Solar and Storage Rate details

Key details

  • Solar customers on the existing Net Energy Metering (NEM 1.0) rate can remain on that rate through 2030.
  • We’ll provide incentives and programs to encourage the adoption of solar with energy storage (batteries) and continue to support the solar and storage industry.
  • When solar customers have excess power they do not use or store in their battery, they can sell it back to SMUD.
  • The proposal outlines SMUD buying this excess electricity from the customer for 7.4¢/kWh, no matter the time of day or season. This rate would be effective March 1, 2022.
  • Along with the new rate, the proposal includes a one-time fee to connect new solar systems to SMUD’s grid to recover the cost of providing that service, which includes a technical document review, validation of system sizes, integration costs into our distribution system and processing of the application. SMUD is one of the few utilities that does not currently charge a fee. The fee would be applied to all new systems starting March 1, 2022.

With this new solar and storage recommendation, we’re committed to bringing the benefits of solar to our under-resourced multi-family dwelling communities through a Virtual Net Energy Metering program, where solar and storage customers can share their clean solar energy through our grid with others in the community.

Finding a solution

In 2019, we introduced a new rate recommendation for customers with onsite generation, such as solar — a grid access charge.

We made the decision to change course and removed the grid access charge recommendation from the final 2019 CEO & General Manager's Report and Recommendation on Rates and Service and committed to embark on a collaborative journey with our customers, stakeholders and the solar and storage industry to develop a new recommended solar and storage rate.

In October 2019, we kicked off a technical working group with key stakeholders from the solar, storage, environmental and under-resourced community organizations to reach agreement on the inputs for the Value of Solar Study.

In September 2020, we published a Value of Solar and Solar + Storage study, which was a detailed independent study based on the technical working group’s agreed upon inputs to value the costs and benefits of rooftop solar energy in Sacramento.

In October 2020, we invited a wide-range of organizations to collaborate with us and help design a revised solar and storage rate that benefits all customers to include in this year’s rate action. The outcomes of the Value of Solar Study were incorporated in the proposed rate recommendation. 

Over the last 6 months, input from representatives of the solar and storage industry was instrumental in co-designing the proposed solar and storage rate.