What it costs, what's permitted, and what to ask before you hire.
Last verified: 2026-05-31 · Well-sourced
Likely first step
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Panel / electrical
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Complexity
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Permit likelihood
Confirm with your building department
Rebate sensitivity
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Utility impact
Electric & gas: SDG&E
San Diego Gas & Electric
As of 2026-05-30, SDG&E's default residential plan is TOU-DR1, a three-period time-of-use plan with on-peak / off-peak / super off-peak windows and a 4-9 PM peak. TOU-DR2 offers a simpler two-period structure with the same 4-9 PM peak. Households with EVs, batteries, or heat pumps may benefit from TOU-ELEC (designed for electrified homes), or from EV-specific plans: EV-TOU-5 (whole-house TOU with the lowest overnight pricing for home charging and the Solar Billing Plan) and EV-TOU (a separate-meter option). TOU-DR-P and EV-TOU-5-P are event-based variants that add Reduce Your Use events (up to 18/year) with a $1.16/kWh event adder during 4-9 PM. Plans require 12-month commitments; homeowners should verify the current default and rate cards on the SDG&E pricing plans page before assuming a peak window or rate.
$15,000–$28,000 — Installed cost for a 6–8 kW DC, single-family SoCal residential rooftop solar PV system on a typical asphalt-shingle, tile, or composition roof, mid-range monocrystalline modules, pre-incentive. Range corresponds to roughly $2.50–$3.50 per watt installed at the system sizes most common in SoCal. Excludes battery storage, roof replacement, and electrical service upgrades.
Section 25D Residential Clean Energy Credit (solar PV)
Expired Dec 31, 2025. For 2023–2025: 30% of total installed cost, no cap. EXPIRED: This federal credit ended Dec 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). Expenditures made after Dec 31, 2025 do not qualify — for §25D, the IRS treats the expenditure date as the date the installation is placed in service (completed), not the date of payment. A homeowner who paid a deposit in 2025 but whose system was placed in service in 2026 does not qualify. For installations placed in service during 2023–2025, the credit applied to solar PV systems supplying electricity to a U.S. residential dwelling used by the taxpayer as a residence (principal residence not required; second homes qualified; rentals not occupied by the taxpayer did not qualify), satisfying applicable fire and electrical codes, with installation costs included in the credit basis. The credit was nonrefundable with carryforward. Homeowners with eligible 2025 placed-in-service installations may still claim the credit on their 2025 federal tax return. Verify with a qualified tax professional.
California Net Billing Tariff (NEM 3.0) — solar export compensation framework
Policy framework, not a direct rebate. Excess solar generation exported to the grid is compensated at a rate reflecting the time-varying grid value of that generation (Avoided Cost Calculator methodology), rather than at the retail electricity rate that NEM 2.0 used. Net export compensation under the Net Billing Tariff is typically materially lower than under NEM 2.0; pairing solar with battery storage may materially affect project economics under this framework. POLICY IN EFFECT — NOT A REBATE: The Net Billing Tariff (NBT), commonly called 'NEM 3.0,' is the current Net Energy Metering framework for new residential solar interconnections in California, adopted by CPUC Decision 22-12-056 and effective for applications submitted on or after 2023-04-15. It applies to new customer-generator interconnections in the three large investor-owned utility territories: Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). LADWP and other publicly owned utilities operate their own net-metering tariffs and are not covered by NBT. Under NBT, onsite solar generation first offsets the customer's own consumption; excess generation exported to the grid is compensated at a time-varying export rate based on the grid's avoided cost rather than the retail rate. Existing NEM 1.0 / NEM 2.0 customers are generally grandfathered under the legacy tariff for a defined period from their original interconnection date — verify against the customer's utility for the legacy term. Homeowners considering new residential solar in PG&E / SCE / SDG&E territory should model project economics specifically under NBT, with and without paired battery storage, before signing a contract.
As of 2026-05-31, residential solar PV installations in the City of San Diego require an electrical permit from the Development Services Department (DSD) under the Residential Rooftop-Mounted Solar PV Permit pathway (and a Building Permit when structural modifications or ground-mounted panels are in scope). The City of San Diego participates in SolarAPP+, the federal automated plan-review platform under California SB 379 (which requires most California cities and counties to provide automated, online, real-time permitting for residential solar and paired storage), providing same-day approval for qualifying systems (typically under 15 kW). A broader DSD instant-permit self-certification pathway covers single-family homes and duplexes up to 38.4 kW AC maximum output; systems larger than 38.4 kW route through traditional plan review. California AB 1132 caps residential solar permit fees at $450 for systems up to 15 kW (plus $15 per kW above 15 kW) through January 2034. Historical review is required when the property contains a designated historical resource or is located within an adopted historic district and a Building Permit or Combination Permit is in scope (per DSD Information Bulletin 301 and the Historical Resources Regulations). Properties in SDG&E service territory require SDG&E's separate interconnection / Net Energy Metering application in addition to the DSD permit. Verify current SolarAPP+ eligibility, historical-review triggers, and SDG&E interconnection requirements with DSD and SDG&E before relying on the instant-approval timeline.