SCE Rate Changes in 2026: What Southern California Edison Customers Should Know

December 31, 2025

If you are an SCE customer, you already know the frustrating part: your bill does not just change once a year. It can move multiple times based on CPUC-approved updates, “trackers,” and rate design changes. This 2026 update explains what is driving the conversation, what happened in 2025 leading up to it, and how to protect yourself from future volatility.

Disclaimer: This article is based on publicly available information and summaries from regulators, public reports, and published commentary. We are not SCE and we are not the CPUC. Rates and program rules can change, sometimes quickly. Always verify current rates and your applicable plan directly on SCE’s official rate pages and on your latest bill.

Quick takeaways

There are multiple “2026 rate stories” floating around because people compare different time windows and different definitions of “rate.”
Some industry commentary cites about a 12.9% (roughly 13%) increase for 2026 based on rate filings and projections.
2025 already had major movement, including SCE communications that residential rates would increase by about 13% starting on October bills, plus other rate changes earlier in the year.
A fixed monthly charge is expected to roll out starting late 2025 and into early 2026, paired with a reduction in cents-per-kWh pricing. That shift can change who “feels” rate increases the most. :contentReference[oaicite:2]{index=2}
For solar under NEM 3.0 (Net Billing Tariff), savings increasingly come from self-consumption and often batteries, not exporting at full retail value.

First, why SCE bills change so often

SCE rates are made up of many components. Some are updated in large multi-year “base” cases, and others update through separate proceedings or trackers. That is why you can see changes in different months.

Common drivers include:

General Rate Case (GRC) costs (grid reliability, operations, capital improvements)
Wildfire mitigation and vegetation management
Transmission and distribution upgrades for safety and load growth
Procurement and energy cost trackers that can move with market conditions
Rate design changes like shifting part of costs into fixed charges

What happened in 2025 before we even talk about 2026

To understand why people are sensitive about 2026, you have to zoom out and acknowledge what happened in 2025.

2025 timeline (high level)

Jan 1, 2025: SCE posted a rate advisory indicating rates were increasing at the start of 2025.
Mar 1, 2025: SCE posted another advisory showing rates changing again (in that update, example residential bills shown were slightly lower).
Jun 1, 2025: SCE posted an advisory noting an average residential rate moving from about 31.4 cents/kWh to about 31.2 cents/kWh
Oct 2025 bills: SCE also communicated that residential electric rates would increase by approximately 13% and would start appearing on October bills.

Why October 2025 was such a flashpoint: In the CPUC’s SCE GRC proposed decision fact sheet, the commission describes how SCE would need to recover the difference between what it collected since January 2025 and what it was approved to collect for 2025, recovered over a 24-month period beginning as early as Oct. 1, 2025.

So what is the “13% increase for 2026” people are talking about?

You asked specifically to mention the roughly 13% figure, and here is the clean way to present it without overclaiming:

Some public commentary and solar industry blogs cite a projected 12.9% increase in 2026, often describing it as coming from SCE filings or forward-looking forecasts.
Not every “2026” headline refers to the same measurement. Some comparisons are year-over-year average bills, others are “average bundled system rate,” and others are based on specific effective-date windows.

Best practice for your NRG post: mention the 12.9% (about 13%) projection as a widely-circulated estimate, then immediately remind readers to verify the current SCE advisory for the exact effective period for their rate plan.

The 2026 wildcard: fixed monthly charges start showing up

One of the most important changes for 2026 is not just “cents per kWh.” It is that California is shifting part of grid costs into a fixed monthly charge (often referenced as a $24.15 flat rate for most households, with discounted tiers for CARE and FERA), paired with a reduction in usage rates.

In other words, you might see:

A new fixed line item on your bill (with discounts for qualifying customers)
Lower per-kWh pricing than it otherwise would have been
A different “math” for savings from efficiency upgrades and solar, depending on your usage

CPUC communications describe implementation starting in late 2025 and early 2026. :contentReference[oaicite:11]{index=11}

Do not forget the California Climate Credit

If you compare bills month-to-month, remember the California Climate Credit typically appears automatically as an electric bill credit in April and October. Those months can look artificially cheaper, which can hide the underlying direction of rates if you compare the wrong two bills. :contentReference[oaicite:12]{index=12}

What SCE customers can do to reduce exposure in 2026

I like to keep this practical. You do not need to become a rate analyst. You just need a plan.

1) Pressure-test your usage (this matters more than most people think)

Find your monthly kWh for at least 3 to 6 recent months.
Identify your rate plan name (TOU plan matters a lot).
Check whether a large share of your usage happens in the late afternoon and evening (often the most expensive TOU windows).

2) Shift the “big loads” first

EV charging: move it to off-peak hours when possible
HVAC: pre-cool and reduce peak-hour run time
Pool pumps: schedule outside peak pricing windows

3) Solar still helps in SCE territory, but the strategy changed

Under legacy NEM, exported solar could offset your bill at something close to retail. Under Net Billing (NEM 3.0), exports are credited differently and are generally not the same as retail pricing, which makes self-consumption much more important.

That is why in 2026, the best-performing setups often focus on:

Right-sized solar (not oversizing just to export)
Load shifting so you use more solar directly
Battery storage if your usage peaks in expensive evening windows

If you want a fast baseline estimate for your home, start here: get an instant solar quote.

If you are still benchmarking costs, this guide is the best starting point: how much solar panels cost in California.

A simple “reader-friendly” way to talk about 2026 bill impact

Because SCE bills vary by TOU plan and season, I would avoid pretending there is one perfect number for everyone. Instead, use this framing:

If your bill rose sharply in late 2025: you already saw what a major step-change feels like, and 2026 planning should assume more volatility, not less.
If you see headlines like “12.9% in 2026”: treat that as a directional estimate and verify the current advisory and effective date window.
If a fixed monthly charge appears: your per-kWh rate may look lower, but your “baseline” bill may be less flexible.

FAQ

Is SCE really raising rates by about 13% in 2026?

Some widely-circulated commentary cites an expected 12.9% (about 13%) increase for 2026 based on filings or projections. Example: SunLux’s write-up. Treat projections as directional and verify the latest official advisory for your rate plan and effective dates.

What happened in 2025 that made people so sensitive about 2026?

SCE posted multiple rate advisories in 2025, and SCE communications indicated residential rates would increase by approximately 13% starting on October bills. CPUC materials also describe a 24-month recovery mechanism that could begin as early as Oct. 1, 2025.

Will a fixed monthly charge show up in 2026?

CPUC communications describe a new billing structure with a fixed component implemented starting late 2025 and into early 2026.

Does solar still save money with SCE?

Yes, but the best savings often come from using solar power directly (self-consumption) and, for many households, pairing solar with batteries, since export credits under Net Billing are structured differently than retail rates. :contentReference[oaicite:20]{index=20}