Solar customers

Customers approved to install solar before March 1, 2022 can remain on the NEM rate until December 31, 2030.

We value the investments you made in your rooftop solar system. Customers like you who already have solar or solar and battery storage installed can remain on the existing Net Energy Metering (NEM) rate until December 31, 2030 unless:

• You choose to take advantage of SMUD incentives to add battery storage.
• Modify or replace your existing system.
• Move to a different home with solar.

Customers on Net Energy Metering will not be charged an interconnection fee if they add storage or modify their solar system, but they may transition to a different rate.

Customers approved to install solar or battery storage on or after March 1, 2022, and anyone who moves into a home that already has solar installed on or after March 1 will be on our Solar and Storage Rate. This rate was approved by our Board of Directors in September, 2021.

Net Energy Metering billing questions

What happens if I produce more electricity than I use?
If, in any regular billing month, the electricity supplied by SMUD is less than the electricity supplied to SMUD by your solar system, then you'll receive a retail-valued electricity credit for that net excess electricity your system supplied. The retail-valued electricity credits will carry over to the following monthly billing period until the end of the annual settlement period. Retail-valued electricity credits will only be credited against electricity usage charges during the same settlement year.

What is the settlement period?
You'll have a 12-month settlement period that starts the day you move into your new home or when your powered system is energized, during which your electricity is tracked—how much you use from SMUD, if any, and how much you send back to SMUD.

What are my compensation options for my net surplus generation?
At the end of your 12-month settlement period, SMUD will calculate your net surplus generation over the 12-month period. If you have net generation, SMUD will, at your choosing, either:

• Provide a monetary payment to you for the net surplus; or
• Roll over the net annual surplus kWh into the next 12-month period.
• You can choose to opt out of receiving compensation or kWh roll-over credit for your net surplus generation. If you do, you will not receive any form of compensation nor credit for your surplus generation delivered to SMUD.

What about CPUC's proposed solar changes?

As a community-owned, not-for-profit electric service, SMUD is not governed by the California Public Utilities Commission (CPUC). Our Board sets policy and rates for SMUD customers and the NEM changes currently proposed by the CPUC would not impact SMUD’s rates.

Customers approved to install solar or battery storage on or after March 1, 2022 are on our Solar and Storage Rate.

Our Solar and Storage Rate (SSR) is an additional component to SMUD’s Time of Day (5-8 p.m.) Rate that allows compensation and incentives that are specific to customers with solar, solar and storage or storage only approved for installation at their home or business on or after March 1, 2022. Customers who move on or after March 1, 2022 into a home with an existing solar system or battery storage will also be on the Solar and Storage Rate.

Excess electricity generated by customers on our SSR for power they do not use or store in their battery can be sold back to SMUD at a rate of 7.4¢/kWh, no matter the time of day or season.

There is also a one-time interconnection fee to connect new solar or storage systems to SMUD’s grid to recover the cost of providing interconnection service. Customers will not be charged an additional interconnection fee if they add storage or solar to their home after their initial installation.

Learn more about SSR

What about CPUC's proposed solar changes?

As a community-owned, not-for-profit electric service, SMUD is not governed by the California Public Utilities Commission (CPUC). Our Board sets policy and rates for SMUD customers and the NEM changes currently proposed by the CPUC would not impact SMUD’s rates.