SCE Rates Keep Climbing Solar PPAs lock in lower power

SCE Rates Keep Climbing

Solar PPAs lock in lower power

Southern California Edison customers are not imagining the pressure on their bills. California regulators approved a new SCE revenue plan that raises the utility’s authorized 2025 revenue requirement by more than $1 billion over 2024 levels, with the average non-CARE residential bill estimated to rise 9.1% for a 500 kWh household [1].
That decision matters because it does not look like a short-term spike. The CPUC decision also approved SCE revenue requirements for 2026, 2027, and 2028, while allowing the utility to recover part of the 2025 difference from customers over a 24-month period beginning as early as October 2025 [1].
For homeowners, the question is simple: if utility rates keep absorbing wildfire costs, grid upgrades, electrification planning, and aging infrastructure, what would have to happen for SCE power to become cheaper than a well-structured solar PPA?
The evidence points in the opposite direction. The same CPUC fact sheet says the decision authorized major wildfire and grid-hardening budgets, including more than $2.2 billion over four years for wildfire management and grid hardening, plus funding for covered conductor, undergrounding, vegetation management, transportation electrification readiness, grid modernization, and aging infrastructure [1].

Those investments may be necessary for safety and reliability, but the money ultimately flows through the rate system customers pay into.

That is why long-term energy pricing is becoming the real story. A solar Power Purchase Agreement, or PPA, lets a qualified homeowner buy the power produced on their roof at a set contract rate without purchasing the solar equipment upfront. Instead of betting that utility rates will reverse decades of increases, the homeowner can compare today’s grid price against a predictable solar rate designed around their usage.
SCE’s own solar billing rules show how important timing and structure have become. Under SCE’s Solar Billing Plan, residential solar customers are transitioned to TOU-D-Prime, charged the full retail rate for grid energy they consume, and credited for exported solar based on hourly Energy Export Credit values [2]. Customers who enroll before January 1, 2028, can receive fixed Energy Export Credit prices for a nine-year lock-in period [2].
That means solar is no longer just about panels. It is about reducing expensive imports, storing power, and avoiding the highest-cost hours. For many Southern California homeowners, battery backup is becoming the bridge between solar savings and real energy control.
This is where third-party ownership programs matter. Through TPO and solar-plus-battery PPA structures, qualifying homeowners may be able to access solar and battery backup with no upfront equipment purchase and no separate battery purchase. For customers buying power from California’s big three utilities, SCE, SDG&E, and PG&E, the goal is to replace a volatile utility bill with cleaner on-site power, backup protection, and a more predictable monthly energy cost.

My Home & Solar Solution has covered this shift before, especially as AI data centers, grid demand, and utility infrastructure costs keep pushing homeowners to look for alternatives [3]. The lesson is the same: the homes that can produce, store, and manage power may be better positioned than homes that only buy electricity from the grid.

If your SCE, SDG&E, or PG&E bill keeps rising, the next step is not guessing what regulators might do years from now. It is comparing your current utility rate against a solar and battery program built for your home. Learn whether your home may qualify for a TPO program and battery backup at no upfront equipment cost by booking a call with My Home & Solar Solution [4].

Sources:

[1] CPUC Decision Fact Sheet: Southern California Edison’s 2025 General Rate Case - https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/energy-division/documents/general-rate-cases/sce/fact-sheet-sce-grc-091825.pdf

[2] Southern California Edison: How Solar Billing Plans Work - https://www.sce.com/clean-energy-efficiency/solar-generating-your-own-power/billing-incentives/solar-billing-plan

[3] My Home & Solar Solution News: How AI Data Centers Are Driving Up Electricity Prices - https://news.myhomesolution.org/news/b/how-ai-data-centers-are-driving-up-electricity-prices

[4] My Home & Solar Solution: Book a Call or Learn More - https://myhomesolution.org/home-7068