• It’s a new year and SDG&E has raised rates. Electricity rates are up an average of 7.8%, and gas rates are up 24.6%.

    Many customers across San Diego County are shocked to see their electric bills jump over 10% compared to the end of 2021. SDG&E officials stated that the average electric rate for residential customers rose 7.8%, from 32 cents per kilowatt-hour to 34.5 cents.

    SDG&E rate increases are also partially due to wildfire mitigation and an increased effort to source energy from green renewable sources. SDG&E also put out requests for temporary rate adjustment increases due to electricity prices being higher than expected in past summers.

    Regardless of the reasons - San Diego has some of the highest electricity prices in the United States. Plus, prices are forecasted to increase each year. It’s not getting better. Plus, SDG&E is currently experiencing longer than normal call wait times. They’re even directing customers to a monotonous Self Service option to avoid speaking with people. 

    And here’s the kicker - SDG&E is a private, for-profit company. Thus, SDG&E needs to cover expenses while providing dividends to their shareholders. As liabilities rise with increased fire risk and heat risk in San Diego, SDG&E passes costs to customers to stay profitable. This contrasts to most California municipal utilities who are non-profit government entities.

    It doesn’t help that our region is consistently facing record heat over the course of July through October. California Public Utilities Commission (CPUC) President Marybel Batjer previously noted that: “Rates rising far faster than inflation are straining the budgets of vulnerable customers.

    There is a Way Forward: Use Solar to Avoid Rate Increases

    Electricity and gas rate increases are a fact of life in San Diego County. There is only one way to take control of your financial future when it comes to the utilities: solar power in San Diego. 

    If you install a San Diego solar energy system on your roof or property, you can be the master of your electric destiny. You can utilize SDG&E for grid connection while no longer relying on their expensive rates. Plus, if you get a home battery and even an electric car - you can run your entire life on the sun. 

    Remember, even if you can’t make a cash purchase on a solar installation, there are infinite financing options. All of these end up with you paying less money per month. It’s a better deal to pay a fixed price payment that’s lower than your current electricity bill. Plus, you won’t be subjected to endless rate increases year-on-year.

    Plus: Utilize the Federal Tax Credit

    2022 is a great year to go solar because homeowners in San Diego can take advantage of the 26% Federal Solar Tax Credit. This is an income tax credit that amounts to 26% of the cost of your solar project. It’s valid for any type of solar purchase as long as it isn’t a lease. 

    For example, iif your system costs $20,000, you would receive an income Tax Credit of $5,200.

    This is a nice tool to lower your tax obligation. But remember a couple of things: there’s no cap to this tax credit and you can even roll it into next year if you don’t use up the whole credit. 

    BUT remember: you will only be eligible for the full 26% in 2022. It’s only 22% through 2023. This is something to keep in mind if you’re considering putting off solar this year. 

    San Diego is Solar Country

    As hinted earlier, there are serious compound benefits of going solar. And these aren’t merely just about lowering or eliminating your electricity bill! If you add an electric vehicle and battery into the mix: suddenly the game can change entirely. 

    If you have an EV Charger installed your electric vehicles can run off electricity that’s generated from your solar panels. Extra electricity to power your car(s)! 

    It’s a great deal! One solar installation can eliminate your electric bill, power your electric car, and reduce your tax bill. Imagine living in San Diego and never paying for gasoline or electricity again. Many of our customers have done exactly this: powering their homes and cars with sunshine. 

    SDG&E and their many rate structures can be complicated. It’s also tricky to know where to start when it comes to solar, batteries, and understanding electrical time-of-use concepts. That’s why we recommend working with a local company (like us!) who have a track-record you can count on. 

    There’s never been a better time to secure your energy future. As we can see from the SDG&E forecasts, we’re in for rising electricity rates. They won’t get cheaper. Going solar is simply the only way to fight back and take control of your bills. It’s a great move for anyone who wants to make a shrewd financial move while switching to a clean renewable energy source. 

    Feel free to drop us a line: it's a no-obligation process and we simply want to educate people on the many benefits of going solar. It’s fast and easy to set up a virtual solar consultation with a Stellar Solar Energy Consultant. 

    We’re happy to help. All you need is to fill in your details on our contact page and our people can walk you through the amazing potential of getting solar in San Diego.

  • About the Author

    Michael Powers


    Michael is one of the founding partners of Stellar Solar. In 2001, he helped launch The Home Depot’s national solar energy program which is now offering home solar through hundreds of stores in nearly a dozen states. He is a writer and marketing professional with over 30 years’ experience in the fields of energy, market intelligence and leadership training. He currently serves as treasurer and board member of Global Energy Network Institute (GENI), a San Diego-based non-governmental organization that advocates linking renewable energy resources around the world using electricity transmission.