SDG&E Commercial Record Breaking Rate Increases

San Diego businesses, having already seen their utility rates double since 2020, are facing further substantial hikes in energy prices. 

SDG&E increased commercial rates by an unbelievable 104% since the onset of the COVID epidemic, and have announced plans to add another 17.6% in 2024. And if that is not enough insult to injury, the utility has proposed to increase rates still further by 52.9% on today’s rates by 2027, throwing a bucket of salt on the thousand cuts to local business budgets.

SDG&E isn’t alone (although is the clear leader in the race to the bottom), with PG&E and SCE already proposing steep rate increases in 2024 and beyond. 

Changes to Virtual Net Energy Metering (VNEM)

If the severe rate increases don’t hurt enough, let’s touch briefly on the removal of rights to do something about it.

Until February 14, 2024, San Diego County businesses can continue to apply for a commercial solar system that will offset the electricity usage from all electric meters that serve the facility. 

After this date, any new solar applications will only be applicable to one meter. So if your business has multiple meters, your options will soon be cut, in some cases very deeply.

Right now, commercial solar projects in San Diego reduce energy bills by up to 80%, can qualify for up to 77% in tax credits, and have a payback period of two years on average. 

If all these factors together are not enough to move your business toward solar power, then it is likely that nothing will! 

For more information on the changes to Virtual Net Energy Metering changes, visit https://calmatters.org/environment/2023/11/california-solar-payment/

If you would like to speak to a Sunistics consultant about your options, please contact us on customer@sunisticsgroup.com or make an appointment here.