One California solar owner expected a clear answer when comparing utility plans to maximize the value of their panels' ability to avoid drawing power during most plans' peak hours. Instead, they found 29 residential San Diego Gas & Electric rate plans compatible with NEM solar — and said the best option would have changed their bill by only "maybe 1 or 2%."
That mismatch between effort and payoff shows how hard it can be for homeowners to predict solar savings when electricity rates keep changing.
Here's what to know
An SDG&E customer on Reddit's r/solar described the rate-comparison process as increasingly difficult. Their complaint centered on several moving parts at once: seasonal prices, multiple time-of-use periods, and four separate rate updates in the same year, after Jan. 1 figures were revised again starting April 1, June 1, and Aug. 1.
That leaves some homeowners sorting through 16 to 32 per-kilowatt-hour prices across a single year before they even get to plan eligibility. The OP said, "Put the calculator aside, it's time for a spreadsheet."
One user suggested the complexity feels intentional: "Hard not to believe that the purpose of 'rate design' is to confuse customers to the point of giving up."
Even with the rate-plan headaches to maximize the value, going solar is still one of the best ways to save money on home energy. Homeowners who want to compare installation offers can try EnergySage to get free solar installation estimates and compare quotes.
More background
After setting aside plans tied to electric vehicles, medical baseline status, or CARE low-income eligibility, the OP said a household could still be left with six choices. Based on their own usage history, they said the difference among those options was only "maybe 1 or 2%."
For that homeowner, the effort of comparing them all may have outweighed any money they could save by switching.
Save $10,000 on solar panels without even sharing your phone number Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation. To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner. |
The OP also flagged the baseline discount as another complication. They said a lower rate applies below 130% of a home's baseline usage, but that baseline varies by season, location — Coastal, Inland, Mountain, or Desert — and whether the household has gas-and-electric service or electricity only.
Another user added that the issue is not limited to SDG&E, saying PG&E and SCE customers deal with the same types of issues and adding that additional fees and CCAs can make the calculations even harder to follow.
What can be done?
A user argued that when the spread between plans is only 1% to 2%, it may be more practical to "pick the least annoying one and reclaim the spreadsheet time for something more enjoyable."
That same user also said expensive peak power does not automatically mean batteries or extra solar panels will pay for themselves.
More From EnergySage
💡Go deep on the latest news and trends shaping the residential solar landscape
They said, "If your existing solar production and consumption already line up reasonably well, there may simply not be enough arbitrage available to justify the battery cost."
They also noted that extra generation may offer little benefit if most of it is exported.
For households still shopping for solar, EnergySage can help cut through some of that complexity. With EnergySage's help, the average person can save up to $10,000 on solar purchases and installations. EnergySage's solar map shows the average cost of a home solar panel system by state, along with solar panel incentives for each state, and together these tools help homeowners get the best price on rooftop solar panels and access available incentives.
Adding battery storage to a solar setup is one of the best ways to protect your home during outages, save money on energy, and go off-grid. Homeowners can also explore EnergySage for information about home battery storage options, including competitive installation estimates.
Where can I learn more?
For more on the dollars-and-cents side of rooftop solar, these articles cover California bill-relief efforts, long-term savings estimates, and incentives that can still affect the payoff.
• In one California city, officials are turning rooftop solar into relief for low-income households.
• Nationwide, families still save $50,000 by going solar even as tax breaks wobble.
• Homeowners are finding solar is worth the investment even without the federal tax credit.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
