more here than anywhere else, so the gap between exporting cheaply (under NEM 3.0) and self-consuming during the evening peak is especially wide. Solar-only still helps against such high rates, but adding storage to cover the 4-9 PM window typically delivers the best payback, often in the 6-9 year range. We model solar-only and solar+battery against your specific SDG&E rate so the decision is grounded in your actual bill.
SDG&E net metering questions, answered.
- Why is solar still worth it on SDG&E under NEM 3.0?
- Because SDG&E has some of the highest residential electric rates in the country. Even though NEM 3.0 cut export credits roughly 75%, the value of offsetting your own expensive grid usage is so high that solar — especially paired with a battery — still delivers a strong ROI on SDG&E.
- Are SDG&E rates really the highest in the nation?
- SDG&E's residential rates are routinely among the highest in the United States. That's the central reason solar economics hold up well here despite NEM 3.0 — the more expensive your grid power, the more each self-consumed solar kilowatt-hour is worth.
- Do I need a battery for solar on SDG&E?
- It's the strongest case in SoCal. Under NEM 3.0, exports pay little, while SDG&E's evening peak rates are very high. Storing midday solar to cover the 4-9 PM window typically gives the best payback — often 6-9 years. We model both solar-only and solar+battery on your actual SDG&E rate.
- Can I still claim a tax credit on an SDG&E solar system?
- Not the residential 30% credit — Congress ended it on December 31, 2025. Our prepaid-lease option (Propel) captures the federal commercial clean-energy credit and passes it through as roughly 30% off up front, with title transferring to you in year 6. We're not tax advisors; confirm the details with yours.
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Free home assessment, no pressure. We model net metering on your exact SDG&E rate — solar-only and solar+battery — with payback period and every line-item cost.