*“Final Decision” are new rates
To compare TOU current residential rates and new rates, go to – Time-Of-Use-Residential-Rate-Plans.
Those that already have solar are automatically grandfathered into their original rate structure whether it be their original TOU (5 years) or Tiered billing (20 years).
New Solar customers after March 1st of 2019 however, will be forced into the new Time-Of-Use rate plans meaning they will likely have to buy a battery to go with their solar system to offset “on peak” costs during the evening when the sun goes down and their solar production tapers off. While the new rate structure may extend the ROI period slightly, it will still provide an attractive investment to potential solar customers.
In addition, SCE’s shift in TOU will cause majority of Solar’s overproduction to be discounted. For example, under the current rate structure, most solar production occurs during “on-peak” times with SCE and therefore overproduction is credited at the “on peak” rate of $0.37 per kWh (TOU-D-B). However, under the new rate schedule, SCE has shifted the “on peak” time and the majority of solar production will now fall under “off-peak” hours and only be credited at $0.15 per kWh for overproduction (TOU-D-Prime). While this large shift in TOU rates will have a negative impact on current solar value and slightly decrease the length of ROI, SCE is projecting a rate increase in which the cost of “off-peak” rates will likely go up in the next year and the cost of “on peak” rates will come down making solar more attractive than it may seem now.
To learn more about SCE’s new rate structure or for questions, call Hot Purple Energy (760) 322-4433 to speak to a representative.