SCE Is Testing Rates That Reward You for Using Power at the Right Time Homes With Batteries Already Do

SCE Is Testing Rates That Reward You for Using Power at the Right Time
Homes With Batteries Already Do
Southern California Edison has expanded a pilot program that charges customers hourly electricity prices that change every day. It is called the Flexible Pricing Rate Pilot, and it is designed for customers who can shift their energy use to the cheapest hours. The program runs from 2025 through 2027.

How the pilot works
Instead of fixed time-of-use periods, participants see hourly rates that are published in advance for each day. The idea is that customers can plan when to charge an electric vehicle, run a heat pump or air conditioner, or use other major appliances based on when power is cheapest. SCE includes a built-in safety net. The program tracks a shadow bill showing what you would have paid under flexible pricing. After 12 billing cycles, SCE compares that to your actual charges. If flexible pricing would have saved you money, you receive a refund for the difference. If it would have cost more, you owe nothing extra.
Eligible customers must be on certain time-of-use or real-time pricing plans, such as TOU-D-PRIME or the EV rate plans, and generally cannot be enrolled in most other demand response programs. Customers can enroll through SCE or through participating automation companies that manage devices like EV chargers and smart thermostats. Participants can opt out at any time.

Where electricity pricing is heading
The pilot is a preview of where utility rates are going. California is steadily moving away from flat pricing and toward rates that reward customers for using power when it is plentiful and cheap, and charge more when the grid is stressed. Today's time-of-use plans already work this way, with the highest SCE prices typically between 4 p.m. and 9 p.m. Hourly pricing takes the idea even further. That creates a challenge for many families. Hourly prices only save money if someone is paying attention to them and adjusting the household schedule every day. Most people do not want to plan dinner, laundry, and air conditioning around a price chart.

A battery does the timing for you
This is where home solar and battery storage shine. A battery automatically stores energy when it is cheap or produced by your own panels, and supplies your home when grid prices are high. You do not need to change how you live. The system handles the timing in the background. As rates become more time-sensitive, that automatic flexibility becomes more valuable. Homes with solar and storage are already shifting their usage away from peak hours every day, which is exactly what programs like this one are designed to reward.

No purchase required
Through third-party ownership programs, qualifying homeowners can get solar and battery storage installed without buying or financing equipment. The provider owns and maintains the system, and the homeowner enjoys lower energy costs and backup power.
SCE is experimenting with new ways to reward smart energy use. A solar and battery system lets your home take advantage of that future automatically. If you want to stop watching the clock on your electricity use, see if your home qualifies.

To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org/california_public_utility_commissions