Solar Billing Plan FAQ
Find answers to frequently asked questions about our Solar Billing Plan.
The Solar Billing Plan is a new program for customers who install an eligible renewable generating system, such as solar or wind, after April 14, 2023. The Solar Billing Plan succeeds the Net Energy Metering (NEM 2.0) program.
Although processing times may vary based on application volume, simple and standard (solar-only) interconnection requests that have all the correct information and required documents, may receive Permission to Operate within 10 business days. Complex interconnection requests, i.e., paired storage or non-standard metering, will need more time to process as they require additional technical and engineering review.
We strongly recommend that you or your contractor submit the application, Single Line Diagram, signed Interconnection Agreement, final electrical permit approval issued by the local building department, and any other applicable documentation all at once to expedite the review of your interconnection request. This allows ample time for us to evaluate program eligibility, conduct a technical review of the proposed system and initiate a meter change, if necessary. If a meter change is required, we will arrange the installation with our local planning department before PTO is issued.
When status updates are available for your application, our Online Interconnection Application System will send you and/or your contractor an email, including details. If you would like even more information about your application status, please reach out to your contractor or installer for assistance. They have direct access to your application, and they are responsible for completing any additional requirements.
If you are self-installing your system, please visit the Online Interconnection Application System for updates on your application status.
The Solar Billing Plan is a new program for customers who install an eligible renewable generating system, such as solar or wind, after April 14, 2023. The Solar Billing Plan succeeds the Net Energy Metering (NEM 2.0) program.
The Solar Billing Plan (SBP) works by billing customers not just based on the energy you consume, but also the credits you earn for surplus solar energy you produce.
The price of electricity you consume varies, depending on your rate plan. The value of the Energy Export Credits (EECs) you earn varies hourly. When your monthly bill arrives, your total will be your energy charges after your available EECs have been applied. SBP doesn’t track your total solar production – only the surplus solar you’ve exported back to SCE.
SBP works on an annual cycle, called your “Relevant Period.” During each Relevant Period, any EECs left over after your monthly bill is totaled will automatically rollover into the next month.
As the end of your Relevant Period, you receive a settlement statement (more on this below) to “settle” your final balance for the next Relevant Period.
When you install solar, an electric panel upgrade is sometimes required by your local building and safety department, to ensure your electrical panel is up-to-code and can support an added electrical load.
This is common in older homes and may be necessary depending on the specifics of your system, structure of your home, and changing electricity needs.
Please note that upgrading your electric panel is not the same thing as reprogramming your electric meter. When you go solar, meter reprogramming will be a part of the process and will be handled by SCE and your contractor before you can operate your system.
To protect consumers installing solar electric systems and participating in the Solar Billing Plan, the California Public Utilities Commission (CPUC) and the State Legislature have put into place measures designed to help customers make a more fully informed decision about installing solar on their single-family homes. These measures include a requirement that solar consumers review and sign a Solar Consumer Protection Guide that allows the consumer to know their rights and have enough information regarding the several factors they should consider when installing solar. This requirement does not apply to self-installation or new construction projects.
The Service Account holder should sign and initial the Consumer Protection Guide. If the name on the contract, consumer guide and interconnection agreement are not the same across all three documents, SCE will require an explanation of the relationship between the parties signing each document uploaded with the consumer guide.
Anyone authorized to sign on behalf of the solar provider qualifies as a company representative. Consult an attorney if you have any questions.
Yes, you can install an eligible ESS to your system under the Solar Billing Plan.
There are currently no applicable restrictions related to the sizing for energy storage devices paired with renewable generators. The 150% rule originally outlined in the Net Energy Metering (NEM) tariff has been suspended through August 2025.
Please note that if you are participating in rebate programs such as the Self-Generation Incentive Program (SGIP), they may have different sizing requirements for the energy storage device. As such, you will need to confirm that the size of the energy storage device meets both the interconnection and rebate program requirements to qualify and take advantage of both programs.
Battery systems in a Paired Storage agreement are charged by a renewable generator i.e., solar, wind, etc., but are not permitted to charge from the grid.
To learn more about how to read your SBP bill statement, please visit the Guide to Your Solar Bill.
On the Solar Billing Plan, customers will be compensated for energy exported to the grid based on a calculated hourly electricity price. These hourly prices will be derived from the latest CPUC approved Avoided Cost Calculator and will vary by month, weekday, and weekends. These prices will usually be lower than the rate that customers pay for electrical service.
Once you’re enrolled in the Solar Billing Plan, SCE tracks the amount of electricity exported to the grid by your solar system, as well as the amount of electricity you consume from the grid, during each billing period. SCE does not track all the energy your solar system produces, only the excess energy you provide to the grid.
If your solar system produces more energy than you need, the Solar Billing Plan allows you to receive Energy Export Credits (EEC) for the surplus electricity you supply to the electric grid. Exported energy can lower your balance or, in some cases, offset it completely – it all depends on how much energy you produce, versus how much energy you consume. These credits are applied to your monthly bill, but do not offset certain set fees. The value of these credits varies hourly. Any unused credits accrue and roll over from month to month for the duration of your Relevant Period.
If you still have surplus energy when you receive your annual settlement statement, you may be eligible for a payout at the Net Surplus Compensation (NSC) rate.
DA and CCA customers are eligible to participate in the Solar Billing Plan if the Energy Service Provider (ESP) or CCA agrees to support the provisions of the Solar Billing Plan. The ESP or CCA must provide their agreement to support these provisions before your associated accounts can/will be placed on the Solar Billing Plan. SCE will be responsible for delivery credits (if applicable), and your ESP or CCA will be responsible for any corresponding generation credits. DA and CCA customers are not eligible for Net Surplus Compensation from SCE.
If your ESP or CCA declines to support the Solar Billing Plan, you have a few options:
- You may choose to remain with your service provider, continue service without the benefits of the Solar Billing Plan, however you will still receive the usage reduction benefit from the system.
- You may choose to switch to a different ESP that offers the Solar Billing Plan.
- You may choose to return to bundled service.
Where CCAs and ESPs have their own renewable programs, they still must go through our interconnection process and receive Permission to Operate their generating facility from SCE.
If a customer terminates service or experiences a change from SCE Bundled Service to CCA or DA Service (or from CCA or DA Service to SCE Bundled Service), the 12-month Relevant Period will end on the date when the change of service is effective.
Note: SCE cannot speak for the ESP or CCA and cannot discuss the ESP’s or CCA’s reason(s) for declining to support the Solar Billing Plan or Solar Billing Plan Aggregation. If you have any further questions, please contact your ESP or CCA.
GMAs offer certain Solar Billing Plan customers an alternative interconnection option to traditional supply-side connections (also called “line-side taps”). They eliminate the need to make modifications to your meter panel, which may help reduce the overall cost and time of your renewable generating facility installation. They provide a safer installation compared to the traditional line-side taps by eliminating the need to enter or modify the service panel.
This will be considered a line-side connection. Cities and AHJs may have various requirements regarding line-side connections, however, once the GMA is approved by SCE, most AHJs will accept the installation of SCE-owned equipment. Please ask your contractor to work with your city or AHJ to determine if the GMA is an approved method for interconnecting.
Yes, the GMA is SCE-owned and becomes part of the metering services. However, the neutral pigtail is the white wire included in the GMA. SCE makes the connections to the GMA, including the Neutral to the customer’s panel. If needed, the Contractor may assist with the Neutral.
The Solar Billing Plan Aggregation program has been available effective, February 15, 2024.
If you have multiple electric accounts on the same property as the renewable generator or the properties are contiguous or adjacent, you can install a generator up to the aggregated load of all accounts, so long as all the properties are solely owned, leased, or rented by you. You must also be the customer of record on all SCE accounts.
Exported energy is allocated to multiple accounts ("Benefiting Accounts") that are located next to a property with a generating system.
- Energy exports are converted to monetary credits based on the Avoided Cost Calculator (ACC).
- Credits are used to offset energy charges, which are based on the benefitting customers' energy usage and rate plan pricing.
For the purposes of Form 14-937, parcels that are divided by a street, highway, or public thoroughfare are considered contiguous, provided they are within an unbroken chain of otherwise contiguous parcels and are all solely owned, leased, or rented by the Customer, as verified in Form 14-937.
As of April 15, 2023, the NEM 2.0 program is closed to new applicants. Applications submitted after April 15, 2023 will be processed under Solar Billing Plan for Residential or Solar Billing Plan for Business.
If your NEM 2.0 application has been deemed valid by SCE, you will have until April 14, 2026, to submit your final documents to retain eligibility.
Your NEM account will continue to bill under your current NEM program until your 20-year eligibility period expires, or until your account loses eligibility to remain on the NEM program, whichever is earlier. When that occurs, your account will automatically move to the new Solar Billing Plan or the successor rate plan available at the time of transition.
Under the current NEM rules, account changes, such as moving in or out of a residence with an NEM system or transferring the account to someone else’s name, do not affect the NEM eligibility period of the original system.
