The Best Energy Rates in San Diego, California in 2024

If you live in San Diego or own a business there, you should know that how much energy your use is not the sole determiner of how much you will pay on your electric bill. San Diego Electricity rates change all the time, and choosing the right electricity plan and electricity prices can help you save money and reduce how much you pay for power over the long term. As there are many energy providers in San Diego, we’ve done the work of researching them, so you do not have to. Let’s read on and learn more about affordable San Diego electricity rates. 

San Diego, CA Electricity Rates

San Diego has a reliable electricity service at average electricity rates that are much higher than the national average. As electric rates in San Diego are so expensive, there are many energy providers offering electricity services in this area. At the average price of $0.34 per kilowatt hour, you are probably better off looking for a more affordable rate than what you are paying right now. 

With a good electricity rate, your electric bill could be much lower – almost three times lower than it is now. This is because the national average electricity rate is $0.1337, while in San Diego, you will be paying almost three times that money. For this reason, many customers switch their electricity providers, ensuring lower electricity prices in any given month and pricing that almost every household budget can withstand. Here are some of the most popular and most affordable electricity rates in San Diego: 

Average Electric Bill in San Diego, CA

Considering that electricity in San Diego is so expensive, it comes as no surprise that an average San Diego resident tries to be smart with electricity habits and energy use. An average home in San Diego uses 614 kWh of electricity per month – about 30% less than an average US home uses. 

Despite relatively low energy use, the high electricity rates ensure that an average San Diego citizen pays a lot for electricity. The average electric bill in San Diego, CA, is $211 per month. This is a significant part of any home budget and is the reason why you may be here in the first place. However, before finding the best electricity rate suited to your budget and your energy needs, let’s consider the types of electricity plans offered in San Diego. 

Types of Electricity Plans in San Diego, CA

As San Diego is a vast energy market, there are many types of electricity plans. To ensure you purchase the right type of energy plan, you should first know what each of these plans has to offer and what kind of control it gives you over the price you pay for electricity, and, ultimately, how many dollars you send to the electric company. Here are the most common types of electricity plans in San Diego: 

• Fixed-rate electricity plans, 
• Variable-rate electricity plans, 
• No-deposit energy plans, 
• Business (commercial) energy plans, and 
• Green energy plans. 

Fixed-Rate Plans

Fixed-rate plans enable savings over the long term. These plans have fixed San Diego electricity rates which enable you to be protected from price fluctuations that can come from too high or too low of usage. These plans are great if you prefer stability over immediate savings and if you are ready to make a commitment to a longer contract term. In fact, most fixed-rate plans are long-term plans that you should sign for a period of at least six months. Of course, the longer the contract term, the more benefits you can enjoy in lower utility bills. 

Variable-Rate Plans

Variable-rate plans, on the other hand, are energy plans that do not have a fixed energy rate. With these plans, the San Diego electricity rates you pay on any plan can change – sometimes several times a day. These fluctuations do not have to be too high, especially as the price per kWh on the wholesale energy market is not too high. 

To see if this is the right plan for you, you should compare similar services offered in your area by other energy providers. Find a neighbor who has a variable-rate energy plan. Compare your electric bill to theirs and see if the company they purchase the electricity from would work for you and your energy needs as well. Depending on your usage, you may be better off purchasing another kind of plan. Considering the energy price volatility, we do not recommend this type of plan. 

No-Deposit Plans

If you are moving to San Diego for a short time (less than six months), or if you are worried about your credit score, you can also purchase no-deposit plans. There are affordable electricity rates (although not so cheap) that enable you to take an electricity plan on a month-to-month basis. These plans are usually prepaid energy plans. 

This means that you prepay for the electricity you would like to use. Once the electricity has been spent, you can pay for more electricity, or you can purchase a new card with a balance on it. Although this type of energy plan may not be the best solution for everyone, it is still a good option for those staying in San Diego for a short period of time. 

Business Energy Plans

If you own a business and would like to reduce the cost of electricity and save money for your company, you can contact San Diego energy providers. This is necessary to do because every energy provider will give you customized energy services and customized prices to compare. This means that you get to choose the offer that works best for you and that your company will benefit from affordable electricity rates. 

It is necessary to also consider any freebies that you may get. Some companies may offer free electricity at night and/or on weekends. Although this may not seem like the best option, it is still an option to consider, especially as this is the time your business may be closed. So, why pay for electricity to run the lights and AC if you’re not even open to making any money? Small bits add up to create a great energy service for you. 

Green Energy Plans

If you are interested in green energy and being eco-conscious, your energy provider may also be able to offer green energy plans. These plans include electricity coming from renewable sources, such as wind, solar, hydro, and other renewable sources. As the US is slowly moving towards a more sustainable, circular economy, it is necessary to start considering these plans. 

Green energy prices are expected to grow in the future, so purchasing a good green fixed-rate energy plan may be the best solution now. This way, you will secure good and stable energy rates and will be able to enjoy a reliable supply of energy for years to come. Electricity may cost a lot in San Diego, but paying a bit extra to reduce your carbon footprint is the right thing to do. 

San Diego Energy Companies

There are over a dozen energy companies working in San Diego, CA. As some of these offer gas services as well, it may be worth checking them out, as you may be able to save even more when choosing a bundle of services (electricity + gas). Here is a list of energy companies working in San Diego: 

1. 4Change Energy, 
2. Amigo Energy, 
3. Constellation, 
4. Direct Energy, 
5. Discount Power, 
6. Frontier Utilities, 
7. Gexa Energy, 
8. Just Energy, 
9. New Power, 
10. Payless Power, 
11. Pulse Power, 
12. Reliant, and 
13. Tara Energy. 

Factors That Affect Electricity Rates

The electricity rates may change over time, sometimes even a few times a day. To ensure that you understand how electricity prices are formed and why electricity rates are different in the summer and winter months, it may be best to consider all the factors that affect electricity prices. Besides political factors, there are also other factors that you should learn about to understand these energy price fluctuations. 

Fuels

First and foremost, electricity prices depend on the price of fuels that are burned to generate electricity. These fuels include gas and coal, as well as biogas and biomass. As the price of these fuels fluctuates in the wholesale market, so does the price of electricity that is generated using these fuels. 

The fuels used in US power plants come from a variety of sources. Both natural gas and coal are part-imported and part-domestic. This mix offers a reliable supply, as running short on one resource means there are more sources of that same fuel and that the supply is diversified. This is one of many ways that you are sure to always get the lowest possible price of electricity that it can be produced at. 

Power Plant Prices

Power plant prices, on the other hand, comprise all the costs of building, running, and maintaining power plants. They do not come cheap – with a price tag in the hundreds of millions of dollars, new power plants are notoriously expensive to build. Some of them, such as hydro power plants, are even more expensive, as they demand significant changes to the landscape. 

Likewise, nuclear power plants are costly to build, in particular, because of high security and safety costs. Choosing the locale can be expensive as well, and bringing in all the experts needed to run any power plant can cost a lot of money. These are the people that secure a reliable power service – essential workers, in a way. 

All these costs have to be paid off – usually within a 40-year period, which is the lifespan of an average power plant. As the US energy market is aging, it needs to replace more and more power plants every year. A lot of the new electric capacity that is installed is renewable capacity – great news for future generations and climate change mitigation. 

Transmission and Distribution Area System

All the power that is produced has to be sent to you somehow. This is done through the grid, which some call the biggest machine that man has ever made. The grid is a series of power poles and power lines, as well as transformers and other devices that are necessary to carry electricity over long distances with minimal losses. This grid costs a lot to set up and maintain. 

This is why the transmission and distribution area system has a say in the final price of electricity you pay. As this system is huge, usually with hundreds of thousands of power lines to take care of and maintain, significant funds are necessary to keep the grid up and running. On the other hand, modernization and keeping losses at bay are also necessary to ensure a reliable electricity supply for future generations. 

As the utility company’s territory stops with the electricity meter, it is also necessary to note that the new smart meters, or dual-direction meters, that are being installed throughout the US are also a part of this modernization. These meters enable a reliable supply, lesser electricity losses through the grid, and a faster and more reliable way to get to know your energy usage. 

Area Regulations

Your local area regulations can also have a say in how much you pay on your monthly bill. As it goes, even in deregulated states, a part of the control and pricing correction is in the hands of the state. These regulatory bodies are there to protect customers from unfair practices and pricing. 

These regulations can be as simple as saying how often power companies can change their pricing, as well as by how much. Connecticut, for example, allows its utility companies to change their pricing twice a year. These area regulations also make up a part of the electricity price you pay. 

Weather Conditions

Even the best energy plans and rates are subject to weather conditions. Here, the weather conditions can influence the price of electricity in two ways. The pricing can therefore be affected in both supply and demand parts of the chain. 

Firstly, energy prices can be influenced by demand. This means that during certain periods of the year, such as summer and winter, the demand for energy and energy prices rise. This is the result of weather conditions, as many households decide to crank up their AC to keep cool in the summer and warm in the winter. 

On the supply part of the energy market, weather conditions can also influence energy prices. This happens for two reasons: firstly, cold spells can impact the ability of the grid to carry electricity over long distances. This is usually a result of fallen power lines and a reduced supply of the fuels used in power plants. On the other hand, very hot weather can influence the efficiency of power plants, reducing their ability to convert fuels into usable electricity. 

How To Find the Best Energy Plan?

When looking for the best energy plan, there are certain variables to take into consideration. Maybe you simply want to browse San Diego electricity rates. Maybe you want to use green energy. Maybe you want to get free electricity service during nights and weekends. There are many factors that you should consider when in search of the best energy plan that you can get over your power line. Here are some things to consider: 

1. Do you want to use green electricity? If yes, you should look for green energy plans. 
2. Do you want to purchase a fixed-rate electricity service and secure yourself and your family against fluctuations in electricity prices? 
3. Do you use a lot of power during nights and weekends and would like to get some of that energy for free? 
4. Are you looking for a plan that can help you get a competitive price despite a low credit score? 
5. What are your energy habits? How do they change during the day and during the year? 
6. Are you willing to look for a new company to deliver electricity service to you? Note that you can only switch your energy provider, never your utility company. 

Once you have the answers to all these questions, you may want to start browsing energy plans offered in San Diego city on Electricrate and compare different energy options. Be mindful of your usage, as this is the biggest contributor to your electricity bill. San Diego electricity rates are very high, so you may benefit by having a home energy audit first and reducing your energy use. 

How To Switch Your Electricity Provider?

Once you have a few plans that may work with your budget, you may want to check out the power provider. San Diego electricity rates are offered by several energy providers. San Diego citizens can, therefore, choose among many and decide what plan is the best option for them. However, this may mean switching your electricity provider. 

If you would like to switch your electricity provider, you should know that this is straightforward work. You simply need to contact your new, desired energy provider and negotiate the contract with them. In some cases, you may even be able to get a lower price. In most cases, however, you will be signing the contract at the price that is stated on the Electricrate website. Once the contract is signed, your new energy provider will take over all the paperwork needed to switch you up. It may take up to a full month to do the switch, but you will not have to move a finger while the paperwork is being dealt with. 

How to Reduce your Electric Bill with Solar Energy? 

If you would take a home energy audit and think that you can still reduce your energy use, you should check out solar panels in your area. Solar panels are the best thing you can do to significantly reduce your energy use and carbon footprint. Solar panels can help you make your own power, whether in on-grid or off-grid operations. 

On-grid solutions with solar panels are available throughout the US. With these and a smart meter installed, you will be able to send all excess power to the grid – this means that the grid actively acts as a battery of sorts – saving you over $10,000 on purchasing a solar battery. This is available in all regions where there is net metering – a set of regulations and policies governing energy takeover by the local utility. 

In off-grid systems, your solar panels still produce electricity but send it to a solar battery or a home battery instead of to the grid. With this in mind, we should note that off-grid solar arrays cost more money and provide less flexibility – especially when it comes to storing excess power. Changing your power habits, on the other hand, can help you both reduce the size of the battery you need as well as your overall power consumption – resulting in a smaller PV solar system that costs less and is easier to maintain. 

About San Diego, CA

Immediately adjacent to the Mexican border, the city of San Diego is a major US city with 1.4 million inhabitants. It features a very sunny and warm climate, perfect for installing solar panels. Although the warm climate means little to no need to heat your home during winter, it also means that you need to spend a lot of energy cooling it down in the summer. 

As not many can afford to invest in a passive house, seeking the best energy provider in San Diego can help you save on your energy costs and be more in line with your budget. Let’s now consider some of the most popular neighborhoods in San Diego: 

Popular ZIP Codes

San Diego is a large city with many neighborhoods. It is also a University City, meaning that there are a lot of young people looking for temporary accommodation. Whether you want to start a business here, move to San Diego or simply purchase rental units, it is useful to know what are some of the best ZIP codes to look for: 

1. Downtown San Diego – perfect for those looking for business opportunities or looking for a prestigious location – ZIP code: 92101, 
2. Little Italy – similar to NYC Little Italy, the neighborhood offers plenty of Italian restaurants to choose from – perfect for foodies – ZIP code: 92101 (shared with the downtown area), 
3. Pacific Beach – perfect for younger families and those who love sports – ZIP code: 92109, 
4. La Jolla – another waterfront neighborhood, this time a bit calmer – good for diving – ZIP code: 92037-92039, 92092, 92093, 
5. Gaslamp Quarter – perfect neighborhood for those who love an old city charm and staying away from high-rise buildings – ZIP code: 92101 (shared with the downtown area). 

Living and Moving to San Diego

With 266 days a year, San Diego is not only perfect for solar panels but for all those who would like to enjoy the lights of a big city without moving to monstrosities such as NYC or Boston. More affordable and way sunnier, San Diego, CA, is the perfect spot for all those who enjoy sports and swimming as well as for those looking for business opportunities. Top-rated higher education, an excellent job market, and full of opportunities for outdoor enthusiasts, San Diego is one of the most popular destinations to move to. 

FAQs

Conclusion

Considering that electricity prices in San Diego are 2.5 times higher than the national average, you may want to consider different ways to save on your electricity bill. San Diego offers many energy plans to choose from, and simply switching your provider or even just the energy plan can help you reduce your bill month after month. Our handy guide on San Diego electricity rates will help you make the right choice for both your family and your budget. 

Updated on 10-17-22