Serving over 5 million households in California, Pacific Gas & Electric (PG&E) is the largest investor-owned utility in the US. As such, when PG&E raises electric rates or updates its rate plans, households from Santa Barbara to Eureka feel the effects.

In this article, we’ll explore how much electricity costs for PG&E customers in 2024, the various rate plans and adders, and some frequently asked questions. Understanding how much electricity costs and the various ways to buy it can help you create a plan for lowering your electricity bill without sacrificing the comforts and perks of living in the 21st century.

Jump to a section:

• PG&E electric rates in 2024
• Tiered rate plan
• Time-of-Use rate plans
• Electric Vehicle & Electric Home rate plans
• Electric rates for solar owners
• Frequently asked questions

Let’s start with a recap of PG&E electric rates today and where we can expect them to go in the near future.

What are PG&E residential rates in 2024?

The average bundled electric rate for PG&E residential customers is 45 cents per kWh as of January 1, 2024, according to the latest electric rate report. However, the cost per kWh of electricity ranges from 34 to 72 cents per kWh depending on your rate plan and the time of year.

In October 2023, the average electricity cost was 27 cents per kWh in California, according to the EIA. So, PG&E electric rates are:

• Markedly above the state average
• ~2.5 times the national average of 17 cents per kWh
• Competing with San Diego Gas & Electric‘s rates for the highest in the country

In the bigger picture, PG&E electric rates have increased sharply in recent years, and are expected to continue increasing at around 10.4% per year through 2026, according to the 2023 Senate Bill 695 report filed by the California Public Utilities Commission (CPUC).

The chart below shows the average bundled residential rate at the end of each year from 2019 to the latest filing in 2023, as reported by PG&E, and the rates forecasted by the CPUC in the Senate Bill 695 report.

The disconnect between the electric rates recorded through January 2024 (44.8 cents/kWh) and where they are forecasted to end up (36.6 cents/kWh) is likely due to varying data collection and reporting methods between PG&E and the CPUC.

PG&E’s data shows the average residential rate increased from 25 to 44.8 cents per kWh from 2019 to 2024 – a 79% increase in less than five years. Meanwhile, the Senate Bill 695 report forecasted nominal rates reaching 42 cents per kWh by 2026 after three more years of double-digit annual rate increases.

What’s the average PG&E rate hike?

Residential electric rates for PG&E customers increased, on average, 8.7% per year from 2014 to 2024. In just 10 years the average cost of electricity increased 25.4 cents per kWh, adding $152 per month to the electric bill of a homeowner using 600 kWh per month (around the state average).

For context, utility rates nationwide increased at an average rate of 2.3% per year during the same period– so PG&E rates are not only much higher, they’re rising nearly 4 times faster than the national average.

Year	Average bundled residential rate (cents/kWh)	Change from previous year (%)
2014	19.4
2015	20.3	4.7%
2016	22.0	8.3%
2017	23.1	5.1%
2018	23.3	1.1%
2019	25.0	7.4%
2020	26.3	5.1%
2021	28.6	8.7%
2022	33.8	18.1%
2023	38.2	13.2%
2024	44.8	17.2%
Average annual rate increase		8.7%

If we go back to 2008 — the oldest data available from PG&E — the average annual rate increase over the last 16 years is closer to 6% — twice the national average. With 6% rate hikes per year, an electricity bill would double every 12 years, which means a $200 monthly bill today would be a $400 monthly bill by 2036 and an $800 monthly bill by 2048.

So, with rates increasing at least through 2026, it’s worth considering all of the options for lowering your essential electricity costs. Let’s start by examining PG&E’s residential rate plans.

 

 

PG&E Tiered Rate Plan (E-1)

The first and most basic PG&E tariff schedule to consider is the Tiered Rate Plan, also known as E-1, in which the cost of electricity is dictated by your usage during the billing period.

For example, as of January 2024, electricity costs 42 cents per kWh until you reach your monthly Baseline Allowance, and then the price jumps to 53 cents per kWh.

What is baseline electricity usage?

The Baseline Allowance is an allotment of essential electricity usage that is less expensive than the rest of the electricity used during a billing cycle.

For PG&E customers, the Baseline Allowance is based on four things:

1. Your billing territory (P-Z)
2. The billing season (Summer or Winter)
3. Your heating service (all electric, basic electric, or gas)
4. The number of days in the month

So, if you live in Santa Cruz (Territory “T”) and have basic electric service, your baseline allowance for summer months would be 6.5 kWh per day (based on this chart). In a 30-day month like June, that amounts to 195 kWh.

If you used 500 kWh during the month of June, the first 195 would be billed at 42 cents per kWh and the remaining 305 would be billed at 53 cents per kWh, putting your monthly bill around $207.

PG&E Tiered rates example bill

	Usage	Rate*	Cost
Tier 1	195 kWh	36 cents per kWh	$82
Tier 2	305 kWh	45 cents per kWh	$162
Total	500 kWh	–	$244

*Based on Baseline Allowance of 195 kWh

According to PG&E, the Baseline Allowance is designed to be 50-70 percent of the average usage for each territory, so most Tiered Rate customers can expect to pay Tier 2 pricing for a substantial chunk of their electricity usage – which adds up quickly.

PG&E’s SmartRate™ Add-On

One way to lower your PG&E electricity rate is through the SmartRate™ add-on plan. In this plan, you essentially volunteer to reduce your electricity consumption during SmartDays™.

If you enroll in the SmartRate™ program, the trade-off goes something like this:

• You’ll receive a credit worth around $0.008 (.8 cents) per kWh for all of your usage that’s not between 4-9 pm during billing periods that feature at least one SmartDay event.
• When SmartDay events are called, you will be charged an extra 60 cents per kWh for all usage between 4-9 pm.

So, let’s say you use 500 kWh outside of 4-9 pm during a June billing cycle in which at least one SmartDay event is called. You would receive a $4 bill credit (500 kWh x $0.008) for being enrolled in the SmartRate™ program.

Now, let’s say you use 3 kWh to dry a load of laundry in the 4-9 pm window on a SmartDay event. That 3 kWh will cost you an extra $1.80 (3 kWh x $0.60). In this scenario, you would have to keep your SmartDay consumption below 6.67 kWh in order to break even for the month.

So, the SmartRate™ add-on is relatively high-risk and low-reward, but it can be added onto select rate plans to lower your electricity costs.

Speaking of rate plans… let’s take a look at the Time-of-Use (TOU) rate schedules that PG&E offers

PG&E Time-of-Use Rates 2024

PG&E offers two time-of-use rate plans as of January 2024, although some customers may be on legacy plans that are no longer offered to new customers. The current plans are known as TOU-C and TOU-D and there are some key differences to note.

• The TOU-C plan has a Peak Pricing window of 4 to 9 p.m. and lower rates for usage below the Baseline Allowance
• The TOU-D plan has a Peak Pricing window of 5 to 8 p.m. and does not have lower rates for usage below the Baseline Allowance

PG&E TOU-C vs TOU-D rate plans

	TOU-C	TOU-D
On-Peak hours	4 to 9 pm every day	5 to 8 pm only on non-holiday weekdays
Peak price (summer)*	62 cents/kWh	59 cents/kWh
Off-peak price (summer)*	53 cents/kWh	45 cents/kWh
Lower rates for Baseline Allowance?	Yes	No
Eligible for SmartRate™ add-on?	No	Yes
Summer months	June-September	June-September
Winter months	October-May	October-May

*Rates as of Jan 1, 2024 rounded to nearest whole cent and subject to change.

Let’s take a closer look at each plan.

E-TOU-C

Electricity rates in the TOU-C rate schedule range from 38 to 62 cents per kWh, based on the season, hour, and Baseline Allowance.

Customers in this plan pay 10.6 cents less for the kWhs in their Baseline Allowance. However, the tradeoff is a Peak pricing window that stretches from 4 to 9 p.m. and remains in place during weekends and holidays.

The attractive feature of PG&E’s TOU-C plan is that you can pay as little as 38 cents per kWh under your Baseline Allowance during off-peak hours in the winter. So, if you have relatively low electricity consumption and the ability to avoid using electricity during the evening, then the TOU-C plan can help you pay less for electricity.

However, if you aren’t careful with your consumption, you’ll end up paying 62 cents per kWh for a hefty portion of your electricity!

E-TOU-D

PG&E’s TOU-D rate schedule is fairly straightforward. Off-peak electricity costs 45 cents per kWh in the summer and 46 cents per kWh in the winter with no credit for your Baseline Allowance.

Meanwhile, Peak rates are 59 cents per kWh in the summer and 50 cents per kWh in the winter, and are only in effect from 5 to 8 pm during non-holiday weekdays. That means that electricity consumption during weekends and holidays is billed using Off-Peak rates.

With no Baseline Allowance, rates are actually a bit higher in PG&E’s TOU-D schedule. However, the shorter three-hour Peak window is easier to avoid (or stomach) than the five-hour window in the TOU-C schedule.

So, if you know your average electricity consumption is much higher than your Baseline Allowance, the short Peak window of the TOU-D schedule may prove the lesser of two evils, especially if you can shift consumption to Off-Peak hours and weekends.

 

 

PG&E EV rate plans 2024

While much cheaper and cleaner than fueling a gas car, charging an electric vehicle (EV) to drive 37 miles per day (the national average) adds around 300 kWh to your monthly electricity consumption. Given this extra usage, PG&E offers special EV charging rate plans that encourage customers to charge during Off-Peak hours to lower their costs and help stabilize the grid.

There are three PG&E rate plans to consider if you are charging an EV at home:

• EV2-A is a plan that bundles your home and EV charging consumption into one rate schedule
• EV-B separates your home and EV charging consumption into two rate schedules
• E-ELEC is a plan for customers with high consumption due to home electrification upgrades like EV charging, battery storage, electric heat pumps (for water and/or climate control), and solar panels

Which PG&E EV charging rate plan is best?

	EV2-A	EV-B	E-ELEC
Base charge?	No	No	~$15 per month
Separate meter for EV charging?	No	Yes	No
Best time to charge	12 am to 3 pm	11 pm to 7 am	12 am to 3 pm
Worst time to charge	4 to 9 pm	2 to 9 pm	4 to 9 pm
Off-peak price* (summer)	34 cents/kWh	36 cents/kWh	42 cents/kWh
Eligible for SmartRate™ add-on?	Yes	No	No
Summer months	June-September (4 months)	May-October (6 months)	June- September (4 months)

*Rates as of Jan 1, 2024 rounded to the nearest cent and subject to change.

Let’s take a closer look at each plan.

EV-2A

The EV-2A rate schedule applies to both home and EV charging consumption and features the low Off-Peak rates of 34 cents per kWh year-round. Partial Peak rates run from 3 to midnight, with a 5-hour window of Peak rates between 4 and 9 pm.

In addition, the EV-2A plan currently has no basic monthly charge and is eligible for the SmartRate™ add-on.

PG&E’s EV-2A rate plan is most advantageous for customers who can shift their home and EV charging usage to the ample Off-Peak hours of midnight to 3 pm. For example, if you work from home and can do most of your heating, cooling, laundry, and EV charging in the morning, you may be able to buy most of your electricity at the relatively low price of 34 cents per kWh.

EV-B

The most notable feature of the EV-B rate schedule is that it requires a separate meter for EV charging, which means your home usage and EV charging are billed on different rate schedules.

The benefit of this plan is that you can charge your EV at 34 cents per kWh in the winter (the lowest rate offered by PG&E) and 36 cents per kWh in the summer during the Off-Peak hours of 11 pm to 7 am.

The drawback is that if you do need to charge during summer Peak hours, you’ll end up paying 72 cents per kWh (the highest price per kWh of any PG&E plan).

PG&E’s EV-B plan is most advantageous for customers who can restrict their EV charging to overnight hours and have higher household usage than they can’t easily shift out of Peak hours. The idea is to combine a household rate schedule that has more forgiving Peak rates with the EV-B’s low Off-Peak charging rates.

E-ELEC

The E-ELEC plan is a jack-of-all-trades that applies to PG&E customers with one or more of the following home electrification upgrades:

• EV charging
• Battery storage
• Heat pump water heater
• Heat pump climate control

And, according to PG&E, all solar owners under the NEM 3.0 Solar Billing Plan will be transitioned to the E-ELEC rate schedule in December 2024 (although other messaging says December 2023).

The idea behind this plan is to pay a ~$15 basic monthly charge in exchange for rates that are lower, on average, the TOU-C and TOU-D plans, which can be quite advantageous for customers with high electricity usage.

For example, if you have a heat pump HVAC system, it’s likely cheaper to pay $15 per month in order to lower your winter Off-Peak rates to 37 cents per kWh instead of 46-49 cents per kWh in the TOU-C and TOU-D plans. (Pro tip: If you use more than 167 kWh per month to heat your home with a heat pump in the winter, the E-ELEC plan becomes more economical than the TOU-D plan.)

Frankly, the E-ELEC rate schedule may not be the best option for homeowners that only have EV charging and none of the other home electrification upgrades, since the Off-Peak rates are not as low as the other EV charging plans. However, if you have multiple home electrification upgrades – or solar under the Solar Billing Plan – this may be your best option.

 

 

PG&E solar rate plans

In April 2023, PG&E and California’s other major investor-owned utilities (SCE and SDG&E) adopted a Net Billing Structure affectionately known as NEM 3.0. While existing solar owners were grandfathered into their NEM 1.0 and NEM 2.0, new solar owners who applied for interconnection after April 14, 2023 are subject to the new Solar Billing Plan.

According to PG&E, solar owners under the Solar Billing Plan will be automatically transferred to the E-ELEC rate schedule in either December 2023 or 2024 (depending on which information you look at).

How much does PG&E pay for solar power?

The key feature of PG&E’s Solar Billing Plan is export rates (compensation for excess solar production pushed onto the grid) that are, on average, 75% lower than the price of buying electricity from the grid. These rates hover around 4-6 cents during the morning and early afternoon and can exceed $2 per kWh during certain peak windows in September.

For example, the chart below shows the E-ELEC import rates versus the NEM 3.0 export rates for August weekdays.

Under this billing structure, solar owners earn between 6 and 7 cents per kWh of electricity produced during peak solar production hours of 10 am to 2 pm (hours 10-14) while paying 64 cents per kWh for electricity pulled from the grid during summer Peak hours when their solar production is winding down.

Clearly, buying for 64 cents and selling for 6.5 cents is not a great deal. However, using battery storage, solar owners can store and use their cheap solar production and virtually avoid interacting with the grid altogether.

Better yet, new consumption-only batteries designed specifically for this purpose cost roughly two-thirds of the price of traditional backup batteries.

Team up with an Energy Advisor to explore custom solar and battery solutions.

Solar + battery vs PG&E grid

Let’s say you are a PG&E customer. Does it make more sense to pay for solar and battery or buy electricity from the PG&E grid?

Well, the average solar system size on the solar.com marketplace for California is 7.8 kW solar system, which would produce roughly 10,800 kWh per year, or 900 kWh per month.

At $3 per watt (the average price point for a cash purchase on the solar.com marketplace) that solar system would cost $23,400, or $16,380 after claiming the 30% federal solar tax credit.

To store your solar production to use during nights and evenings, you’d need  ~6 kWh consumption-only battery storage. While battery prices vary, it’s realistic to expect a gross price around $8,500, or $5,950 after the 30% tax credit (possibly lower if you claim the SGIP rebate.)

That puts the net cost of your system at $22,330. The chart below shows how the cost of solar and battery stacks up against PG&E rates rising at 4% annually over the next 20 years (which is intentionally conservative).

Over 20 years, electricity from solar and consumption-only battery is around 18-30% of the cost of buying electricity from the PG&E grid. Today’s batteries are warrantied for 10-15 years (and lasting much longer), so even if you need to replace your battery after 10 years, you’ve already saved nearly $40,000 – far more than what batteries will cost in the early 2030s.

Lower your electricity costs with solar

With above-average electricity rates (even for California), PG&E customers have a ton of potential to reduce their essential electricity costs. While choosing a PG&E rate schedule that suits your consumption habits can shave down your monthly bill, nothing is as cost-effective as providing your own electricity with solar panels and battery storage.

 

 

Frequently asked questions about PG&E electric rates

What is the new rate for PG&E in 2024?

The average residential electric rate for Pacific Gas & Electric (PG&E) customers is 45 cents per kWh, as of January 1, 2024. However, the cost per kWh ranges from 34 to 72 cents per kWh depending on the rate schedule, season, and time of day.

How much does PG&E pay per kWh?

In the Solar Billing Plan (known as NEM 3.0), PG&E compensates solar owners at an average rate around 8 cents per kWh. This is markedly lower than the average cost of 45 cents per kWh to import (or buy) electricity from the grid.

However, using battery storage, solar owners can store and use their own electricity to avoid buying and selling from the grid at unfavorable rates.

What are the cheapest PG&E hours?

Electricity is cheapest during the Off-Peak hours between midnight and 7 am in all of PG&E’s Time-of-Use and EV charging rate schedules. However, this Off-Peak window stretches from midnight to 3 pm in the TOU-C, TOU-C, EV2-A, and E-ELEC plans.

It’s worth noting that the cost of electricity does not change throughout the day in the E-1 residential Tiered Rate Plan.

 

San Diego is known for its pristine beaches, world-class zoo, and some of the highest electricity prices in the world.

In fact, if San Diego was its own country, its average grid electricity price of 47.7 cents per kilowatt hour would rank fourth highest among nations with verifiable data.

Fortunately, between San Diego Gas and Electric’s (SDG&E) many electric rate plans and a robust residential solar and battery market, San Diegans have several options to lower their electricity bills.

In this article, we’ll explore various SDG&E tariffs (aka rate plans) and how to choose the right option for your electricity needs.

Use the links below to jump to a topic:

• SDG&E electric rates in 2024
• Standard residential rates
• TOU residential rates
• Rates for EV charging
• Rates for solar owners
• Frequently asked questions

Let’s start by looking at SDG&E electric rates today and how we got here.

What are SDG&E’s electric rates in 2024?

Heading into 2024, the average electric rate for SDG&E customers is 47.7 cents per kWh according to the latest data from the BLS, which is 16% higher than the average rate of 41 cents per kWh the year before.

Keep in mind that there are dozens of SDG&E rate tariffs, so each customer’s average rate will vary based on their consumption habits and rate schedules (which we’ll explore below).

SDGE Rate increase history

SDG&E has relatively high electricity rates for many years, but they increased quite rapidly from 2020-2023. From July 2020 to July 2023, the average utility rate increased from 28.9 cents per kWh to 47.6 cents per kWh — a 65% increase in just three years!

The chart below shows the average recorded SGE&E electric rate from 2018-2023, per the BLS, in addition to rates forecasted in the 2023 Senate Bill 695 report published by the CPUC.

While all forecasts should be taken with a grain of salt (i.e., they are subject to change), it’s worth noting that the nominal rate forecasted for 2023 in the Senate Bill report is much lower than what’s been recorded by the BLS so far, perhaps due to differences in data collection methods.

The Senate Bill report also forecasts that SDG&E rates will increase “about 39 percent through 2026 for an average annual increase of 10.4%.” If, in fact, the rates recorded by the BLS increase by 10.4% per year through 2026, the average utility rate in San Diego would exceed 64 cents per kWh by 2026.

The bottom line is that SDG&E electric rates are already the highest in the US and are expected to keep climbing. Next, we’ll look at the different rate plans and identify opportunities to lower your electricity bill.

 

 

SDG&E standard residential rates (Schedule DR)

Schedule DR is SDG&E’s standard residential rate plan that features two tiers of electricity charges. As of January 2024, Tier 1 charges are 38.4 cents and Tier 2 charges are 48.3 cents per kWh.

In 2024, the Schedule DR rates are the same during the summer (June-October) and winter (November-May) billing periods and this plan no longer includes a third tier of High Use Charges (HUC) tier that it did in 2021.

Customers are charged under Tier 1 rates for the first up to 130% of their baseline allowance in each billing cycle. Baseline allowances are based on four climate zones throughout SDG&E’s service territory, as shown in the map below.

SDGE Baseline allowance zones

Climatic Zone	Summer (kWh per day)	Winter (kWh per day)
Coastal	9	14
Inland	10.4	9.6
Mountain	13.6	12.9
Desert	15.9	10.9

Daily allowances as posted by SDG&E in August 2024 and are subject to change.

To find your baseline allowance for each billing period, simply multiply the daily allowance (shown above) by the number of days in the month.

If you live in the Inland climate zone your baseline allowance would be 312 kWh in a 30-day summer month like June (10.4 x 30 days = 312). That means you can use 406 kWh (130% of 312) of electricity at Tier 1 rates before being billed at Tier 2 rates for the rest of the month.

So, if you live in the San Diego metro area and use 600 kWh of electricity in January 2024, you would buy the first 406 kWh at 38.4 cents per kWh ($156) and the next 194 kWh at 48.3 per kWh ($94) for a monthly total charge around $250.

	Electricity consumption (kWh)	Rate ($/kWh)	Cost ($)
Tier 1	406 kWh	$0.384	$156
Tier 2	194 kWh	$0.483	$95
Total	600 kWh		$250

Currently, SDG&E Schedule DR rates are among the highest electricity charges in the country, so it’s worth exploring ways to lower your rate, which many customers can do using time-of-use (TOU) rate plans.

SDG&E residential time-of-use (TOU) rates

SDG&E has three different time-of-use rate plans for residential customers (in addition to plans specifically for EV and solar owners, which we’ll discuss later) with per kWh charges ranging from 33 to 68 cents per kWh, depending on the rate schedule, season, and time of day. These plans are known as:

• TOU-DR1
• TOU-DR2
• TOU-DR-P

There are additional versions of each plan for customers who qualify for CARE (California Alternate Rates for Energy) and a Medical Baseline allowance.

Each plan follows the same schedule, with the most expensive rates coming during the On-Peak hours of 4 pm and 9 pm. However, the electricity prices for each plan vary in each TOU period, giving residential customers a few options based on their consumption habits.

SDGE On-peak, Off-Peak, and Super Off-Peak hours chart 2024

Weekdays

TOU Period	Summer	Winter
On-Peak	4-9 pm	4-9 pm
Off-Peak	6 am – 4 pm & 9 pm – midnight	6 am – 4 pm & 9 pm – midnight
Super Off-Peak	Midnight – 6 am	Midnight – 6 am*

*Also includes 10 am – 2 pm in March and April

Weekends and Holidays

TOU Period	Summer	Winter
On-Peak	4-9 pm	4-9 pm
Off-Peak	2 am – 4 pm & 9 pm – midnight	2 am – 4 pm & 9 pm – midnight
Super Off-Peak	Midnight – 2 pm	Midnight – 2 pm

The name of the game for TOU rate plans is to avoid using electricity during On-Peak hours as much as possible. This is especially true in SDG&E territory, where On-Peak TOU rates can exceed 68 cents per kWh in the summer – nearly 4 times the national average price per kWh of electricity!

The chart below shows the winter weekday rates for each TOU-DR schedule as of January 2024, which are in effect from November 1 through May 31.

Now let’s compare winter rates to the 2024 summer rates, which are in effect from June 1 to October 31. In general, summer rates are lower during Super-Off-Peak periods and higher during On-Peak periods, which can have a substantial impact on your electricity costs.

It’s worth noting that every residential TOU schedule has a 10-cent per kWh baseline credit adjustment for the first 130% of your monthly baseline allowance (which we discussed above). So, if you live in the San Diego metro area, you’ll receive an on-bill credit of  ~$40.6 which reflects the lower cost of your first 406 kWh of usage (130% of your 312 kWh monthly baseline allowance).

Alright, let’s take a look at each SDG&E TOU plan individually to get a sense of which one works best for you.

Schedule TOU-DR1

Shown in purple above, the Schedule TOU-DR1 features the lowest Super Off-Peak rates at 33 cents per kWh during summer weekdays but makes up for it with On-Peak rates north of 68 cents per kWh.

Given this 35-cent swing, this plan is ideal for customers who can shift a majority of their electricity usage to Super Off-Peak hours. For example, if you work second-shift and can avoid running your air conditioning between 4-9 pm, then this plan may be a good fit.

Schedule TOU-DR2

Shown in pink above, the Schedule TOU-DR2 features the lowest Off-Peak rates at 39 cents per kWh during summer weekdays. However, it also has On-Peak rates higher than 68 cents per kWh and does not have Super Off-Peak Rates.

If you can avoid On-Peak rates, this plan is basically like having a tiered rate plan that starts at around 29 cents per kWh and jumps to 39 cents per kWh after 130% of your baseline monthly allowance.

Just don’t underestimate how fast 68 cents per kWh can add up if you crank the AC during On-Peak hours…

Schedule TOU-DR-P

Finally, shown in blue above, the Schedule TOU-DR-P offers lower rates to customers who agree to conserve electricity usage during “Reduce Your Use” events to help stabilize the grid.

While 50 cents per kWh is tempting (at least in SDG&E territory) for On-Peak pricing, there is a $1.16 per kWh additional charge for using electricity from 4-9 pm during Reduce Your Use (RDU) events!

According to SDG&E, there can be up to 18 RDU events per year, so it is crucial to sign up for alerts and avoid using electricity during these windows.

For example, if you miss an RDU alert and run your A/C from 4 to 9 pm, you could end up using 15 kWh of electricity at $1.77 per kWh, racking up $26.55 in electricity charges in less time than it takes to drive from San Diego to Phoenix.

The right TOU plan for you depends largely on your consumption habits and ability to avoid On-Peak pricing, especially in the summer. However, it also depends on what you’re powering. If you have an EV, solar panels, or a heat pump, there are SDG&E rate plans specifically for your situation.

 

 

SDG&E EV rates in 2024

For someone driving 37 miles per day (the national average), charging an EV requires around 10.5 kWh per day or an additional 315 kWh per month. With substantially more usage, SDG&E has four TOU rate schedules designed to reduce the cost and strain of charging an EV on grid electricity.

These include:

• EV-TOU and EV-TOU-2 (same rates)
• EV-TOU-5
• EV-TOU-5P
• TOU-ELEC

The graph below shows winter rates for SDG&E for residential EV charging plans, which are in effect from November 1 through May 31.

 

Home charging gets much more expensive during On-Peak summer hours in effect from June 1-October 31. The summer weekday rates for each SDG&E EV charging plan are shown in the chart below.

The SDG&E EV rates follow the same TOU schedule as the plans listed above. However, there is no on-bill credit for your baseline allowance, so the rates you see in the chart above are the rates you’ll get in the summer months.

Let’s explore each plan individually to see which one makes the most sense for your EV charging needs.

Schedule EV-TOU-5

Shown in purple above, the SDG&E EV-TOU-5 plan features the lowest Super Off-Peak rates of any plan listed in this article. However, it comes with a $16 per month basic service fee.

The idea is that if you can contain all of your EV charging to Super Off-Peak hours, the lower rates will offset the basic charge and make this plan worthwhile. To be exact, you’d need to charge 122 kWh of electricity per month between midnight and 6 am to break even on the TOU-5 plan in the summer.

EV-TOU-5 notable features:

• Very low Super Off-Peak rates
• $16 basic service fee
• Rates apply to home usage and EV charging

Schedule EV-TOU-5P

Shown in green above, the TOU-5P plan has slightly lower rates than the TOU-5 plan. However, customers in this plan are subject to Reduce Your Use (RYU) days, during which they are subject to a $1.16 per kWh charge during On-Peak hours (4-9 pm).

So, if you can safely avoid On-Peak hours during RYU days, you can enjoy lower rates throughout the year.

Schedule EV-TOU-2

Shown in pink above, the EV-TOU-2 plan features the highest electricity rates but does not have a monthly basic charge. So, if you are unable to contain your charging to Super Off-Peak hours or simply don’t drive enough to offset a $16 basic charge, this plan may be a good fit.

This rate applies to both home and EV charging electricity usage, so it’s worth being mindful of the 67 cents per kWh On-Peak pricing in the summer.

EV-TOU-2 notable features:

• No basic monthly charge
• Higher cost per kWh
• Rates apply to home usage and EV charging

Schedule EV-TOU

Shown in green above, the EV-TOU plan features the same rates as the EV-TOU-2 plan. However, it has no basic charge and requires separate meters for EV charging and home usage.

So, if you have low household consumption and are unable to avoid peak hours, you can charge your EV and home on separate meters to take advantage of your baseline allowance credit for household usage from 4 to 9 pm.

EV-TOU notable features:

• No basic monthly charge
• Higher cost per kWh
• EV charging on a separate meter and plan from household usage

Schedule TOU-ELEC

Shown in blue, the TOU-ELEC plan is for SDG&E customers that have an EV, battery storage, and/or heat pump for water or space heating/cooling. This plan features the lowest On-Peak and Off-Peak rates, in exchange for higher Super Off-Peak rates and a $16 monthly basic charge.

While it’s still most economical to consume electricity during Super Off-Peak hours, it won’t hurt as bad to run electric heat pumps for space and water heating during daylight hours.

TOU-ELEC notable features:

• $16 basic monthly charge
• Lower cost per kWh
• Rates apply to home usage and EV charging
• Also available to customers with battery storage and/or electric heat pump for water or space heating

 

 

SDG&E electric rates for solar owners

SDG&E customers with solar systems can be split into two groups: Solar owners with Net Energy Metering (NEM 1.0 or NEM 2.0) and solar owners with the Solar Billing Plan (affectionately referred to as NEM 3.0).

SDG&E customers that already owned solar panels or submitted an interconnection agreement on or before April 15, 2023 are in the Net Energy Metering group. These solar owners can choose which rate schedule to be on and receive near-retail value for the excess solar production they export onto the grid.

Solar owners on the Solar Billing Plan (who submitted their interconnection applications after April 15, 2023) are billed under the EV-TOU-5 rate schedule and are compensated for their solar exports based on their value to the grid at each hour throughout the year. On average, Solar Billing export rates are much lower than the retail price of electricity.

SDG&E solar plans at a glance

	Net Energy Metering	Solar Billing Plan
Interconnection application date	On or before April 15, 2023	After April 15, 2023
Rate schedule	Customers choice	EV-TOU-5
Export value	Retail rate at time of export	Based on value to energy grid at time of export and change by the hour, day, and month

Clearly, Net Energy Metering is the more solar-friendly billing plan. Unfortunately, it’s no longer available.

However, SDG&E customers can still drastically reduce their electricity costs with home solar under the Solar Billing Plan.

Here’s how.

How to get the most value out of SDG&E’s Solar Billing Plan

The key to lowering your electricity costs in the Solar Billing Plan is to pair solar panels with battery storage to avoid interacting with the grid as much as possible. Let’s explore why battery storage is so crucial.

The chart below shows the difference between the price of electricity in the EV-TOU-5 (import rates) versus the value of excess solar electricity (export rates) throughout a summer day.

You’ll notice that the import rates (in pink) are usually much higher than the export rates (in purple), aside from certain high-value windows in August and September.

For example, between 10 am and 1 pm – peak production hours for home solar – solar exports are worth less than 6 cents per kWh. However, from 4-9 pm, when solar production is fading and household consumption is increasing, electricity costs over 65 cents per kWh to import.

So, with a solar-only system, you’re buying electricity at 40-65 cents per kWh and selling it for less than 6 cents per kWh. – which obviously isn’t a great deal. But, by storing the cheap electricity produced during the day in a battery, you can avoid buying electricity at SDG&E’s incredibly high rates altogether.

Better yet, there are new “consumption-only” batteries specifically designed for this purpose that come at a substantially lower cost than traditional backup batteries. However, “consumption-only” batteries may not be right for everyone because they do not provide backup power during grid outages.

Solar and battery vs SDG&E grid

Let’s take a typical SDG&E customer that uses 700 kWh of electricity per month or 8,400 kWh per year and is not especially impacted by grid outages and can do without backup capabilities.

To offset 100% of their electricity consumption, they’d need a 5.3 kW solar system, which at $4.5 per Watt would cost $23,850, or $16,695 after claiming the 30% tax credit.

To shift that solar production from day to night, they’d need a 6 kWh consumption-only battery, which comes at a gross cost of around $8,500 and a net cost of $5,950 after claiming the 30% tax credit – and possibly lower if the homeowner claims the Self-Generation Incentive Program (SGIP) rebate.

That brings the total cost of the solar and battery system to $22,645. This system can be expected to produce 195,000 kWh over 25 years, bringing the cost per kWh to around 11.6 cents.

	Gross cost	Net cost (after 30% tax credit)
5.3 kW solar system	$23,850	$16,695
6 kWh consumption-only battery	$8,500	$5,950
Total cost	$32,350	$22,645
Lifetime production	195,000 kWh	195,000 kWh
Cost per kWh	17 cents per kWh	11.6 cents per kWh

Solar and battery prices will vary based on market factors.

Now, in any SDG&E rate schedule, you’re paying a minimum of 16 cents per kWh and up to 84 cents during On-Peak pricing. According to the US Bureau of Labor Statistics, the average utility rate in the San Diego metro area was 47.7 cents per kWh in November 2023, so we’ll use that figure and assume very conservative rate increases of 3% per year.

The chart below shows the expected cost of buying a solar and battery system (including the $16 monthly basic charge) versus buying the same amount of electricity from the SDG&E grid over 20 years.

As you can see, the energy cost savings potential is tremendous. And even in the unlikely scenario that you need to replace or add a battery after just 10 years, you’ll already have saved more than $20,000 by then, which is many times greater than the expected cost of batteries 10 years from now.

On the surface, Solar Billing seems like a sour deal. But, by simply adding battery storage and minimizing your interaction with the grid, SDG&E customers can drastically reduce their electricity costs in the short and long term.

Start your solar project today

With some of the highest electricity prices in the US, SDG&E customers have a golden opportunity to reduce their energy costs with home solar and battery systems – even under the Solar Billing Plan.

Connect with a solar.com Energy Advisor to design a system and get quotes from our network of trusted San Diego installers that offer backup and consumption-only battery options!

SDG&E electric rates FAQs

What are SDG&E electric rates?

SDG&E electric rates range from 12 cents to 68 cents per kWh, depending on the pricing plan, month, and time of day. The average price of electricity in San Diego was 47.7 cents per kWh as of November 2023, according to the US Bureau of Labor Statistics, which was the highest rate of any US metro.

What are the cheaper hours for SDG&E?

The cheapest time for SDG&E customers to use grid electricity is during the Super Off-Peak time-of-use periods of midnight to 6 pm on weekdays and midnight to 2 pm on weekends and holidays. The most expensive time is during the On-Peak hours of 4 to 9 pm.

These pricing windows only apply to customers with time-of-use (TOU) rate plans and do not apply to customers on the Standard-DR rate schedule.

How can I reduce my SDG&E electric bill?

The most effective way to reduce your SDG&E electric bill is to install a solar and battery system. SDG&E’s high electric rates present a massive opportunity for energy cost savings, even under the new NEM 3.0 Solar Billing Plan.

Connect with an Energy Advisor to explore your savings potential with solar.