San Diego, CA Solar Panels
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
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.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
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
Electricity in San Diego isn’t cheap—and understanding why can help you plan for what’s ahead.
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.
Solar lets you generate your own electricity from San Diego’s abundant sunshine. Instead of relying entirely on the grid, you produce power at home, which can reduce how much you draw during costly peak hours.
Over time, as utility rates continue climbing, homeowners with solar gain more predictable energy costs. That long-term stability is one reason many San Diego residents look into powering their homes with the sun.
Price of Energy: California vs National Average
San Diego Area Utility Providers
If you’re exploring solar installation in San Diego, it helps to know your local rates. In 2023, SDG&E charged about 45.5¢ per kWh—well above the 2023 state average of 29.50¢ and national average of 16.0¢.
Several factors drive SDG&E’s higher rates, including wildfire prevention costs, grid maintenance across challenging terrain, and California’s push toward cleaner energy sources. These investments are important, but they add up on your monthly bill.
With rates this high, producing your own power can help San Diego homeowners take more control of energy costs. Solar panel installation lets you rely less on the grid while generating clean energy from the region’s abundant year-round sunshine.
San Diego Utilities Electricity Rates
California Solar Incentives
Going solar in San Diego is more affordable than you might think, thanks to a range of solar incentives in California that help lower your costs.
These state and local programs come in many forms, including rebates for battery storage, incentives for income-qualified households, and financing options that let San Diego homeowners install solar with no money down.
While the federal 30% residential tax credit has ended, these incentives remain. With LightReach leasing, Palmetto handles the commercial credit and passes the savings through as lower monthly payments.
| 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 through the AB 209 Residential Solar and Storage Equity (RSSE) program. | Learn More |
| DAC-SASH – Disadvantaged Communities Single-Family Solar Homes Program | Rebate | DAC-SASH provides up to $3 per watt in solar installation rebates — effectively free solar — for income-qualified homeowners in California’s designated disadvantaged communities, administered by GRID Alternatives. | Learn More |
| SGIP RSSE – AB 209 Residential Solar and Storage Equity Program | Rebate | The AB 209-funded RSSE program offers low-income California households up to $1,100/kWh for battery storage and $3,100/kW for paired solar, potentially covering 100% of installation costs. | Learn More |
| SOMAH – Solar on Multifamily Affordable Housing | Rebate | SOMAH provides solar installation incentives of up to $3.50 per AC Watt for multifamily affordable housing properties, with benefits directed to low-income tenants, and is active through 2032. | Learn More |
| DAC-GT – Disadvantaged Communities Green Tariff | Rebate | The DAC-GT program gives income-qualified residents in disadvantaged communities who cannot install rooftop solar a 20% discount on their electricity bill by crediting them with utility-scale clean energy. | Learn More |
| PACE Financing – Property Assessed Clean Energy | Rebate | California’s PACE program allows homeowners to finance solar and battery storage installations with no money down, repaying the loan through their property tax bill over 10–20 years. | Learn More |
The Self-Generation Incentive Program (SGIP) is California’s primary rebate program for home battery storage systems. As of 2026, the General Market, Equity, and Equity Resiliency ratepayer-funded tiers are closed to new applicants. The only active pathway is the Residential Solar and Storage Equity (RSSE) program, funded by AB 209 with $280 million in state funds. This tier offers up to $1,100/kWh for battery storage and $3,100/kW for paired solar, potentially covering 100% of system costs for qualifying households. However, most of this budget is already reserved and new applications are being placed on a waitlist.
To qualify for the RSSE program, residents of San Diego must be a residential customer of PG&E, SCE, SoCalGas, or SDG&E with a household income at or below 80% of the Area Median Income (AMI), or be enrolled in an income-based assistance program. Priority is given to customers in disadvantaged communities (DACs), high fire-threat districts, or areas that have experienced two or more Public Safety Power Shutoff (PSPS) events. Incentives are calculated on usable battery capacity (kWh) and cannot exceed the total installed cost of the system.
Even though the RSSE budget is currently waitlisted, it is worth applying to secure your place in line, as funding may become available. The program is administered through the SGIP portal at selfgenca.com. Eligible battery technologies include grid-tied lithium-ion systems from approved manufacturers. Incentives typically apply to up to 30 kWh of capacity for standard residential projects, or up to 80 kWh for households qualifying under resiliency criteria.
The Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program offers income-qualified homeowners in San Diego’s disadvantaged communities an incentive of up to $3 per watt for solar systems between 1 and 5 kW, which can effectively cover the full cost of a rooftop solar installation. The program is active through 2030 and is administered by GRID Alternatives, a nonprofit organization. Applications are processed directly by GRID Alternatives — not through private solar installers — so homeowners should contact them directly to begin the process.
To be eligible, you must meet all three of the following criteria: (1) receive electric service from PG&E, SCE, or SDG&E (2) own and occupy a single-family home as your primary residence; and (3) live in a disadvantaged community (DAC) as identified by the CalEnviroScreen 4.0 map (top 25% of census tracts statewide). Additionally, your total household income must fall within CARE or FERA program limits — through May 31, 2026, that means no more than $52,875 for a 1–2 person household or $94,125 for a 5-person household.
DAC-SASH is one of California’s most impactful solar equity programs, specifically designed to bring the benefits of rooftop solar to households that would otherwise be priced out. To apply or check eligibility, complete the online form at GRID Alternatives’ website or call toll-free at (866) 921-4696. Because this program targets underserved communities, it also includes workforce development and solar job training components.
The Residential Solar and Storage Equity (RSSE) program, funded through AB 209 with $280 million in state appropriations, is the most generous solar and battery incentive currently available in California. It offers $1,100/kWh for battery storage and $3,100/kW for paired solar installations, with the potential to cover 100% of system costs for qualifying low-income households. The program opened for reservations on June 2, 2025, and is available to customers of PG&E, SCE, SDG&E, and LADWP (LADWP applications were expected to open by end of 2025).
Eligibility requires that your household income be at or below 80% of the Area Median Income (AMI), or that you are enrolled in an income-based assistance program such as CARE or FERA. Preference is given to households located in designated disadvantaged communities (DACs), high fire-threat zones, or areas that have experienced repeated Public Safety Power Shutoffs (PSPS). The incentive is structured as a rebate applied to the installed cost of the system and cannot exceed total project costs.
As of April 2026, most RSSE sub-budgets are fully reserved and new applicants are being placed on a waitlist. However, some sub-budgets (such as the SCE RSSE-AB 209 POU sub-budget) have shown small amounts of remaining funding. Homeowners in San Diego are encouraged to apply through the official SGIP portal at selfgenca.com to secure a waitlist position, as additional funding rounds may become available. This program can be combined with the DAC-SASH solar rebate for maximum savings.
The Solar on Multifamily Affordable Housing (SOMAH) program provides financial incentives for installing solar photovoltaic systems on multifamily affordable housing properties in California. Building owners and affordable housing developers can receive up to $3.50 per AC Watt for solar generation that directly benefits tenants, and $1.19 per AC Watt for systems serving common areas. The program is funded by up to $100 million annually from electric utility Greenhouse Gas Auction Proceeds and has been extended through 2032 under Senate Bill 355 (2023).
SOMAH is designed to bring the economic benefits of solar energy to low-income renters who cannot install their own rooftop systems. Eligible properties must be located in California’s disadvantaged communities (DACs), defined as census tracts scoring in the top 25% statewide on the CalEnviroScreen tool. The program is administered by a consortium of nonprofits including the Center for Sustainable Energy (CSE), GRID Alternatives, the Association for Energy Affordability (AEA), and the California Housing Partnership Corporation (CHPC).
As of May 22, 2026, SOMAH has paused integrated battery storage incentive additions in PG&E service territory until further notice, though solar-only incentives remain available. A waitlist form is available for active applications in the PowerClerk portal. Property owners and developers in San Diego interested in the program should visit calsomah.org for eligibility details, application instructions, and to connect with program administrators.
The Disadvantaged Communities – Green Tariff (DAC-GT) program is designed for income-qualified residents in disadvantaged communities who are unable to install rooftop solar — such as renters or homeowners with unsuitable roofs. Through this program, eligible customers receive a 20% discount on their electricity bill by being credited with energy from utility-scale clean energy sources. The program is available through PG&E, SCE, and SDG&E and was approved and improved by the CPUC as part of a broader 2024 decision that also launched the new Community Renewable Energy (CRE) Program.
To qualify, customers must meet the income eligibility requirements for either the California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) programs, and must reside in a designated disadvantaged community (DAC). This program is specifically intended for those who cannot participate in rooftop solar programs like DAC-SASH or SOMAH, ensuring that the benefits of clean energy reach all income levels in underserved communities.
The DAC-GT program requires no installation or upfront cost — the bill discount is applied directly to your monthly electric bill once you are enrolled. San Diego customers interested in enrolling should contact their utility (PG&E, SCE, or SDG&E) directly or visit the CPUC’s program page for more information. This program can be a meaningful source of ongoing savings for renters and others who lack access to traditional solar incentives.
Property Assessed Clean Energy (PACE) financing is a state-supported program administered by the California Department of Financial Protection and Innovation (DFPI) that allows homeowners to install solar panels and battery storage systems with no money upfront. Instead of a traditional loan, the financing is tied to your property and repaid through your property tax bill over a period of typically 10 to 20 years. Because the debt is secured by the property rather than the borrower, PACE programs often offer competitive interest rates and are accessible to homeowners who may not qualify for traditional financing.
One of the key advantages of PACE financing is that it is transferable — if you sell your home, the remaining balance can transfer to the new owner along with the property, which can be a selling point when marketing a solar-equipped home. PACE financing can be used for solar panel systems, battery storage, and other qualifying clean energy improvements. California is one of only a handful of states that offers PACE financing, making it a unique option for homeowners in San Diego.
It is important to understand that PACE is a loan, not a grant or rebate — you will pay interest over the life of the financing term, and the repayment obligation is attached to your property. Homeowners should carefully review the terms, interest rates, and total cost before entering a PACE agreement. The DFPI provides consumer protections and oversight for PACE providers in California. PACE financing can be combined with other incentives such as SGIP battery rebates and the property tax exclusion to reduce overall system costs.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with California incentives.
Get a Free QuoteSan Diego Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
San Diego enjoys abundant sunshine and mild temperatures year-round, making it ideal for solar. Occasional coastal “May Gray” and “June Gloom” bring clouds, but production stays strong across every season.
Solar Production in San Diego by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in San Diego
We mapped solar installations across the country, right down to the neighborhood level. Explore the heatmap below to see how many San Diego homes have made the switch to solar. Click any hexagon to discover how your community is embracing clean energy—you might be surprised how many neighbors are already onboard.
Leasing Solar Panels
In San Diego, most homes are served by San Diego Gas & Electric (SDG&E), where Palmetto offers a Power Purchase Agreement (PPA) through LightReach. With a PPA, you don’t buy the system. Instead, you simply pay a set price for each kilowatt-hour (kWh) of clean power your panels produce—often less than the utility’s rate.
Unlike paying cash, a PPA means no large upfront cost and no maintenance to manage. Palmetto owns, monitors, and repairs the system, so you can enjoy the savings without the work. Your payments may rise in sunny summer months and dip in winter, but they average out much like a fixed lease over the year.
Curious if a PPA fits your home? Learn more about LightReach and start saving from day one.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Explore LightReach LeasingFrequently Asked Questions
Yes. San Diego homes served by San Diego Gas & Electric (SDG&E) use net billing under NEM 3.0, which began April 15, 2023. Instead of a 1:1 credit, exported solar earns an hourly export credit based on the time of day power is sent to the grid.
Excess credits are “trued up” once a year during your anniversary month, paid at the avoided-cost rate of roughly 3–5 cents per kWh. Pairing solar with battery storage helps you use more of your own power.
Yes, in San Diego, owned or purchased solar panel systems can increase your home’s value. A Zillow study found that homes with solar panels sell for about 4.1% more than comparable homes without them.
This applies to systems you own outright. Leased or PPA systems, like LightReach, may affect resale differently, since a buyer would typically assume the existing agreement rather than gain added home value.
With a LightReach lease, San Diego homeowners can go solar for a low fixed monthly payment starting around $88/month—with no upfront cost. Palmetto owns and maintains the system, so you start saving from day one.
You can also buy a system outright, with a medium home averaging about $19,288. Note that the federal 30% tax credit is no longer available for residential cash purchases after the 2025 federal law change. See the calculator above for pricing based on your home size.
With a solar lease like LightReach, you don’t buy the system. Instead, you make one simple monthly payment that covers everything: the panels, installation, monitoring, maintenance, and a protection program backed by a 90% Production Guarantee—with no upfront cost. For a typical 6.67 kW system in San Diego, that’s about $88/month.
Because Palmetto owns the system, it claims the commercial tax credit and passes those savings on through lower payments. Since your lease is often less than your SDG&E bill, many San Diego homeowners save from day one.
Yes. San Diego’s climate is excellent for solar, with abundant year-round sunshine and about 5.7 peak sun hours per day. Mild temperatures and clear skies help panels perform reliably across every season.
Panels still produce power in varied conditions, including the coastal clouds of “May Gray” and “June Gloom.” Output naturally varies by season—higher in the long, sunny days of summer and lower in December—but stays strong throughout the year.
Solar panels are low maintenance. Because they have no moving parts, San Diego’s mild, sunny climate places little strain on them, and occasional rain often rinses away dust and debris on its own.
With a LightReach plan, Palmetto owns the system and handles all maintenance, monitoring, and repairs at no extra cost. This includes a 90% Production Guarantee, so your panels keep performing without any added work on your part.
Yes, solar often makes sense in San Diego. With about 5.7 peak sun hours per day and some of the nation’s highest electricity rates through SDG&E, generating your own power can help offset rising utility bills while producing clean energy year-round.
Upfront cost is a common concern, but LightReach, Palmetto’s solar lease program, removes that barrier entirely. San Diego homeowners can go solar with no money down and start saving from day one.