Navigating Southern California Edison’s New Solar Billing Plan

On December 15, 2022, the California Public Utilities Commission (CPUC) approved a significant update to Southern California Edison’s (SCE) solar billing policies, known as the Solar Billing Plan. Effective April 15, 2023, this plan replaced the Net Energy Metering (NEM) 2.0 program and represents a substantial shift in how solar customers are compensated for excess energy. 

“The transition to the Solar Billing Plan represents a significant shift in energy billing practices,” said CalChoice Executive Director Jason Caudle. “It is important for our associate members to remain informed about these updates and actively support their communities in understanding and adapting to the new billing structure.”

Following the implementation of the Solar Billing Plan, solar projects initiated after April 15, 2023 were billed under interim NEM 2.0 rates while SCE updated its billing system. Starting September 1, 2024, all Community Choice Aggregators (CCAs) will begin transitioning customers with new solar installations to the current pricing plan. This adjustment reflects the latest methodology where Energy Export Credits (EEC) are calculated using an Avoided Cost Calculator (ACC), which will reduce the compensation rate compared to the previous program.

Existing NEM 1.0 and NEM 2.0 customers will not be immediately affected as they will continue under their current rates until the end of their 20-year term. However, all new solar installations from September 1 and onwards will be subject to the updated rates.

“CalChoice remains committed to equipping our members with the resources they need to navigate through the evolving energy landscape,” continued Caudle. “By providing clear guidance and support, we aim to facilitate a smooth transition for both our members and their customers.”

For more information regarding SCE’s Solar Billing Plan updates, visit https://www.sce.com/residential/generating-your-own-power/solar-billing-plan 

About CalChoice

CalChoice is a California Joint Powers Authority (“JPA”) that provides Community Choice Aggregation (“CCA”) support services, which include energy portfolio management, power procurement and trading, settlements and invoice validations, regulatory compliance, regulatory advocacy, financial and accounting, and rate-setting support functions. Current operational CalChoice members include Lancaster Choice Energy, Apple Valley Choice Energy, Pico Rivera Innovative Municipal Energy, San Jacinto Power, the Rancho Mirage Energy Authority, Pomona Choice Energy, Santa Barbara Clean Energy and Energy for Palmdale’s Independent Choice. By joining together, CalChoice members are able to cut costs through economies of scale. Learn More at californiachoiceenergyauthority.com