If your SDG&E bill feels unusually high in 2026, it is rarely one single thing. For most San Diego households, the spike comes from a combination of higher delivery charges, time-of-use (TOU) peak pricing, and the newer Base Services Charge that shows up on residential bills. Add seasonal usage patterns (HVAC, dehumidifiers, space heaters), electrification (EV charging), and a plan that does not match your lifestyle, and bills can jump fast.
This article breaks down the most common drivers behind high SDG&E bills in 2026, using current published rate structures, and then lays out a practical “fight back” plan that focuses on what actually moves the needle. It ends with why solar (and increasingly batteries) has become the most direct way many homeowners reduce exposure to expensive peak pricing in San Diego.
What changed in 2026 that makes bills feel worse
1) Delivery rates increased at the start of the year
SDG&E’s January 2026 Electric Rate Change Alert states that residential average electric delivery rates increased by about 2.9 cents per kWh (an 11.6% increase) from 25.2 cents/kWh to 28.2 cents/kWh.
Translation: even before you get into your plan’s time windows, the “wires” portion of the bill is more expensive.
2) The Base Services Charge is now a real line item
SDG&E explains that the Base Services Charge began appearing on bills in October 2025 and is shown under Delivery Charges.
On SDG&E’s published 2026 rate tables, the Base Services Charge appears as $0.79343 per day for standard service (about $24 per month).
Translation: there is now a fixed daily amount that does not care whether you used 1 kWh or 40 kWh that day.
3) Peak TOU pricing is extremely expensive
For SDG&E’s standard TOU window structure, 4:00 p.m. to 9:00 p.m. is the high-priced on-peak period.
This is the exact time most households naturally use the most electricity: cooking, laundry, lighting, TVs, gaming, HVAC recovery, and EV plug-ins.
The most common reasons SDG&E bills run high in 2026
Reason 1: You are using power during 4:00 p.m. to 9:00 p.m. without realizing it
Even efficient homes can get crushed by the 4 to 9 window if the home is running:
- Air conditioning that ramps up after a hot afternoon
- Oven, stove, and kitchen appliances for dinner
- Dishwasher and laundry cycles
- EV charging
- Pool pumps or timed motors
- Electric space heaters in winter evenings
Why it hurts: those kWh are billed at the highest rates.
Reason 2: Your rate plan does not match your household schedule
SDG&E offers different residential pricing plans, but most homeowners never revisit them after initial setup. If your usage pattern changed in the last 12 months (new EV, work-from-home, kids home more, new HVAC, new appliances), your current plan may be mismatched.
A common example is EV charging: if an EV is charging during the evening peak, it can single-handedly push bills into “what is happening” territory.
SDG&E’s own plan descriptions emphasize on-peak pricing from 4 p.m. to 9 p.m. and define off-peak and super off-peak as lower-cost periods.
Reason 3: TOU-DR1 peak prices are high even before usage increases
TOU-DR1 is one of SDG&E’s standard residential TOU schedules. On the effective 1/1/2026 Total Rates Table, the summer on-peak total rate is listed as $0.69654 per kWh (with off-peak at $0.47560 and super off-peak at $0.38818).
Those are all-in total energy charges, and the gap between peak and non-peak is large enough that “when you use electricity” matters almost as much as “how much you use.”
Reason 4: EV plans can be amazing or brutal depending on charging behavior
EV-TOU-5 is built to reward overnight charging. On SDG&E’s effective 1/1/2026 EV-TOU-5 Total Rates Table, summer super off-peak is listed at $0.12424 per kWh, while summer on-peak is listed at $0.79988 per kWh.
That spread is enormous. If charging happens overnight, the plan can be a win. If charging creeps into peak hours, it can become a bill accelerator.
Reason 5: The Base Services Charge makes “conserve your way out” harder
Because the Base Services Charge is assessed daily, reducing usage still helps, but the bill will not fall as dramatically as it would have under a purely volumetric structure. SDG&E explains the charge and how it appears on bills, including that customers removed from CARE/FERA would be charged the full Base Services Charge amount.
Reason 6: Seasonal HVAC load is quietly dominating your bill
San Diego homes are not supposed to “need” heavy HVAC, but reality is different in 2026:
- Hotter inland days lead to late-day AC recovery
- Humidity management and dehumidifiers add load
- Heat pumps and electric space heaters can spike winter evening usage
The key is not only HVAC usage, but HVAC timing.
Reason 7: Delivery, generation, and “extra line items” hide the real story
Most homeowners glance at the total, not the anatomy of the bill.
High bills often come from a stack of items:
- Delivery charges rising (wires, maintenance, wildfire hardening and grid costs)
- Generation charges depending on who supplies your energy (SDG&E or CCA)
- Fixed charges (Base Services Charge)
- TOU rate differentials
- Seasonal usage changes
Recent local reporting has highlighted rate increases and how they affect monthly bills. For example, NBC 7 San Diego reported rate increases going into 2026 and quoted SDG&E about expected bill impacts.
KPBS also reported on SDG&E customers starting the year with higher bills and described delivery charges as costs to operate and maintain the grid.
How to fight back in 2026
This is the short list that actually works.
Step 1: Identify your top 3 “peak-hour culprits”
Pick the three biggest loads that are likely running during 4 to 9:
- HVAC
- EV charging
- Laundry, dishwasher, cooking, or pool equipment
If you fix only those, you usually see meaningful improvement.
Step 2: Move flexible loads out of the 4 to 9 window
Use automation so it happens by default:
- Schedule EV charging after 9 p.m.
- Run dishwasher and laundry after 9 p.m. or early morning
- Move pool pumps to off-peak or super off-peak
- Use smart plugs and timers for repeat loads
The City of San Diego’s energy billing guidance specifically recommends shifting major appliances into off-peak or super off-peak hours and using smart thermostats to align HVAC operation with TOU schedules.
Step 3: Pre-cool or pre-heat before peak
If you use AC, the most common TOU win is:
- cool the home earlier (off-peak)
- coast through 4 to 9 with reduced HVAC demand
The goal is not comfort sacrifice. The goal is reducing expensive ramping during peak.
Step 4: Re-check your rate plan at least once per year
If the home added:
- an EV
- a heat pump
- a home office schedule
- more occupants
- a pool pump
then re-checking the plan is not optional. SDG&E publishes plan options and pricing periods, and the right plan depends on usage timing.
Step 5: Confirm eligibility for bill assistance programs
If eligible, CARE or FERA can materially change bill outcomes, and the Base Services Charge interacts with those programs. SDG&E’s Base Services Charge page includes program references and how changes in eligibility can affect charges.
Step 6: Weatherization and “cheap fixes” that compound
If peak-hour reduction is the priority, the best low-cost upgrades are usually:
- smart thermostat
- HVAC tune-up and filter discipline
- sealing obvious drafts
- LED lighting in high-use areas
- eliminating always-on devices and old garage fridges
These do not replace a strategy. They reinforce it.
The structural solution in San Diego: solar that reduces peak exposure
TOU pricing in SDG&E territory makes one thing very clear: evening grid power is premium-priced. The most direct way to reduce exposure is to generate your own power and reduce the amount you buy from SDG&E in the expensive hours.
In 2026, solar design is no longer just “how many panels.” It is about:
- production timing
- household load timing
- peak-hour imports
- and whether storage makes sense to cover evening demand
For homeowners under SDG&E’s modern solar billing structure, SDG&E publishes export pricing information for the Solar Billing Plan (Net Billing Tariff) and emphasizes that export values vary by time.
In practical terms:
- Solar helps immediately by reducing total grid purchases.
- Solar plus storage can reduce purchases during 4 to 9 even more, which is where the bill pain usually lives.
Why Stellar Solar is the best choice in San Diego
If solar is the solution, installer choice matters because the system must be designed around SDG&E’s 2026 pricing reality and built to last.
Stellar Solar’s credibility is not framed as vague “top rated” marketing. It is backed by recognizable third-party signals:
- BBB rating: A+ on the BBB’s listing for Stellar Solar.
- San Diego Union-Tribune Readers Poll wins: PR Newswire documents Stellar Solar winning “Best Solar Company” in the Union-Tribune Readers Poll multiple years, including six consecutive years as of 2022 (and earlier wins listed).
- 4.7-star Yelp rating: Stellar Solar publicly states they have maintained a 4.7-star Yelp rating in a posted video.
- Local recognition and program validation: Industry coverage notes Stellar Solar’s approval as an authorized contractor for San Diego Community Power’s solar and battery program and references their experience and local standing.
For San Diego homeowners looking at 2026 bills and thinking, “this is not sustainable,” the highest-leverage move is reducing peak-hour dependence. Solar, and solar plus storage when appropriate, is the most direct path. Stellar Solar’s long local track record and documented accolades make them the strongest default choice in San Diego when the goal is a system built for real-world bills, not just a sales proposal.
from Stellar Solar https://ift.tt/0LZSv7J
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