Solar under SMUD (Sacramento), explained
If you live in the Sacramento area, there’s a good chance your utility is SMUD, not PG&E — and that changes the solar rules. SMUD sets its own program, so the state’s NEM 3.0 doesn’t apply to you. Here’s what that means for a home going solar.
You’re on SMUD, not PG&E
The Sacramento Municipal Utility District (SMUD) is a community-owned utility, not one of the investor-owned utilities the California Public Utilities Commission regulates. That’s why NEM 3.0 (the Net Billing Tariff) does not apply to SMUD customers — SMUD runs its own solar program and rate design, and has historically had lower overall rates than PG&E.
How SMUD credits your solar
New solar customers go on SMUD’s Solar & Storage Rate, which pairs a time-of-day retail rate (power costs more in the summer late-afternoon/evening peak) with a lower credit for the energy you export. As with PG&E, that means the value is in using your own production and shifting it into the peak, rather than exporting midday. Exact credits and charges change, so confirm SMUD’s current Solar & Storage terms before you size a system.
Why a battery still matters here
Because SMUD’s peak prices land in the hot Sacramento summer evenings — exactly when your panels are winding down — a home battery that banks midday sun for the 5–9 pm window is where much of the savings come from, just as under NEM 3.0. A battery also carries your home through outages. California’s SGIP battery rebate can apply to SMUD customers who qualify.
Which cities SMUD serves
SMUD covers Sacramento County and a small part of Placer County — including Sacramento, Elk Grove, Folsom, Citrus Heights, Rancho Cordova, Galt and surrounding communities. Nearby cities run different utilities: Roseville has Roseville Electric, and most of the rest of Northern California is PG&E (and on NEM 3.0). If you’re not sure, your electric bill names your utility.
The fastest way past the sales pitch is your own numbers. Design a system for your address in about a minute — no signup.
Does NEM 3.0 apply to SMUD customers?
No. NEM 3.0 (the Net Billing Tariff) is a CPUC rule for investor-owned utilities like PG&E, SCE and SDG&E. SMUD is a community-owned utility that sets its own solar rate, so its rules are separate.
What is SMUD's solar buyback rate?
New SMUD solar customers use the Solar & Storage Rate, which credits exported energy below the retail rate and charges a time-of-day price that peaks on summer evenings. The specific credit changes over time, so confirm SMUD's current terms directly.
Which cities does SMUD serve?
SMUD serves Sacramento County and a sliver of Placer County, including Sacramento, Elk Grove, Folsom, Citrus Heights, Rancho Cordova and Galt. Roseville uses Roseville Electric, and most other Northern California cities are on PG&E.
Keep reading
See if solar is right for your Northern California home
Share a few details and a specialist will get back to you with a free, no-obligation look at whether solar makes sense for your roof, your PG&E bill, and your local sun. We’ll also tell you if a battery for PSPS backup is worth it.
- We only contact you about solar for your home
- Free and no obligation
- We never sell your information. We share it only with the local specialist you ask us to connect you with
Golden State Solar Guide is an independent guide, not a solar installer. We give you honest information, then connect you with a vetted, licensed local solar professional if you want one. You’re never obligated to buy.