If you’re a homeowner in Southern California, brace yourself: California electric rate increases are hitting hard. Both San Diego Gas & Electric (SDG&E) and Southern California Edison (SCE) have implemented significant rate hikes, and the impact on monthly utility bills is already being felt across the region.

Whether you’re in San Diego, Riverside, or Orange County, understanding why electricity prices are rising in California—and what you can do about it—is more important than ever.

SCE Rate Hike Approved by CPUC

The California Public Utilities Commission (CPUC) has approved a 10% rate increase for Southern California Edison (SCE) effective October 1, 2025. For the average household, this means an extra $17 per month or $200 per year added to your electric bill. The increase funds wildfire safety measures, infrastructure upgrades, and future grid reliability.
Read more here.

After this hike, SCE’s average residential rate jumps to $0.353 per kWh (or $0.333 with the Climate Credit). A typical 500 kWh/month household will see bills rise from $171.17 to $193.23, a 12.9% increase. CARE customers face a 13.3% increase.
See SCE’s official advisory.

SDG&E Rate Increases Approved by CPUC

San Diego Gas & Electric customers are facing some of the highest electricity costs in the country. As of mid-2025, SDG&E residential rates have climbed 4.5% to 9.7%, depending on your billing structure. That means the average cost per kilowatt-hour is now approaching $0.397, making San Diego one of the most expensive regions for electricity in the U.S.

Why the spike? SDG&E cites wildfire mitigation, grid modernization, and compliance with California’s clean energy mandates as key drivers. These investments include undergrounding power lines and upgrading infrastructure to reduce fire risk—critical improvements, but ones that come at a steep cost for homeowners.

To soften the blow, SDG&E applied an $81.38 California Climate Credit to October bills as part of the state’s Cap-and-Trade program. While helpful, this credit is temporary and does little to offset the long-term trend of rising rates.
https://www.msn.com/en-us/weather/climate-change/look-for-80-climate-credit-on-your-electricity-bill-in-october/ar-AA1NL3TR.

SDG&E and SCE Rate Hikes: The Breakdown

According to the California Public Utilities Commission (CPUC), SDG&E residential customers saw their rates increase by 4.5% to 9.7% starting in June 2025. Meanwhile, SCE customers are facing a 12.9% spike in average monthly bills, with some CARE customers seeing increases of over 13%.

These changes mean that:

These figures are part of a broader trend of California utility bill spikes that have accelerated over the past decade.

Why Are Electricity Rates Rising in California?

The reasons behind these California electricity rate increases are complex but consistent across utilities:

These factors are driving electric rate hikes across California, and experts warn that more increases are likely in the coming years.

The Bigger Picture: A Decade of Rising Costs

Over the past 10 years:

These increases far outpace inflation and make California energy costs in 2025 some of the highest in the nation.

How Baker Home Energy Can Help You Lower Your Electric Bill

If you’re wondering how to lower your electric bill in California, Baker Home Energy offers proven solutions:

With over 30,000 customers served, Baker is San Diego’s trusted partner for energy-efficient home upgrades and whole-home energy solutions.

Take Control of Your Energy Costs Today

Don’t wait for the next rate hike. Whether you’re looking to avoid SDG&E rate increases, explore solar solutions for high electric bills, or compare California electricity rates, Baker Home Energy is here to help.

📞 Call Baker at 877.578.8080 or https://www.bakerhomeenergy.com/residential/request-pricing

At Baker Home Energy, excellence isn’t just a goal—it’s a standard. We’re proud to announce that for the second year in a row, Baker Roofing has been named a GAF President’s Club Award Winner, the highest distinction awarded to GAF Master Elite® Contractors.

This recognition places Baker among the top echelon of roofing professionals in North America, reaffirming our commitment to delivering power, comfort, and better living through every roof we install.

What Is the GAF President’s Club Award?

The GAF President’s Club Award is reserved for Master Elite® Contractors who demonstrate exceptional performance, reliability, and service. Fewer than half of Master Elite® contractors qualify for this elite status, making it one of the most prestigious honors in the roofing industry.

To earn this award, contractors must:

This award is not just a badge—it’s a testament to our team’s dedication to quality and customer satisfaction.

Why GAF Master Elite® Matters

Only 2% of roofing contractors in North America are invited to become GAF Master Elite® Contractors—and Baker didn’t apply, we were invited. This designation means:

When you choose Baker roofing, you’re choosing a contractor trusted by the largest roofing manufacturer in North America.

What This Means for Homeowners

Being a GAF President’s Club member means Baker can offer homeowners:

Whether you’re replacing a roof, upgrading for solar integration, or preparing for seasonal weather, Baker’s award-winning roofing team is here to protect your home with precision and care.

Looking Ahead

This back-to-back recognition from GAF is more than an accolade—it’s a reflection of our whole-home commitment. From solar and battery storage to HVAC, water solutions, and now roofing, Baker continues to lead with integrity, innovation, and customer-first service.

Ready to experience award-winning roofing? Call us at 877.578.8080.

The Inflation Reduction Act has been signed into law, making way for an investment of $430 billion to reduce carbon emissions—the largest climate investment in American history. This means that many solar consumers now qualify for various tax breaks and rebates. Below, we break down some of the key solar incentives in the climate bill and how they will benefit homeowners with solar PV systems. 

Solar Incentives in The Climate Bill: Key Points

The solar incentives in the climate bill are aimed at facilitating a quicker transition of households and businesses to cleaner energy sources. The incentives are expected to make electric vehicles, solar rooftop panels, and energy-efficient appliances more affordable. Some of the tax breaks are new, while others are extensions or enhancements of existing solar credits. Here are some of the key points:

30% Tax Credit

The 30% clean energy credit applies to all solar projects installed in 2022 and will be effective until the end of 2032. The residential clean energy credit is an extension of the existing Investment Tax Credit that would drop to 26% in 2033 and 22% in 2034. After 2032, the credits will start to decrease. 

Tax credits also extend to solar energy storage. Batteries connected to a solar PV system will continue to qualify for the credit even if they are not charged by solar energy. For projects smaller than 5 MWac, the tax credits will cover interconnection costs. 

Tax credits have also been extended to both new and used electric vehicles (EVs). The existing Investment Tax Credit has not only been extended through 2032 but also tweaked to include credits worth up to $7,500 on the purchase of electric cars, hydrogen fuel cell vehicles, and plug-in hybrids. For used vehicles, buyers could qualify for 30% of the sale price or $4,000, whichever is less. Qualifying for tax credits is contingent upon additional factors including income requirements, vehicle price, and vehicle qualifications.

The bill also offers a 30% tax credit toward the cost of installing exterior doors, exterior windows, skylights, water heaters, and other energy-efficient home improvements and appliances.     

Rebates on Efficient Appliances

Under the High-Efficiency Electric Home Rebate Program, households are eligible for rebates up to $14,000 on the purchase of efficient, electric appliances: up to $8,000 for a heat pump for space heating or cooling, up to $1,750 for a heat pump water heater, and $840 for an electric heat pump clothes dryer or an electric stove. However, income limits apply to households qualifying for the rebates.   

Increased Savings

Apart from reducing reliance on expensive grid-generated electricity, solar PV systems, and other energy-focused home upgrades can directly lower electricity and heating bills. It is estimated that the bill’s combined policies would help an average household save about $170 to $220 a year in electricity costs.

Since 2010, solar costs have declined 70-80 percent. The price of a typical 6kW residential PV system has lowered by almost $30,000. The U.S. Department of Energy further aims to bring down the cost of a residential solar PV system to $0.02 and $0.05 per kilowatt-hour without subsidies by 2030. For a typical residential solar PV system, this could translate into savings of around $14,000—further emphasizing why you should go solar at the earliest opportunity.   

Partnering with A Solar Installer to Claim Solar Incentives

When you are considering running your household on solar energy, there are several concerns including upfront costs, financing, estimated savings, the permitting process, installation, and others. The rebates and incentives offered by the climate bill will address some of these concerns. In addition, the Department of Energy has introduced a free, web-based tool—called Solar Automated Permit Processing—that would accelerate reviews of solar applications as well as approvals for residential solar permits. The fast-track permitting process has already increased residential solar system installation in San Jose, California by 600 percent. However, you still need an expert to help navigate the purchase, financing, permitting, and installation processes. 

At Baker Home Energy, we strive to understand your household’s energy requirements and determine the right-sized PV system. We also recommend products from the best brands, consult with you on your initial investment and any benefits for which you may qualify, and offer financing options. In addition, Baker experts help you complete the permitting process, and finally, install the PV system. As an experienced and reputable energy company in business in Southern California for over 84 years, we are your one-stop source for all things solar.     

Baker Home Energy is a trusted name for solar installations, with 20,000 installations in Southern California. To learn more about solar incentives in the Inflation Reduction Act and how they can help you go solar, contact us.
Per-panel solar monitoring gives homeowners a complete view of their systems.

Investing in a residential photovoltaic (PV) system for renewable energy generation can save homeowners thousands of dollars over the years, as well as reduce the whole family’s carbon footprint. During installation, it’s possible for project technicians to add per-panel monitoring for your solar home system. Knowing the benefits of this option can help you decide whether or not to include it in your project.

Before diving too deeply into the advantages, however, it makes sense to understand a bit more about the technology of solar panel electricity generation and home electricity use.

Quick Guide: DC vs. AC Current and Inverters

When people think of electricity, most think of their power as consistent. After all, when you flip a switch or plug in an appliance that object turns on, no matter the time of day.
At the level of circuits, however, that perception of constant power is an illusion. For a variety of reasons, the electricity coming into your home is sent as a current with a rapidly fluctuating magnitude that varies —like a pulse—at 60 cycles per second. That’s why it is called alternating current (AC).

Solar panels, like all kinds of batteries, deliver power in direct current (DC), without modulating the current’s magnitude. Whatever electricity the panels produce goes directly into the home’s electrical system. Obviously, this requires some form of conversion that allows residential systems to use this energy. An inverter is a circuit and/or mechanical system that converts incoming DC currents into usable AC power.

String vs. Per-Panel Inverters

For most solar home systems and smaller commercial installations, the standard practice has long been to install panels in a series, attached to a single inverter. This provides a few benefits: simple installation, low cost, and many homeowners who were early adopters of solar energy (prior to 2000) would not have had the technology to monitor their own systems. However, with the advent of smartphones and the Internet of Things, that has changed.

Now, homeowners can choose from a variety of methods to track the electricity generated by each panel in an array, via web-based software, smartphones, or tablets. As a result, solar installers now offer systems that include per-panel microinverters that attach to each panel installed on a home’s roof.

Why Per-Panel Monitoring Makes a Difference

A microinverter is the key to per-panel monitoring since it measures the current generated by each solar panel. A microinverter gauges the amount of energy that goes into the household, back into the grid, or into a battery storage system, among other functions.

Solar panels are designed to capture as much sunlight as possible, and as such, are usually installed at a precise angle. However, a microinverter can also help to create conditions for maximum storage generation by changing the internal resistance of the panels based on temperature, available sunlight, and other factors. In fact, some studies suggest that a residential array of panels with per-panel microinverters can increase efficiency by at least 10 percent.

When it comes to per-panel monitoring, not only is it possible to see these changes in efficiency in real-time, but the required equipment increases efficiency via environmental conditions. As a crucial bonus, if there is a problem with an individual solar panel, tracking its generation capacity is an easy way to find out if repairs or replacements are needed. 

It’s important to remember that with per-panel monitoring systems, not every panel will operate at 100% at all times because your entire array generates power as a whole. If a monitoring report indicates that some of your panels are not running at optimal efficiency, that does NOT mean you have a system failure. However, a per-panel monitoring system will alert you immediately about issues with individual panels. 

Get Help with Per-Panel Monitoring For Solar

Per-panel monitoring for solar panel installations can offer a number of benefits to homeowners, including improved efficiency and early notifications of potential solar system issues. To ensure your home solar panel project works within your renewable energy goals and your budget, be sure to partner with an installation company that understands the pros and cons of different system designs.

Baker Electric Home Energy has served the Southern California area for over 15 years and provided clean energy solutions to more than 17,000 of your neighbors. Our way of doing business, The Baker Way®, which includes delivering extraordinary service and building customer confidence, is exemplified by being awarded the Torch Award for 2021. For more information on installing per-panel monitoring for your solar panels, contact us. 

As a resident of Southern California, switching to renewable solar energy means you are eligible for economic benefits like incentives, tax credits, and other rebate programs. Your eligibility to receive these rewards, however, depends on a variety of factors, including your income level, interest in battery storage, and your electric utility provider, among others. 

This blog post discusses several solar incentives available to California homeowners and why consulting with a solar expert is the best way to determine your eligibility for these bonuses.

Solar Incentives vs. Tax Credits

Before getting into the details of California-specific solar incentives, it’s important to understand the basic difference between solar incentives and tax credits.

Federal Legislation

The federal residential solar energy credit, also known as an Investment Tax Credit (ITC), is based on the amount of money you invest in fitting your home with a solar photovoltaic (PV) system. Under the new Inflation Reduction Act of 2022, homeowners can claim 30% of solar installation costs until 2032, with no maximum limit to the amount you can claim.

In an effort to encourage individual participation in climate change initiatives, the new law offers rebates to homeowners who upgrade older appliances to more energy-efficient models. Additional incentives are also available for those who purchase new or used electric vehicles.

As an investor in solar energy property, you can apply the credit to your personal income taxes as long as construction on your solar PV system begins between 2021 and 2022. 

California Solar Incentives Available to You

Statewide Solar Incentives

Self-Generation Incentive Program (SGIP) 

The California Public Utilities Commission provides incentives to support existing, new, and emerging distributed energy resources (DER) for residential and non-residential facilities. As part of their wildfire season preparation plan, CPUC has more than $1B in authorized funding for SGIP. This program offers upfront rebates for installing energy storage systems, such as solar batteries paired with rooftop solar panels. The rebates vary depending on battery storage capacity. 

Property Tax Exclusion for Solar Energy Systems 

Installing solar panels or solar-powered devices on your home increases its value. The property tax exclusion exempts you from paying property taxes equal to the amount of your property’s increased value due to the system’s installation. This statewide tax exclusion is extended through January 1, 2025. 

California Public Utilities Commission (CPUC) Programs

The following ongoing California Solar Initiative (CSI) subprograms provide incentives to all low-income households installing solar PV systems and all residential customers investing in solar thermal technologies.  

Additionally, California residents are still eligible to take advantage of the economic benefits of Net Energy Metering (NEM).  

Installing solar panels requires a significant upfront investment. These solar incentives can help California homeowners reduce their out-of-pocket expenses during the construction and installation of a  residential solar PV system. However, consulting a solar expert is highly recommended in order to properly determine your eligibility for these incentives.

Partnering with A Solar Expert to Determine Your Eligibility for Solar Incentives

At Baker Home Energy, we help you reap the benefits of going solar with our high-quality custom solar solutions, all of which include installation, consultation, repair, and maintenance services. As a SoCal-based business for over 80 years, we are deeply familiar with the frequently changing state solar incentive programs and can advise you on your best options regarding eligibility. 

With over 16,500 high-quality solar installations, we are your go-to solar consultant committed to guarding you against future electricity rate hikes and helping you make the most of your investment in solar energy.

Baker Home Energy has been providing solar energy solutions to South California homeowners for over 15 years. Our way of doing business, the Baker Way®, is known for building customer confidence through extraordinary service. Contact us to learn more about California solar incentives and determine your eligibility for economic benefits as a solar power consumer. 

San Diego is one of the BEST zones in the U.S. for installing renewable solar home energy systems. 

Since 2015, the city has been committed to achieving net zero greenhouse gas (GHG) emissions by 2035. Over the years, this climate plan has evolved to include initiatives that simultaneously increase economic opportunities and protect vulnerable areas from threats due to extreme climate factors. 

Get a rebate when you help save the planet!

More than a proactive city-wide strategy to address climate action, implementing some of the individual objectives also offers homeowners great opportunities to recoup a portion of their solar installation costs.

As you research how much of your own “green” you’ll need to invest to go green with a home renewable energy system, it’s important to know what you should expect to see on project bids. 

So, if you want to know how much it costs to install solar panels in San Diego, first you need to break it down into the following elements:

Initial Consultation, Inspection and Permitting

No legitimate company will charge you for coming to your home and providing an estimate for a solar panel installation. That part is free, and it will give you a good idea of some basics, like:

  1. What size installation do you need to maximize your savings? All systems cost a few thousand dollars at least, but the larger the system, the more excess energy you’ll need to generate to offset the cost.
  2. How will the system work with your home? While both rooftop and separate installations are possible, your solar consultant will also likely plan a system to maximize collection, which can depend on your roof’s slope, your neighborhood, and other factors.
  3. What’s the cost of add-on features? Batteries and power walls allow homeowners to store energy during cloudy and stormy periods, maximizing the value of their investment.

A consultant with a reputable solar installation company will also help you understand what permitting and other government fees are necessary, as well as any potential issues with the municipal code or your homeowner’s association.

Panels and Brackets

The majority of the cost for installing solar panels in San Diego is that of the individual photovoltaic (PV) panels themselves. 

Several different brands manufacture PV panels, including LG Solar, Panasonic, Timberline, and many others. As with many other home appliances, a qualified installer usually has established relationships with manufacturers they trust for their reliability and quality. Each manufacturer differs in pricing, but paying a dollar or so per watt for each panel would not be out of line with the current market in 2022.

The mounting system used to install your panels also contributes to the overall cost. Depending on your roofing material, an installer may be able to use brackets that clamp onto seams in your roof, or they may use a rail system to mount panels on the roof somewhat independently of its design. The latter is popular for installing solar panels on flat or low-slope roofs. 

No matter which mounting system is required for your installation, all are designed to maximize the panels’ ability to collect sunlight while simultaneously maintaining the roof’s integrity.

Labor

Solar panels can be fragile if handled improperly, and rooftop work requires installers take special care. Make sure you partner with trained and insured solar installation professionals for your solar installation. 

Hiring professionals minimizes the risk of injury or damage, not just to the investment of a solar system, but to the roof itself. 

A small roof leak can damage the roofing material itself, but it can also soak the insulation, rendering it completely useless. Make sure your installation partner has a widely known reputation for getting the work done correctly without damaging your roof.

With this in mind, San Diego homeowners should expect any home solar system installation quote to include a reasonable amount of labor. Additional hours for things like batteries, power walls, or specialized mounting systems are a normal part of the process.

Batteries and Powerwalls

Solar panels collect plenty of energy on sunny days, but what happens when sunlight is scarce? While SoCal is known for its sunshine and relatively low precipitation, more than 100 days each year see some degree of cloud cover. Installing an electrical battery storage unit as part of your renewable energy system can make a significant difference on darker days.

Unfortunately, battery technology remained fairly underdeveloped until the advent of Tesla’s electric vehicles (EVs). The company’s Powerwall technology offers on-demand energy storage and also includes intelligent controls for cycling, backup, and monitoring. Tesla certifies all installers to ensure they operate within company performance parameters.

Paying for Photovoltaic (PV) Systems

There are several different payment options to cover the installation costs for solar panels in San Diego, and it may help to think of them the same way you think about any major purchase, like a new vehicle. Homeowners can buy systems outright, they can choose from one of Baker Home Energy’s financing options, or they can lease solar systems. The option that makes the most sense for you depends heavily on your credit history, among other factors.

With a solar panel lease agreement—usually 20-25 years—homeowners use whatever electricity the panels generate and pay their utility provider for any additional energy they need. At the end of the agreement, homeowners have the option to purchase the solar system or have it removed.

The exceptions to traditional purchase options for solar systems are power purchase agreements, or PPAs. These are agreements (also 20-25 years) between a solar installation company, a homeowner, and the local electrical utility. Although it sounds similar to a lease, with a PPA, the homeowner usually pays a set amount for electricity generated by solar panels, but does not pay for the system itself. The company providing the system in a PPA shoulders the liability if it breaks down, but they are also entitled to collect any solar tax incentives. 

Find Out How Much It Costs to Install Solar Panels for Your San Diego Home

The true cost to install solar panels in San Diego varies based on your needs, your existing home, roof, and budget. Work with experienced contractors who can provide a variety of solutions so that you have some flexible options to configure a fit for any situation.

Baker Home Energy has served the Southern California area for over 15 years and provided clean energy solutions to more than 17,000 of your neighbors. Our way of doing business, The Baker Way®, which includes delivering extraordinary service and building customer confidence, is exemplified by being awarded the Torch Award for 2021. For more information on installing solar panels on your San Diego home, contact us.