Here are a few terms you might encounter as you’re considering solar, or during the solar application and installation process.
Solar Billing Plan (SBP)
The standard rate program for all SCE customers who apply for solar 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).
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!).
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
When you invest in an energy storage system (ESS) you can save more solar energy to use at night or when it’s cloudy, so you’ll use less energy from the grid.
Pro Solar Tips
How and when you use energy can have an impact on your bill. Shifting your use to off-peak daytime hours (8 a.m. – 4 p.m.) and learning smart energy habits can help you take advantage of the solar you produce.
Frequently Asked Questions
We’ve got answers to some of the most common questions solar customers have when getting started, from how solar energy works to billing and payment.