SCE Time-of-Use Rates Explained (2026)

SCE's default residential rate in 2026—called TOU-D-4-9PM—charges roughly 34–35¢/kWh on average, but that average hides a sharp spike: during the 4–9 PM peak window, rates climb to approximately 48–52¢/kWh (higher in summer), while off-peak hours can drop below 30¢/kWh. That five-hour evening window is the single biggest variable in whether a solar-only system or a solar-plus-battery system makes financial sense for your home.

Last verified: July 2026 by Helios Energy Global.

Understanding exactly how TOU-D-4-9PM is structured—and how solar and batteries interact with it—is the foundation of every honest payback calculation we run for Southern California homeowners on SCE's grid.

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What "time-of-use" actually means

A flat-rate electricity plan charges you the same price per kilowatt-hour regardless of when you use power. A time-of-use (TOU) plan charges different prices depending on the time of day and the season. SCE moved the vast majority of residential customers onto TOU pricing beginning in 2020, and if you haven't actively chosen a different plan, you are almost certainly on TOU-D-4-9PM right now.

The logic behind TOU pricing is straightforward: California's grid is most stressed in the late afternoon and early evening, when solar generation drops off but air conditioning, cooking, and other household loads are still running hard. By charging more during those hours, SCE gives customers a financial incentive to shift usage away from peak times.

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The TOU-D-4-9PM rate structure, broken down

SCE's TOU-D-4-9PM plan has two main time periods that apply every day of the year, including weekends and holidays:

• Peak: 4:00 PM – 9:00 PM
• Off-Peak: all other hours (9:00 PM – 4:00 PM the following day)

Within those periods, there are also baseline and high-usage tiers that affect your exact rate. Customers who use more than their baseline allocation pay a higher rate in each period. Summer months (June–September) carry higher peak rates than winter months.

Key numbers at a glance

Period	Season	Approximate Rate (2026 estimate)
Peak (4–9 PM)	Summer (Jun–Sep)	~50–55¢/kWh
Peak (4–9 PM)	Winter (Oct–May)	~44–48¢/kWh
Off-Peak	Summer	~28–32¢/kWh
Off-Peak	Winter	~26–30¢/kWh
Blended average (all hours)	Annual	~34–35¢/kWh
LADWP average (for comparison)	Annual	~22¢/kWh

All figures are estimates based on SCE rate filings and EIA data. Your bill will also include fixed charges, baseline credits, and other line items. Confirm current rates at sce.com.

The gap between SCE's peak and off-peak rates—roughly 20–25¢/kWh—is what makes the 4–9 PM window so financially significant.

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Why the 4–9 PM window is the whole solar + battery story

Here is the problem with solar-only on SCE's grid: your panels produce the most power from roughly 9 AM to 3 PM, well before the peak window opens. Under NEM 3.0 (the CPUC's Net Billing Tariff, which applies to SCE customers who go solar), excess solar energy exported to the grid during off-peak hours is credited at avoided-cost rates—which can be as low as 5–8¢/kWh. You're selling cheap and buying expensive.

A home battery changes that math. Instead of exporting cheap midday solar to the grid, you store it and discharge it during the 4–9 PM peak, when the electricity you'd otherwise buy from SCE costs 50¢/kWh or more. Every kilowatt-hour you self-consume during peak hours is a kilowatt-hour you didn't buy at peak price. That's the core of the solar-plus-battery value proposition under NEM 3.0.

For more detail on how NEM 3.0 export credits work, see our NEM 3.0 explained guide and our solar vs. battery under NEM 3.0 comparison.

A concrete example

Say your home uses 2 kWh between 6 PM and 7 PM on a summer evening:

• Without storage: you buy those 2 kWh from SCE at ~52¢/kWh = $1.04
• With a battery charged by midday solar: you use stored solar at effectively 10–12¢/kWh (your cost to produce it) = **$0.22**
• Difference for one hour: ~$0.82

Multiply that across five peak hours, seven days a week, and the savings accumulate quickly—especially in summer.

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SCE vs. LADWP: why this matters for where you live

Not every Southern California homeowner is on SCE. LADWP (Los Angeles Department of Water and Power) is a municipal utility and is not subject to NEM 3.0 or SCE's TOU-D-4-9PM structure. LADWP still offers retail-rate net metering and has an average rate of roughly 22¢/kWh—significantly lower than SCE's blended average.

If you're in Santa Monica, you're on SCE. If you're in the City of Los Angeles proper, you're likely on LADWP. Other Southern California municipal utilities—Pasadena PWP, Burbank, Glendale, Anaheim APU, Riverside RPU—each run their own net metering programs with their own rate structures, none of which are NEM 3.0.

The practical difference: On SCE with NEM 3.0, a battery is often essential to maximize payback. On LADWP with retail-rate net metering, a solar-only system can still deliver strong returns because exported energy is credited at the full retail rate (~22¢/kWh), not at avoided-cost rates.

Our locations page can help you confirm which utility serves your address.

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Other SCE residential rate plans worth knowing

TOU-D-4-9PM is the default, but SCE offers alternatives. Here's a brief overview:

• TOU-D-Prime: Designed for electric vehicle owners. Has a super off-peak period (midnight–9 AM) with very low rates—potentially useful if you can charge an EV overnight and shift other loads.
• TOU-D-5-8PM: An older peak window (5–8 PM instead of 4–9 PM). Fewer customers are on this plan, and it's generally less favorable for battery optimization because the window is narrower.
• Flat-rate (Tiered): Still available but being phased out for many customers. Generally not recommended for solar households because there's no incentive to shift load.

For most solar and battery customers on SCE, TOU-D-4-9PM is the relevant plan—and the one we design systems around.

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How battery sizing connects to the peak window

The 4–9 PM peak is exactly five hours long. A standard home battery—say, a unit with 10–13 kWh of usable capacity—can cover a significant portion of a typical home's peak-hour load if it's fully charged by 4 PM. Homes with higher loads (EV charging, pool pumps, central AC) may benefit from two batteries.

Installed battery costs in 2026 run roughly $10,000–$16,000 per unit before any incentives. California's SGIP (Self-Generation Incentive Program) residential budget is waitlisted in 2026, so don't count on that rebate in your near-term planning. There is also no federal tax credit for residential solar or batteries purchased in 2026—the 30% federal credit expired December 31, 2025.

For a deeper look at battery options and costs, visit our batteries page or get a custom design that models your specific peak-hour load.

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Practical tips for SCE customers right now

Shift what you can shift. Dishwashers, laundry, pool pumps, and EV charging are all candidates for off-peak scheduling. Running them before 4 PM or after 9 PM cuts your peak consumption even without a battery.

Check your current plan. Log into your SCE account and confirm you're on TOU-D-4-9PM. If you're on an older plan, switching to the current default may reduce your bill even before adding solar.

Size solar for self-consumption, not export. Under NEM 3.0, oversizing a solar array to export large amounts of power to the grid is rarely cost-effective. A well-sized system paired with a battery—designed to cover your peak-hour load—will typically outperform a large solar-only system.

Model your payback with real rate data. Generic solar calculators often use statewide averages. SCE's TOU structure means your payback depends heavily on when you use power, not just how much. See our solar panel cost page for Southern California-specific ranges, and book a free consultation for a number tied to your actual usage.

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Frequently asked questions about SCE time-of-use rates

What is SCE's current default residential rate plan in 2026?

SCE's default residential rate plan is TOU-D-4-9PM, which applies a higher rate during the 4–9 PM window every day of the year, including weekends. If you haven't actively selected a different plan, this is almost certainly the plan on your bill.

How much does electricity cost during SCE peak hours in summer 2026?

During summer peak hours (4–9 PM, June–September), SCE rates are approximately 50–55¢/kWh for most residential customers, depending on your usage tier. Off-peak summer rates run roughly 28–32¢/kWh. Confirm exact rates at sce.com, as they can change with CPUC approval.

Does the 4–9 PM peak apply on weekends and holidays?

Yes. Unlike some older utility rate plans that had weekend or holiday exemptions, TOU-D-4-9PM applies every day of the year—weekdays, weekends, and holidays alike. This is an important detail when sizing a battery system.

Is NEM 3.0 the same as SCE's TOU rate?

No—they're separate but related. TOU-D-4-9PM is your consumption rate (what you pay for power you use). NEM 3.0 (Net Billing Tariff) governs your export credits (what you receive for excess solar sent to the grid). Both apply to SCE solar customers simultaneously, and together they make battery storage especially valuable. See our NEM 3.0 guide for the full picture.

Does LADWP have the same peak hours as SCE?

No. LADWP is a municipal utility with its own rate structure and is not on NEM 3.0. LADWP's TOU periods and rates differ from SCE's, and LADWP still offers retail-rate net metering. If you're in the City of Los Angeles, your solar economics are meaningfully different from an SCE customer's.

Can I switch off TOU-D-4-9PM to avoid peak charges?

SCE does offer alternative plans, including TOU-D-Prime (optimized for EV owners) and legacy tiered rates for some customers. However, for most solar and battery households, TOU-D-4-9PM is the most relevant plan, and switching away from it rarely improves payback. A custom design analysis will show you which plan works best for your household.

Is there still a federal tax credit for adding a battery to my SCE home in 2026?

No. The 30% federal residential clean energy tax credit expired December 31, 2025. There is no federal incentive for residential solar or battery purchases made in 2026. California's SGIP battery rebate program is also waitlisted for residential customers. Factor this into your payback projections.

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Next steps

• Book a free consultation and custom design — we'll model your SCE TOU bill against a solar-plus-battery system sized for the 4–9 PM peak.
• See what a solar system costs in Southern California — installed price ranges for 2026, no fluff.
• Understand how NEM 3.0 export credits work — the other half of the SCE solar equation.
• Compare solar-only vs. solar-plus-battery under NEM 3.0 — side-by-side payback analysis.
• Explore battery storage options — costs, sizes, and which homes benefit most.
• View our design and savings estimator — enter your address and usage for a Southern California-specific estimate.