San Diego, CA Solar: 2026 Costs, Incentives & Savings
Solar Power in San Diego
With more sunshine than almost anywhere in the country, San Diego is one of the best places to power your home with solar. It’s also a smart financial move: California has some of the highest residential electricity rates in the nation, at 31.86 cents per kWh—and those rates have climbed 56% from 2020 to 2024. Making your own energy helps you take control of rising costs.
At Palmetto, we’ve helped homeowners across California go solar with confidence. Whether you’re just starting to explore or ready for the next step, our guide to home solar panels can help. Here, we’ll walk you through exactly what solar installation looks like in San Diego.
CALIFORNIA by the Numbers
1st Most residential solar in the United States
1926 Households have installed solar panels
5.7 Avg peak sun hours per day
~$99k San Diego average savings over 25 years
How Much Do Solar Panels Cost in San Diego, CA?
Curious what solar really costs in San Diego? This calculator uses our firsthand installation data from neighborhoods across the area—including La Jolla, Chula Vista, Escondido, and Carlsbad. Enter a few details to see a realistic estimate for your home, built on real local numbers, not guesswork.
Cost Breakdown
Your estimated investment
- System Cost: $19,288
- Price per Watt: $2.89
- Final Cost: $19,288
Savings
- Monthly Savings: Average utility bill reduction of $227
- Payback Period: Break-even point in 6.4 years
- 25-Year Savings: $99,451
Palmetto Reviews
- William Smith: "Palmetto are Rock Stars! They were great and finished well before the planned dates... I would recommend it to everyone."
- Rosa Martinez: "We had a great experience with this company from the sales process all the way through the installation... Would highly recommend this company."
- Juan Rendon: "Good experience working with these guys... I will definitely recommend."
Key Takeaways
- San Diego enjoys abundant year-round sunshine and averages 5.7 peak sun hours per day, making it one of the best places in the country to go solar.
- Electricity rates in California have jumped about 40% since 2021, with SDG&E charging even more—so making your own power helps you take control of rising costs.
- California offers a range of solar incentives, from battery storage rebates to no-money-down financing, plus leasing options that let you start saving without any upfront cost.
San Diego Electricity Prices
California’s average residential electricity rate rose from 22.8 cents per kWh in 2021 to 31.9 cents in 2024—about a 40% jump. San Diego, in SDG&E territory, often pays even more than the statewide average.
San Diego Utilities Electricity Rates
| Provider | Rate |
|---|---|
| SDG&E | 45.50¢ |
| CA Average | 29.50¢ |
| US Average | 16.0¢ |
California Solar Incentives
Going solar in San Diego is more affordable thanks to a range of solar incentives in California that help lower your costs.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Self-Generation Incentive Program (SGIP) – Battery Storage Rebate | Rebate | California’s SGIP provides rebates for residential battery storage systems, with the highest incentives reserved for income-qualified households | Learn More |
| DAC-SASH | Rebate | Provides up to $3 per watt in solar installation rebates for income-qualified homeowners | Learn More |
| PACE Financing | Rebate | Allows homeowners to finance solar and battery storage installations with no money down | Learn More |
Solar Panel Systems in San Diego
Solar Production in San Diego by Month
Summer Production (July)
- 51 kWh/day
Winter Production (December)
- 33.4 kWh/day
Annual Production
- 16,045 kWh/year
Want to know exactly how much solar can power your home?
Get a personalized solar analysis.
Frequently Asked Questions
Does San Diego, CA have net metering?
Yes. San Diego homes served by SDG&E use net billing under NEM 3.0, which began April 15, 2023.
Do solar panels increase your home value in San Diego, CA?
Yes. Homes with solar panels sell for about 4.1% more than comparable homes without them.
How much does it cost to go solar in San Diego, CA?
With a LightReach lease, San Diego homeowners can go solar for a low fixed monthly payment of around $88/month.
Do solar panels work in San Diego, CA’s climate?
Yes, San Diego’s climate is excellent for solar, with abundant year-round sunshine and about 5.7 peak sun hours per day.