Sacramento Municipal Utility District solar: net metering and export credit rules

The rules

What happens to the solar power you send to the grid

SMUD provides electric service to about 900 square miles, including most of Sacramento County and small adjoining portions of Placer and Yolo counties.

Solar and Storage Rate (SSR)

How Sacramento Municipal Utility District credits exports

SMUD is a community owned, not for profit electric service whose Board sets its policy and rates, and SMUD says it is not governed by the CPUC.
Customers approved to install solar or battery storage on or after March 1, 2022, and anyone who moves into a home with solar on or after that date, are on the Solar and Storage Rate, an added component of SMUD's Time of Day (5 to 8 p.m.) residential rate.
Every kilowatt hour the meter records as delivered to SMUD is credited at one Export Compensation Rate, no matter the time of day or season.
That credit can offset only electricity usage charges, any remaining credit carries over to later billing periods, and fixed charges, surcharges and taxes must be paid each month.
SMUD updates the Export Compensation Rate every four years starting in 2026, subject to Board approval, and the current rate took effect June 1, 2026.
Customers approved before March 1, 2022 can stay on SMUD's older Net Energy Metering rate, which credits net excess at retail value within a 12 month settlement period, through December 31, 2030, unless they add battery storage with SMUD incentives, modify or replace the system, or move.

The rule behind it

SMUD Board Resolution No. 21-09-07, as amended by Resolution No. 26-04-04 (Rate Schedule SSR), SMUD Rate Schedule SSR, effective June 1, 2026

The program

Solar and Storage Rate (SSR), Rate Schedule SSR

Recent changes

SMUD's Board amended Rate Schedule SSR by resolution on April 16, 2026, and SMUD raised its Export Compensation Rate effective June 1, 2026, under its commitment to revisit that rate every four years.

Before you connect

Limits, and the steps to get connected

Limits and eligibility

Under Rate Schedule SSR, the system must be intended primarily to offset up to 110 percent of the customer's own electrical requirements.
SMUD's solar FAQ allows a system sized up to 110 percent of the last 12 months of kWh use, or up to 120 percent on the Solar and Storage Rate when battery storage is added at the home.
Residential customers on the Solar and Storage Rate must also be on Rate Schedule R TOD, and SMUD says they remain on its Time of Day (5 to 8 p.m.) Rate.
Generating capacity can be at most 3,000 kW, measured for solar by its CEC AC rating.

How a home gets connected

The contractor submits an interconnection application through SMUD's online PowerClerk portal, and a homeowner installing a system alone can apply there too.
The application needs the customer's SMUD account and meter numbers, equipment details, a site plan and a labeled one line or three line drawing, and the service address must match the final building permit.
SMUD reviews and approves the application, and the contractor then obtains permits, installs the system and has it inspected; SMUD requires a building permit for every installation.
In the City of Sacramento, the residential solar permit application asks for a SMUD interconnection letter, and licensed contractors can use SolarAPP+ automated review for homes with one or two units and ADUs.
SMUD does a final safety inspection and installs a meter that registers electricity flow in both directions, and the contractor then turns on the system.

Federal tax credit

The residential solar credit (section 25D) ended for systems completed after 2025. What that means in 2026.

Where we work

Cities we cover in Sacramento Municipal Utility District's area

Each city page adds who issues permits there, with links to the official sources.

Sacramento, CASMUD

State rules

California solar rulesThe state law, the main utilities, and the cities we cover

Questions

Common questions about Sacramento Municipal Utility District and solar

Does NEM 3.0 apply to SMUD customers in Sacramento?

No. SMUD says it is not governed by the CPUC and that its Board sets policy and rates for SMUD customers. New solar customers approved on or after March 1, 2022 are on SMUD's own Solar and Storage Rate.

I bought a home in the SMUD area that already has solar. Which rate am I on?

SMUD says customers who move on or after March 1, 2022 into a home with an existing solar or battery system are placed on the Solar and Storage Rate, whether or not they had solar at a previous home. On that rate, exports are credited at one Export Compensation Rate regardless of time of day or season.

What happens to SMUD net metering customers after 2030?

Under the SMUD Board resolution that created the Solar and Storage Rate, customers on the older Net Energy Metering rate move to it after December 31, 2030. They move sooner if they add battery storage with SMUD incentives, replace the system, or enlarge it by more than 10 percent of the approved capacity or 1 kW, whichever is greater, or beyond 110 percent of the approved capacity. Until then, SMUD says net surplus at the end of each 12 month settlement period is either paid out or rolled over as kWh, at the customer's choice.

Is there still a federal tax credit for home solar?

The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.

Does the consultation cost anything?

No. The consultation is free for homeowners, and there is no obligation to buy anything.

Who will contact me?

Our team confirms a few details with you, then one local solar company for your area contacts you to set up the visit. Your request never goes to a list.

Sources (checked September 26, 2026)

Tariffs and programs change, so confirm current terms with Sacramento Municipal Utility District before you decide.

Answers homeowners look for

Is the federal solar tax credit still available in 2026?No, not for a home solar system completed in 2026.Can an HOA stop you from installing solar panels?California: State law limits HOA bans Do solar panels raise your property taxes?California: Partial or limited exemption

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How Sacramento Municipal Utility District credits home solar

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