Clean Energy FAQs
Here are some commonly asked questions about ourcommitent to clean energy.
What is SMUD’s plan for a clean energy future?
Today, our 2030 Zero Carbon Plan, adopted in 2021, serves as our official Integrated Resource Plan (IRP). We’ve made significant progress on our 2030 Zero Carbon Plan by adding more than 1,500 megawatts of new clean energy resources since 2022 and advancing major solar and storage projects that move our region closer to a carbon‑free future.
Despite facing the headwinds of rising resource costs, regulatory challenges and other shifting conditions, our progress is significant and our commitment to decarbonization remains firm. This fall, we’re launching our updated IRP process, a public, data‑driven effort to holistically reassess evolving conditions and refine our long‑term roadmap for reducing carbon emissions while maintaining reliability and affordability for our customers.
Why is SMUD focused on reducing carbon emissions?
Carbon emissions contribute to global warming, which leads to extreme weather events, rising sea levels and other environmental challenges that have devastating effects on present-day communities as well as future generations
We live in one of the most polluted cities in the country. A recent report by the American Lung Association gave the Sacramento-Roseville area an F based on days of unhealthy and unsafe levels of air pollution in the ozone layer.
Reducing carbon brings benefits locally and globally. It improves our local air quality, overall health and supports economic development through creating new clean energy job opportunities.
Will SMUD’s goals to pursue a clean energy future affect rates?
Our transition to a clean energy future is anchored on our longstanding commitment to provide safe and reliable power with rates among the lowest in California. We won’t compromise on this commitment.
How will SMUD’s clean energy goals impact our community?
As a leader in climate innovation, we’re helping to position the Sacramento Region as a destination choice for forward-thinking, environmentally conscious businesses and a model for others around the nation to follow.
Through implementing our Community Impact Plan, we’re working to ensure our most under-resourced customers are part of this journey and reap the benefits of a clean energy future.
Are all California utilities required to be carbon free by 2045 under Senate Bill 100 (SB 100)?
Yes, SB 100, also called the 100% Clean Energy Bill, calls for 100% of electric retail sales to be met by renewable and zero carbon sources by the end of 2045. It requires the California Energy Commission (CEC), California Public Utilities Commission (CPUC) and California Air Resources Board (CARB) to prepare a report evaluating the policy by early 2021 and provide updates at least every 4 years.
How can customers help?
We can’t do this without you. Our customers, community and partners are at the heart of everything we do. By reducing carbon emissions, we’re helping create a cleaner and healthier region for all.
We’re all part of the solution. We offer generous rebates and incentives, programs, digital tools, education and many resources for our customers to make smart energy choices so everyone can take action that helps move us all toward a brighter, cleaner future.
What major industries and sectors are in SMUD's territory?
Of SMUD’s largest commercial customer accounts, about 20% includes federal, state, county and city government, 19% manufacturing, 12% retail, 8% schools, 7% property management/development and data centers, 6% hospitals and 21% all other.
How does SMUD compare in size with other utilities?
We’re the nation’s 6th largest community-owned, not-for-profit electric utility and provide reliable, affordable electricity to most of Sacramento County and small portions of adjoining Placer and Yolo Counties. Our service area is 900 square miles. We serve a total of 640,712 residential and business customers. In California, we are the 5th largest utility in the state.
What languages does SMUD support?
Through our Contact Center, we’re proud to say that SMUD customers can talk to us in 140 languages through a special arrangement with a translation service. We automatically translate our website in 14 different languages. Plus, our program and marketing materials are also available in these languages, so you can access the information you need in the language you prefer. Learn more about our language translation service.
What percentage of SMUD’s electricity generation is carbon free?
We get power from various sources, including hydropower, natural-gas-fired generators, renewable energy such as solar, wind, hydro and biomass and power we purchase on the wholesale market. View our 2025 power content label.
 |
Our energy outlook Get current information on usage, forecasted peak and our renewable energy mix. |
View energy info |
How is "local solar" defined?
Local solar is defined as solar power projects that are sited within our service territory or can be interconnected into our system. Our service territory is approximately 900 square miles, including most of Sacramento County and small, adjoining portions of Placer and Yolo Counties.
Is SMUD considering partnering with other utilities for procurement of clean resources?
Yes, we are very interested in partnering with other utilities and are always looking for new collaborations to find clean energy solutions that benefit our customers and community.
We currently partner with other regional utilities as a member and the operator of the Balancing Authority of Northern California (BANC), which is the 3rd largest joint powers balancing authority in California and the 16th largest within the Western Electricity Coordinating Council. This helps us source power resources from other utilities.
BANC is responsible for operational resource plans, continuously matching load and generation, monitoring power line loads and coordinating with neighboring balancing authorities including the Bonneville Power Administration, the CAISO and Turlock Irrigation District. Other participants in BANC include Modesto Irrigation District; Cities of Redding, Roseville, and Shasta Lake; Trinity Public Utilities District and the Western Area Power Administration – Sierra Nevada Region.
What geothermal power sources is SMUD considering?
Geothermal resources were included in our 2040 resource plan with most planned to come online after 2030. We will re-assess many resources and their timing during the development of the new 2030 Zero Carbon Plan.
We have a history of using geothermal power sources since the early 1980s and currently receive 52 MW each year through contracts in California and Nevada. That’s enough to power more than 38,000 homes per year – based on 750 kWh/month average household electricity use.
Will SMUD consider evaluating the recommissioning of the Rancho Seco Power Plant or similar with respect to nuclear power?
No. SMUD is not considering nuclear power as part of the 2030 Zero Carbon Plan.
Would using biodiesel fuel count toward zero carbon?
Yes, biodiesel fuel could count toward zero carbon. This would depend on the overall greenhouse gas footprint of the bio fuel’s supply chain. We’re looking at a range of fuel options to achieve our goal of zero carbon.
As SMUD moves towards more clean energy, what will ensure a reliable electricity supply?
Safe and reliable electricity delivery are part of our core values, and we work hard every day to make sure we have enough power to meet demand at all times, including during regional or state grid emergencies. We're also required to meet reliability standards approved by the Federal Energy Regulatory Commission (FERC). We take meeting reliability standards very seriously since failing to meet reliability standards carries very heavy financial consequences and negatively impacts our customers we serve.
SMUD is a member and the operator of the Balancing Authority of Northern California or BANC, which is an independent balancing authority within the Western electricity power grid. As a balancing authority, we're responsible for balancing load supply demand with supply within our service area or within the BANC footprint. As we explore methods to work toward a clean energy future, we will continue to put safety, our customers, and our system reliability first.
How can SMUD incentivize landlords to replace gas with electric resources such as furnaces, water heaters and cooktops at rental properties?
We have incentives for converting from gas to electric appliances in multi-family properties, including for income-eligible customers. Learn more about our multi-family property incentives.
What incentives does SMUD have to promote the adoption of electrification?
We offer a range of incentives up to $4,000 in rebates for customers to convert to electric appliances. Going all-electric is better for the environment, and it’s safer and healthier, too. It’s also better for your budget. Switching from gas to all-electric can save about $500 per year on overall utility bills for the average residential customer, based on PG&E gas and SMUD electricity rates. Learn more about our residential rebates and business incentives.
How does battery storage work, and what are the benefits? What incentives/rebates are available to help customers install a battery storage system?
Battery storage systems are a way of storing and releasing electrical energy through a chemical reaction. Battery storage systems store the energy in batteries. An inverter converts the battery's DC energy to AC energy that your home can use. The battery is charged using energy from your solar PV system or the electric grid. The battery is discharged to offset energy use during more expensive peak times of the day. This helps reduce your electric bill or can be used for back-up power in the event of an outage.
SMUD’s My Energy Optimizer Partner+ program is a Virtual Power Plant battery storage program that reduces dependence on traditional fossil fuels and demand on the electric grid by combining thousands of residential solar and energy storage systems to benefit the entire grid.
We provide generous incentives for those customers who choose to partner with us. My Energy Optimizer Partner+ includes a one-time incentive of up to $3,000 for each battery (2 maximum). You'll be paid after the interconnection application received permission to operate and the enrollment onboarding process is completed. Plus, there are ongoing performance payments. Enroll in My Energy Optimizer Partner+ today!
This is how it works:
My Energy Optimizer Partner+ optimizes your battery year-round. The battery will continue to be available for customer use, such as back-up power needs in the event of an outage.
- Once enrolled, you don't need to reconfigure your battery storage system.
- Customers will receive ongoing performance payments (see recurring incentive below) in addition to the enrollment incentive.
How do heat pumps work, and what are their benefits? What incentives/rebates are available to help customers install heat pumps?
A heat pump HVAC system is simply an air conditioner that can run in reverse to heat or cool your home. Today’s multi-stage heat pumps aren’t like older heat pumps that increased your energy costs. The difference is in the compressor, which is the heart of the HVAC system and responsible for about 80% of the energy consumption.
SMUD offers rebates on energy-efficient heat pump heating and cooling systems installed by a qualifying contractor.
Heat pump water heaters work by moving heat from the surrounding air to heat your water. Because a heat pump is moving energy instead of creating it, a heat pump is significantly more efficient than a gas-fired or electric resistance unit. The absence of fuel removes the danger of combustion, carbon monoxide production and other air pollutants.
SMUD offers rebates on energy-efficient heat pump water heaters installed by a qualifying contractor.
Does SMUD assist customers looking to purchase an EV?
Yes, we have a dedicated team to provide you with enhanced EV support. Call us at 1-833-243-4236 Monday - Friday, 7 AM - 7 PM or email us. We can help with information on incentives and rebates, the best EV to fit your needs and help you find the best charging solution to fit your driving needs and save you money.
You may find Level 1 charging, with no additional equipment or upgrades, is a perfect fit for you. Our EV advisors aren't here to sell you anything. We’re here to help give you the best experience with your EV and suggest ways to save you money in the process.
Does achieving your clean energy goals require all new technology?
No. We believe proven clean energy technology like wind, solar, hydro, biomass, battery storage, demand response and energy efficiency all play a part in reaching our clean energy goals.
Can solar energy be stored in parked electric vehicles and feed back to the grid later?
We believe electric vehicle batteries and “vehicle-to-grid” technology hold tremendous potential with research and development.
From a production standpoint, both solar and wind technologies are the 2 most visual examples of energy production. What is the current assessment between the 2 production models, are they equally productive or is one technology proving to be more effective?
All forms of renewable energy, including solar and wind, have their pros and cons. We are thoroughly evaluating these 2 production models, along with other sources of clean energy, to include in implementation. A diverse portfolio of resources has been key in building the effective resource portfolio we have today, and it will be even more important as we strive towards a clean energy future.
How does carbon capture and sequestration align with goals? What are the benefits compared to other carbon-reduction methods?
Carbon capture and sequestration technology is designed to capture, transport and store carbon emissions. It’s a viable option to mitigate the damaging effects of climate change and has been identified as a Firm Zero-carbon Resource by the California Energy Commission. It can greatly accelerate carbon reduction and the transition to a clean energy future.
While renewables like solar, wind and geothermal greatly contribute to our clean energy goals, we need innovative solutions like carbon capture and sequestration to get us the rest of the way there, while maintaining our world-class reliability and low rates. Learn more about carbon capture and sequestration.
What role does hydrogen play in SMUD's goals to achieve a clean energy future?
We are looking at hydrogen as another clean energy solution. For renewable hydrogen to be developed and scaled as a cost-effective and reliable fuel, we’ll need long-term commitments by state and regional leadership to foster a statewide hydrogen marketplace supported by producers, transporters, storers and purchasers/users.
As Sacramento’s power provider, SMUD will continue partnering with stakeholders focused on expanding the region’s production and storage capabilities to position hydrogen as a fuel powering, clean generating assets.
SMUD is an active partner in the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), and we’re exploring how we can potentially repower some of our natural gas power plants using clean, hydrogen energy. By participating in the ARCHES through stakeholder meetings, we’re a part of the ongoing discussions with partners and can represent our interests in electrolytic hydrogen production.
We’re also partnering with Mote, Inc. in developing a first-of-a-kind biomass gasification facility in California to produce carbon-negative hydrogen.