Federal solar credit ended Dec 31, 2025
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Solar costs · San Diego, CA

Solar Panel Cost in San Diego, California

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

San Diego gets about 1,599 kWh per kW per year[1] from a rooftop solar array, according to NREL's PVWatts model at the city's coordinates. SDG&E's residential customers paid an average of 43.63¢ per kWh[2] and used 365 kWh a month[2]. A system sized to that use, about 2.7 kW est.[1,2], costs roughly $7,500 to $10,000 est.[1,2,3] before incentives, and pays back in about 8 years est.[1,2,3,4] for a cash buyer.

On this page [ 8 ]

San Diego solar at a glance

Output per kW of panels1,599 kWh/yr[1]PVWatts, this city
Sunlight on panels5.71 kWh/m²/day[1]Annual average
SDG&E avg. price43.63¢/kWh[2]2024 average, bundled customers
SDG&E avg. home use365 kWh/mo[2]2024 average
Typical system2.7 kWCovers 100% of use
Typical price$8,900Estimate, before incentives
Year-1 savings$1,050Estimate
Payback8 yearsEstimate, cash purchase
Estimated monthly output of a 2.7 kW system in San Diego (PVWatts, typical weather year)kWh / month

SDG&E credits exports at Hourly avoided-cost credits; we model about 5¢ per kWh (estimate) (Solar Billing Plan (Net Billing Tariff, 'NEM 3.0')). Assumptions: methodology.

How San Diego Gas & Electric treats solar

UtilityExport policyExport creditAvg. residential priceMonthly basic charge
SDG&ESolar Billing Plan (Net Billing Tariff, 'NEM 3.0')Hourly avoided-cost credits; we model about 5¢ per kWh (estimate)[4]43.63¢ per kWh[2]$24.00[5]

San Diego Gas & Electric: Solar Billing Plan (Net Billing Tariff, 'NEM 3.0')

Exports earn Generation and Delivery Export Credits that vary by hour and season. They are calculated from the CPUC Avoided Cost Calculator vintage for the customer's installation year. Residential customers must be on the EV-TOU-5 time-of-use plan. Excess credits roll forward month to month. SDG&E customers do not get the ACC Plus export adder that PG&E and SCE customers receive. Export rates are locked for 9 years from interconnection.

  • Base Services Charge (income-graduated fixed charge): Started October 2025: about $24/month for most customers (range $22.22-$26.18 depending on billing days), about $12 FERA/DRAH, about $6 CARE. Export credits cannot offset it.[5]
  • Fixed charge cannot be offset by solar credits: For Solar Billing Plan customers the Base Services Charge is non-nettable, so export credits cannot pay it.[5]

Permits and local programs in San Diego

  • Permitting: Rooftop PV on single-family homes, duplexes and townhouses built to the city's IB-301 template is self-issued with no plan review. Limits: 38.4 kW AC, no fire or structural review needed. Batteries up to 38.4 kWh and panel upgrades up to 320 A can be included. The city is not listed as a SolarAPP+ jurisdiction.[6]
  • Local solar incentive: The San Diego Solar Equity Program gives income-qualified City of San Diego homeowners money toward rooftop solar. It is funded by SDG&E shareholders at $1 million per year over 10 years.[7]
  • CCA export credits: If San Diego Community Power buys your electricity, it sets the generation import prices and Generation Export Credits on the Solar Billing Plan. SDG&E sets the delivery portion.[4]

San Diego solar cost by system size

SystemPrice before incentives[3]After incentiveskWh in year 1[1]Year-1 savings[2][4]Payback (years)
4 kW$13,200$13,2006,400$1,5608
6 kW$19,800$19,8009,590$2,1708
8 kW$26,400$26,40012,790$2,33010
10 kW$33,000$33,00015,990$2,49012
12 kW$39,600$39,60019,190$2,65013

Incentives for San Diego homeowners

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[8]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026
State · tax exemptionEnding soon

Active solar energy system new-construction property tax exclusion (Rev. & Tax. Code 73)

Adding an active solar energy system (including storage devices that are part of it) is not treated as 'new construction', so it does not raise the assessed value. Ends January 1, 2027. Systems that qualify before then stay excluded until the property changes hands.[9]

Subd. (i)(2): systems that qualify for an exclusion before January 1, 2027 continue to be excluded until there is a subsequent change in ownership. Subd. (g) says the section applies to lien dates for fiscal years 1999-2000 through 2025-26. The leginfo cross-reference list shows no 2026 chaptered bill amending section 73. The BOE analysis of SB 710 (https://boe.ca.gov/legdiv/pdf/0710sb090525ml.pdf) says 'any solar installation post January 1, 2027 would be considered new construction and would…

Who
Owners who add an active solar energy system to property. The system must qualify before January 1, 2027. The exclusion lasts until the next change in ownership.
Deadline
January 1, 2027
Checked
November 5, 2026
State · rebateAvailable

Disadvantaged Communities - Single-family Solar Homes (DAC-SASH)

$3/watt incentive for rooftop solar for income-qualified homeowners in disadvantaged communities[10]

Budget: '$120 million total ($10 million per year 2019 - 2030)'. SDG&E's Solar Billing Plan page still lists DAC-SASH as a current assistance program. I could not confirm current intake on the administrator page (gridalternatives.org returned 403).

Who
Income-qualified (CARE/FERA-eligible) single-family homeowners in CalEnviroScreen disadvantaged communities or San Joaquin Valley pilot communities, in IOU territory. GRID Alternatives administers the program.
Deadline
Program budget is $10 million per year for 2019-2030 ($120 million total).
Checked
November 5, 2026
State · rebateWaitlist

SGIP Residential Solar and Storage Equity (RSSE)

$1.10/Wh for storage plus $3.10/W for solar (current step 6), for low-income households[11]

The CPUC budget table lists RSSE at 'Storage: 1,100' ($/kWh) and 'Solar: 3,100/kW'. Rates and status were confirmed on the SGIP step tracker (https://www.selfgenca.com/home/program_metrics/) as of 11/5/2026, which lists 'Solar $3.10/W' and 'Energy Storage $1.10/Wh' at Step 6. RSSE AB 209: CSE, SCG and LADWP on Waitlist. AB 209 Non-POU: SCE and PG&E on Waitlist. AB 209 POU: SCE 'Open' ($1,000,000 available), PG&E Waitlist. RSSE Ratepayer: Closed in all four IOU territories. The $280M figure is…

Who
Low-income residential customers installing paired solar and storage. The CPUC has authorized $280 million for this budget.
Deadline
Ends when funds run out. As of 11/5/2026 the AB 209 sub-budgets are on waitlist in most administrator territories.
Checked
November 5, 2026
State · rebateAvailable

Solar on Multifamily Affordable Housing (SOMAH)

Up to $3.50 per AC watt for capacity serving tenants and $1.19 per AC watt for common areas[12]

Activity status comes from https://calsomah.org/ ('175+ apps in 2026, on pace for a post-launch record'). The CPUC page says the budget is 'up to $100 Million annually, collected through June 2026'.

Who
Owners of multifamily affordable housing properties. This is not a program for single-family homeowners.
Deadline
Funding was collected through June 2026. The program reports 175+ applications in 2026. Integrated storage incentives are paused (waitlist) in PG&E and SDG&E territories.
Checked
November 5, 2026
Local · rebateAvailable

San Diego Solar Equity Program (SDSEP)

Cash help toward rooftop solar for income-qualified homeowners in the City of San Diego. $10 million total over 10 years ($1 million per year).[7]

SDG&E's Solar Billing Plan page (https://www.sdge.com/solar/solar-billing-plan) lists SDSEP as a current assistance program. I could not verify the per-household incentive amount or whether this year's funding remains.

Who
Income-qualifying single-family homeowners within the City of San Diego who are SDG&E customers. It is funded by SDG&E shareholders under the City-SDG&E franchise agreement.
Deadline
10-year program funded at $1 million per year. Annual funds may run out.
Checked
November 5, 2026

Every California incentive →

FAQ

Frequently asked questions

How much do solar panels cost in San Diego?

About $8,900 est.[1,2,3] before incentives for a 2.7 kW est.[1,2] system, using California's median installed price of $3.30 per watt est.[3]. Get at least three written quotes; prices for the same system often differ by thousands of dollars.

How does SDG&E pay for solar I send to the grid?

Under Solar Billing Plan (Net Billing Tariff, 'NEM 3.0'), SDG&E credits exports at Hourly avoided-cost credits; we model about 5¢ per kWh (estimate)[4], well below the retail price, so using your solar power at home is worth more than exporting it.

How long is the payback for solar in San Diego?

Our model estimates about 8 years est.[1,2,3,4] for a cash purchase, with year-one savings of about $1,050 est.[1,2,4]. Financing, a battery or a different rate plan changes this; the calculator lets you test each.

sources

[ 12 ]

Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  2. EIA Electric Sales, Revenue, and Average Price 2024, Table 6: Utility bundled retail sales, residentialeia.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. SDG&E: Solar Billing Plan (Net Billing Tariff, 'NEM 3.0')sdge.com · checked Nov 5, 2026
  5. SDG&E residential tariffsdge.com · checked Nov 5, 2026
  6. San Diego: Permittingsandiego.gov · checked Nov 5, 2026
  7. San Diego: Local solar incentivesdsolarequity.org · checked Nov 5, 2026
  8. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  9. California Revenue and Taxation Code section 73 (as amended by Stats. 2025, Ch. 328, SB 710)leginfo.legislature.ca.gov · checked Nov 5, 2026
  10. CPUC - Solar in Disadvantaged Communitiescpuc.ca.gov · checked Nov 5, 2026
  11. CPUC - Self-Generation Incentive Program (SGIP)cpuc.ca.gov · checked Nov 5, 2026
  12. CPUC - Solar on Multifamily Affordable Housing (SOMAH) Programcpuc.ca.gov · checked Nov 5, 2026

City data last re-checked November 5, 2026.