SMUD Board approves new Solar and Storage Rate
The SMUD Board approved a comprehensive and industry-leading package of rates and programs to replace the outdated Net Energy Metering (NEM) rate for rooftop solar.
Net Energy Metering (NEM) was introduced by state policy back in 1998 to incentivize the adoption of solar energy. Under NEM, SMUD paid its solar customers about 13 cents per kilowatt-hour for the excess solar energy they sell back to SMUD. SMUD’s new NEM rate of 7.4 cents per kilowatt-hour for new solar customers takes effect on March 1, 2022. All existing solar customers will get the current NEM 1.0 rate through 2030.
Solar energy is a much more mature industry today. The cost of a residential system is less than half of what it was when SMUD first put net energy metering in place. The need for non-solar customers to subsidize solar customers is no longer there.
There is, however, a need to subsidize energy storage systems that make solar systems more manageable and valuable.
A new program offered to accompany the new Solar and Storage rate provides incentives of up to $2,500 to customers who invest in energy storage. Pairing solar with storage delivers significantly more environmental and reliability benefits to all customers.
SMUD also launched a new Virtual Solar program for disadvantaged customers living in multifamily housing.