NOTICE: SMUD offices will be closed Monday, February 15, in observance of Presidents' Day. Learn more.
Hot Italian owners

Incentives and Programs

SMUD has been helping business thrive since 1946. If you’re considering a move to our area, we can help you take advantage of available incentives and programs, provided by SMUD and other agencies.

Incentives and Rates

SMUD Rates - Growing businesses need to control costs. Our rates are among the lowest in California, up to 30 percent less than investor-owned utilities. View a rate comparison.

Energy Rates and Bill Projections – We can help you estimate your energy bills while offering incentives to help customers plan, finance and install new energy-saving equipment, such as high-efficiency lighting, air conditioning and refrigeration, and industrial equipment.

Economic Development Rate Option - Companies opening an operation in the Sacramento area, or undertaking an expansion that requires a significant electric load and creates jobs may be eligible for a discount rate option for the first few years of service.

SEED Program - SMUD's Supplier Education and Economic Development (SEED) program offers incentives for local small businesses to participate in the SMUD's competitive bid process. SMUD aims to award 20 percent of all contracts to certified small businesses located within our service territory.

Energy Services and Programs

Energy Delivery - Our Distribution Services staff provide design and construction for new electric service as well as existing connection set-up. It lets us deliver reliable electric service in the safest, most cost-effective and responsive way possible.

Savings by Design – Our Savings by Design architects can help you integrate innovative energy efficiency technologies into new construction, as well as provide incentives, and free analysis tools.

Customized Energy Services - Once a new business identifies a location and final improvements and equipment it needs, SMUD can coordinate a team to identify energy reduction opportunities and then develop a comprehensive energy management plan that could include incentives, photovoltaic systems, design assistance and energy delivery service options.

Loans and Financing

SMUD Commercial Loan Program - SMUD provides commercial customers loans for energy efficiency buildings and equipment, including lighting, heating and air conditioning systems, refrigeration systems and process equipment.

Grow Sacramento Fund - Grow Sacramento Fund (GSF) is a loan program for businesses in Sacramento city and county. Funded jointly by SMUD and the Sacramento Housing and Redevelopment Agency, GSF is designed to create or retain jobs and to help energy-related businesses.

State Loan Guarantee Program - We partner with the California Capital Financial Development Corporation to participate in the State Loan Guarantee Program, providing funds to guarantee loans to small businesses within our service area.

Enterprise zones and other area incentives

Enterprise Zones - Businesses located at qualified addresses in an Enterprise Zone are eligible for incentives such as tax credits for hiring qualified employees, net operating loss carry-over, sales tax credits on investments for qualified machinery and parts, up-front expensing of specific types of depreciable property, lender net interest deductions, options to use tax credits in future years, and preference points on state contracts.

Local Agency Military Base Recovery Areas (LAMBRAs) - Businesses located in a designated LAMBRA are eligible for similar incentives as Enterprise Zones with enhanced hiring tax credits and sales tax credits on purchases of qualified equipment. Designated LAMBRAs in the Sacramento Region include Mather Park and McClellan Park.

Metro Pulse - Metro Pulse is an award winning web-based program that links businesses to local economic development agencies. Businesses can determine their needs by completing an assessment form or requesting a visit during a business walk in their neighborhood. The economic development professionals then provide solutions for the challenges and opportunities that businesses face daily.

Governor's Office of Economic Development - The Governor's Office of Business and Economic Development (GO-Biz), provides a one-stop shop for business assistance to stimulate economic development. View details.

Economic Development Rate

To help companies that choose to open in the Sacramento area, or expand their current operation, we created the Economic Development Rate. This option offers new and expanding customers a discount rate over their first three years of service.

Economic Development Discount
Year 1
Year 2
Year 3
Year 4
Year 5

There are specific requirements of eligibility:
  • Full service customers with load exceeding 299kW
  • Created 50 new jobs
  • Added load at new or expanded site
  • Standard Industrial Classifications (SIC) 2000-3999 Manufacturing, 4800-4899 Communications, 7300-7499 Business Services and 8700-8799 Professional Services or the equivalent new NAICS codes
  • Agreed to be full service customers for 5 years

For more information, e-mail, or call 916-732-5477, toll-free 1-877-768-3674.

A bird's-eye view

A fly-over tour of our service area.

Watch video

Meeting the challenge

Balancing current and future needs responsibly.

Watch video