Quick answer
If you're adding new solar (or already on the Solar Billing Plan, a.k.a. NEM 3), a battery usually makes the system pencil out, because the gap between what you sell and what you buy is huge. Per SDG&E's 2026 export price file, weekday 10am-2pm exports earn roughly 0-6.5¢/kWh (non-CCA), while buying power 4-9pm on EV-TOU-5 costs 80.2¢/kWh in summer (per SDG&E, as of Oct 2026).
It's a weaker buy if you're on older NEM 1 or NEM 2, have no solar and no outage worries, or would mainly buy it for backup on the coast. And two things that used to help are gone or tapped out: the federal 25D credit ended for systems placed in service after Dec 31, 2025, and SGIP rebates are closed or waitlisted.
Rates change - check sdge.com for today's numbers.
Know someone who needs this?
Something changed here? Text PJ and we'll update this page.
More free local tools: the North County toolkit.
Latest · auto-checked Oct 6
- SDG&E Prepares Power Outages Ahead of High Winds · Briefs Finance, Oct 2
- NWS: Extreme Heat Warning until Thu Oct 8, 8PM · forecast
- NWS: Beach Hazards Statement until Fri Oct 9, 11PM · forecast
- NWS: Coastal Flood Advisory until Fri Oct 9, 11AM · forecast
- Solar today: SDG&E pays about 5.5¢/kWh for noon exports vs 19.2¢ at 6pm · North County power today
Pulled automatically from public feeds (news, NWS, SDG&E, NREL, Google Trends). Something we missed? Text PJ.
Update Oct 1, 2026
SB 913 changes the future battery question, not today's quote. The Clean Local Power Act directs the CPUC to create pathways by June 30, 2028 for aggregated home batteries, solar, smart thermostats and EVs to count as grid capacity and be paid as resource adequacy, without double payment on top of NEM or net-billing credits (SB 913 text; Climate Center).
Why NEM 3 changed the battery question
Under the Solar Billing Plan, SDG&E pays you an export price that "varies by time of day and season" and is set by the CPUC. Residential customers on the Solar Billing Plan are on the EV-TOU-5 time-of-use plan, per SDG&E. So the daily trade looks like this:
| What happens to a kWh your panels make at noon | What it's worth (non-CCA) |
|---|---|
| Exported to the grid, weekday 10am-2pm | About 0-6.5¢ (median about 5.4¢), SDG&E 2026 export prices |
| Stored, then used at home 4-9pm instead of buying | Saves 80.2¢ in summer, 52.4¢ in winter (EV-TOU-5 on-peak, effective Aug 1, 2026) |
| Stored, then exported in a few hot late-summer evening hours | SDG&E's 2026 file shows some August weekday 5-9pm hours above 90¢, peaking near $1.07 |
Export figures are our summary of SDG&E's posted 2026 hourly export prices (generation + delivery, non-CCA, current-year file). If you're with San Diego Community Power or Clean Energy Alliance, your CCA sets the generation part of export credits. Customers get export pricing locked for nine years from Permission to Operate, per SDG&E. Rates change - check sdge.com for today's numbers.
Example only: every 10 kWh you store at midday and use at home 4-9pm on a summer weekday is worth about $7.50 (80.2¢ saved minus about 5¢ of export you gave up, times 10). In winter, about $4.70. That spread, times a few hundred days, is what you're comparing to the battery's installed price.
What a battery actually does for you
Time-of-use shifting
The main money reason. Charge from solar at midday, run the house 4-9pm. Without solar, you can charge from the grid in super off-peak (13.1¢ summer on EV-TOU-5) and use it on-peak, but the spread alone rarely pays back a full battery.
Backup in outages
Real value if you have medical equipment, work from home, or live inland. SDG&E's January 2025 Public Safety Power Shutoff hit around 7,000 customers in rural east and north county (Julian, Pauma Valley, Warner Springs), per KPBS. Coastal towns see fewer shutoffs.
Solar that pencils out
On NEM 3, solar without storage exports a lot of cheap midday power. Pairing a battery is what lets new solar offset expensive evening use.
Incentives: what's still on the table (Oct 2026)
- Federal 25D credit: gone for new systems. Per the IRS, the Residential Clean Energy Credit "is not available for any property placed in service after December 31, 2025." It used to include batteries of 3 kWh or more.
- SGIP rebate: effectively closed. Per the SGIP program administrator for SDG&E territory, as of December 31, 2025 new applications can only go to the Residential Solar and Storage Equity (RSSE) AB 209 budget, and all RSSE AB 209 funding is reserved, so new applications go on a waitlist funded only by cancellations. The general ratepayer budgets closed to new applications December 31, 2025, per selfgenca.com.
- Leases and PPAs: the tax picture can differ when a company owns the equipment. Ask in writing who claims any credit and whether it's reflected in your price.
If an installer's proposal still shows a 30% federal credit or an SGIP rebate on a new system, ask them to show you the source in writing before you sign.
Decide in two minutes
| If you... | Then... |
|---|---|
| Are adding new solar in 2026 | Price it with a battery and without. Under NEM 3 the battery is often what makes solar worth it. |
| Already have solar on the Solar Billing Plan and export a lot at midday | A battery is a strong candidate. Check your export vs. 4-9pm usage in My Energy Center first. |
| Have older solar on NEM 1 or NEM 2 | Slow down. Your export credit is likely already better. Ask in writing whether adding a battery changes your tariff before signing. |
| Have no solar and mainly want lower bills | Usually a weak buy on bill savings alone. Try load-shifting and the right rate plan first. |
| Need power for medical equipment or live where PSPS shutoffs happen | Backup value can justify it on its own. Size it to the circuits you truly need. |
| Drive an EV | Get the rate plan right first: EV-TOU-5 vs TOU-DR1 vs EV-TOU-2. |
Before you sign anything
- Pull 12 months of hourly usage and export data from My Energy Center. Any honest proposal should be built on it.
- Ask what the payback assumes: rate increases, export price, battery degradation, and which credits or rebates.
- Ask what's backed up in an outage (whole home or selected circuits) and for how long at your real load.
- Confirm the installer holds an active California contractor license, and get at least two written bids from licensed pros.
- Read the warranty: years, cycle or throughput limits, and who services it if the installer disappears.
We don't print battery prices here: we couldn't verify installed costs from an official source, and installer-blog numbers vary wildly. For install-side notes, see battery backup installation in San Diego.
Want a second opinion?
Got a battery proposal and a gut feeling?
Send PJ the proposal and your last SDG&E bill. You get a plain read on whether the savings math holds, which assumptions look optimistic, and what to ask before signing. SideGuy is the decision and setup help layer, not an installer or solar seller; the install itself goes to a licensed pro.
Save time and money, or you don't pay. Start with one $150 SideGuy Hour — if it doesn't save you more time or money than it costs, you don't pay for it. How the SideGuy Hour works.
Run by your local part-time SideGuy in Solana Beach. Running your own gear off the sun? See solar-powered private AI in San Diego.
Questions
Is a home battery worth it in San Diego under NEM 3?
Often yes if you have or are adding solar on the Solar Billing Plan. Per SDG&E's 2026 export prices, weekday 10am-2pm exports earn roughly 0 to 6.5 cents per kWh (non-CCA), while 4-9pm power on EV-TOU-5 costs 80.2 cents in summer. A battery lets you use your own midday solar in the evening instead. It is a weaker buy without solar or on older NEM 1 or 2. Rates change - check sdge.com for today's numbers.
Is the SGIP battery rebate still available in 2026?
Effectively no for most households. Per the SGIP administrator for SDG&E territory, since December 31, 2025 new applications can only go to the RSSE AB 209 budget, which is fully reserved, so new applicants are waitlisted and funded only as other projects cancel.
Can I still get the 30% federal tax credit on a battery?
Not for a system you own that is placed in service after December 31, 2025. Per the IRS, the Residential Clean Energy Credit (25D) is not available for property placed in service after that date. Leases and PPAs can be treated differently, so ask the provider in writing.
Do I need a battery for backup during power shutoffs?
It depends where you live and what you need powered. SDG&E's January 2025 Public Safety Power Shutoff reached around 7,000 customers, mostly rural east and north county, per KPBS. If you rely on medical equipment or live in a shutoff-prone area, backup value can justify a battery on its own.
Sources checked for this page
Checked 2026-10-01. Rules and rates change; the official source wins over anything written here.
- SDG&E: Solar Billing Plan
- SDG&E: Solar Billing Plan export pricing (2026 hourly export price file)
- SDG&E Schedule EV-TOU-5 total rates table, effective 8/1/2026
- SDG&E Pricing Plan Chooser (rates effective Aug 1, 2026)
- CPUC: NEM revisit / Net Billing Tariff
- IRS: Residential Clean Energy Credit (25D)
- SGIP San Diego (Center for Sustainable Energy) program status
- selfgenca.com: SGIP budget closures and AB 209
- KPBS, Jan 10, 2025: SDG&E power shutoffs
Know someone who needs this?
Something changed here? Text PJ and we'll update this page.
More free local tools: the North County toolkit.