SMUD Overview
From my experience:Sacramento residents with SMUD have it good compared to PG&E customers. Lower rates, better net metering terms, and a community-owned utility that's actually responsive to customers. The tradeoff is lower rates mean smaller absolute savings per kWh, but the overall package is still solid for solar.
SMUD (Sacramento Municipal Utility District) is the nation's sixth-largest community-owned electric utility. Serving Sacramento County, SMUD operates as a not-for-profit, which translates to generally lower rates and more customer-friendly policies than investor-owned utilities.
SMUD Stats
SMUD serves approximately 1.5 million people in Sacramento County. As a municipal utility, SMUD is governed by an elected board, not shareholders. Rates average $0.15-0.20/kWh—lower than PG&E's $0.35-0.45/kWh. (Source: EnergySage Marketplace Data, 2025)
SMUD vs PG&E
Why SMUD is Better for Solar
| Factor | SMUD | PG&E NEM 3.0 |
|---|---|---|
| Export Credit | ~$0.08-0.12/kWh | ~$0.05-0.08/kWh |
| Retail Rate | $0.15-0.20/kWh | $0.35-0.45/kWh |
| Battery Needed? | Helpful, not essential | Highly recommended |
| Policy Stability | More stable | Subject to CPUC |
Lower Rates, Better Terms
SMUD's lower rates mean smaller absolute savings per kWh, but better net metering terms mean you can skip batteries and still do well. Solar-only systems make sense in SMUD territory where they often don't with PG&E. (Source: industry data and EnergySage analysis)
Net Metering
SMUD Solar Program
- Export credits: ~$0.08-0.12/kWh (better than PG&E NEM 3.0)
- Self-consumption: Worth full retail ~$0.15-0.20/kWh
- Monthly rollover: Credits carry forward
- Annual true-up: Excess credits settled annually
Program Benefits
- No time-of-use mandate: Flat rates available
- Simpler billing: Less complex than PG&E
- Local support: Sacramento-based customer service
- Community ownership: Board responsive to ratepayers
Rate Structure
SMUD Residential Rates
- Base rates: ~$0.15-0.20/kWh
- Time-of-use: Optional (not mandatory for solar)
- Summer rates: Slightly higher June-September
- Fixed charges: Lower than PG&E
Going Solar with SMUD
Interconnection Process
- Application: Submit through SMUD's portal
- Review: Generally faster than PG&E
- Approval: Receive permission to operate
- Timeline: Often quicker than investor-owned utilities
SMUD Solar Programs
- Rebates: Check current availability
- Low-income programs: Available for qualifying customers
- Community solar: Options for those who can't install
The Bottom Line
SMUD is one of the better utilities for solar in California.Better net metering terms than PG&E NEM 3.0, lower rates, and community ownership create favorable conditions. Batteries are optional rather than essential. Sacramento's excellent sunshine adds to the strong economics.
[Editor's Note, Jan 2026]:Utility rates and policies change frequently. SMUD as a municipal utility sets its own policies. Verify current rates with SMUD before making decisions.
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