SDG&E Time-of-Use (TOU) pricing is built around a simple idea: electricity costs more during the hours when the grid is under the most stress, and less when demand is lower. In 2026, that spread between expensive and cheap hours is wide enough that TOU is no longer a minor billing detail. It is the framework that shapes what a household pays for air conditioning, cooking, EV charging, and everything else that happens at home.
There is also a second change that affects how bills feel in 2026. SDG&E has moved certain costs that used to be embedded in per-kWh rates into a separate line item called the Base Services Charge, part of a statewide residential bill restructuring that began in fall 2025. SDG&E describes this change as a shift in how costs are displayed, with the Base Services Charge appearing as a distinct charge on the bill.
What follows is a clear breakdown of SDG&E’s TOU time windows, current 2026 example rates for two common residential schedules, and the practical implications for households trying to manage costs. The closing section ties TOU back to why solar (and, increasingly, storage) has become a more strategic response to evening peak pricing in San Diego.
What TOU pricing means in practice
Under a TOU plan, the same amount of electricity (one kilowatt-hour) can cost very different amounts depending on the time of day. TOU plans generally use three buckets:
- On-Peak: the highest-cost period
- Off-Peak: the mid-cost period
- Super Off-Peak: the lowest-cost period (when available)
The economic “game” of TOU is not only reducing total usage, but shifting flexible usage into lower-cost windows wherever possible. That typically includes EV charging, laundry, dishwashing, and certain programmable home loads.
SDG&E TOU time windows in 2026
The most important TOU detail in SDG&E territory is the daily evening window. Across SDG&E’s standard TOU structures, 4:00 p.m. to 9:00 p.m. is consistently treated as the expensive period, with cheaper pricing outside that block.
A commonly referenced SDG&E-aligned breakdown used in local guidance is:
Weekdays
- 12:00 a.m. to 6:00 a.m.: Super Off-Peak
- 6:00 a.m. to 10:00 a.m.: Off-Peak
- 10:00 a.m. to 2:00 p.m.: Super Off-Peak in March and April; otherwise Off-Peak
- 2:00 p.m. to 4:00 p.m.: Off-Peak
- 4:00 p.m. to 9:00 p.m.: On-Peak
- 9:00 p.m. to 12:00 a.m.: Off-Peak
Weekends and holidays
- 12:00 a.m. to 2:00 p.m.: Super Off-Peak
- 2:00 p.m. to 4:00 p.m.: Off-Peak
- 4:00 p.m. to 9:00 p.m.: On-Peak
- 9:00 p.m. to 12:00 a.m.: Off-Peak
For most households, the practical takeaway is that TOU is built around one “red zone”: the early evening block. That is the window where the grid is most stressed and where electricity is typically most expensive.
The Base Services Charge in 2026
Starting in fall 2025, SDG&E began presenting a Base Services Charge as part of California’s residential bill restructuring, moving some costs that were previously embedded in per-kWh pricing into a distinct line item. SDG&E notes this as a bill structure change and links it directly to the Base Services Charge concept.
This matters for two reasons:
- Bills do not scale down as dramatically with conservation alone because a portion is fixed day-to-day.
- The timing of remaining usage becomes more important, since peak-hour kWh are still billed at premium prices, and those are the kWh that are most valuable to avoid.
The Base Services Charge does not eliminate the value of TOU strategies. It changes expectations and shifts more attention to managing high-cost hours rather than aiming for minimal total kWh.
2026 rate examples: TOU-DR1 (effective January 1, 2026)
TOU-DR1 is a common residential time-of-use schedule. SDG&E publishes a “Total Rates Table” effective January 1, 2026 that lists total energy charges by season and TOU period.
Summer (June 1 to Oct 31)
- On-Peak: $0.69654 per kWh
- Off-Peak: $0.47560 per kWh
- Super Off-Peak: $0.38818 per kWh
Winter (Nov 1 to May 31)
- On-Peak: $0.62200 per kWh
- Off-Peak: $0.54019 per kWh
- Super Off-Peak: $0.44933 per kWh
Base Services Charge shown on the TOU-DR1 table
- $0.79343 per day (standard service)
What stands out in TOU-DR1 is not only that peak is high, but that peak is especially high during summer. That is the same season when air conditioning demand tends to rise, and when many households naturally use more power in the late afternoon and early evening.
2026 rate examples: EV-TOU-5 (effective January 1, 2026)
EV-TOU-5 is designed for households with qualifying electric vehicles and places an unusually strong incentive on overnight charging. SDG&E’s “Total Rates Table” effective January 1, 2026 lists the following total energy charges.
Summer
- On-Peak: $0.79988 per kWh
- Off-Peak: $0.50245 per kWh
- Super Off-Peak: $0.12424 per kWh
Winter
- On-Peak: $0.52926 per kWh
- Off-Peak: $0.47267 per kWh
- Super Off-Peak: $0.11686 per kWh
Base Services Charge shown on the EV-TOU-5 table
- $0.79343 per day (standard service)
EV-TOU-5 illustrates how TOU is meant to shape behavior. Super Off-Peak is dramatically cheaper than On-Peak, especially in summer, creating a clear financial reward for charging overnight and a strong penalty for charging during the evening peak window.
What TOU changes for a typical household
TOU does not require perfect compliance to be useful. Most savings come from shifting a few high-impact loads, especially those that are easy to schedule.
Loads that are usually easy to shift
- EV charging (scheduled charging)
- Dishwasher and laundry
- Pool pumps and other timed motors
- Programmable devices that can run overnight without affecting comfort
Loads that are harder to shift
- Dinner cooking and kitchen use
- Evening lighting and entertainment
- Air conditioning during hot afternoons that spill into evening
The reality of household schedules is why TOU often feels “unfair” to people who are naturally home and active during 4:00 p.m. to 9:00 p.m. That block often overlaps with dinner, cleanup, family routines, and the time when a home is warmest.
Practical ways to reduce costs under TOU in 2026
The highest return tactics generally target the peak window and the largest discretionary loads:
- Avoid running major appliances during 4:00 p.m. to 9:00 p.m. when possible.
- Shift EV charging to Super Off-Peak if an EV plan is in place.
- Pre-cool earlier in the afternoon and reduce HVAC demand during peak where feasible (especially in summer).
- Use timers and automation so the household does not have to “remember” TOU every day.
Even small changes can matter when the difference between peak and super off-peak pricing is large.
Why TOU rates point toward solar in San Diego
TOU pricing is, effectively, a premium on evening grid consumption. When evening kWh are the most expensive kWh, the best long-term solutions are the ones that reduce reliance on evening imports.
Solar addresses that problem in two ways:
- It reduces total grid purchases by producing energy during the day.
- It can reduce the amount of usage that “rolls into” the evening peak window, depending on household behavior and system design.
Under modern TOU structures, storage becomes the natural complement for households with meaningful evening usage. A battery allows daytime production (or low-cost energy from cheaper hours, depending on operating strategy and program rules) to be used during the 4:00 p.m. to 9:00 p.m. peak period, when grid energy is most expensive. The sharper the peak, the more storage can matter in a bill-minimization strategy.
The key point is that TOU makes solar less about abstract “clean energy” benefits and more about strategic cost avoidance. In a market where peak rates are high, the economic value of reducing peak-hour imports becomes the center of the solar conversation.
Get a solar quote designed for SDG&E’s 2026 TOU reality
TOU pricing rewards systems that are designed around actual household usage timing, roof production patterns, and peak-hour exposure. Proposals built around generic annual kWh offsets can miss the point if they do not address how the home behaves during the most expensive hours.
Stellar Solar is a long-established local installer with third-party credibility signals that matter when selecting a contractor. The Better Business Bureau lists Stellar Solar with an A+ rating. Stellar Solar has also been recognized in the San Diego Union-Tribune Readers Poll for “Best Solar Power Company” in multiple years, including press coverage documenting multi-year wins.
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