Tips for Reducing Your Electricity Expenses in San Diego with 2023 SDG&E Electric Rates

Tips for Reducing Your Electricity Expenses in San Diego with 2023 SDG&E Electric Rates

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2023 SDG&E Electric Rates: How To Lower Your Electricity Costs in San Diego

By homesolarsessions | Aug 30, 2023

San Diego is renowned for its beautiful beaches, world-class zoo, and unfortunately, some of the highest electricity prices in the world. In July 2023, San Diego had an average grid electricity price of 47.5 cents per kilowatt hour, which would rank it the fourth highest among nations if it were its own country. Luckily, San Diegans have several options to lower their electricity bills through SDG&E’s electric rate plans and the residential solar and battery market. This article will discuss the different SDG&E tariffs (or rate plans) and help you choose the best option for your electricity needs. Use the links below to jump to specific topics:

1. SDG&E electric rates in 2023
2. Standard residential rates
3. TOU residential rates
4. Rates for EV charging
5. Rates for solar owners
6. Frequently asked questions

Let’s start by looking at SDG&E electric rates in 2023 and how they have changed. The average electric rate for SDG&E customers in July 2023 was 47.5 cents per kilowatt hour, a 16% increase from the average rate of 40.9 cents per kilowatt hour in July 2022. It is important to note that there are multiple SDG&E rate tariffs, so each customer’s average rate will vary based on their consumption habits and rate schedules.

SDG&E has experienced high electricity rates for many years, but they have increased rapidly from 2020 to 2023. From July 2020 to July 2023, the average utility rate increased from 28.9 cents per kilowatt hour to 47.6 cents per kilowatt hour, a 65% increase in just three years. According to projections in the 2023 Senate Bill 695 report published by the CPUC, SDG&E rates are expected to increase about 39 percent through 2026, with an average annual increase of 10.4%. If these projections hold true, the average utility rate in San Diego would exceed 64 cents per kilowatt hour by 2026.

Now, let’s dive into the different rate plans offered by SDG&E and find ways to lower your electricity bill.

SDG&E Standard Residential Rates (Schedule DR)
Schedule DR is SDG&E’s standard residential rate plan, which includes two tiers of electricity charges. As of August 2023, Tier 1 charges are 45.245 cents per kilowatt hour and Tier 2 charges are 56.969 cents per kilowatt hour. In 2023, the Schedule DR rates are the same during both summer (June-October) and winter (November-May) billing periods, and the plan no longer includes a third tier of High Use Charges (HUC) like it did in 2021. Under this plan, customers are charged at Tier 1 rates for the first 130% of their baseline allowance in each billing cycle. Baseline allowances are determined based on four climate zones in SDG&E’s service territory. To find your baseline allowance for each billing period, you can multiply the daily allowance by the number of days in the month.

SDG&E Residential Time-of-Use (TOU) Rates
SDG&E offers three different time-of-use rate plans for residential customers, each with varying per kilowatt hour charges. These plans are TOU-DR1, TOU-DR2, and TOU-DR-P, and the charges range from 36 to 84 cents per kilowatt hour depending on the rate schedule, season, and time of day. The goal with these plans is to avoid electricity usage during On-Peak hours, which can be quite expensive, reaching up to 84 cents per kilowatt hour. The plans have different rates for different periods of the day. On-Peak hours are the most expensive, followed by Off-Peak and Super Off-Peak hours. It is recommended to shift your electricity usage to Super Off-Peak hours to save on your bill.

In conclusion, San Diego has some of the highest electricity rates globally, and SDG&E rates are expected to continue increasing. However, there are different rate plans available to help you lower your electricity costs. Consider exploring the residential time-of-use rate plans and shifting your electricity usage to off-peak hours to maximize your savings.

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