Integrated Design Solutions

Save carbon emissions by adding beneficial electrification and energy efficiency into your commercial building.

Our commercial new construction program, Integrated Design Solutions, offers incentives when you build or renovate with electrification and energy-efficient technologies.

When you participate, you'll involve SMUD early in the design process. This performance approach is best with large, complex buildings with non-standard equipment. It requires calculations and energy modeling using Title 24-compliant software. Your design is compared to the permitted energy code.

Combined electrification and energy efficiency incentives can be up to $250,000 for owners, and for all-electric designs, up to $10,000 for design teams.


Download brochure      Download procedures manual      Download incentive application

Go Electric for Business

Our commitment to the environment is evident every day. It’s a part of our DNA. We are always looking to reduce our impact on the environment, improve regional air quality and conserve resources for future generations. We continue to grow our energy efficiency programs to include new incentives for converting commercial natural gas fired equipment to efficient heat pump and induction technologies. An additional benefit to implementing heat pump technologies is utilizing heat recovery in a building, repurposing  for such benefits as heating domestic hot water or space heating. Learn about our Go Electric for Business incentives.

Ready to get started?

For complete program rules and restrictions or to begin the application process, please contact us: or 1-916-732-5095.

There are two ways to participate in the program.

Performance approach

Calculate electrification and energy savings specific to your building and receive up to a maximum $250,000 owner's incentive (up to $150,000 for beneficial electrification and up to $100,000 for energy efficiency) and for all-electric designs, up to a maximum $10,000 design team incentive.

  • Best for larger or more complex buildings with non-standard equipment or processes
  • Requires calculations and energy modeling using Title 24-compliant software
  • SMUD involvement must begin as early as possible and prior to 100% design development for the owner and design team
Types of savings  Owner incentive Design team incentive 
Electrification of domestic water heating, space heating and kitchen technologies $0.30 per kWh-equivalent 50% of owner, up to $10,000, for all-electric designs 
Electrical Energy Efficiency $0.15 per kWh (non-lighting)
$0.10 per kWh (lighting)

Prescriptive Approach

Choose equipment that meets SMUD specifications for electrification and receive up to $150,000 in incentives.


  • Best for smaller or less complex buildings
  • Incentives are based on simple equipment choices
  • SMUD involvement must begin prior to 100% design development or there must be evidence of intent to purchase traditional, natural-gas equipment prior to awareness of the program
Icon of built-up heat pump system $3,000 per ton or a custom-calculated incentive for built-up heat pump systems including heat recovery chiller or central domestic water heater  Icon of heat pump water heater  $4,000 per commercial storage electric heat pump water heater
 Icon of variable refrigerant flow (VRF) multi-zone system $1,000 per ton of variable refrigerant flow (VRF)
multi-zone systems
 Icon of split system electric heat pump water heater $3,000 per split system electric heat pump water heater
 Icon of heat pump HVAC  $550 per ton of heat pump HVAC  Icon of a residential and commercial-grade electric heat pump water heater $1,500 per residential commercial-grade electric heat pump water heater
 Icon of mini split heat pump systems  $500 per ton of mini split heat pump systems  Icon of induction cooktop $450 per hob/burner for induction cooktops (food service only)

SMUD also offers prescriptive incentives for indoor horticulture LED grow lighting for a max potential incentive of $50,000. Visit Cannabis Operations for more information.

For the owner

  • Better for the environment
  • Improve market appeal to sustainably-minded tenants
  • Financial incentives for efficient designs
  • Straight-forward program requirements
  • Potential reduction of infrastructure costs

For the design team

  • No-cost assistance and training in electric technologies
  • Preparation for future local or statewide code changes that require electrification

For the occupant

  • Reduced energy bills and operating costs
  • Reduce or eliminate natural gas bills and onsite combustion
  • Greater convenience, safety, health and control with efficient electric technology

Meet one of our satisfied business partners participating in our program.

American Institute of Architects, CA


 American Institute of Architects project

American Institute of Architects, CA was established in 1944. In 2019, AIA, CA relocated offices to 1931 H Street, Sacramento. In 2020, they completed a deep renovation of their building working with their SMUD Strategic Account Advisor to implement state-of-the-art energy efficient and renewable technology.

Core values

AIA, CA believes in the value of the architect’s skillset to achieve sustainable, smart, and resilient design solutions for the built environment. With more than 11,000 members, AIA, CA is the largest state component of the AIA and is uniquely positioned to impact the design and construction industry as the voice of the architectural profession in California.

Partnering with SMUD on sustainable and renewable energy initiatives

  • AIA, CA is proud to be one of the first examples of full system electrification in an existing building and commercial setting.
  • They went above and beyond typical expectations for a tenant improvement by replacing outdated mechanical and plumbing systems that are no longer efficient. This is possible with the help of rebates made available to them through the Integrated Design Solutions (formerly Savings by Design) program.
  • True to being responsible stewards of the built environment, they are contributing to the longevity of our local community by prioritizing a nearly zero-carbon footprint for their new location.

Importance of renewable energy to AIA's customers

AIA, CA is also enrolled in SMUD Commercial Greenergy® so that they’re all in when it comes to a zero-carbon footprint, In their opinion there was no point in having new efficient systems if the energy they were using was not coming from sustainable sources.

American institute of architects and smud advisor

AIA, CA in our local community

  • Advocates for the Architectural profession in the Capitol by representing its members before the State Legislature, regulatory agencies, boards and commissions.
  • Communicates with members to share the latest news and opportunities that impact the profession.
  • Supports the local components to provide its members with resources and connections to succeed in their practices and firms.
  • Listens to their members to know how to best promote the value of design when it comes to the built environment.

Connect with your Strategic Account Advisor to customize energy solutions for your business.