Why Solar Still Beats Rising SCE Rates in 2025: Yes, Even Without the Federal ITC

TL;DR -  SCE just raised rates in 2025 and has more increases locked in through 2028. Even though the federal solar tax credit ends December 31, 2025, solar still beats staying on the utility grid because you're locking in electricity costs at today's prices while SCE customers watch their bills keep climbing.

Your SCE bill just went up again, didn't it? If you're like most Southern California homeowners, you're probably staring at that monthly electric bill, wondering when it'll stop climbing.

Here's the thing: it won't. SCE has already locked in rate increases through 2028, and they’re not small bumps. We’re talking about double-digit percentage increases that’ll keep hitting your wallet year after year.

But here’s what most folks don’t realize — solar panels still make incredible financial sense, even if the federal tax credit disappears after 2025. The real value of solar isn’t about government incentives (though they’re nice). It’s about locking in your electricity costs while everyone else watches their bills spiral upward.

What’s Really Behind SCE’s Never-Ending Rate Hikes

Let’s be honest about what’s happening here. SCE customers saw their bills jump by $17.49 per month (that’s 10.3%) in 2025 alone. And it’s not stopping there — they’ve got approval for increases in 2026, 2027, and 2028, plus automatic adjustments for inflation.

Why does this keep happening? Three big reasons:

• Wildfire Prevention Costs: After years of devastating fires, utilities are spending billions on grid hardening and safety upgrades. Buried power lines, upgraded equipment, vegetation management — it’s all necessary, but someone has to pay for it. That someone is you.
• Aging Infrastructure: California’s electrical grid is getting a major makeover to handle electric cars, renewable energy, and modern demands. Again, necessary but expensive.
• Built-In Inflation Protection: Here’s the kicker — SCE can automatically increase rates based on inflation, up to 5% per year. So even if they don’t ask for special increases, your bill keeps growing.

Think of it this way, your electric bill is like rent that goes up every year, except you’ll never own anything. You’re just paying more and more for the same electricity.

Why Solar Is Your Best Defense (Tax Credits or Not)

Here’s where solar changes the game completely. When you put panels on your roof, you’re essentially buying electricity at today’s prices for the next 25+ years. While your neighbors’ SCE bills keep climbing, your solar panels keep cranking out power at the same “rate” you paid upfront.

You Control Your Electricity Costs: Instead of playing SCE’s rate-hike roulette, you’re generating power right on your roof. Every kilowatt-hour your panels produce is electricity you don’t buy from SCE at their inflated prices.

The Math Gets Better Every Year: As SCE rates climb, your solar investment becomes more valuable. It’s like buying a car that appreciates in value — except in this case, your solar system becomes a better deal every time SCE announces another rate increase.

Predictable Monthly Expenses: Solar loans have fixed payments that eventually end. SCE bills? They just keep growing. You could cut your summer electric bill from $380 to under $50 after going solar. Your solar payment could be $180 per month, and you could get it paid off in seven years. Meanwhile, your neighbors are still watching their SCE bills climb.

Battery Storage Makes It Even Better: With SCE’s time-of-use rates hitting $0.74 per kilowatt-hour during peak times, a battery can store your cheap solar power and use it when electricity costs the most. Plus, you’ve got backup power during outages.

The Tax Credit: Nice Bonus, Not the Main Show

Let’s talk about the elephant in the room. The 30% federal solar tax credit expires December 31, 2025. After that? No federal incentive.

But here’s what we tell every homeowner: the tax credit is like getting a great deal on a car that was already worth buying. Solar makes financial sense because it protects you from rising electricity rates — the tax credit just makes it an even sweeter deal.

Even if you paid full price for solar (no incentives), you’re still locking in electricity costs at 2025 rates. Your neighbors will be paying 2035 rates for electricity in 2035. That’s a massive difference.

Let’s Look at the Real Numbers

Here’s where the math gets interesting. Say you’ve got a $200 monthly SCE bill right now. If rates keep climbing at the current pace (and they will), you could be looking at $350-400 per month by 2040. Over 20 years, that’s potentially $70,000+ just for electricity, with nothing to show for it.

A typical solar system might cost $30,000 upfront (before any incentives). Even at full price, that system generates most or all of your electricity for 25+ years. Your solar loan payments might be $200-250 per month, but they end after 7-10 years. Then? The electricity is essentially free for another 15+ years, while your neighbors’ bills keep climbing.

The beauty is that every SCE rate increase makes your decision look smarter.

California’s Energy Future Points to Higher Rates

California isn’t backing down from clean energy goals or infrastructure investments. That means utility companies will keep spending big money on grid upgrades, renewable energy integration, and safety improvements. And guess who pays for all that? Ratepayers.

Meanwhile, solar technology keeps getting better while installation costs stay relatively stable. It’s a perfect storm: rising utility rates, stable solar costs, and technology that keeps improving.

Time to Take Control of Your Energy Costs

Look, we get it. Solar is a big decision. But every month you wait means another month of paying SCE’s higher rates instead of generating your own power. And every rate increase they announce makes solar more valuable — but also means you’re paying more for electricity in the meantime.

Here’s what we’d do if we were in your shoes:

Get the real numbers for your home. Every house is different. Your roof, your energy usage, your local utility rates — it all matters. A good solar assessment will show you exactly what solar could save you based on your specific situation.

Look at the long-term picture. Don’t just think about next year’s bills. Think about what you’ll be paying for electricity in 2035 or 2040. Solar is a long-term play that gets more valuable over time.

Consider your timing. Yes, the tax credit ends in 2025. But the fundamental economics — rising SCE rates versus fixed solar costs — remain compelling regardless of incentives.

The bottom line? You can keep riding the SCE rate-increase rollercoaster, or you can take control of your energy costs with solar. The choice is yours, but the math is pretty clear.

Frequently Asked Questions

Q: Will solar panels work during power outages?
‍A: Most standard solar systems shut off during outages for safety reasons (to protect utility workers). If you want backup power, you’ll need to add battery storage to your system.

Q: What happens if I produce more electricity than I use?
‍A: Under California’s current net billing program (NEM 3.0), excess power gets credited to your account, though at lower rates than previous programs. Battery storage can help you use more of your solar power directly.

Q: How long do solar panels actually last? A: Most panels come with 25-year warranties, but they often keep producing power well beyond that. You can expect them to operate at 80-85% efficiency after 25 years.

Q: What if I need roof work after installing solar?
‍A: We will assess your roof condition first before installation. If you need a new roof soon, it’s often better to do that before the solar installation. Panels can be temporarily removed for major roof work if needed.

Q: Do solar panels require a lot of maintenance?
‍A: Nope! Occasional cleaning (especially if you have a lot of dust or bird droppings) and annual system checks are usually all that’s needed. Most systems are pretty hands-off.

RELATED ARTICLES:

• Secure Your Solar Tax Exemption Before 2027
• Fire-Hardening Your Home
• Why Choose Green Convergence for Your Solar Power Installation

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