Nathan Healy
Certified by Nathan Healy
Updated: October 2026
Quality Solar Panels Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
About Nathan Healy

Nathan Healy is a Vice President at Palmetto, where he helps homeowners cut through the confusion around solar and figure out whether it actually pencils out for their home, roof, and budget. With energy prices climbing and the federal incentive landscape shifting, his focus is simple: give people a straight, honest answer instead of a sales pitch.

He reviews Palmetto’s local solar guides so the costs, incentives, and utility details on this page reflect what’s really happening in your area.
He believes in solar so much, that he had Palmetto install solar on his own parents’ house, the home he grew up in.

01

Solar Power in San Diego

San Diego’s abundant sunshine makes solar worth exploring, but solar panel installation in San Diego depends on more than the weather. Roof orientation, shade, household energy use, and utility rules all influence system design and how it may fit your home.

Understanding these factors can help you make sense of the installation process and what to consider before choosing a system. Start with our guide to home solar panels, then explore what going solar involves for San Diego homeowners.

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
02

How Much Do Solar Panels Cost in San Diego, CA?

Explore estimated solar installation costs in San Diego using real data from Palmetto installations across the region, including Chula Vista, La Mesa, Escondido, and Carlsbad. This calculator offers a local reference point for what homeowners may pay, based on completed projects—not a one-size-fits-all national average.

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in California.
Recommended
System
6.67 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$88/mo
As low as
$88/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
  • No upfront investment
  • Palmetto handles all maintenance
  • 90% Production Guarantee
  • Comprehensive protection program included
03

Palmetto Reviews

04

Key Takeaways

  • San Diego sunshine makes solar worth exploring, but roof direction, shade, energy use, and utility rules shape each home’s system and results.
  • Local estimates offer a starting point for comparing solar costs and potential savings; your roof, energy use, and payment option affect the numbers.
  • Solar output and export credits can vary by season and timing, while California programs may help eligible households with solar or energy costs.
05

San Diego Electricity Prices

For San Diego homeowners, electricity prices are worth watching—but statewide data provides context, not a local utility rate.

California’s average residential electricity price rose from 22.8 cents per kWh in 2021 to 31.9 cents in 2024. The national average increased from 13.7 to 16.5 cents; these are statewide and national figures, not San Diego rates.

With San Diego’s sunny climate, rooftop panels can produce electricity at home and may reduce how much a household draws from the grid. Production depends on roof condition, shade, system size, and energy use.

Over time, generating some electricity at home may help households manage exposure to changing grid prices. Actual value depends on installation costs, utility rules, system performance, and how long the system is used.

Price of Energy: California vs National Average

0¢
10¢
20¢
30¢
40¢
13.7¢
22.8¢
15.0¢
25.8¢
16.0¢
29.5¢
16.5¢
31.9¢
2021
2022
2023
2024
US Average
California

San Diego Area Utility Providers

San Diego Gas & Electric (SDG&E) serves San Diego, and its reported 2023 electricity rate was 45.5¢ per kilowatt-hour (kWh). The figures below use 2023 data; 2024 utility data is not yet available.

That rate was above both the 2023 California average of 29.50¢/kWh and the U.S. average of 16.0¢/kWh. These comparisons show the difference, but the figures alone do not explain why SDG&E’s rate is higher.

For San Diego households, solar can be one way to manage reliance on grid electricity and exposure to its rates. Its value depends on a home’s energy use and situation, so outcomes may vary.

San Diego Utilities Electricity Rates

SDG&E
45.50¢
+184%
CA Average
29.50¢
+84%
US Average
16.0¢
—
06

California Solar Incentives

California and local programs may help eligible San Diego households offset solar, battery, or electricity costs. Explore solar incentives in California.

Programs include income-qualified solar and battery rebates, affordable-housing incentives, financing, and tax exclusions for qualifying projects. Eligible customers may receive community bill discounts, while SDG&E customers can earn export credits under California’s Net Billing Tariff; credit values vary by timing.

With a LightReach lease, Palmetto handles the commercial investment tax credit and passes savings through as lower monthly payments, simplifying how incentives are managed.

Incentive Type Description Source
SGIP — Residential Solar and Storage Equity (RSSE) Solar and Battery Rebate Income-qualified California households may receive up to $1,100 per kWh of eligible battery capacity and $3,100 per kW of paired solar, subject to program rules and available funding. Learn More
Disadvantaged Communities — Single-Family Solar Homes (DAC-SASH) Solar Rebate / No-Cost Solar Program Eligible income-qualified homeowners in qualifying disadvantaged communities may receive rooftop solar supported by a $3 per CEC-AC watt program incentive. Learn More
Solar on Multifamily Affordable Housing (SOMAH) Solar and Battery Incentive Eligible affordable multifamily properties can receive incentives for tenant-serving and common-area solar, with additional incentives for qualifying integrated solar-and-storage projects where funding remains available. Learn More
Disadvantaged Communities Green Tariff (DAC-GT) Electricity Bill Discount / Community Solar Eligible customers in participating disadvantaged communities can receive a 20% discount on their applicable electricity rate through a utility clean-energy tariff, rather than a payment for rooftop equipment. Learn More
GoGreen Home Energy Financing — Solar Plus Battery Financing Eligible homeowners and renters may access participating-lender financing for solar bundled with battery storage, with program materials describing loan principal up to $75,000 for solar-plus-battery projects. Learn More
Active Solar Energy System New Construction Exclusion Property Tax Exclusion Qualifying active solar energy systems generally are excluded from adding assessed value to a California property, with the state exclusion scheduled to sunset January 1, 2027. Learn More
CAEATFA Sales and Use Tax Exclusion (STE) for Approved Projects Sales and Use Tax Exclusion Approved participating parties may receive a sales/use-tax exclusion for qualifying alternative-energy, distributed-generation, or storage property purchased for an approved project; it is not a general household solar exemption. Learn More
California Solar Billing Plan / Net Billing Tariff Net Billing / Solar Export Credits New eligible rooftop solar customers in PG&E, SCE, and SDG&E territories receive bill credits for electricity exported to the grid under the Net Billing Tariff, with credit values varying by export timing rather than matching retail rates one-for-one. Learn More

SGIP’s Residential Solar and Storage Equity (RSSE) offering provides incentives for eligible residential solar-and-battery projects. Published maximum rates are up to $1,100 per kWh of battery storage and $3,100 per kW of paired solar; the actual incentive is limited by eligible project costs, system-sizing rules, and program requirements.

Eligibility is generally for income-qualified California households, including households at or below 80% of area median income or customers who qualify through specified programs such as CARE, FERA, ESA, SASH, or DAC-SASH. Funding, applications, waitlists, and reservation availability vary by utility and program administrator, so San Diego residents should confirm current availability with the SGIP administrator for their service area before signing a contract.

DAC-SASH supports rooftop solar for qualifying single-family homeowners with an incentive of $3 per CEC-AC watt. The program is designed to make solar available at no cost to eligible households, although project costs, program rules, and funding availability determine whether a particular installation can proceed. The incentive is administered through the program and is not necessarily paid as cash directly to the homeowner.

Applicants generally must own and occupy their primary residence, meet applicable CARE or FERA income criteria, and live in an eligible disadvantaged community or other qualifying area identified by the program. DAC-SASH is a solar program; do not assume that a battery is included. Check current program eligibility and enrollment status with the CPUC or its administrator.

SOMAH provides solar incentives for qualifying affordable multifamily rental housing. Published solar rates can reach $3.50 per AC watt for tenant-serving capacity and $1.19 per AC watt for common-area capacity, with lower rates applying in some circumstances when projects use specified tax credits. Eligible integrated solar-and-storage projects may receive a storage incentive of $1.10 per Wh, subject to program rules and adjustments for other incentives.

Properties generally need at least five rental units and must meet SOMAH’s affordable-housing and tenant-benefit requirements in a participating utility territory. Storage funding is not available everywhere: as of the supplied 2026 status information, storage incentives were paused in PG&E and SDG&E territories, while funds were reported available in SCE, Liberty Utilities, and Pacific Power territories. Confirm the current funding status and project eligibility with SOMAH before relying on an incentive.

DAC-GT provides qualifying residential customers a 20% discount on their otherwise applicable electric rate through a clean-energy tariff associated with a shared renewable-energy project. It is a bill discount—not a rooftop-solar or battery installation rebate—and can be relevant to renters or households that cannot install their own system.

Eligibility generally depends on meeting CARE or FERA income requirements and living in a designated disadvantaged community within a participating service area. Enrollment arrangements and availability vary by utility or community choice aggregator, so San Diego residents should contact their electricity provider to check whether the program is offered at their address.

GoGreen Home uses credit enhancements to help participating lenders offer financing for eligible home energy improvements, including solar paired with battery storage. Program materials describe a loan-principal ceiling of up to $75,000 for solar-plus-battery projects; this is financing, not a rebate or grant, and borrowers must repay the loan.

Homeowners and renters may qualify for eligible properties and measures when served by a participating utility or community choice aggregator and using an enrolled contractor. Interest rates, fees, approval criteria, and loan terms are set by participating lenders. Confirm that the proposed solar-and-storage project and contractor qualify before applying.

California’s Active Solar Energy System New Construction Exclusion generally prevents the value attributable to a qualifying active solar energy system from increasing the property’s assessed value. This can reduce the property-tax impact of adding qualifying solar equipment, but it is an assessment exclusion rather than an upfront rebate.

The exclusion is scheduled to sunset on January 1, 2027, so it is relevant to qualifying projects in 2026. Treatment can depend on the equipment and how it is installed; the exclusion should not be assumed to cover a standalone battery. Contact the county assessor to confirm how the rules apply to a specific property and project.

California’s Sales and Use Tax Exclusion can reduce or eliminate sales/use tax on qualifying property purchased by an approved participating party or its construction contractor for an approved project. Eligible project categories can include specified alternative-energy, distributed-generation, and energy-storage technologies.

This is a project-approval program, not a blanket sales-tax exemption for a homeowner buying rooftop panels or a battery. Applicants must satisfy the program’s project, party, and approval requirements, so homeowners should not assume a residential purchase qualifies. Consult CAEATFA’s current program materials before including a tax exclusion in project economics.

The Net Billing Tariff, also called the Solar Billing Plan, governs export compensation for most new rooftop solar customers in PG&E, SCE, and SDG&E territories. Customers receive bill credits for electricity sent to the grid, but the credit value varies by when the power is exported and generally is not the old one-for-one retail-rate net-metering credit.

This tariff is a billing policy, not an installation rebate. A battery may allow a household to store solar generation and use it later instead of exporting it, but the financial result depends on the customer’s usage, rate plan, equipment, and export timing. Existing customers may remain on a legacy tariff subject to its rules; other utility territories may have different arrangements.

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 Quote
07

San 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’s marine layer can soften morning sun, while long, sunny summer days boost output. Seasonal daylight and roof shade matter, but a well-designed system can generate power year-round.

Solar Production in San Diego by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

[SummerProduction] kWh/day

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)

[WinterProduction] kWh/day

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

[AnnualProduction] kWh/year

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 Estimate
08

Solar Panel Systems in San Diego

We’ve organized solar installation data across the United States to create this interactive map of San Diego. Explore the hexagons to see how many homes in each area have gone solar, and discover the neighborhoods and communities where your neighbors are making the switch.

09

How to Choose a Solar Installer in San Diego

Verify the license

California requires the contractor or contracting business doing solar work to hold an active license from the California Contractors State License Board (CSLB) in a classification authorized for the work. Authorized photovoltaic classifications include C-46 Solar and C-10 Electrical, as well as certain other classifications, including A and, within its scope, B. A permit-required project does not qualify for the small-work licensing exemption. Look up the business and check that its license is active and appropriately classified using the CSLB license search.

Look for certified installers

Ask whether the people designing or installing your system hold NABCEP certification, and whether the installer has certifications from the manufacturers whose equipment it proposes. NABCEP and manufacturer credentials are different from a CSLB contractor license: ask what each credential covers, who holds it, and whether it applies to the work on your home. Compare credentials across bidders rather than treating a logo as a substitute for checking the license.

Compare quotes the same way

Request itemized proposals with the same assumptions and compare:

  • System size: proposed capacity in kilowatts (kW), and whether the equipment and layout match across quotes.
  • Price: total system price and price per watt; separate cash cost from any financing or lease payment.
  • Equipment: panel and inverter brands and models.
  • Production: estimated electricity generation in kWh per year, with the assumptions behind the estimate.
  • Coverage: panel product and performance, inverter, workmanship, and roof-penetration warranties, including who provides each one.
  • Project responsibilities: who handles permits and utility interconnection, and what is included in the price.
  • Payment terms: total cost or monthly payment, plus any escalator and when it applies.

Permits, interconnection and your HOA

Building-permit review and inspections, including local structural, electrical, and fire-code review, are handled by the city or county enforcing agency, usually its building department—not the state. Ask who will coordinate the local permit and inspections. Utility interconnection approval is separate; the installer should explain the applicable utility process and handle the required interconnection work. The named utilities include Southern California Edison Co., Pacific Gas & Electric Co., Los Angeles Department of Water & Power, and Sacramento Municipal Util Dist. Confirm which utility serves your address and which process applies; Rule 21 is not universal.

If your home is subject to HOA rules, California Civil Code §§ 714 and 714.1 address rooftop solar restrictions. Section 714 voids governing-document restrictions that effectively prohibit or restrict a solar energy system, while allowing reasonable restrictions that do not significantly increase cost or reduce efficiency. Section 714.1 bars a general policy prohibiting household rooftop solar on an owner’s residence or assigned garage or carport. For the text, see California Civil Code § 714.

Red flags

  • Pressure to sign the same day, before you can review the proposal and terms.
  • An unlicensed contractor, or an out-of-state crew without a clearly identified, appropriately licensed contracting business responsible for the work. Verify the license rather than relying on verbal assurances.
  • A vague production estimate with no clear annual kWh figure or explanation of assumptions.
  • A large upfront deposit without clear written terms for what it covers and when payments are due.
  • Promises of federal homeowner tax credits for purchases in 2026; homeowner credits ended December 31, 2025.

CSLB handles complaints about licensed and unlicensed contractors involving construction and home-improvement work and provides a solar-specific complaint form.

10

Leasing Solar Panels

For San Diego Gas & Electric (SDG&E) customers, Palmetto offers a solar power purchase agreement (PPA). With a PPA, you pay a set price for each kilowatt-hour your system produces, rather than a fixed monthly lease payment. Payments may vary by season as solar production changes.

A PPA can make solar installation possible without paying the full system cost upfront. The provider owns the system and handles maintenance, so you don’t take on the upkeep that comes with buying panels outright in cash.

Lease and PPA terms differ, even though both can reduce the need for a large upfront investment. Learn more in our solar buying and leasing guide or explore Palmetto LightReach.

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 Leasing
11

Frequently Asked Questions

Yes. San Diego Gas & Electric (SDG&E) customers with eligible solar systems can receive credits for electricity they send to the grid. For new interconnection applications submitted on or after April 15, 2023, SDG&E’s Net Billing Tariff (often called NEM 3.0) sets export-credit values by hour, so credits vary with when solar power is exported.

Eligible applications completed by April 14, 2023, may remain on NEM 2.0. Under the current tariff, leftover credits are settled at the annual true-up, generally at the lower avoided-cost rate.

Yes. A purchased, homeowner-owned solar system may increase a San Diego home’s resale value. Zillow’s study found homes with solar panels sold for about 4.1% more on average, though that national finding doesn’t guarantee an increase for every home.

This finding applies to owned systems, not leased or third-party-owned (TPO) panels. With a lease or PPA, resale may work differently because a buyer may need to assume the agreement, and its terms can affect the sale.

With Palmetto’s LightReach lease, San Diego homeowners can go solar with no upfront cost and a low fixed monthly payment. The calculator above estimates $65–$119 per month by home size, including $88 per month for its medium-home example.

For a cash purchase, the calculator estimates $14,860–$25,233; a medium-home system is about $19,288. The federal 30% residential solar tax credit is no longer available for cash purchases following the 2025 federal law change. Your actual price depends on your home and system design.

With a solar lease, the provider owns the rooftop system and you pay a set monthly amount to use the electricity it produces. Palmetto’s LightReach lease has no upfront cost; one payment covers panels, installation, monitoring, maintenance, and a protection program with a 90% Production Guarantee.

In San Diego, an estimated 6.67 kW system costs about $88 per month, based on local production assumptions and a $0.11/kWh rate. Your actual payment and savings vary by home; lease payments are typically below the current electricity bill, so savings may begin once the system is operating.

Yes. Solar panels work well in San Diego’s sunny climate, which averages about 5.7 peak sun hours per day. The marine layer can soften morning sunlight, and cloudy weather lowers output, but panels still generate electricity from daylight.

Production changes with the seasons: long, sunny summer days generally produce more than shorter winter days. Roof direction and shade also affect how much a home system generates.

Solar panels in San Diego are generally low maintenance. Occasional checks or cleaning may be needed if dust, leaves, or debris build up.

With LightReach, Palmetto owns the system and handles maintenance, monitoring, and repairs at no extra cost. It also includes a 90% Production Guarantee.

Yes, solar can make sense in San Diego. The city averages about 5.7 peak sun hours a day, and producing electricity at home may help reduce reliance on SDG&E’s costly grid power. Your results depend on roof direction and shade, energy use, system cost, and the value of exported power under California’s Net Billing Tariff.

LightReach, Palmetto’s solar lease program, removes the upfront cost barrier entirely: homeowners can go solar with no money down and start saving from day one.