Thinking about adding solar in Claremont but heard “Net Billing” changed the math? You are not alone. California’s new rules reward you for when you use or export energy, not just how much. The good news is that the right solar plus battery setup can still cut bills and add resilience. This guide explains how Net Billing works here, how SCE and Clean Power Alliance credit your exports, why batteries matter, what incentives exist, and how to handle permits and interconnection. Let’s dive in.
Net Billing in plain English
California moved new solar connections to the Net Billing Tariff in April 2023. Your solar first powers your home. Any extra goes to the grid and earns an hourly export credit based on the grid’s avoided cost, not the full retail rate. You still get an annual true-up payment for any net yearly surplus called Net Surplus Compensation.
- Learn the basics from the state’s overview of Net Billing and timelines at the California Public Utilities Commission. See the CPUC guide.
- In SCE territory, Net Billing is implemented as the Solar Billing Plan. New customers are placed on a time-of-use rate designed for electrification and storage, and early adopters receive time-limited export adders that are locked in for nine years if you interconnect before 2028. Review SCE’s Solar Billing Plan.
How billing works in Claremont
If you live in Claremont, SCE delivers your power and handles interconnection. Clean Power Alliance is your default energy supplier. That means your monthly bill can show separate line items for generation credits from Clean Power Alliance and delivery credits from SCE.
- Exported energy earns Energy Export Credits at hourly values. Credits roll month to month within your 12-month Relevant Period. At the end of the year, net exporters get Net Surplus Compensation at market-based rates. See SCE’s Solar Billing FAQs and Clean Power Alliance’s solar page for how each side applies credits.
- Expect a monthly bill. Fixed and non-bypassable charges still apply even in solar-heavy months, so most homes will see a remaining amount due.
TOU-D-PRIME and peak hours
Under Net Billing, SCE requires the TOU-D-PRIME rate. The highest prices typically hit late afternoon and evening, often 4 to 9 p.m. in summer. Storing midday solar in a battery and discharging during those peak hours is how you maximize value. Check SCE’s time-of-use rates.
Why add a home battery
Under Net Billing, midday solar exports are usually worth less than evening energy. A battery helps you shift your own solar into the highest-value hours so you save more on your bill.
- Batteries can improve economics by reducing low-value midday exports and cutting expensive evening imports. Learn how Net Billing favors storage.
- Most batteries offer modes like backup reserve, time-based bill optimization, or a mix of both. Under Net Billing, time-based control that targets late-day peaks often delivers the best monthly savings while still keeping some backup reserve.
Incentives that lower costs
Several programs can help reduce your upfront cost. Always verify current rules before you buy.
- Federal tax credit. The federal residential energy credit remains a key benefit, and recent IRS guidance clarified rules for storage eligibility. Tax rules can change, so confirm your project’s eligibility with a qualified tax professional and the latest IRS guidance. Read the IRS bulletin.
- California SGIP battery rebates. The Self-Generation Incentive Program offers meaningful battery incentives, with enhanced support for equity and resiliency categories. Funding levels and requirements vary, so check current availability. Explore SGIP.
Permits and interconnection in Claremont
Your installer submits interconnection to SCE and pulls local permits. You need Permission to Operate from SCE before your system can export and earn credits.
- SCE typically issues PTO in about 10 business days, although complex cases can take longer. See SCE’s Solar Billing Plan fact sheet.
- Claremont’s Building Division supports SolarApp+ for streamlined plan checks. If your battery is in the garage, Los Angeles County Fire Department may need to review the plans before the city issues the permit. Review Claremont’s Residential Solar Permit guide.
Plan your project in 6 steps
- Define your goals. Decide how you want to balance bill savings and backup power. Consider keeping a portion of battery capacity in reserve for outages.
- Ask for hourly modeling. Have installers model your usage, solar production, and Energy Export Credits on SCE’s TOU-D-PRIME rate to compare solar-only versus solar plus storage savings.
- Confirm incentives. Check SGIP eligibility and any equity or resiliency categories you may qualify for. Ask your tax professional about the federal credit.
- Nail down siting and safety. Discuss battery location and any Los Angeles County Fire requirements if you plan to install in the garage or near living space.
- Clarify permits and PTO. Confirm who submits applications, expected timelines for permits and SCE interconnection, and what happens if the local transformer needs an upgrade.
- Compare total value, not just price. Look at warranty terms, service support, modeled savings, and how the system performs during the 4 to 9 p.m. peak window.
Ready to compare options?
Net Billing rewards smart timing. In Claremont, pairing solar with a right-sized battery and time-based controls is often the difference between modest savings and strong results. If you want help weighing costs, timelines, and resale considerations alongside your broader home plans, reach out to Shannon Brady for local guidance.
FAQs
What is California’s Net Billing and who does it affect in Claremont?
- Net Billing applies to new solar interconnections submitted after April 2023, credits exports at hourly avoided-cost values, and still includes an annual true-up for net surplus energy. Learn more at the CPUC.
How does Clean Power Alliance impact my solar credits?
- In Claremont, Clean Power Alliance provides generation and SCE provides delivery, so you may see separate generation and delivery credits on your bill and each side handles true-up slightly differently. See CPA’s solar page.
What are TOU-D-PRIME peak hours and why do they matter?
- The highest-priced hours are typically late afternoon and evening, often 4 to 9 p.m. in summer, which is when a battery can shift your solar for maximum bill savings. Check SCE’s TOU details.
Do I still get an annual payout for extra energy?
- Yes. If you export more than you import over your Relevant Period, you receive Net Surplus Compensation based on market rates, not full retail. See the CPUC overview.
Are there rebates that help pay for a battery?
- California’s SGIP offers meaningful battery incentives, with enhanced support for equity and resiliency categories, and the federal tax credit may apply to storage. Explore SGIP and review IRS guidance.
How long does SCE take to approve my system for export?
- SCE often issues Permission to Operate in about 10 business days, though timelines vary by project complexity. See SCE’s fact sheet.
What should I ask installers before I sign?
- Request hourly bill-impact modeling on TOU-D-PRIME, battery sizing options, SGIP eligibility, a clear permit and interconnection timeline, and warranty and service terms. SCE’s Solar Billing Plan page outlines key program details.
