Beatrice Lang
San Diego residents face high electricity costs, with the city topping the nationwide list in January 2024 at 47.5 cents per kilowatt-hour. As of early 2025, electricity rates in San Diego have risen by approximately 5.7%, from 36.2 cents/kWh to 38.3 cents/kWh. There are several factors contributing to these high electricity rates, including infrastructure projects, grid modernisation, and state regulations. Understanding the reasons behind these costs and actively managing usage can help residents reduce their bills. San Diego Gas & Electric (SDG&E) offers different pricing plans, including time-of-use (TOU) rates, which charge different amounts based on the time of day and season. The cheapest time to use electricity in San Diego is during super off-peak hours, typically late at night and early in the morning, while the most expensive is during peak hours, usually in the evening when demand is highest.
| Characteristics | Values |
|---|---|
| Time of cheapest electricity | Between midnight and 6 a.m. (super off-peak hours) |
| Time of most expensive electricity | 4 p.m. to 9 p.m. (peak hours) |
| Average electricity rate in early 2025 | 38.3 cents/kWh |
| Average electricity rate in November 2023 | 47.7 cents/kWh |
| Average electricity rate in January 2024 | 47.5 cents/kWh |
| Average national electricity rate | 13 cents/kWh |
| Factors contributing to high electricity rates | Infrastructure and grid modernisation, state regulations and renewable energy goals, public purpose programs, nuclear decommissioning charge, competition transition charge, franchise fee differential |
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What You'll Learn
- San Diego's electricity rates are the highest in the US
- Time-of-use plans charge different amounts depending on when energy is used
- The cheapest time to use electricity is during 'super off-peak' hours
- EV owners can benefit from lower rates during super off-peak hours
- Discount plans are available for low-income customers
San Diego's electricity rates are the highest in the US
San Diego has some of the highest electricity rates in the US. According to the US Bureau of Labor Statistics, San Diegans paid an average of 36.5 cents per kilowatt-hour in December 2022, compared to 24 cents in Los Angeles and 23.8 cents in Riverside County.
There are several reasons for these high rates. Firstly, the cost of electricity delivery in San Diego is high. Duncan Campbell, who works for a microgrid company in New York, tweeted that "SDG&E residential and commercial delivery rates are the absolute highest in the country". The cost of electricity generation is also high, with San Diego Community Power offering a summer rate of around 25 cents per kilowatt-hour, compared to 16 cents in San Francisco and 17 cents in Marin County.
Another factor is the tiered billing structure used by San Diego Gas & Electric (SDG&E). Under this structure, customers are charged a higher rate once they exceed a certain baseline allowance. This can result in significantly higher bills for customers who use more energy. Additionally, SDG&E has implemented various programs and infrastructure projects that have contributed to the high rates. For example, they have spent $3 billion on hardening their system after the 2007 wildfires, and they also contribute to the state's wildfire insurance fund.
The high electricity rates have caused frustration among San Diego residents, who have complained about receiving high bills. In response, SDG&E has advised customers to review their plans and consider switching to a different one that may better suit their needs and help them save money. There are various plans available, including time-of-use plans that charge different rates depending on the time of day, as well as discount plans for low-income customers and those with medical devices that use a lot of energy.
To mitigate the high costs, San Diego is encouraging the use of renewable energy sources. Solar customers can receive bill credits for the excess electricity they produce through net energy metering (NEM). Additionally, electric vehicle (EV) owners can benefit from lower rates during super off-peak hours with plans like EV-TOU-5. By adopting these renewable energy sources and shifting electricity usage to off-peak times, San Diego residents can reduce their utility bills and help alleviate strain on the electric grid.
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Time-of-use plans charge different amounts depending on when energy is used
San Diego residents face high electricity costs, but understanding the reasons behind these expenses and actively managing your usage can substantially reduce your bills. SDG&E offers different time-of-use (TOU) plans, which charge different amounts depending on when energy is used. All SDG&E residential customers default to the 'TOU-DR1' plan, which has three time periods. On weekdays and weekends during peak hours, which are 4–9 pm, electricity is the most expensive at 44 cents per kilowatt-hour. The hours between midnight and 6 am are considered "super off-peak", when electricity is cheapest.
The TOU-DR2 pricing plan has two time periods and doesn't differentiate between weekdays and weekends. During peak hours (4–9 pm), the rate is 44 cents under your baseline allotment and 55 cents if you go over. During off-peak hours, the rates drop to 37 cents and 47 cents, respectively. The TOU-DR-P plan has three time periods, with the same peak and off-peak hours as TOU-DR1, but with a major difference: when there's a "reduce your use" event, where SDG&E asks you to conserve energy, you're charged $1.16 per kilowatt-hour.
The non-time-of-use standard plan is another option, which charges the same rate (39 cents per kilowatt-hour under baseline and 49 cents over) no matter when energy is used. TOU rates are designed to reflect the actual variation of electricity prices throughout the day, as it costs more to generate and deliver electricity during high-demand periods. By shifting your electricity use to off-peak times, you can lower your utility bills and reduce strain on the electric grid.
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The cheapest time to use electricity is during 'super off-peak' hours
San Diego residents face high electricity costs, but understanding the reasons behind these expenses and actively managing your usage can substantially reduce your bills. The cheapest time to use electricity is during super off-peak hours. During these times, electricity rates are at their lowest.
In San Diego, super off-peak hours are typically late at night and early in the morning, such as between midnight and 6 a.m. However, it's important to note that the specific times for super off-peak hours can vary and may also include certain hours during the day, such as between 10 a.m. and 2 p.m. in March and April.
By shifting your electricity usage to super off-peak hours, you can take advantage of lower rates and reduce your utility bills. This practice, known as "load-shifting," can help you manage your energy costs more effectively.
Additionally, it's worth noting that San Diego Gas & Electric (SDG&E) offers different time-of-use (TOU) plans with varying peak and off-peak hours. The default TOU plan, TOU-DR1, has peak hours from 4 p.m. to 9 p.m., while another plan, TOU-DR2, has a shorter peak window from 4 p.m. to 8 p.m. Understanding the specifics of your plan can help you optimize your energy usage and further reduce costs.
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EV owners can benefit from lower rates during super off-peak hours
San Diego residents face high electricity costs, but there are ways to reduce your bills. Understanding the reasons behind these expenses and actively managing your usage can substantially reduce your bills. San Diego Gas & Electric (SDG&E) offers different pricing plans, and it's worth researching which is the best one for you.
For electric vehicle (EV) owners, there are different programs available that can help you save money. One such program is the EV-TOU-5 plan, which offers lower rates during super off-peak hours. Super off-peak hours are typically late at night and early in the morning, and by shifting electricity use to these times, EV owners can lower their utility bills while helping reduce strain on the electric grid.
Smart EV chargers can also help EV owners save money. These chargers allow you to adjust charging levels and timing to take advantage of lower electricity prices. Level 1 chargers, for example, plug into a standard 120v home outlet and provide a slow charging rate of about 3-4 miles of range per hour, making them ideal for daily charging for those with short commutes. Level 2 chargers offer faster charging at 20-25 miles of range per hour but require a dedicated 208/240v outlet.
By combining the use of smart EV chargers with off-peak charging, EV owners can benefit from lower electricity rates and reduce their overall energy costs. This also helps to benefit the grid by reducing the demand during peak hours, which can lower electricity prices for all utility customers.
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Discount plans are available for low-income customers
San Diego Gas & Electric (SDG&E) offers different pricing plans for its customers. The utility company advises people to research the different plans available to see if they can save money. There are three time-of-use plans, which charge different amounts depending on when energy is used.
All SDG&E residential customers default to the 'TOU-DR1' plan, which has three time periods. On weekdays and weekends during peak hours, which are 4 pm to 9 pm, electricity is the most expensive at 44 cents per kilowatt-hour. Anything outside these hours is considered super off-peak and is two cents cheaper. The ''TOU-DR2' pricing plan has two time periods and doesn't differentiate between weekdays and weekends. It has the same pricing as TOU-DR1 during peak hours, with rates of 37 cents and 47 cents during off-peak hours. The 'TOU-DR-P' plan has three time periods with the same peak and off-peak hours as TOU-DR1, with pricing a penny off in certain areas. However, when there's a 'reduce your use' event, you're charged $1.16 per kilowatt-hour.
In addition to these plans, discount plans are available for low-income customers. The CARE/FERA program offers a 30-35% discount on electric bills and a 20% discount on natural gas bills for eligible low-income customers. To qualify for the CARE program, customers must either participate in certain public assistance programs or meet the income guidelines. If customers do not qualify for CARE, they are automatically checked for eligibility for FERA, which provides an 18% monthly discount for families with slightly higher incomes. The Low-Income Home Energy Assistance Program (LIHEAP) is another federal program that offers utility bill payment assistance and energy education to low-income households.
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Frequently asked questions
In San Diego, electricity is the cheapest during super off-peak hours, typically late at night and early in the morning, such as between midnight and 6 am.
The peak hours in San Diego are typically from 4 pm to 9 pm on weekdays, weekends, and holidays. During these hours, electricity is the most expensive at 44 cents per kilowatt-hour.
As of early 2025, the average electricity rate in San Diego has increased to approximately 38.3 cents/kWh. Previously, in November 2023, the average rate was 47.7 cents per kWh.
You can save money on your electricity bill by choosing a plan that suits your usage patterns and shifting your electricity use to off-peak hours. Additionally, you can use energy-efficient appliances and lighting, and consider smart home devices like smart thermostats to manage your energy usage.
