Before You Sign
Solar in Irvine
A mailer is making rounds in our neighborhood designed to look like an official SCE notice. Here's what it actually says, what the numbers really mean, and what every homeowner needs to know before signing anything.
About That "SCE Notice" in Your Mailbox
A company called California Energy Initiative (cainitiative.com) sent mailers designed to look like official Southern California Edison notices. They are a BBB-accredited, Sacramento-based solar company — not SCE, not a government program. The mailer includes the following claim:
This is a real claim that requires careful unpacking. Parts of it touch on real issues — but the framing is designed to create urgency and fear of missing out. Here's the full breakdown.
What's True. What's Misleading. What's Missing.
Every claim checked against SCE, CPUC, the California Public Advocates Office, and the Orange County Power Authority. No opinion — only sourced data.
The "37% more" claim
The 37% figure is real — but it comes from a California Chamber of Commerce / Blue Sky Consulting Group report (April 2026) showing that state mandates add 37% to the average IOU electric bill. It is not about "non-enrolled" customers being penalized. There is no SCE enrollment program you can join or miss.
Non-solar customers do pay more — just not 37%
According to the California Public Advocates Office, non-solar customers subsidize solar customers to the tune of $8.5 billion in 2024 (more than double the cost just three years prior). The CPUC estimates this adds 11–20% to non-CARE, non-solar residential bills — not 37%, and not something signing a solar contract fixes.
SCE rates have risen dramatically
SCE residential rates have increased 83% over the past 10 years and 25% just since January 2022. Delivery charges make up approximately 70% of your bill. This is accurate and important context — rates are rising regardless of solar enrollment.
No SCE "enrollment" exists
The mailer implies there is an official SCE program customers can enroll in to avoid higher rates. No such program exists. The SGIP battery incentive program is real but entirely separate and voluntary. No California utility requires homeowners to install solar. This framing has been flagged as misleading by CPUC consumer guidance.
Going solar doesn't fix your delivery charges
Even solar customers pay SCE's Base Services Charge (now $24/month as of Nov 2025 under AB 205) plus all delivery infrastructure fees. The NEM 3.0 Solar Billing Plan dramatically reduced export credits — new solar installs have a 6–9 year payback vs. 3–4 years under the old NEM 2.0 rules. It's a much harder math equation now.
The mailer mimics a utility notice
The "NOTICE SCE CUSTOMERS" headline and official-looking design are intentional. California Energy Initiative has sent over 1.4 million mailer pieces statewide — a figure they disclose on their own transparency page. They are a legitimate company — but CPUC guidance recommends never calling the number on a mailer before independently researching the company.
5 Questions to Ask Every Solar Company
Any reputable solar company should answer these clearly before you sign. If they deflect, rush you, or can't produce paperwork — walk away.
Will I own the panels at the end?
Cash, loan, or lease/PPA changes everything. Ask specifically: "Is there a period where I don't own this equipment?" Get the answer in writing before the conversation goes any further.
What happens when I sell my home?
Ask: "Will the buyer have to assume a contract? What does that process look like? How long does the transfer take? Is there a fee?" A leased system can complicate escrow for weeks.
Will there be a UCC filing or lien?
Ask: "Will you file a UCC-1 financing statement on my property?" Most leases and some loans file one. It's not always a deal-breaker, but buyers and their lenders will see it in the title search.
What are the exact monthly payments and escalators?
Many leases include a 2–3% annual payment escalation clause. Over 20 years, your "savings" can reverse. Get the full payment schedule — not just year one — in writing.
What NEM version am I signing up for?
New installs since April 2023 are on NEM 3.0 (Solar Billing Plan), which pays ~75% less for exported energy than the old NEM 2.0. This fundamentally changes the payback math. Confirm before you commit.
How Solar Affects Your Sale — The Real Story
These are the friction points that come up in escrow. Not opinion — this is what actually happens in transactions involving solar in Orange County.
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Leased panels add $0 to your appraised value
Fannie Mae and Freddie Mac guidelines — which govern most U.S. mortgages — do not allow appraisers to add value for third-party-owned solar systems. If you paid $30,000 in lease payments over 8 years and then sell, those payments added nothing to your official appraisal. Only owned systems get credit.
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Lease/PPA assumption can kill deals or shrink your buyer pool
Buyers must qualify with the solar company separately — running their own credit check. Many buyers simply refuse to assume a 15–20 year contract. When that happens, you either buy out the lease (often $10,000–$30,000+), reduce your price, or watch deals fall through. This is documented in escrow regularly across Orange County.
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UCC-1 filings cause escrow friction — even when they shouldn't
A UCC-1 financing statement is technically on the equipment, not your title. But when it appears in a title search, lenders and buyers often panic. It adds documentation requirements, delays, and sometimes requires a formal release at a $150–$250 fee. Title companies must address it before closing — adding 2–4 weeks minimum.
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California law requires disclosure — and failure to disclose creates liability
Under California Civil Code 2079.10.5 and the Solar Consumer Protection Guide, sellers must disclose the solar system type, ownership, and any transfer requirements. Failure to disclose can lead to legal liability, contract cancellation, or escrow delays — regardless of whether the system benefits the buyer.
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Owned solar adds real value — but only if you plan to stay
Homes with owned solar in California sell for 5–10% more than comparable homes, according to a 2023 analysis of 5,000 California sales. That premium requires the system to be fully owned. Installing solar 6 months before listing rarely recaptures the cost. The calculus works best when you plan to stay 3–5+ years post-install.
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Shane Boukorras
Real Estate Advisor · REAL Broker · DRE #02066136
I found this mailer on my morning dog walk through our neighborhood. My first thought was that it was from SCE. It wasn't — and once I dug into the claims, I knew I couldn't stay quiet.
I'm currently selling a home with a PPA solar system. I've seen firsthand what it does in escrow. It creates real friction, shrinks your buyer pool, and can cost you thousands you didn't see coming. I'm not anti-solar — but I am fiercely pro-homeowner, and I believe protecting your wealth means telling you the truth before you sign a 25-year contract.
I live in this community. I walk these streets with my dogs and my daughters. If you see me around — say hi. I share this not to earn your listing, but because I believe in being a good neighbor first. God bless.