Solar by State

Is solar worth it in San Diego in 2026?

A roof in San Diego produces about 1,525 kWh a year per kW of panels. For a home with a $150 monthly bill, a 3.5 kW system costs about $11,715 at California's median price and pays for itself in roughly 12.5 years, with no federal tax credit. That is 9% less sun than Los Angeles, the city on our California page.

Data checked 2026-10-27 · Estimates, not a quote

Solar output in San Diego

1,525kWh per kW a year

Source: PVGIS, NSRDB data

California residential electricity price

33.3¢per kWh

Source: EIA, 2026 year to date

Median installed cost in California, 2025

$3.30per watt

Source: Berkeley Lab

Calculator · 2026 data, no federal tax credit

How long would solar take to pay for itself?

Simple payback

12.5 years

System size
3.5 kW
Installed cost
$11,715
Savings, year one
$936
Net over 25 years
$10,334

Sized to cover your yearly use at today's price. Panels lose 0.5% a year; prices held flat. Method

How San Diego homes get paid for solar

Export rules are set at the state and utility level, not by the city. San Diego is under California's net billing: Since April 15, 2023, new solar customers of PG&E, SCE and SDG&E get hourly avoided-cost credits for exports, usually below the retail rate, under the CPUC Net Billing Tariff. The full rules, incentives and sources are on theCalifornia page.

San Diego: your utility, incentives and permits

Main utility: San Diego Gas & Electric (SDG&E). Checked 2026-10-27 against the sources below.

San Diego homes are served by San Diego Gas & Electric (SDG&E), one of the three large investor-owned utilities regulated by the California Public Utilities Commission (CPUC). Its solar rules come from CPUC decisions, so they are the same state framework as PG&E and Southern California Edison, with SDG&E-specific rates.

What SDG&E gives you for exported power

Since April 15, 2023, new solar customers apply under the Net Billing Tariff (NBT), which SDG&E and the other utilities call the Solar Billing Plan. Self-consumed solar still avoids buying power, but exported energy is credited at a rate reflecting the value of that energy to the grid. The CPUC says this is usually lower than the retail rate, though it can rise above retail on late summer evenings.

Rules that come with the NBT:

  • Rate plan. The approved rate for SDG&E net billing customers is EV-TOU-5.
  • Nine-year legacy period. The original customer is guaranteed the NBT for nine years. A customer moved over from an older NEM tariff does not get this period.
  • Monthly bills. You pay monthly, and excess credits roll over to following months until the annual true-up.
  • No adder. Unlike PG&E and SCE customers, SDG&E customers are excluded from the export compensation adder.

Older systems are on the previous tariffs, which are closed to new enrollments. NEM 2.0 customers may stay on that tariff for 20 years from the date they interconnected. NEM export credits are applied at retail rates. At the annual true-up, leftover surplus pays about $0.02 to $0.03 per kWh.

Incentives in 2026

  • Property tax. California’s property tax exclusion for new solar systems becomes inoperative on January 1, 2027. A system already excluded stays excluded until the property changes ownership.
  • Low-income storage and solar. The CPUC’s SGIP Residential Solar and Storage Equity budget is authorized at $280 million for low-income households; the SGIP page shows whether it is open.
  • No federal credit. The federal 25D residential credit ended on December 31, 2025; see what ended with the federal credit.

Permits and connection

Solar work in the city needs an electrical permit from Development Services, or a combination building permit if the roof structure is modified. A new roof-mounted system on a single-family home, duplex or townhouse that follows the city’s plan template is self-issued with no plan review, up to 38.4 kW AC. You submit it online as a Photovoltaic - SB 379 Permit. That path can include a panel upgrade up to 320 amps.

Electrical permit fees in the May 2026 bulletin: $275.80 for the system inspection, plus $154.20 for plan check if plans are reviewed and a $12.16 mapping fee where applicable. Extra reviews can be charged hourly.

After final city inspection, SDG&E is notified, and the system is not approved to energize until SDG&E approval is obtained. The wider California rules are on the state page.

Sources

  1. CPUC: Net Energy Metering and Net Billing (SDG&E, PG&E and SCE)
  2. City of San Diego Development Services: Information Bulletin 301, solar PV permits (May 2026)
  3. California State Board of Equalization: Letter to Assessors 2026/034 (solar exclusion, September 1, 2026)
  4. CPUC: Self-Generation Incentive Program

Why the city matters

Two things change from one city to another in the same state: the sun, which sets how many panels you need, and the utility, which sets what exported power is worth. San Diego gets 1,525 kWh per kW a year on a south-facing roof at a 20° tilt, so covering a year of use for a $150 bill at 33.3¢ takes about 3.5 kW, roughly 9 panels of 400 W. Electricity prices in the calculator are the California residential average; your utility's rate can be higher or lower, so put your own bill in.

Other California cities: Los Angeles, San Francisco, Sacramento.

Method: how we calculate payback. Compare all states in theranking or size a system with the panel calculator.