Homeowners in Bostonia and surrounding East County communities face some of the highest electricity rates in the entire country, courtesy of San Diego Gas & Electric (SDG&E). With rates that seem to climb every year, solar panels offer a proven way to take back control. But since SDG&E implemented its new Net Billing (NEM 3.0) policy, the best way to install solar has changed, with energy storage becoming the key to big savings.
Benchmark Cost Analysis
How Much Does a Solar + Battery System Cost in Bostonia?
In 2026, the benchmark for a new solar installation that effectively counters SDG&E's rates is a solar-plus-battery system. The upfront cost for a typical system is around $23,500. After applying the 30% federal tax credit, the net cost drops to approximately $16,450. This investment not only generates power but also stores it, protecting you from buying exorbitant peak-hour electricity from the grid.
While a solar-only system is cheaper upfront (around $8,050 net), it sacrifices the majority of potential savings under current SDG&E rules, making it a less strategic financial choice for most homeowners.
Incentives & Tax Credits
Tax Credits That Reduce Your System Cost
The single largest incentive is the 30% Federal Solar Tax Credit. This is a dollar-for-dollar credit that reduces your federal income tax liability. On a $23,500 system, that’s a $7,050 credit waiting for you. It covers both the panels and the battery, which is crucial for systems in SDG&E territory. California also offers a property tax exclusion, meaning your home's assessed value won't go up because you added a solar system.
Net Metering: San Diego Gas & Electric (SDG&E)
NEM 3.0 (2023)
Critical 🔋
Understanding SDG&E's NEM 3.0 Policy
NEM 3.0 is the billing structure SDG&E uses for new solar customers. The critical change is that they now pay you very little—around 5-8¢ per kWh—for any excess solar energy you export to the grid. Because you pay them 5-8 times that amount to buy electricity back, sending power to the grid is a losing proposition. A battery solves this by ensuring your valuable solar energy is saved for your own use later, maximizing its financial value.
Projected Savings
Your Potential Savings Against SDG&E Rates
Pairing solar panels with a battery allows you to slash your dependence on SDG&E, leading to an estimated annual savings of $1,759. It's important to note this calculation uses a blended rate of $0.27/kWh; since many SDG&E Time-of-Use plans charge over $0.40/kWh during peak summer afternoons, your actual savings could be significantly higher. By using your stored battery power from 4 PM to 9 PM, you avoid these highest charges entirely.