A Quick History of San Diego’s Power Grid

San Diego’s relationship with electricity goes way back — almost 140 years.

• In 1881, five local businessmen founded the San Diego Gas Company to bring gas-powered streetlights to downtown.

• By 1886, San Diego began generating electric power locally — one of the earliest cities in California to do so.

• Over the decades, this small local operation grew into what we now know as San Diego Gas & Electric (SDG&E).

That’s an incredible legacy — but it also means much of the region’s electrical backbone was designed for a completely different era.

From Streetlamps to Smart Homes — The Grid Hasn’t Kept Up

Back when the original infrastructure was built, San Diego had a population of only a few thousand people.

Fast-forward to today:

• Over 1.4 million residents,

• A massive surge in electric vehicles,

• Entire neighborhoods powered by air conditioning, heat pumps, and data-hungry devices,

• And thousands of homes now producing their own solar energy.

Yet, much of the grid’s core hardware — substations, transmission lines, and transformers — still traces its roots to upgrades from the 1930s through 1950s.

Yes, SDG&E has modernized certain segments and added new battery storage projects, but the grid as a whole still operates with century-old architecture.

Why That’s a Problem

1. Aging Equipment Can’t Handle Modern Demand

The average lifespan of a transformer is about 25–30 years, and many in California are well past that.

Older systems struggle with efficiency, leading to higher maintenance costs and more frequent failures.

2. A 20th-Century Grid in a 21st-Century World

The grid was never designed for two-way energy flow — meaning power used to move one direction, from the utility to your home.

Now, with solar homes exporting power back to the grid, the system faces new technical challenges it wasn’t built to handle.

3. More Strain from Population Growth and Climate

With more people, hotter summers, and longer fire seasons, San Diego’s grid is under increasing stress.

SDG&E frequently issues “flex alerts” urging residents to conserve power, which is a clear sign of a system operating near capacity.

4. Rising Rates to Cover Repairs

Maintaining and upgrading this aging infrastructure is expensive — and those costs show up on your electric bill.

California electricity prices have risen more than 70% in the past decade, with no sign of slowing down.

The Modern Solution: Solar + Battery Storage

Instead of waiting for the grid to catch up, many San Diegans are taking matters into their own hands — quite literally — with home solar systems and batteries.

Here’s why it’s the smarter, cleaner move:

• Generate your own energy during the day.

• Store extra energy in a home battery for night or emergency use.

• Avoid peak-hour pricing and keep the lights on when the grid goes down.

• Protect yourself from rate hikes caused by ongoing infrastructure costs.

With technologies like the Tesla Powerwall 3, your home can function as a mini power plant — efficient, resilient, and independent.

The Hope Solar Perspective

San Diego’s power grid helped build this city — but it wasn’t built for the world we live in today.

We see this not as a problem, but as an opportunity to create a more modern, resilient, and sustainable energy future.

At Hope Solar, we design systems that take into account:

• Local grid challenges,

• NEM 3.0 rules,

• Battery optimization, and

• Long-term reliability for California homeowners.

So, while the grid may have started in 1886, your home doesn’t have to stay stuck there.

Let’s design your energy future — one that’s smarter, cleaner, and ready for the next 100 years.

👉 Schedule Your Free Hope Solar Assessment