New SCE Time of Use Rate Periods Designed to Decrease Benefit of Solar (TOU Explained)

Southern California Edison is about to make a big change in the way it charges its customers, and it will have a huge effect on the economics of adding solar to their homes.

What SCE’s TOU Rate Change Means for You

Currently, most residential SCE customers are on a tiered rate plan that determines the rate customers are charged per kilowatt-hour based on the total amount of energy consumed each month.

However, the TOU rate system is based on when energy is used, not how much. All three of California’s major investor-owned utilities—SCE, Pacific Gas & Electric (PG&E) and San Diego Gas & Electric (SDG&E)—have been directed by the California Public Utilities Commission (CPUC) to transition their customers into this new plan by the end of 2020.

How Net Metering Works

When your house or business is net-metered, you’ll see the meter run backward, and that means, depending upon local policies, you may get a credit to hedge against the electricity you use from the grid when it’s not sunny or at nighttime. You are then billed only for your “net” energy use.