I guess after looking at SCE's NEM program description, participation in the NEM and signing up for TOU pricint is mandatory, and the netting of my usage would be done automatically. Still, given that, do my price savings per panel drop for each panel I install over my lowest monthly energy needs?
TL ; DR version -- you will be forced onto a TOU rate by SCE when you get solar. You need enough solar to cover your peak usage, and its not a "kWh in = kWh out" 1:1 situation.
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If you are in SCE territory, you will be forced to sign up for one of the time of use rates, if you get solar. I dont quite understand what you are talking about by saying "each panel is worth less". I am not understanding how you get to that conclusion.
Since you will be generating power during off peak time frame, you need to put in more energy into the grid than you are taking out, because you will be billed at peak rates when you take it out. That would make each panel be worth more, at least until you produce enough energy to fully offset the peak rate charges.
Your off peak rate will be somewhere between 15-22 cents a kWh while your on Peak rate will be somewhere between 35-50 cents a kWh. Its at least double, so you will need to put in twice the amount of energy that you take out during peak time to completely eliminate peak charges (or buy a powerwall, which doesnt make sense if you KNOW you are moving in 5-7 years).
I havent done the math on how it works out if you are renting the panels, but in general, you need it to end up being less paying both the solar system rent, AND the non bypassable charges, as it is right now for you. In order for that to happen, you need to make sure you get enough solar to offset most, if not all of your usage, and thats harder with TOU net metering because of the point above.