Solar Billing Plan for Businesses
The Solar Billing Plan (SBP) is a new program for customers who apply for interconnection of 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.
How the Solar Billing Plan Works
For customers considering solar and other renewable generation1 at their homes, the Solar Billing Plan is designed to help modernize solar rates to promote grid reliability, incentivize solar and battery storage, and help control electricity costs for all Californians. Each month, billing will include charges for energy used from the electric grid, as well as energy credits exported to the grid.
1 Renewable generation includes solar, wind, renewable gas, and other technologies that satisfy the CEC Renewable Portfolio Standard (RPS) qualifications.
Getting Started with Solar
There are several things to consider once you make the decision to install your own renewable generator. Learn more about the steps for going solar.
Understanding Your Solar Bill
Learn how to read and understand your solar billing plan statements.
How the Solar Billing Plan Compares
| Program Name | NEM 1.0 | NEM 2.0 | Solar Billing Plan |
|---|---|---|---|
| Basic Structure | Credits and charges are based on the net of energy usage and energy sent to the grid. | Credits and charges are based on the net of energy usage and energy sent to the grid. | Credits are based on energy sent to the grid and charges are based on energy usage and rate plan pricing. |
| Applicable Rate | Residential and Non-Residential: Any rate plan | Residential: TOU 4-9PM Non-Residential: Any TOU rate plan | Residential: TOU-D-PRIME Non-Residential: Any TOU rate plan |
| Annual Relevant Period | Annual 12-month relevant period; Net Surplus Compensation paid out (if applicable) | Annual 12-month relevant period; Net Surplus Compensation paid out (if applicable) | Annual 12-month relevant period; Net Surplus Compensation paid out (if applicable) Energy Export Credit Adjustment applied (if applicable) |
| Eligibility Period2 | 20 years | 20 years | 9 years |
| Oversizing | Under certain circumstances | Under certain circumstances | Oversizing up to 150% of the customer’s historical 12-month kWh usage with customer attestation of future energy needs |
| Customer Payback Period – Solar Only | Residential and Non-Residential: ~ 5 years | Residential and Non-Residential: ~ 4 years | Residential and Non-Residential: ~ 9 years |
| Customer Payback Period – Solar + Storage | Residential and Non-Residential: ~ 8 years | Residential and Non-Residential: ~ 7 years | Residential: ~ 6.5-9 years Non-Residential: ~ 7.5 years |
Non-residential customers who enroll in the Solar Billing Plan will stay on their current rate plan and will be billed for all electricity that they consume. For more information on rate plans, visit sce.com/tariffbooks.
On the Solar Billing Plan, Energy Export Credits will be applied to the amount of electricity a customer exports to the grid and will reflect the electricity’s value to the electric grid during each hour of the day. Energy Export Credits will be calculated by taking the kilowatt hours generated by the customer’s generating system that is exported hourly to the grid multiplied by the Energy Export Credit prices. These EEC prices will vary hourly throughout the day and can be found here for both Pacific Time and Universal Time. Customers who enroll in the Solar Billing Plan before January 1, 2028, will have fixed EEC prices for the first nine years of operation. The nine years is referred to as the lock-in period.
Each year, the EEC Prices are calculated using the CPUC Avoided Cost Calculator (ACC) approved as of January 1 of the calculation year (the “vintage year”). For each “vintage year”, the simple average EEC Price is calculated for each month of a 9-year lock-in period, and it is differentiated by the hour (24 hours) and by weekdays and weekends/holidays. In addition, each hourly EEC Price is broken down into two components: (1) the Generation EEC Price (energy, cap, and trade and generation capacity) component, and (2) the Delivery Service EEC Price (transmission, distribution, greenhouse adder, and methane leakage) component.
EEC Factors (UTC) - CSV File
Solar Application Processing Data
NEM and SBP applications are being reviewed on a first-come, first-served basis to ensure document requirements are met. If you are looking for SCE Solar Application Processing Data and the solar applications currently under review visit Net Energy Metering Updates.
What's the Difference?
Learn how NEM 2.0 and 1.0 are different from the Solar Billing Plan.
Solar Glossary
Want to learn to speak solar? Find common terms and definitions that are good to know as you go solar.
Frequently Asked Questions
Whether you want every detail or are seeking specific info, we’ve compiled frequently asked questions about the Solar Billing Plan so you can find the answers you need easily and quickly.
Submit Documents
Most contractors will apply on your behalf, but we've provided all the forms you'll need to submit to get interconnected and enrolled in the Solar Billing Plan.
