Southern California Edison · CPUC NEM 3.0

SCE net metering, explained for homeowners.

Net metering under Southern California Edison changed dramatically in April 2023, when the California Public Utilities Commission replaced NEM 2.0 with NEM 3.0 across SCE's territory — the largest utility footprint in Southern California. The headline: the credit you earn for exporting solar to the grid fell roughly 75%, and those export rates now follow an hourly avoided-cost schedule instead of paying full retail. That doesn't end the case for solar — it changes the smart design. The system that pays for itself under SCE today stores your midday production and uses it during the expensive 4-9 PM peak rather than selling it back cheaply. Helios pulls your actual SCE usage, models both solar-only and solar+battery, and the owner signs off on every design.

Utility
SCE
Southern California Edison
Net metering regime
CPUC NEM 3.0
CPUC-regulated
Battery
Usually essential
We model both paths

Southern California Edison

How net metering works on SCE.

Southern California Edison is a CPUC-regulated investor-owned utility, so it operates under NEM 3.0 (formally the Net Billing Tariff) for any system interconnected after April 15, 2023. Under the previous NEM 2.0 rules, exported energy earned roughly the full retail rate. Under NEM 3.0, exports are credited at hourly avoided-cost values that average about 75% lower — and those values swing throughout the day, paying very little midday when solar is abundant and more during the evening ramp.

The practical effect is that the old strategy of oversizing an array to bank credits no longer works well on SCE. Self-consumption is what matters now. SCE residential customers are also typically on time-of-use rate plans where the most expensive hours fall in the 4-9 PM window — exactly when rooftop solar production is fading. Closing that gap is the whole game.

That's why a battery has become central to SCE solar economics rather than an upsell. Storing midday solar and discharging it across the evening peak lets you avoid SCE's highest retail rates instead of exporting for pennies. We model your specific SCE rate schedule and load profile so the numbers reflect your home, not a regional average.

Storage on SCE

Should you add a battery?

On SCE, a battery is close to essential for a healthy return. Because NEM 3.0 pays so little for exported power, solar-only paybacks have stretched to roughly 10-14 years for many homes. Pairing solar with storage — so you self-consume during the 4-9 PM peak instead of exporting cheaply — typically brings that back into the 6-9 year range. In SCE's many High Fire Threat District communities, a battery does double duty: it also keeps your home running automatically during Public Safety Power Shutoffs. We model both scenarios honestly so you can decide, but on SCE the math usually points to storage.

SCE cities we serve.

Helios designs and installs solar across 72 SCE communities in Southern California. Pick your city for local sun hours, fire-zone notes, and a market-specific quote.

Acton

Los Angeles County

Agoura Hills

Los Angeles County

Altadena

Los Angeles County

Beaumont

Riverside County

Beverly Hills

Los Angeles County

Brea

Orange County

Buena Park

Orange County

Camarillo

Ventura County

Castaic

Los Angeles County

Cerritos

Los Angeles County

Chino

San Bernardino County

Chino Hills

San Bernardino County

Claremont

Los Angeles County

Corona

Riverside County

Costa Mesa

Orange County

Culver City

Los Angeles County

Diamond Bar

Los Angeles County

El Monte

Los Angeles County

Fontana

San Bernardino County

Fountain Valley

Orange County

Fullerton

Orange County

Garden Grove

Orange County

Hacienda Heights

Los Angeles County

Hemet

Riverside County

Hermosa Beach

Los Angeles County

Huntington Beach

Orange County

Irvine

Orange County

Jurupa Valley

Riverside County

La Crescenta-Montrose

Los Angeles County

La Habra

Orange County

Lake Elsinore

Riverside County

Lake Forest

Orange County

Long Beach

Los Angeles County

Malibu

Los Angeles County

Manhattan Beach

Los Angeles County

Menifee

Riverside County

Mission Viejo

Orange County

Moorpark

Ventura County

Moreno Valley

Riverside County

Murrieta

Riverside County

Newport Beach

Orange County

North Tustin

Orange County

Oak Park

Ventura County

Ontario

San Bernardino County

Orange

Orange County

Oxnard

Ventura County

Palm Desert

Riverside County

Palm Springs

Riverside County

Palmdale

Los Angeles County

Palos Verdes Estates

Los Angeles County

Placentia

Orange County

Rancho Palos Verdes

Los Angeles County

Redlands

San Bernardino County

Redondo Beach

Los Angeles County

San Bernardino

San Bernardino County

San Clemente

Orange County

San Dimas

Los Angeles County

Santa Ana

Orange County

Santa Clarita

Los Angeles County

Santa Monica

Los Angeles County

Santa Paula

Ventura County

Silverado

Orange County

Simi Valley

Ventura County

Temecula

Riverside County

Thousand Oaks

Ventura County

Topanga

Los Angeles County

Villa Park

Orange County

West Covina

Los Angeles County

Westlake Village

Los Angeles County

Westminster

Orange County

Yorba Linda

Orange County

Yucaipa

San Bernardino County

SCE net metering questions, answered.

Does SCE still offer net metering in 2026?
Yes, but under NEM 3.0 (the Net Billing Tariff), not the older NEM 2.0. Any SCE system interconnected after April 15, 2023 falls under NEM 3.0, which credits exported solar at hourly avoided-cost rates roughly 75% below the old full-retail value. Homeowners already on NEM 2.0 generally keep those terms for their legacy period.
I'm on SCE NEM 2.0 — how long do I keep it, and what could void it?
NEM 2.0 is grandfathered for 20 years from your system's original permission-to-operate date, and it generally stays with the property if you sell. Adding a battery does not affect your NEM 2.0 status. What can jeopardize it is enlarging the array — expanding beyond roughly 10% or 1 kW of the original system size typically moves the whole system onto NEM 3.0. If you want more capacity on a NEM 2.0 system, talk to us before adding panels: there is often a design that adds usable power (storage, higher-efficiency swaps) without giving up the tariff, and we confirm the current rules with SCE before any work.
How much did SCE export credits drop under NEM 3.0?
Exported energy is now credited at hourly avoided-cost values that average about 75% lower than the retail rate paid under NEM 2.0. The exact credit varies hour by hour — very low during the midday solar surplus and higher during the evening ramp — which is why self-consumption and storage matter so much on SCE.
Is solar still worth it with SCE under NEM 3.0?
Yes, especially paired with a battery. SCE's residential rates are high and keep climbing, so offsetting your own usage still pays. The key change is design: instead of exporting for cheap credits, you store midday production and use it during the 4-9 PM peak. We model solar-only and solar+battery for your specific SCE rate so you see the honest difference.
Can I still get the 30% solar tax credit on an SCE system?
Not as a homeowner who buys the system — Congress ended the residential 30% credit on December 31, 2025. Our prepaid-lease option (Propel) instead captures the federal commercial clean-energy credit and passes it through as roughly 30% off your cost up front, with you taking title in year 6. We put the structure in writing; we're not tax advisors, so confirm details with yours.

Get a transparent SCE quote.

Free home assessment, no pressure. We model net metering on your exact SCE rate — solar-only and solar+battery — with payback period and every line-item cost.