California’s current export-compensation system is formally the Net Billing Tariff (NBT). Southern California Edison refers to it as the Solar Billing Plan. It generally applies to customers who submitted a qualifying interconnection application after April 14, 2023.

Electricity generated and used onsite avoids a retail purchase. Excess generation exported to the grid receives an hourly Energy Export Credit based on its value to the grid. Export credits are usually lower than retail rates, but they are not a single fixed rate and can rise during high-value late-summer evening hours.

The Required SCE Rate Structure

The California Public Utilities Commission currently identifies TOU-D-PRIME as the required Time-of-Use rate for SCE residential customers on the Net Billing Tariff.

Project economics therefore depend on more than total annual solar production. The timing of energy matters:

• solar used immediately offsets the applicable retail rate
• exported solar earns the hourly export-credit value
• evening imports are billed at the customer’s current Time-of-Use rate
• battery charging and discharging change both imports and exports
• fixed charges may not be offset by generation credits

When Storage May Help

A battery can store midday production for use during evening hours and may allow selected exports during higher-value periods when the system and tariff permit it. That can improve the value of solar production compared with exporting every excess midday kilowatt-hour.

It is not accurate to promise that every SCE customer will save more or reach a particular payback period with a battery. The result depends on:

• hourly household load
• solar production and shading
• battery capacity, power, efficiency, reserve settings, and degradation
• installed cost and financing
• current TOU-D-PRIME prices and hourly export credits
• outage-backup priorities
• actual approved incentives

A Practical Evaluation Process

1. Use interval usage data. Model when the home consumes electricity, not only the monthly total.
2. Compare solar-only and solar-plus-storage. Use the same production estimate and current tariff inputs for both.
3. Model battery dispatch realistically. Include efficiency losses, backup reserve, power limits, and degradation.
4. Use current installed quotes. Include permitting, interconnection, electrical upgrades, and financing.
5. Check SGIP separately. A household must meet the current eligibility pathway and receive an approved reservation before treating an incentive as certain. See GridPermit’s current SGIP battery rebate guide for what is still open in 2026.
6. Stress-test the estimate. Evaluate lower export values, higher financing costs, and different household usage patterns.

The CPUC’s current Net Billing overview explains the statewide tariff and the required utility rate plans. Review SCE’s current rate and Solar Billing Plan materials for the customer’s exact tariff.

Federal Tax-Credit Warning for 2026 Installations

Do not automatically subtract a 30% residential federal credit from a 2026 installation. The IRS currently states that the Residential Clean Energy Credit is not available for property placed in service after December 31, 2025. Check the actual placed-in-service date against the current IRS guidance and obtain tax advice where appropriate.

Looking for city-specific permit requirements rather than tariff analysis? See GridPermit’s verified SCE city guides.

Compare solar and battery installer options on EnergySage

This page explains the general tariff structure. It is not a live rate lookup, savings guarantee, tax opinion, or project-specific financial model. Confirm current SCE rates, export credits, charges, and system assumptions before making a decision.