How to Speak Solar

A Glossary of Terms for New Solar Billing Plan Customers

If you’re a new Solar Billing Plan (SBP) customer, or thinking of becoming one, you might notice some unfamiliar terms in your research, on your solar application, or on your new energy bill. To help you get acquainted with some of this vocabulary, we’ve compiled some common solar terms and quick definitions.

Here are a few terms you might encounter as you’re considering solar, or during the solar application and installation process.

Annual SBP Cycle

Solar Billing Plan works on a 12-month schedule that tracks your energy charges and credits for 365 days and then refreshes for the next cycle (known as your “Relevant Period). A few key terms can help you understand how it works and what to expect at the end of your cycle.

Charges not Eligible for Reduction

Charges not eligible for reduction include fixed fees, non‑bypassable charges, and taxes. While solar credits are applied to your monthly bill, they can only reduce certain energy-related charges.​

Energy Export Bonus Credit (EEBC)

As a limited-time benefit, residential customers who enroll in the Solar Billing Plan before 2028 receive an additional monthly credit for the first nine years. Qualifying low-income customers may be eligible to receive a higher credit amount. The value of the credit is based on the year your PTO and will remain the same for 9 years. 

Energy Export Credit (EEC)

When your solar generating system produces more energy than you need, SCE buys that surplus energy from you, and it appears as credit per kilowatt hour (kWh) on your bill. The value of this credit is based on an estimate of the hourly wholesale rate for electricity. Hourly rates change depending on the time of day, month, and whether it is a weekday or weekend. Customers who also receive their energy generation from SCE will receive both an EEC Generation Credit and an EEC Delivery Credit.

Energy Export Credit Adjustment 

An adjustment for duplicate Energy Export Credits (EEC) that were applied during the Relevant Period. If applicable, this charge will appear as two separate line items: one for delivery and one for generation portions of the bill.

Interconnection

The connection of your solar generating system to the electric grid, allows electricity to flow in both directions: into your home or business when you need energy; and outward into the grid when your system produces more than you need. Your solar application is also called your Interconnection Agreement (IR).

Net Energy Metering (NEM)

This is the solar program that the Solar Billing Plan was developed to replace. You might see NEM referenced in solar materials, but NEM was closed to new applicants on April 14, 2023. Net Energy Metering does not apply to Solar Billing Plan customers.

Net Surplus Compensation (NSC) 

The monetary payout eligible solar customers may receive for leftover surplus kilowatt hours (kWh) of energy if their system generated more than they used over their entire annual SBP cycle. Learn More About NSC 

Permission to Operate (PTO)

Once your solar application has been completed and your installation has been inspected and approved, you receive PTO. This is the final step before you are enrolled in the Solar Billing Plan, and it means you have been approved to turn on your system and officially begin generating your own energy (congratulations!).

Rates and Credits

Solar Billing Plan customers have a unique rate and pricing experience because they produce their own energy, consume energy from the grid, and may export energy out to the grid when they produce more than they need.

Relevant Period 

The annual SBP cycle. Your first Relevant Period begins the day you receive your Permission to Operate (PTO) and renews every 365 days. You may make a one-time request to change the start date of your Relevant Period using this form.

Settlement Statement

At the end of your annual SBP cycle, you receive a settlement statement. SBP applies Energy Export credits, plus any other credits or charges needed to “settle” the Relevant Period. Unused Energy Export credits are applied to any eligible energy charges from previous months as an SBP Settlement Adjustment (in the “Summary of Your Billing Detail” section). The remaining credits offset the Energy Export Credit Charge Adjustment, and the rest are forfeited. If you generate more kilowatt-hours (kWh) than used during the Relevant Period, your year-to-date Net Surplus Compensation (NSC) is greater than zero, the kWh is debited as the Energy Export Credit Adjustment, and you’re credited the wholesale Net Surplus Compensation rate for the kWh.

Solar Billing Plan (SBP)

The standard rate program for all SCE customers who apply for solar interconnection. 

Time-of-Use (TOU)

Energy prices under TOU rate plans vary by time of day, day of week and season. TOU customers can benefit by shifting energy use to off-peak hours. Residential customers who are not already on a TOU plan will automatically be moved onto the TOU-D-PRIME rate plan under SBP.

Additional Terms

The following terms and phrases will either appear in the “Details of Your New Charges” section, under “Solar Billing Plan Details.”

Solar Billing Plan Month: 

This tells you how far along you are in your annual Relevant Period. For example, if you are in Solar Billing Plan Month 3, you are in the third month of your Relevant Period. After Solar Billing Plan Month 12, you’ve reached the end of your Relevant Period. This is when you’ll receive your settlement bill, and your next annual SBP cycle will begin.

Credit Earned This Period:

How much Energy Export Credit (EEC) did you earn during the current bill cycle? Your total credit earned is the sum of your EEC for energy delivery and EEC for energy generation, if applicable.

Credit from Previous Month: 

This amount reflects any rollover Energy Export Credit (EEC) that was unused in your previous bill. Unused EEC credits continue to carry over and will apply automatically to your next bill through the end of your Relevant Period (annual SBP cycle). This will only appear on your bill if you have credits left over from previous months.

Credit Applied:

Your applied credit is the amount of Energy Export Credits (EEC) that have been subtracted from your energy charges on the current bill.

Credit Available to Apply to Future Bills:

This is the amount of credit left over after your available EEC has been applied to your charges. This amount will roll over into the next month and appear as “Credit from Previous Month” on your bill. This will only appear on your bill if you have credits left over after they have been applied to your current bill.

Non-bypassable Charges (NBCs):

Set fees (including public programs and initiatives like the wildfire fund) that all SCE customers are responsible for. These charges cannot be offset by Energy Export Credits (EEC) but may be offset by Energy Export Bonus Credits (EEBC). Your non-bypassable charges aren’t individually listed on your bill, but they are included in your monthly charges.

Net Surplus Compensation (NSC) Option:

If you’re eligible for NSC, you’ll receive it in one of two ways: Rollover or Check. The default option is rollover, which means you’ll receive your NSC as a bill credit going into your next Relevant Period. You may request a check by mail instead of a rollover bill credit by calling Customer Care before the end of your Relevant Period.

Year-to-date NSC kWh:

This is the amount, in kilowatt-hours (kWh), that is eligible for Net Surplus Compensation (NSC) as of the day of your current bill.