SCE Time-of-Use Rates Explained: Cheapest Hours to Use Power

Electricity costs in Southern California are skyrocketing—and homeowners are feeling the pinch. With Southern California Edison (SCE) proposing another 10%+ rate increase in 2025, families are searching for smart ways to control their bills without sacrificing comfort.

The good news? Solar panels and home battery storage offer a powerful solution. With US Power’s exclusive QCells panels—American-made and factory-direct—you can slash your utility bills, take advantage of time-of-use (TOU) rates, and lock in savings before the federal solar tax credit disappears at the end of 2025.

This guide breaks down SCE’s 2025 rates, explains how TOU plans work, and shows how combining solar with a battery can protect your home from rising electricity costs.

Understanding SCE’s 2025 Electricity Rates

SCE now offers two main ways to pay for electricity:

Tiered Rate Plans – A simple structure where you pay a set rate up to a certain monthly usage, then higher rates once you exceed that baseline.

Time-of-Use (TOU) Plans – Rates fluctuate throughout the day, charging more during peak hours (when electricity demand is highest) and less during off-peak hours.

SCE Tiered Rates in 2025

Tier 1: 32¢ per kWh (up to baseline allocation)
Tier 2: 42¢ per kWh (after baseline is exceeded)

For perspective, the average U.S. utility rate is around 18¢ per kWh, meaning SCE customers pay nearly double. The key takeaway: under a tiered plan, keeping your total electricity usage low is crucial to avoid costly Tier 2 charges.

Time-of-Use (TOU) Plans: How They Work

TOU rates are designed to reflect the true cost of electricity throughout the day. Power is cheapest during off-peak hours (typically late night and mid-day) and most expensive during peak hours (usually late afternoon to early evening).

SCE’s three 2025 TOU plans for residential customers are:

• TOU-D-4-9PM – On-peak from 4 PM to 9 PM
• TOU-D-5-8PM – On-peak from 5 PM to 8 PM
• TOU-D-PRIME – Designed for homes with solar, battery storage, electric vehicles, or heat pumps

Key advantage: If you can shift your electricity use to off-peak times, TOU rates can save you money. But if most of your energy consumption happens during peak hours, bills could soar—especially under the 5-8 PM plan, where rates can reach 74¢ per kWh.

How TOU-D-PRIME Helps Solar and Battery Owners

For homeowners with solar panels and battery storage, the TOU-D-PRIME plan is ideal. Here’s why:

• Lower electricity rates during off-peak periods
• Allows you to store solar energy in a battery for use during peak hours
• Reduces reliance on the grid, lowering bills even as rates climb

Under California’s NEM 3.0 solar billing, pairing solar with battery storage maximizes savings. Exporting excess energy to the grid provides minimal credits, but storing and using it at home avoids high peak rates altogether. Learn more about how solar and battery systems protect CA homes during grid failures.

SCE Rate Increases: What Homeowners Should Expect

Electricity prices have been climbing steadily. Since 2020, SCE has raised rates 13 times, with only three decreases. In 2025 alone, the average residential bill is expected to jump 10.3%, adding roughly $17.50 per month.

Projected increases through 2028:

YearBill IncreaseMonthly Impact202510.3%$17.4920262.7%$5.1420272.6%$5.1120282.7%$5.26

With rising electricity costs, going solar isn’t just environmentally responsible—it’s a financial hedge against unpredictable utility bills.

Why Solar and Batteries Make Sense in 2025

Installing solar panels paired with a home battery offers several key advantages for Southern California homeowners:

• Cut Peak-Time Costs – Batteries store energy produced by your solar panels, so you can avoid paying SCE’s expensive peak rates.
• Lock in Energy Savings – Fixed payments on solar and battery systems protect you from utility rate hikes.
• Claim the Federal Solar Tax Credit – Homeowners who install by December 31, 2025, can still receive the 30% credit.
• Support American-Made Technology – US Power offers QCells panels, ensuring top-tier performance and reliability.

How Much Can You Save?

Let’s say your home uses 1,000 kWh per month. Under the TOU-D-5-8PM plan, your summer weekday on-peak rate hits 74¢ per kWh. That’s $222 for just 300 kWh during peak hours.

By installing solar and a battery:

• Solar covers most daytime electricity needs
• Battery storage powers evening consumption
• You drastically reduce imported electricity, saving $50–$200 per month depending on your system and usage habits

Making TOU Rates Work for Your Home

Even if you don’t have solar, you can reduce your SCE bill with smart habits:

• Shift usage to off-peak hours: run dishwashers, laundry, and charging overnight
• Monitor your energy: devices like Sense Energy Monitor track usage in real-time
• Pair with efficient appliances: LED lighting, smart thermostats, and heat pumps reduce demand

With solar + battery storage, these savings compound—you produce and store your own electricity, using the grid only as a backup.

US Power: Your Partner for Southern California Solar

US Power makes going solar simple and affordable:

• Exclusive QCells Panels – American-made, factory-direct pricing
• Battery Storage Solutions – Maximize your solar output and minimize bills
• Local Expertise – We understand Southern California rates, TOU plans, and incentives
• Fast Installation – Beat the December 31, 2025, solar tax credit deadline

Whether you’re in Sherman Oaks, Pasadena, or Brentwood, US Power helps homeowners design a system that fits their roof, lifestyle, and energy goals.

Frequently Asked Questions

What are SCE’s peak hours?

Depending on your TOU plan, peak hours are either 4–9 PM or 5–8 PM on weekdays.

Which SCE rate plan is best for solar owners?

TOU-D-PRIME is the only plan available under NEM 3.0 for new solar systems, offering lower per-kWh rates and compatibility with battery storage.

Can solar make TOU rates cheaper?

Yes. Solar generates electricity during the day, and paired with a battery, you can shift usage away from expensive peak hours.

How much will SCE rates increase in 2025?

Average residential bills are projected to rise 10.3%, about $17.50 more per month.

Ready to Slash Your Electricity Bill?

Every month you wait, SCE’s rates rise, and the federal tax credit edges closer to expiration. Lock in savings with solar and battery storage today.

Get a Free Quote from US Power and see how much you could save:

• Estimate: Personalized solar + battery options
• Fast Approval: Binding quotes from trusted local installers

SCE’s time-of-use rates, combined with rising electricity costs, can make utility bills overwhelming. But homeowners who act now with solar and battery storage can control their energy costs, maximize incentives, and enjoy reliable, clean power.

Schedule a Free Solar Consultation.

With US Power and QCells panels, Southern California homeowners have an opportunity to take control of their electricity bills before the 2025 tax credit expires. Don’t wait—get your free quote today and start saving.