At a glance

SMUD is a community-owned, not-for-profit utility, and it says the CPUC doesn't govern its rates. Its Solar and Storage Rate covers homes approved to install solar or batteries on or after March 1, 2022. You stay on SMUD's standard Time-of-Day rate; whatever your panels send to the grid earns 9.6 cents per kWh, any hour of any season, and the credit pays usage charges and carries over to later bills.

What your solar is worth, hour by hour

The flat 9.6-cent export rate is unusual: it's close to SMUD's own off-peak prices, so exporting costs you little at most hours. The big savings come from solar you use on summer weekday evenings. Peak is weekdays from 5 to 8 p.m.; mid-peak is weekdays from noon to midnight outside the peak; everything else, including weekends and holidays, is off-peak.

The Solar and Storage Rate and the NEM dates

Before Mar 1, 2022
Net metering (NEM)

Homes approved to install before this date can stay on NEM through December 31, 2030, unless they add a battery with SMUD incentives, change or replace the system, or move.

Mar 1, 2022
Solar and Storage Rate starts

New solar homes stay on the Time-of-Day rate and are paid 7.4 cents per kWh sent to SMUD.

Jun 1, 2026
Export rate rises to 9.6 cents

SMUD revisits the rate every four years.

Dec 31, 2030
NEM ends

The last day older solar homes can stay on net metering.

If you buy a home that already has solar, SMUD puts you on the Solar and Storage Rate, even if the seller was on NEM. An older NEM system that's expanded by more than 10% of its original capacity or 1 kW, whichever is greater, or past 110%, also moves to the new rate. New systems pay a one-time interconnection fee.

Why solar pays back slower at SMUD

Each kWh of solar saves whatever you'd otherwise pay, and SMUD's prices are low. In 2024 its residential customers paid 17.9 cents per kWh on average, in EIA data, about half of PG&E's. SMUD's own comparison shows the gap on a 750 kWh bill:

A low bill is good news for SMUD customers, but it means every kWh of solar is worth less than across the county line.

Drone view over a Sacramento-area suburb of tile-roofed homes, a few with solar panels, a park and the downtown skyline far off

Savings and payback for SMUD homes

Smaller home17 yearsat $4 a watt; 14 at $3, 21 at $54,500 kWh a year · $88 a month now · 2.4 kW · saves $470 in year one
Typical home17 yearsat $4 a watt; 14 at $3, 21 at $57,000 kWh a year · $122 a month now · 3.8 kW · saves $740 in year one
Larger home17 yearsat $4 a watt; 14 at $3, 21 at $510,000 kWh a year · $163 a month now · 5.4 kW · saves $1,060 in year one

Sacramento sun, system sized to 85% of yearly use, no battery. Our calculator assumes about 42% of the solar is used at home at SMUD's average price, 16.3 cents, and the rest earns 9.6 cents; the $27 monthly System Infrastructure Fixed Charge stays. Rates rise 3% a year, the export rate is held flat and panels lose 0.5% a year.

Payback is the same for every size here because the estimate uses one average price for SMUD. Using more of your solar from 5 to 8 p.m. on summer weekdays, or with a battery, would shorten it.

The battery incentive

SMUD pays an upfront incentive for batteries enrolled in its My Energy Optimizer Partner+ program, which lets SMUD use part of your battery when demand is highest; SMUD says it always leaves a 20% reserve. Starting September 23, SMUD cut the incentive from $500 per kWh of battery, up to $10,000 a household, to $300 per kWh, up to $6,000; projects submitted for interconnection by September 22 and enrolled by December 31, 2026 still get the old amount. You must enroll within 90 days of permission to operate. Our battery guide covers the rest of California.

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Common questions

How much does SMUD pay for solar?

9.6 cents per kWh for power sent to SMUD under its Solar and Storage Rate, any time of day or season, from June 1, 2026. It was 7.4 cents before. Credits pay usage charges and carry over to later bills.

Is SMUD on NEM 3.0?

No. NEM 3.0 is the CPUC's tariff for PG&E, SCE and SDG&E. SMUD sets its own rates; new solar homes since March 1, 2022 are on its Solar and Storage Rate.

Can I keep NEM with SMUD?

If SMUD approved your solar before March 1, 2022, you can stay on NEM through December 31, 2030, unless you add a battery with SMUD incentives, change or replace the system, or move. Buyers of a home with solar go on the Solar and Storage Rate.

What is SMUD's battery incentive?

An upfront enrollment incentive through My Energy Optimizer Partner+: $300 per kWh of battery, up to $6,000, for projects submitted for interconnection from September 23, down from $500 per kWh and up to $10,000. You must enroll within 90 days of permission to operate.

Is solar worth it with SMUD?

It pays back more slowly than at PG&E, SCE or SDG&E because SMUD's prices are lower: about 17 years at $4 a watt for a typical home in our estimate. Using solar at peak times or with a battery shortens it.

SMUD's rates and incentives change; figures here are for 2026. Calculator figures are estimates for typical homes, not a quote for yours. Sources: SMUD: Solar and Storage Rate · SMUD news, April 27, 2026 · SMUD residential rates · SMUD: battery storage · EIA Form 861. Reviewed October 2026.

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