SDG&E Rate Shift Raises Bills for Solar Homeowners

How New SDG&E Time of Use Rates Are Surprising Solar Homeowners at True-Up

Escondido, United States – May 13, 2026 / Baker Home Energy /

Baker Home Energy, a family-owned solar and battery installation company based in Escondido, California, is alerting San Diego homeowners enrolled in NEM that a recent adjustment to SDG&E time of use rates has materially narrowed the value of midday solar exports — creating a cost gap that is driving up annual True-Up bills for customers without a battery storage system.

The Rate Shift Creating a True-Up Problem

SDG&E reduced its Super Off-Peak rate for the 10 AM to 2 PM window to approximately 34 cents per kilowatt-hour. Because NEM export credits are tied to the retail rate at the time of export, solar panels sending power to the grid during those midday hours now earn only the reduced off-peak credit. When those same homeowners draw power from the grid during the 4 to 9 PM peak window, they pay the significantly higher peak rate. The gap between what homeowners earn on exports and what they pay to buy power back accumulates across the billing cycle and surfaces as a larger-than-expected True-Up charge at the end of the year.

This dynamic is specific to solar-only systems. Panels generate most of their output between 10 AM and 2 PM, precisely the window where export credits are now at their lowest. Without a way to store that energy and use it later, homeowners are effectively selling low and buying high on a daily basis.

A Home Battery Closes the Gap

“Under the current SDG&E time of use rates, a solar-only system can leave homeowners significantly exposed during the 4-to-9 PM peak window, where the cost differential is most pronounced,” said Mike Teresso, President of Baker Home Energy. “A home battery shifts the equation – instead of exporting midday solar at the lower off-peak rate and buying it back at peak rates, the stored energy is deployed on the homeowner’s schedule. We have seen this combination significantly reduce bills and provide the home with backup power should the grid go down.”

Adding solar battery storage in San Diego allows a NEM household to capture midday solar generation and discharge it during the 4 to 9 PM peak window, bypassing the rate gap entirely. Rather than sending surplus energy to the grid at roughly 34 cents and purchasing it back at the higher peak rate hours later, the homeowner uses stored energy from their own system. The Tesla Powerwall is among the battery systems Baker Home Energy installs for customers making this transition.

Available Incentives and Timing

San Diego homeowners considering a home battery in San Diego may also qualify for rebates through San Diego Community Power, which offers financial incentives for battery storage installations available to customers in eligible service areas. These rebates can offset a portion of installation costs and are available on a first-come, first-served basis, adding further urgency for NEM customers approaching their next True-Up date.

Baker Home Energy is encouraging solar-only homeowners to act before their next True-Up bill closes, as the rate structure is already in effect and every billing cycle without storage compounds the cost gap.

About Baker Home Energy

Baker Home Energy is a family-owned home energy company headquartered in Escondido, California, with more than 86 years of experience and over 30,000 installations completed across San Diego County and surrounding regions. The company holds a 2025 GAF Master Elite certification and has been recognized by the Better Business Bureau with the Torch Award for Ethics. Baker Home Energy installs solar, battery storage, roofing, and HVAC systems for residential customers.

Learn more at Baker Home Energy