SCE customers on NEM 1.0 or NEM 2.0 can expand their solar system by up to 1 kW without losing their existing NEM rate. For full details, see our guide to NEM expansion rules in California. Southern California's abundant sunshine makes plug-in solar one of the best returns on investment available. NEM Expansion Kit from Bright Saver

SCE Solar Savings Guide: Plug-In Solar for Southern California Edison Customers

In short: SCE NEM customers can add a plug-in solar expansion kit and earn $384-$704/year in net metering credits at SCE NEM rates of ~$0.32/kWh. A 2-panel kit pays for itself in 4.3 years, and a 4-panel kit in 3.7 years.

SCE residential rates average about 34.5 cents/kWh as of early 2026, with TOU peak rates reaching over 50 cents/kWh in summer. If you already have rooftop solar on NEM 1.0 or NEM 2.0, your exported electricity earns credits at or near those retail rates — far more valuable than the ~$0.08/kWh that new NEM 3.0 customers receive.

That existing NEM rate is worth protecting. And expanding.

How NEM Expansion Works with SCE

SCE's published tariff allows NEM 1.0 and NEM 2.0 customers to expand their solar generating capacity by up to 1 kW or 10% of the original system size (whichever is greater) without losing their existing net metering rate.

Bright Saver's NEM Expansion Kit lets you add 2 or 4 panels in your backyard. A little Ikea-style assembly, plug into a standard outlet, and start earning more NEM credits the same day. No contractor. No permits. No changes to your NEM agreement.

When your home is using less than the panels produce, the excess flows back through your existing bi-directional meter to the grid — earning you NEM credits at your existing NEM rate, just like your rooftop panels.

Savings for SCE Customers

At SCE NEM rates (~$0.32/kWh), each panel earns approximately $192/year in net metering credits. Southern California's extra sunshine means slightly higher production than Northern California.

SystemPrice + Tax*Annual NEM CreditsPayback Period
NEM 2-Panel$1,649$384/year4.3 years
NEM 4-Panel$2,583$704/year3.7 years
Includes 10% estimated sales tax.

The 4-panel system has a shorter payback because the third and fourth panels add production at a lower incremental cost, even though the 900W inverter clips peak output for a few hours on the sunniest days. Annual energy lost to clipping is only about 10%.

Why the Math Gets Better Over Time

California electricity rates have been rising 5 to 8% per year. Your NEM credits grow as rates increase, but your kit cost is locked in at day one.

YearEst. NEM Rate2-Panel Annual Credits4-Panel Annual Credits
Year 1$0.32/kWh$384$704
Year 5$0.39/kWh$468$858
Year 10$0.50/kWh$600$1,100
Year 20$0.81/kWh$972$1,782

Over 20 years, a 2-panel kit generates over $12,000 in cumulative NEM credits on a $1,649 investment. A 4-panel kit generates over $23,000 on a $2,583 investment.

Southern California Solar Production

Southern California gets more sun than the state average, which means higher production:

More sun hours = more kWh = more NEM credits.

Self-Consumption vs. NEM Credits

When your home is using more electricity than your panels produce (common during high-use periods), the solar energy gets consumed directly. In that case, you're saving at your full retail rate (~$0.345/kWh or higher during peak TOU periods), which may be even higher than your NEM credit rate. Either way — credits or self-consumption — you save.

CCA Customers

If you're with Clean Power Alliance or another Community Choice Aggregator, plug-in solar still reduces your total bill by offsetting kWh from both delivery and generation components. Your NEM agreement typically applies regardless of your generation provider.

SCE Interconnection

SCE allows NEM 1.0 and NEM 2.0 customers to expand capacity by up to 1 kW or 10% of the original system size without losing their existing NEM rate. SCE requires an interconnection review before granting Permission to Operate (PTO) for system modifications. Check with SCE for current processing times.

FAQ

Will this affect my NEM 2.0 rate?

No. SCE's published tariff allows capacity expansion of up to 1 kW or 10% of your original system size without losing your existing NEM rate.

What if I produce more than I use?

Excess flows back through your meter and earns NEM credits, just like your rooftop panels.

Do I need SCE's permission?

SCE requires an interconnection review for system modifications. Contact SCE to confirm current requirements for NEM expansions within the published limits.

Apartments and condos?

If you have a patio or balcony with sun and a standard outlet, plug-in solar can work. However, Bright Saver's NEM Expansion Kits are designed specifically for homeowners with existing rooftop solar on NEM 1.0 or NEM 2.0.


SCE rates keep climbing. Your NEM rate is a locked-in asset — put it to work. Shop NEM Expansion Kits for SCE Customers

Free pickup from our Oakland or Los Angeles warehouses. Delivery + installation support available within 50 miles of Oakland for $349.

Bright Saver is a 501(c)(3) nonprofit. Our mission is making solar accessible to every American.