Southern California Edison (SCE) has long been increasing electricity rates to cover infrastructure, wildfire mitigation, and grid reliability. But starting October 1, 2025, SCE is implementing one of its steepest single increases yet , nearly 13% for the typical residential customer. Combined with new billing changes taking effect in November, most Californians will see higher costs even if they use the same amount of electricity.
SCE Rate Increase of 2025 By the Numbers
What’s Changing in 2025
New Rates (Effective October 1, 2025)
- Current average residential rate: 31.2¢ per kWh (29.2¢ with the California Climate Credit)
- New average residential rate: 35.3¢ per kWh (33.3¢ with Climate Credit)
- Typical 500 kWh/month bill: $171.17 → $193.23 (+12.9%)
- CARE (income-qualified) bill: $107.99 → $122.31 (+13.3%)
- With Climate Credit: $161.84 → $183.90 (+13.6%)
Reason for SCE rate increase of 2025
SCE cites several reasons for this increase:
Addition of $1.685 billion in new revenue requirements approved in its 2025 General Rate Case.
Recovery of $536 million in wildfire mitigation and restoration costs from 2022–2023.
Removal of temporary refunds and previously recovered delivery costs.
While there were minor rate decreases earlier in 2025 (March and June), these were short-lived adjustments that are now outweighed by the October hike.
Why This Matters
- A Sharp Jump in One Step
A nearly 13% increase in one billing period is substantial — few utilities have raised rates this quickly. - More Increases Ahead
The CPUC’s 2025–2028 revenue decisions already lock in additional cost escalations, meaning future rate adjustments are likely. - Mandatory Bill Restructure
The new Base Services Charge is mandated by law, so all residential bills will change — regardless of energy usage or efficiency improvements. - Climate Credit Limitations
The California Climate Credit only applies twice a year and can’t keep pace with ongoing price increases.
Have You Had Enough of Expensive Utilities? Switch to Solar
This will not be the last SCE price hike this year and in the future. In fact, several other energy players in California, like PG&E, Southwest Gas, SDG&E, and SoCalGas, to name a few, have all increased their prices in 2024.
With the continued need for energy, there will likely be more of the same in the coming years.
Adopting solar power is one of the easiest and most practical ways for homeowners to gain an edge against such price hikes from utility entities.
The benefits of switching to solar are many:
A Fair Degree of Energy Independence
By installing solar panels on their roofs, homeowners can generate their own electricity and reduce their dependence on utility providers’ grids. This is a great way to reduce their monthly electricity bills.
Unlocking Energy Efficiency
SCE and other utility providers charge higher rates during peak hours, typically in the afternoon and evening, when people use more electricity. By using energy-efficient appliances, adjusting their thermostat, and shifting their energy usage to off-peak hours, homeowners can reduce their dependence on the increasingly expensive grid and save money along the way.
To this end, installing a solar system with energy storage (batteries) and monitoring bring multi-pronged benefits. With the ability to store excess energy generated during the day—by virtue of the sun and solar cells—homeowners can tap into it during peak hours. This handily minimizes the need for utility-provided electricity and reduces overall expenses.
Needless to say, saving money on energy bills and reducing a household’s reliance on utility-provided electricity is possible.
Furthermore, the energy monitoring feature can help homeowners track energy usage and identify opportunities to optimize the system’s performance. When homeowners know the times of day they use the most energy, it becomes easier to find ways to reduce their overall consumption.
Incentivized Adoption
It’s been established that solar power can help homeowners save money on their monthly electricity bills. But adopting a solar power system also gives them access to various incentives and programs to reduce upfront installation costs.
California offers federal, state, and local incentives to homeowners who want to leverage solar power with benefits. These incentives can be categorized into two broad categories: tax incentives and rebates.
Tax Incentives
Tax incentives include the Federal Solar Investment Tax Credit—30% of the cost of installing solar and battery storage systems until 2032.
California’s Active Solar Energy System Exclusion exempts rooftop solar systems installed before January 1, 2025, from property valuations. This means the installations do not increase the property tax.
With the Property-Assessed Clean Energy (PACE) program, the upfront cost of the solar project is paid through an increase in the property tax bill over agreed-upon terms of 5 to 20 years.
Rebates
The Self-Generation Incentive Program (SGIP) provides reimbursements of $150 to $1,000 per kWh of battery storage installed, depending on the utility, wildfire risk, and special circumstances.
Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) is another rebate program for qualified low-income households. It provides an upfront rebate to reduce the cost of switching to solar.
Many local rebates can further maximize solar savings. A good example is Rancho Mirage Energy Authority’s Residential Solar Rebate Program, which offers a one-time $500 incentive for installing or expanding a residential solar system. There is also Sacramento Municipal Utility District (SMUD), which has a $150 stipend for residential solar system installations.
The federal government also offers a tax credit for homeowners who adopt solar power, which can significantly reduce the upfront cost of installation.
Long-term Benefits
Adopting solar power has long-term benefits as well. Solar panels can last up to 25 years or longer, and homeowners can expect to see a significant return on investment over the life of the panels.
In addition, solar power systems increase the value of a home, making it more attractive to potential buyers in the future.
It Is the Perfect Time To Embrace Solar
The recent price hike by SCE and other utility providers may be a wake-up call for homeowners to explore alternative energy sources like solar power. By adopting solar, homeowners can save on energy bills, take charge of their electricity needs, and contribute to a cleaner environment.
With the benefit of various incentives and rebates, going solar has never been easier, and it is the way of the future.
Authored by Ryan Douglas
NRG Clean Power's resident writer and solar enthusiast, Ryan Douglas covers all things related to the clean energy industry.