Solar Owner Alert

The Rate Rug Pull: Why 180,000 San Diego Solar Owners Should Be Worried

California regulators approved a rate change that, once implemented, will reduce the value of midday solar exports for an estimated 135,000 to 180,000 SDG&E households.

Status: Approved, Not Yet Implemented

The CPUC approved this rate change in September 2025 (Decision 25-09-006). However, SDG&E has not yet implemented it. Implementation timing has not been announced. Watch for SDG&E tariff updates or advice letter filings for the effective date.

California regulators just approved a change to how SDG&E charges for electricity at different times of day.[1, Section 5.3] Once implemented, the new rule will make electricity "super cheap" from 10 AM to 2 PM year round. That sounds good, but it's actually bad news for people with solar panels and no battery.

Here's why: Solar panels produce the most power in the middle of the day (10 AM to 2 PM). If you don't have a battery, that extra power goes back to the grid, and SDG&E gives you credit for it. But under the approved change, SDG&E will offer a year round midday Super Off Peak period from 10 AM to 2 PM on weekdays, meaning the credit you get for your solar power during those hours will be worth less money. You'll basically be selling your electricity at the cheapest rate, then buying it back at night at the most expensive rate.

The solar industry tried to stop this. SEIA initially did not agree with the change because it would not maintain consistent TOU prices to support customer response, only result in slight cost savings, and have a small adverse impact on solar and storage customers. But regulators approved it anyway, saying any harm to solar customers was "minor."

So How Many People Are Affected?

Back in 2016, SDG&E says 90,000 of its current residential solar customers have installed solar panel systems.[3] That number has grown a lot since then. Across California, about 137,000 solar systems were installed in each of the past 10 years on average. Since San Diego makes up about 7 to 8% of California's population, we estimate SDG&E now has roughly 150,000 to 200,000 homes with solar panels.

But here's the key question: how many of those homes have batteries?

Not many. According to government data, solar paired with battery installations makes up about 9% of all installed residential net metering capacity in California.[2] Another report confirms that pre NBT, customers attached battery energy storage with their rooftop array in roughly 10% of installations.[4]

That means about 90% of solar customers don't have batteries.

The Math

What We Know Number
Estimated SDG&E solar homes today 150,000 to 200,000
Percentage without batteries ~90%
Homes negatively affected 135,000 to 180,000

These are real families who bought solar panels expecting to save money. Many couldn't afford the extra $10,000 to $15,000 for a battery. Once this change is implemented, their electricity savings will shrink because of a rule change they had no control over.

How Much Will This Cost You?

This calculator estimates your annual impact once SDG&E implements the approved rate change.

Solar only home · 10 AM to 2 PM weekday exports

15 kWh/day

Typical solar only home (at work during day): 10 to 20 kWh

Current (Off Peak)

$0.44/kWh

$1,344

/year

After Change (Super Off Peak)

$0.34/kWh

$1,038

/year

Annual reduction in export credits:

-$305

($25/month less value from your solar)

Seasonally weighted: Summer months (May to Aug) produce 15 to 20% more than average.
Excludes March and April (already Super Off Peak).

Show the math

// Annual loss formula

Annual Loss = Weighted kWh × Rate Difference

Annual Loss = 3,054 kWh × ($0.44 - $0.34)

Annual Loss = 3,054 kWh × $0.10

Annual Loss = $305

How we calculate weighted kWh:

Your daily export (15 kWh) is adjusted for each month's solar production and multiplied by weekdays:

Month Weight Weekdays kWh
Total Weighted kWh 3,054

Assumptions:

  • Off Peak rate: $0.44/kWh (current 10 AM to 2 PM weekday credit)
  • Super Off Peak rate: $0.34/kWh (new 10 AM to 2 PM weekday credit)
  • March and April excluded (already Super Off Peak)
  • Seasonal weights based on San Diego solar irradiance patterns
  • Weekdays only (weekends already Super Off Peak)

Sources

[1] California Public Utilities Commission, Decision 25-09-006 (September 2025). Section 5.3 approves extending weekday Super Off Peak to 10 AM to 2 PM year round. Full Decision

[2] U.S. Energy Information Administration, "California residents are increasingly pairing battery storage with solar installations" (2024). EIA Article

[3] Baker Home Energy, "Big Changes for San Diego Solar Customers: Net Metering" (2022). Baker Home Energy

[4] pv magazine / Lawrence Berkeley National Laboratory, "California is now a batteries included rooftop solar market" (May 2024). pv magazine

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