SCE Solar Overview
Southern California Edison (SCE) is the primary utility for Southern California, serving about 15 million people across 50,000 square miles. Like all California IOUs, SCE operates under NEM 3.0, which fundamentally changed solar economics in April 2023.
Customers: ~5 million accounts
Net metering: NEM 3.0 (since April 2023)
Export rate: $0.04-$0.08/kWh (vs. $0.25-$0.45 retail)
Solar rating: ⭐⭐⭐ Moderate (battery helps)
Battery recommendation: Strongly recommended (Source: utility tariff filings and DSIRE Database)
Reality check: SCE solar still makes financial sense, but NEM 3.0 means the strategy has changed. Self-consumption is now key. Batteries went from "nice to have" to "strongly recommended."
NEM 3.0: How It Affects SCE Customers
California's Net Billing Tariff (NEM 3.0) applies to all three major IOUs: SCE, PG&E, and SDG&E. The economics are similar, though SCE has slightly different rate structures.
What Changed
| Feature | NEM 2.0 (Old) | NEM 3.0 (Current) |
|---|---|---|
| Export credit | Full retail (~$0.25-$0.45/kWh) | Avoided cost (~$0.04-$0.08/kWh) |
| Credit reduction | None | ~75-85% lower |
| Best strategy | Maximize exports | Maximize self-consumption |
| Battery value | Optional | Nearly essential |
| Typical payback | 4-6 years | 7-10 years (with battery) |
SCE Export Values by Time
| Time Period | Export Value | SCE Retail Rate | Value Lost |
|---|---|---|---|
| Midday (9 AM - 4 PM) | $0.03-$0.05/kWh | $0.28-$0.35/kWh | ~85% |
| Peak (4-9 PM) | $0.08-$0.12/kWh | $0.40-$0.55/kWh | ~80% |
| Off-peak (9 PM - 8 AM) | $0.04-$0.06/kWh | $0.25-$0.30/kWh | ~85% |
SCE Rate Schedules
SCE solar customers must be on a time-of-use rate. Understanding the options helps maximize savings:
Common SCE Solar Rates
| Rate | Peak Hours | Peak Rate | Off-Peak | Best For |
|---|---|---|---|---|
| TOU-D-4-9PM | 4-9 PM | $0.43-$0.55/kWh | $0.28-$0.35/kWh | Most solar customers |
| TOU-D-5-8PM | 5-8 PM | $0.48-$0.58/kWh | $0.25-$0.32/kWh | Battery owners |
| TOU-D-PRIME | 4-9 PM | $0.45-$0.53/kWh | $0.18-$0.25/kWh | EV + battery |
Note: SCE rates increase regularly. Check your actual bill for current rates. The numbers above are 2026 approximations.
Rate Selection Strategy
- No battery: TOU-D-4-9PM is usually best (standard peak window)
- With battery: TOU-D-5-8PM has higher peak differential for arbitrage
- EV + battery: TOU-D-PRIME offers very low overnight rates for EV charging
Battery Strategy for SCE
Under NEM 3.0, batteries transform SCE solar economics:
Solar Only vs. Solar + Battery
| Metric | Solar Only | Solar + Battery |
|---|---|---|
| System cost (7kW) | $18,000-$22,000 | $30,000-$38,000 |
| Year 1 savings | $1,200-$1,600 | $2,000-$2,600 |
| Payback period | 11-15 years | 8-10 years |
| 25-year savings | $30,000-$40,000 | $50,000-$65,000 |
| Backup power | No | Yes |
Battery Sizing for SCE
- Minimum effective size: 10 kWh (covers ~4-5 hours of peak usage)
- Recommended size: 13-15 kWh (covers full peak window)
- Whole-home backup: 20+ kWh (or multiple batteries)
Expected Savings for SCE Customers
Here's what SCE customers can realistically expect:
Scenario: $250/month Bill, 7kW Solar System
| Configuration | Monthly Savings | Annual Savings | Payback |
|---|---|---|---|
| Solar only (cash) | $100-$135 | $1,200-$1,620 | 11-15 years |
| Solar + battery (cash) | $165-$220 | $1,980-$2,640 | 8-10 years |
| Solar (PPA/lease) | $40-$70 | $480-$840 | Immediate |
| Solar + battery (PPA) | $70-$110 | $840-$1,320 | Immediate |
PPA/Lease Note: The 30% federal tax credit (25D) ended for homeowner purchases but remains available through 2027 for PPA and lease arrangements. The solar company claims the credit and passes savings through lower rates.
Frequently Asked Questions
Is solar still worth it with SCE under NEM 3.0?
Yes, but the value proposition changed. With a battery, payback is 8-10 years with 25-year savings of $50,000+. Without a battery, payback stretches to 11-15 years. Given SCE's high rates (and future increases), solar + storage remains a solid investment.
Can I still get NEM 2.0 with SCE?
No. NEM 2.0 closed to new applications in April 2023. Existing NEM 2.0 customers keep their rates for 20 years from interconnection date. New installations are all NEM 3.0.
How does SCE compare to PG&E for solar?
Very similar under NEM 3.0. Both have low export rates, mandatory TOU, and benefit greatly from batteries. SCE rates are slightly lower than PG&E, which marginally extends payback but still works out positively.
What about LA DWP customers?
LADWP is a municipal utility with different rules. If you're in Los Angeles city limits, you're likely LADWP, not SCE. LADWP has its own solar program with better net metering than SCE. Check your bill to confirm your utility.
Should I wait for better policies?
Unlikely to improve. California utilities continue pushing for lower solar compensation. NEM 3.0 was a compromise—future changes could be worse. Going solar now locks in current rates and starts your savings.
SCE Solar Questions?
NEM 3.0 is complicated. Our AI can help with rate selection, battery sizing, and specific SCE questions.
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