Why Is My SDG&E Bill So High?
SDG&E residential rates average 45.7¢/kWh in 2026 — the highest utility rate in the United States. You're not imagining it. Here's what you can actually do.
The Short Answer
Your SDG&E bill is high because SDG&E rates are, simply, the highest in America. The average San Diego household pays $250–$350/month for electricity — double what a Sacramento household on SMUD pays for the same usage.
1. SDG&E Rates Are Genuinely the Highest
45.7¢/kWh average. Peak TOU rates 60–80¢. This is not your imagination. Wildfire infrastructure recovery, long transmission distances, and CPUC-approved rate cases continue to push rates up.
2. The $24 Base Services Charge
Applied to every residential customer regardless of usage. Unavoidable under CPUC rules.
3. You Might Be on the Wrong TOU Plan
SDG&E offers TOU-DR1, TOU-DR2, EV-TOU-5, and several others. Running the rate comparison in My Account and switching can save 15–25% for households that can shift usage. EV households often benefit from EV-TOU-5's super-off-peak midnight–6 AM rate.
4. Summer AC Plus Coast-Inland Climate
San Diego County spans micro-climates. Coastal zones (La Jolla, Encinitas, Carlsbad) use less AC. Inland East County (Ramona, Alpine, Escondido) and back-country (Valley Center, Julian) run AC aggressively. If you're in an inland SDG&E community, summer AC is the #1 bill driver.
5. Your Neighbor's Solar Is Making Yours Look Worse
San Diego is the highest solar-penetration market in the US. Non-solar households now bear a disproportionate share of grid costs because solar households generate much of their own electricity. This is a real dynamic the CPUC acknowledges in its Rate Design proceedings.
What to Actually Do
- Run the rate comparison in SDG&E My Account, switch if there's a better-fit plan.
- Apply for CARE or FERA if income-qualified.
- Medical Baseline if you use medical equipment.
- Solar + battery makes exceptional sense at SDG&E rates. With 45.7¢ retail and 5–8¢ export, self-consumption via battery is dramatically more valuable than exporting. Cash-purchase payback for a well-designed system in SDG&E territory is 5–7 years. See Solar Battery Backup in California.