SCE Solar Rate Plans
Southern California Edison (SCE) serves 15 million people across Southern and Central California. Their solar rate plans determine how much you save — choosing the right one is critical.
“SCE's rate plans are confusing on purpose. I break them down so you can see which one puts the most money back in your pocket.”
— Peter Galvez, The Sun Broker
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SCE solar customers are automatically placed on a Time-of-Use (TOU) rate plan. The most common option for residential solar is TOU-D-PRIME, which features peak pricing from 4-9 PM, off-peak during other daytime hours, and super off-peak overnight and on weekends. Understanding these time periods is essential for maximizing your solar savings.
Under NEM 3.0 (Net Billing Tariff), SCE solar customers receive export credits based on the "avoided cost" value of energy at the time it's exported. These credits are significantly lower than retail rates — typically $0.05-$0.08 per kWh compared to retail rates of $0.30-$0.45 per kWh. This makes self-consumption and battery storage far more valuable than grid export.
Battery storage has become nearly essential for SCE solar customers under NEM 3.0. By storing excess daytime solar production and using it during peak hours (4-9 PM) when rates are highest, you avoid buying expensive peak electricity from SCE. A well-sized battery can shift your solar savings from modest to substantial.
SCE offers special medical baseline rates, CARE/FERA discount programs, and electric vehicle rate options that can be combined with solar. If you qualify for CARE (California Alternate Rates for Energy), you receive a 30-35% discount on electricity — which changes the solar savings math. Make sure your solar proposal accounts for any discount programs you currently receive.
Choosing between SCE rate plans requires analyzing your specific usage patterns, solar system size, and whether you have battery storage. TOU-D-PRIME works well for most solar customers, but TOU-D-4-9PM or TOU-D-5-8PM may be better depending on when you use the most electricity. A qualified solar advisor should model multiple rate plans before recommending a system design.
Myth Busters
Myth: All SCE rate plans are the same for solar. Reality: The wrong rate plan can cost you hundreds of dollars per year in missed savings.
Myth: SCE solar customers don't need batteries. Reality: Under NEM 3.0, batteries are the key to maximizing SCE solar savings.
Myth: CARE discount customers shouldn't go solar. Reality: Solar can still make sense for CARE customers, but the system needs to be sized differently.