Understanding SCE’s New Solar Billing Plan

Electricity rates in Southern California have risen steeply over the past decade, and homeowners connected to Southern California Edison (SCE) are feeling the impact. In 2025 alone, average residential bills are expected to climb by more than 10%. For families already paying hundreds per month, the increase is hard to ignore.

That’s why many homeowners are turning to solar energy with battery storage as a long-term solution. But with recent changes to SCE’s solar billing rules and the shift away from traditional net metering, understanding how your bill works has never been more important.

This guide breaks down how SCE’s current solar rates operate, what has changed, and how you can still lock in savings under today’s policies.

From Net Metering to the Solar Billing Plan

For years, solar customers under Net Energy Metering (NEM) could earn nearly dollar-for-dollar credits for excess energy sent back to the grid. But as of April 2023, new solar systems are placed under SCE’s Solar Billing Plan (SBP), often referred to as NEM 3.0.

Here’s how it works in 2025:

• Imports from the grid: You pay full retail Time-of-Use (TOU) rates.
• Exports to the grid: You earn hourly “Energy Export Credits”, which are typically 75% lower than the credits homeowners received under previous NEM programs.
• Credit lock-in: If you interconnect before January 1, 2028, your export rates are locked in for 9 years.

This new structure makes self-consumption—using your own solar energy instead of exporting—far more valuable than selling back to the grid.

The Impact of SCE’s Rising Rates

SCE’s rates are among the fastest-rising in the nation. In 2025:

• Bills are projected to rise 10.3%, adding an average of $17–$20 per month to households.
• Additional increases of around 2–3% annually are forecast through 2028.
• Since 2020, SCE has increased rates more than a dozen times.

For homeowners, these compounding increases mean relying on the grid is only going to get more expensive. Solar panels paired with batteries give you the power to reduce, or in some cases nearly eliminate, your dependence on SCE’s grid electricity.

Why Batteries Are Key Under the New Rules

Because exported energy is now valued at a fraction of the retail rate, homeowners with solar alone are leaving savings on the table. Adding a battery system changes the equation by allowing you to:

• Store excess daytime energy and use it during the costly 4–9 PM peak window.
• Reduce imports from the grid, lowering your exposure to SCE’s high TOU charges.
• Boost energy independence in case of outages or emergencies.

With incentives like the Federal Solar Tax Credit (30%) still available in 2025, the cost of pairing solar with storage is lower than it will be once credits begin phasing out.

What Homeowners Should Do Now

If you live in Southern California and your home is powered by SCE, here’s how to take advantage of today’s policies before costs rise further:

1. Go solar before January 2028 to secure your 9-year export credit lock-in.
2. Pair your solar panels with a battery to maximize self-consumption and protect against rate hikes.
3. Choose high-efficiency, American-made panels like Qcells, offered through US Power’s exclusive partnership with Axia by Qcells.
4. Work with a trusted local installer who understands SCE’s complex solar billing structure.

Time to Act Is Now!

With SCE rates continuing to rise and the value of solar exports diminishing under the new billing plan, waiting only means paying more to the utility. Homeowners who act now can still:

• Claim the 30% Federal Tax Credit before it phases out.
• Lock in export credits for nearly a decade.
• Gain long-term control over energy costs.

At US Power, we design solar + battery systems tailored to maximize savings under today’s SCE rules. Don’t let rising bills eat away at your household budget. The window to secure the best benefits won’t stay open forever—now is the time to take action.

Call US Power today to schedule your free solar consultation and lock in your savings before rates and incentives shift.