Solar and Storage Export Compensation Rate increases by 2 cents per kWh
Sacramento Municipal Utility District is pleased to announce an increase in the amount it pays customers on its Solar and Storage Rate (SSR) for excess solar energy generated by their rooftop solar systems. Effective June 1, SMUD’s Solar and Storage Export Compensation Rate will increase from 7.4 cents to 9.6 cents per kilowatt-hour (kWh). This means SMUD customers on the SSR will enjoy increased compensation for the energy produced by their solar systems that’s sent into the grid.
“This is great news for our customers on the Solar and Storage Rate,” said Scott Martin, SMUD’s Chief Financial Officer. “We’re committed to supporting our customers’ clean energy choices and ensuring they receive fair value for their contributions to renewable energy. This new rate reflects our work to provide fair compensation while providing affordable and reliable power to all customers.”
When customers participate in our solar and storage programs, they’re supporting our Zero Carbon Goal to eliminate carbon emissions from our power supply by 2030, which benefits our entire community with healthier air.
The current SSR was approved in 2021 and went into effect March 1, 2022. SSR allows compensation through the Export Compensation Rate, and incentives specific to customers with solar and/or storage installed at their home or business.
The change supports our commitment to revisit the rate every four years and adjust it as appropriate, based upon various market changes.
SMUD offers several key benefits for residential, commercial and agricultural customers with solar and/or battery storage systems:
Compensation for excess energy: Customers can sell excess electricity generated by their solar system back to SMUD at 9.6¢ per kWh, regardless of the time of day or season.
Battery storage incentives: Customers can participate in the My Energy Optimizer Partner+ program to earn financial incentives for adopting battery storage. Residential customers can currently receive a one-time enrollment incentive of up to $10,000 per household if they enroll within 90 days of receiving permission to operate.
Bill savings through energy shifting: By pairing solar with battery storage to dispatch excess solar energy during peak hours (5 p.m. to 8 p.m.), customers can store energy generated during the day, reduce reliance on the grid, and lower their electricity bill.
Environmental benefits: Shifting excess solar generation to peak periods reduces customers’ carbon emissions and helps the grid during high-demand times.
SMUD’s generous incentives to customers who invest in energy storage recognizes that pairing solar with battery storage delivers significantly more environmental and reliability benefits to all customers. Battery storage plays a vital role in SMUD’s strategy to achieve its Zero Carbon Goal by enabling the efficient use of clean solar energy during peak periods and reducing overall carbon emissions.
For more information about SMUD’s solar and storage programs, visit smud.org/solar or contact SMUD Customer Service at 1-888-742-7683.
As the nation’s sixth-largest, community-owned, not-for-profit electric service provider, SMUD has been providing low-cost, reliable electricity to Sacramento County for more than 75 years. SMUD is a recognized industry leader for its innovative energy efficiency programs, renewable power technologies and for its sustainable solutions for a healthier environment. In 2024, SMUD’s power supply was about 62% carbon free, which is largely influenced by the weather and amount of hydroelectricity produced. SMUD’s goal is to completely eliminate carbon in its electricity production by 2030 while maintaining reliability and keeping rates among the lowest in California — on average, 50% lower than its neighboring, investor-owned utility. For more information on SMUD’s Zero Carbon Plan and its customer programs, visit smud.org.
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