Understanding your electricity bill in San Diego can be daunting, especially with recent rate hikes and complex billing structures. This guide will help you navigate the current electricity rates in San Diego, explain factors driving these costs, and provide practical strategies to reduce your electricity expenses.
Legal Disclaimer
The electricity rates and costs mentioned in this article are based on research and publicly available data as of 2025. These figures are subject to change and may vary based on location, provider, and consumption patterns. We encourage readers to check with their local utility providers for the most up-to-date pricing and policies.
Current Electricity Rates in San Diego (2025)
As of early 2025, electricity rates in San Diego have risen significantly. According to San Diego Gas & Electric (SDG&E), the residential average electricity rate has increased by approximately 5.7%, from 36.2 cents/kWh to 38.3 cents/kWh (SDG&E Rate Change).
To provide context, as of November 2023, San Diego had the highest metropolitan electricity rate in the U.S. at an average of 47.7 cents per kWh, significantly above the national average of approximately 13 cents/kWh/
How San Diego Rates Compared to Other Cities
Here’s a quick comparison of San Diego’s residential electricity rates to other major California cities and the national average:
| City/Utility | Average Rate (¢/kWh) | Rate Increase (2024-2025) |
|---|---|---|
| San Diego (SDG&E) | 38.3 | 5.7% |
| Los Angeles (LADWP) | 20.0 | ~5% |
| San Francisco (PG&E) | 24.0 | ~8% |
| National Average | 13.0 | — |
For more detailed insights on how San Diego compares to Los Angeles electricity rates, check out our Los Angeles Electricity Rates Guide.
Why are Electricity Rates in San Diego So High?
Several key factors contribute to high electricity rates in San Diego:
- Infrastructure and Grid Modernization: Ongoing investments by SDG&E to enhance grid reliability and safety result in higher operational costs passed onto consumers.
- State Regulations and Renewable Energy Goals: Compliance with California’s ambitious renewable energy and environmental standards significantly impacts costs.
- Geographical and Climatic Factors: Unique regional conditions in San Diego increase maintenance and operational costs for energy delivery.
Understanding Time-of-Use (TOU) Pricing Plans
SDG&E employs Time-of-Use pricing, meaning electricity rates vary depending on the time of day:
- On-Peak (highest rates): Usually late afternoon and early evening when electricity use peaks.
- Off-Peak (lower rates): Early morning and late evening.
- Super Off-Peak (lowest rates): This is for Overnight when demand is minimal.
Specific plans like TOU-ELEC, tailored for electric vehicles and energy storage users, provide favorable rates during off-peak hours (SDG&E Pricing Plans).
Community Choice Aggregation (CCA) Alternatives
Residents can opt out of SDG&E’s service by choosing Community Choice Aggregation providers like San Diego Community Power (SDCP), which offers renewable and competitive rate plans:
- PowerBase: 45% renewable, affordable rates.
- PowerOn: Standard plan with 50% renewable energy.
- Power100: Premium plan with 100% renewable energy.
SDCP provides tools such as a Bill Comparison Calculator to evaluate potential savings.
Strategies to Reduce Your Electric Bill
Here’s how you can manage and lower your electricity costs:
- Adopt TOU Plans Strategically: Shift major electricity consumption to off-peak hours.
- Invest in Energy Efficiency: Upgrade appliances, insulation, and lighting systems.
- Go Solar: Installing solar panels drastically reduces grid dependence and long-term costs. Learn more about solar solutions available in San Diego County.
- Evaluate Alternative Providers: Explore renewable energy options through CCAs like SDCP.
Final Thoughts
San Diego residents face high electricity costs, but understanding the reasons behind these expenses and actively managing your usage can substantially reduce your bills. Always stay informed on rate changes and available programs.
