Southern California Edison Time-of-Use Billing 2025

Southern California Edison (SCE) customers are set to experience another increase in electricity costs in 2025.

With TOU rates expected to rise by 10.3%, the average residential bill could go up by approximately $17 per month. The increase is largely driven by cost recovery measures related to the extended operations at the Diablo Canyon Power Plant.

For homeowners in California, these rising costs highlight the importance of managing energy use efficiently. While adjusting electricity usage habits can help, switching to solar is still the most effective way to take control of energy costs and avoid the full impact of these rate hikes.

Generating your own electricity with solar not only reduces dependence on SCE but also protects against future rate increases.

What to Expect from SCE Time-of-Use Rates in 2025

SCE TOU billing charges customers different electricity rates based on when they use power. Peak hours, when demand is highest, come with the most expensive rates. In 2025, rates will rise again, continuing the trend of increasing costs for California homeowners who rely solely on the grid.

Key changes in SCE TOU rates for 2025 include:

• An estimated $17 monthly increase for the average residential bill
• Peak hours remaining between 4 PM and 9 PM
• Multiple TOU rate plan options with different peak hour structures

TOU Rate Plans: How They Work

SCE offers several TOU rate plans, each designed with different peak hour pricing.

• TOU-D-4-9PM charges higher rates from 4 PM to 9 PM
• TOU-D-5-8PM has a shorter peak pricing window from 5 PM to 8 PM
• TOU-D-PRIME is ideal for customers with solar battery storage or electric vehicles

Customers on these plans can lower their electricity bills by shifting energy consumption to times when rates are lower. However, even with strategic usage, bills will continue to rise as SCE implements future rate increases.

The best way to avoid these ongoing price hikes is to invest in a solar system that generates free electricity instead of relying entirely on the utility company.

Why SCE Rate Increases Make Solar a Smarter Choice

With the 2025 TOU rate increase, homeowners who continue to purchase all their electricity from SCE will see higher monthly costs.

Those who use the most power during peak hours will be hit the hardest. Running air conditioning, charging electric vehicles, and using major appliances in the evening will become even more expensive.

Avoiding Higher Rates with Solar

Solar allows homeowners to generate their own electricity instead of buying it from SCE at ever-increasing rates. A properly designed solar system can cover most or all of a home’s energy needs, significantly reducing or even eliminating monthly electricity bills.

New Day Solar specializes in residential solar installations in Southern California, helping homeowners reduce dependence on expensive TOU rates. Instead of paying SCE for every kilowatt-hour used, solar customers enjoy free energy generated by their own system.

Maximizing TOU Savings with Battery Storage

Adding a solar battery to a home energy system further increases savings. Batteries store excess solar power during the day, making it available for use at night when TOU rates are highest. Instead of buying expensive peak-hour electricity from SCE, homeowners with battery storage can use their own stored energy for free.

New Day Solar offers solar battery solutions that help homeowners take full advantage of their solar power, providing protection against rising rates and even power outages.

How to Take Control of Your Electricity Costs

1. Review Your Current Rate Plan
   SCE offers different TOU plans, each with varying peak hour windows and rates. Reviewing your current plan can help determine if a switch to another rate plan might offer some savings. However, no matter which plan is selected, rates are expected to continue increasing over time.
2. Shift Energy Usage to Off-Peak Hours
   Using appliances during lower-rate periods can help manage electricity costs. Running dishwashers, washing machines, and electric vehicle chargers during off-peak hours may result in small savings, but homeowners will still be paying SCE for every unit of electricity they use.
3. Stay Updated on SCE Rate Changes
   SCE periodically updates its TOU rate plans, making it important to stay informed. Checking the SCE website for updates can help homeowners adjust their electricity use, but it does not stop the reality of continued price increases.
4. Invest in Solar for Long-Term Savings
   The most effective way to avoid increasing TOU rates is to generate your own electricity. With a solar system installed by New Day Solar, homeowners can lock in lower energy costs and reduce or eliminate their dependence on the grid. Unlike SCE rates, which rise year after year, solar provides a long-term solution with predictable savings.

Solar is the Best Way to Reduce Electricity Costs

Homeowners in Southern California don’t have to keep paying more every year for the same electricity. Instead of adjusting habits to accommodate SCE’s rising rates, going solar puts control back in the hands of homeowners. With solar panels and battery storage, there’s no need to worry about peak hours or rate increases.

For a customized solar solution that fits your energy needs, contact New Day Solar today or call (855) 444-6329.

Switching to solar now ensures that future rate hikes won’t affect your electricity costs.