SCE Electricity Rate Increase: A 2026 Guide

Start with the official 57% five-year comparison

The California Public Advocates Office published its Q1 2026 Electric Rates Report on April 30, 2026. The report tracks residential electric rates for California's three large investor-owned utilities through March 2026. Its page 8 table reports that SCE's bundled residential average rate increased 57% from January 2021 through March 2026. The same table reports 39% for PG&E and 43% for SDG&E over that identical period.

That 57% is the cleanest direct five-year comparison because the agency states the percentage and dates together. It describes an average rate, not a statewide average, a forecast or the increase on a particular family's bill. The report also notes that its residential average-rate figures exclude the California Climate Credit. Keep all of those qualifications whenever the number is repeated.

Understand the separate approximate 64% comparison

The report's historical chart on page 7 extends back to January 2020. Reading the SCE points shown there gives approximately $0.210 per kilowatt-hour in January 2020 and $0.345 per kilowatt-hour in March 2026. The arithmetic, 0.345 divided by 0.210 minus one, is about 64%. This is a chart-derived approximation across a longer period, not a second official label for the five-year figure.

The two numbers are therefore compatible only when their starting dates and methods remain visible: an explicit 57% from January 2021 to March 2026, and an approximate 64% from January 2020 to March 2026. It would be misleading to swap their dates, call either an individual bill increase or imply that the same change occurred everywhere in California. All Star Solar retains the longer-period figure on its homepage with the methodology adjacent to it.

A rate increase and a bill increase are different

A utility rate is a price or set of prices applied under a tariff. A bill combines those prices with the household's measured use, time-of-use periods, fixed or base charges, credits, taxes and account-specific adjustments. A home that used less electricity during the comparison period could have a smaller bill change than the average-rate change. A home that added air conditioning, an EV, electric heating or more occupants could have a larger bill change even if its tariff had not changed by the same percentage.

Do not estimate a family's history by multiplying the latest bill by 57% or 64%. Instead, compare complete statements from equivalent seasons, record billed kilowatt-hours and the named rate schedule, and separate electricity charges from prior balances or unrelated services. For a forward-looking review, use current tariffs and documented future loads rather than extending a historical percentage as though it were a forecast.

Read the current SCE rate plan before modeling solar

SCE publishes several residential time-of-use choices. Its current public rate pages identify different peak windows, daily Base Services Charges, baseline treatment and eligibility conditions. TOU-D-4-9PM and TOU-D-5-8PM do not have the same high-price window. TOU-D-PRIME is designed for eligible households with qualifying technologies such as an electric vehicle, battery or heat pump and places particular importance on the 4 p.m. to 9 p.m. period.

The public summary is not a substitute for the controlling tariff. Record the exact schedule printed on the bill, the season, whether the account receives CARE or FERA assistance, and whether a community-choice provider supplies generation. Then check the current SCE tariff and prices for that account. A solar proposal built from a generic cents-per-kWh assumption can obscure peak imports, credits, charges that remain and a rate plan that may change the result.

Include the Base Services Charge correctly

SCE explains that the Base Services Charge is a set daily charge on residential bills that covers approved costs such as connecting homes to the grid, infrastructure, customer programs and billing. SCE also states that community-choice aggregation customers connected to its delivery system pay the charge. The charge should appear separately in an estimate rather than being hidden inside an invented average price.

A lower volumetric price does not automatically mean a lower total bill, and a fixed charge does not disappear simply because a home adds solar. Income-qualified customers can have different charge levels or discounts under the applicable rules. Use the account's actual program status and current official tariff. Never assume eligibility for CARE, FERA or another discount, and do not present a standard charge as if it applies identically to every account indefinitely.

Separate SCE delivery from CCA generation

Some SCE customers receive generation from a community-choice aggregator while SCE continues delivery, metering and consolidated billing. The statement can therefore show two providers and two sets of energy-related rules. A customer in an enrolled area should confirm the selected CCA product, opt-out status, generation rate and any solar export treatment before comparing offers. The city name alone is not enough to determine the arrangement.

Solar Billing Plan exports can also involve both utility and CCA rules. A bundled-SCE model should not be applied automatically to an Orange County Power Authority, Clean Power Alliance or other CCA account. Preserve the complete statement, identify which company sets each component and use current published documents from both providers. This is especially important when evaluating a proposal that summarizes the remaining utility bill in one number.

Treat imports and exports as different transactions

SCE's Solar Billing Plan says imported electricity is billed under the customer's time-of-use rate, while exported electricity earns Energy Export Credits based on its value to the grid during each hour. SCE publishes hourly credit information and describes a temporary additional export credit for certain eligible customers who enroll before the stated deadline. Those rules and values can change, so the applicable program year and account status matter.

A model should show household consumption, direct use of solar production, grid imports and grid exports separately. Multiplying all annual solar production by the retail import rate would treat daytime exports as though they offset purchases one-for-one and can materially distort the result. Ask for the export-price source and vintage, the assumed permission-to-operate date, and whether the home is already on legacy NEM rather than the newer Solar Billing Plan.

Use a battery for a defined job, not a slogan

A battery may shift some midday solar energy into the evening, reduce selected peak-period imports or reserve energy for an outage. Those jobs compete for the same usable capacity. A high backup reserve leaves less energy available for daily bill management; aggressive daily cycling may leave less reserve during an outage. Battery power, usable energy, efficiency, supported circuits and operating settings all belong in the design.

The Public Advocates Office rate history does not prove that a battery will pay for itself or eliminate an SCE bill. Compare at least two dispatch cases using the actual interval load when available: one focused on bill management and another preserving the desired backup reserve. Show conversion losses, remaining grid use, Base Services Charges and any financing or PPA payment. The household can then evaluate resilience and economics as separate, transparent benefits.

Compare solar against the current bill, not a projected scare number

Historical rate growth can explain why homeowners want more predictability, but it should not be extended into a guaranteed future escalation. A proposal should begin with 12 months of billed usage and interval data when available, then apply the current rate schedule. Future scenarios can be useful if they are clearly labeled assumptions and the conclusion is tested at more than one rate path.

Compare total household electricity spending under each option: estimated remaining utility charges plus the cash, loan, lease or PPA obligation. For a PPA, review the starting energy price, annual escalator if any, production terms, transfer provisions and purchase options in the actual agreement. For ownership, include the purchase price, financing cost, tax-credit eligibility uncertainty, warranty responsibilities and expected equipment replacement. No single historical percentage answers those contract questions.

Build a household-specific SCE review

Gather the latest complete bill, 12 months of kilowatt-hour use, interval data when available and any existing solar interconnection documents. Note the SCE rate schedule, CCA provider, CARE or FERA status, annual settlement date, major electric loads and expected changes such as an EV, pool, heat pump or additional occupants. For an existing solar home, record whether the account is on NEM 1.0, NEM 2.0 or the Solar Billing Plan.

Ask each proposal to identify measured facts, current published rates and future assumptions in separate columns. Request monthly production, direct solar use, battery flows, imports, exports, export-credit dollars, fixed charges and remaining utility cost. Keep the original files so later results can be compared against the same baseline. A transparent model should be understandable without relying on a sales headline.

Questions to ask before accepting a savings claim

Ask which SCE tariff and effective date were used, whether generation comes from SCE or a CCA, and how the model treats the Base Services Charge. Ask for the source and vintage of Solar Billing Plan export values, the assumed ratio of self-consumption to exports, and the battery reserve and efficiency settings. Confirm whether the proposal used actual interval data or a generic household shape.

Then ask to see the combined cost: utility imports and fixed charges plus the proposed payment. Any future utility escalation should be visible, editable and tested against a zero-escalation case. A responsible comparison can explain possibilities without guaranteeing savings, a rate increase, an annual bill or a payback date. If the assumptions cannot be produced in writing, the result is not ready to guide a long-term decision.

What this rate history can and cannot tell you

The official history establishes that SCE's bundled residential average rate changed substantially over the measured periods. It gives homeowners a reliable reason to examine the current account instead of using an old rule of thumb. It also provides a consistent reference for comparing the three large investor-owned utilities over the same five-year window.

It cannot predict the next rate case, a household's future usage, the value of exported solar energy, battery performance or the terms of a financing agreement. Those require current tariffs, property and consumption data, equipment specifications and controlling documents. Use the 57% and approximate 64% figures as dated historical context. Use the home's actual evidence to decide whether solar, storage, efficiency changes or a different SCE rate plan deserves further review.

Apply this to your California home

Compare the matching $0 down solar in California page, the Axia by Qcells pathway and Qcells equipment. Local permit and utility questions are covered in our Irvine, Anaheim and Orange County pages.