Should You Add a Battery to NEM 2.0 Solar in San Diego?
If you went solar before April 2023, you're likely on NEM 2.0, and the grid already credits the extra power your panels send out during the day. So is a battery worth it? For some homes, yes. For others, it may not pay off. Here's how to tell, with the rules as they stand in 2026 and a real San Diego home's numbers.
Will a battery change my NEM 2.0 plan?
No. Adding a battery does not jeopardize your current solar billing plan (NEM 1.0 or 2.0). SDG&E calls this NEM Paired Storage. Adding a lot of new panels is different and can affect your plan, so check before expanding your solar.
Why a battery can still help on NEM 2.0
Power costs as much as 79 cents per kWh from 4 to 9 pm. Your daytime solar earns credits, but those credits are worth less than the power you buy back in the evening, especially since San Diego homes were moved to SDCP or CEA and credits were split between two companies. (How the credit split works ›)
A battery may help if:
- Your yearly true-up bill has gone up
- Your on-peak usage (4 to 9 pm) is raising your bill
- You want backup power during outages
- You've added an electric car, pool pump or heat pump since going solar
If your home already ends the year with a credit and backup isn't a priority, a battery may not pay off, and I'll tell you that.
A real example: an inland San Diego home
Here's what one Powerwall 3 would do for a real NEM 2.0 home in San Diego Community Power's area, using its last 12 months of usage. The homeowner's details are left out.
- 4.56 kW solar system, NEM 2.0, rate plan TOU-DR2
- Used 8,358 kWh in a year; the solar made 5,853 kWh
- Buys about 6 kWh a day from the grid between 4 and 9 pm
Current rates on this plan (SDG&E delivery plus SDCP generation, from the home's August 2026 bill):
| Summer (June–October) | Delivery | Generation | Total per kWh |
|---|---|---|---|
| On-peak, 4–9 pm | 31.6¢ | 29.6¢ | 61.1¢ |
| Off-peak, all other hours | 30.9¢ | 4.4¢ | 35.3¢ |
In winter, SDCP's generation rates are 22.5¢ on-peak and 9.5¢ off-peak. On NEM 2.0, a kWh this home sends out midday earns about 35¢. A kWh it buys back in the evening costs about 61¢. A battery captures that difference.
Estimated yearly electricity cost:
| Yearly cost | Savings | |
|---|---|---|
| No battery | about $1,630 | – |
| One Powerwall 3, used for evenings only | about $1,320 | about $315 a year |
| One Powerwall 3 enrolled in SDCP's program | about $975 | about $660 a year, including about $210 in SDCP payments |
| SDCP upfront rebate | $3,375 (or $4,725 for qualifying households) | |
Why enrolling saves more: in SDCP's program, the battery powers the home first, then sends extra power to the grid from 4 to 9 pm on weekdays. On NEM 2.0, that power is credited at the on-peak rate, and SDCP pays $0.10 per kWh on top.
Every home is different. A home with more evening use, an electric car or a pool pump will see different numbers, so I run them from your own usage.
A second example: a home with more evening use
This East County home, also in SDCP's area, uses more power after 4 pm, so a battery does more for it.
- 7.06 kW solar system, NEM 2.0, rate plan DR-SES
- Used 12,689 kWh in a year; the solar made 8,967 kWh
- Buys about 10 kWh a day from the grid between 4 and 9 pm, and up to 18 kWh a day in August
Current summer rates on this plan (SDG&E delivery plus SDCP generation):
| Summer (June–October) | Delivery | Generation | Total per kWh |
|---|---|---|---|
| On-peak, 4–9 pm | 24.4¢ | 41.1¢ | 65.5¢ |
| Off-peak | 24.4¢ | 12.9¢ | 37.3¢ |
Estimated yearly electricity cost:
| Yearly cost | Savings | |
|---|---|---|
| No battery | about $2,350 | – |
| One Powerwall 3, used for evenings only | about $1,665 | about $685 a year |
| One Powerwall 3 enrolled in SDCP's program | about $1,420 | about $930 a year, including about $245 in SDCP payments |
| SDCP upfront rebate | $3,375 (or $4,725 for qualifying households) | |
Same battery, same rebate, but this home saves about $270 more a year than the first because it uses more power in the evening.
What changed in 2026
- The federal tax credit ended for homeowners who buy. The 30% credit no longer applies to batteries purchased after 2025.
- A prepaid lease can lower the cost. You pay once upfront, usually about 30% less than buying outright, because the battery's owner can still use the federal tax credit. After six years, the battery and its warranties transfer to you at no additional cost. (How a prepaid lease works ›)
- Property taxes change after 2026. A battery completed after December 31, 2026 can raise your property taxes. (What's changing ›)
SDCP homes: a rebate and a yearly payment
If you're in San Diego Community Power's area, SDCP's Solar Battery Savings Program pays $250 per kWh for a battery added to existing solar, or $350 per kWh for CARE, FERA and qualifying neighborhoods. That's about $3,375 to $4,725 for one Tesla Powerwall 3, plus about $175 a year for up to 10 years. Rebates step down as the program fills, so I'll confirm the current amount for your address. (Full rebate details ›)
CEA homes: a prepaid lease
In Escondido, Carlsbad, Oceanside, San Marcos, Vista, Del Mar and Solana Beach, the SDCP rebate isn't available. A prepaid lease can lower the cost, and a battery can still make sense for backup power and evening usage.
How to decide
I'd be happy to review your recent bills with you and tell you whether a battery or more panels make sense. Have ready:
- A recent SDG&E bill
- Your Green Button usage data. I'll send you easy steps to download it.
Already have solar? Why add a battery ›
Examples based on each home's actual 15-minute usage from the past 12 months, with SDG&E and SDCP rates as of August 2026. Yearly costs include energy, the base services charge and the wildfire fund charge, and leave out smaller items such as the PCIA, discounts and taxes. Winter delivery rates are estimated. The SDCP program examples assume the home is accepted and meets the program's monthly targets. Rules and rates as of October 2026 and subject to change. Sources: IRS Residential Clean Energy Credit, SDCP Solar Battery Savings.