Utilities · Solar in California
San Diego Gas & Electric (SDG&E): how it credits the solar power you send to the grid
Hourly export credits averaging about 3.7 cents per kWh, with no adder. Requires the EV-TOU-5 rate plan.
Checked November 12, 2026. Utilities change these rules; check the current tariff before you sign.
How it works
San Diego Gas & Electric (SDG&E) credits exported power at 3.7 cents per kWh, about 12% of California's average electricity price.
SDG&E pays the least for exports of the three big California utilities in 2026, because new customers get no ACC Plus adder.
SDG&E calls the 12-month settlement window the Relevant Period; net surplus left at the end is paid at the low surplus rate.
Already have solar? NEM 1.0 and 2.0 customers who applied before April 15, 2023 keep retail credits for 20 years from connection.
Tip: With exports worth this little, size the panels to your daytime use or add a battery.
What it means for a typical California home
An average California home uses about 5,928 kWh a year. A 3 kW system costs about $7,710 at the 2026 median price and makes about 5,031 kWh in its first year, of which we assume about 3,019 kWh goes out to the grid because no one is home to use it.
| First-year savings | Payback | 25-year savings, after the price | |
|---|---|---|---|
| With SDG&E's credit | $743 | 10 years | $13,413 |
| If every exported kWh earned the full price | $1,577 | 5 years | $40,104 |
The difference, about $26,691 over 25 years, is what SDG&E's rules cost a typical system compared with full net metering. Using more of the power at home, while the sun is up, closes some of that gap. Uses California's average electricity price; SDG&E's own prices may be higher or lower. Paid in cash, no federal credit, prices rising 2.5% a year, one inverter replacement.
Also in California: PG&E (4.9¢), Southern California Edison (SCE) (6.6¢), LADWP (full retail credit), SMUD (9.6¢).
All 55 utilities · Solar in California · Lease and PPA terms by company
Sources: NRG Clean Power: NEM 3.0 export credits by utility; U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); EnergySage: median quoted price, first half of 2026.