SMUD solar programs in 2026: export rate, SolarShares and battery incentives

Does SMUD offer solar rebates?

No. In SMUD’s own words, it “does not offer rebates for solar installations but battery storage incentives are available.” It also says it does not sell solar systems (SMUD, checked September 23, 2026). So any SMUD money in a solar proposal should be a battery incentive, and it should be named as My Energy Optimizer Partner+.

SMUD’s solar estimator mentions “available tax credits and rebates,” and its FAQ tells you to check with a tax consultant. The federal homeowner credit is gone for new systems: the IRS says the Residential Clean Energy Credit “is not available for any property placed in service after December 31, 2025” (IRS). Make sure an estimate does not subtract it.

SMUD net metering and the Solar and Storage Rate

SMUD is not under the CPUC. It says, “As a community-owned, not-for-profit electric service, we’re not governed by the California Public Utilities Commission (CPUC),” and its board sets its rates. That is why the CPUC’s Net Billing Tariff, often called NEM 3.0, covers PG&E, SCE and SDG&E but not SMUD (CPUC).

• Newer systems. The Solar and Storage Rate covers customers approved to install solar or storage on or after March 1, 2022. Residential customers stay on the Time-of-Day (5-8 p.m.) Rate, and exports are credited at 9.6¢ per kWh “no matter the time of day or season,” effective June 1, 2026. A credit offsets usage charges and the rest carries over to later bills.
• Older systems. Customers approved before March 1, 2022 can stay on net metering through December 31, 2030, unless they add a battery with SMUD incentives, modify or replace the system, or move.
• Buying a home with solar. SMUD puts customers who move to a property with solar on the Solar and Storage Rate, whether or not they had solar before.
• Expanding an old system. Growing it by more than 10% or 1 kW, whichever is greater, moves you to the Solar and Storage Rate with a new interconnection application.

Source: SMUD, Solar and Storage Rate, checked September 23, 2026. Exports earn a flat 9.6¢ whatever the hour, so compare it with the price per kWh on your own SMUD bill: every kWh your panels cover at home saves that import price, and every kWh you send back earns 9.6¢. Why a SMUD bill runs high is in why your SMUD bill is so high.

How big a system SMUD allows, and the connection steps

SMUD sizes systems to your use, not your roof: up to 110% of your last 12 months of consumption, or up to 120% on the Solar and Storage Rate if you add a battery. There is a one-time interconnection fee for a new solar system, solar with a battery, or a battery alone, but not for adding a battery to existing solar. SMUD requires a building permit for every installation, including one you do yourself, and says a contractor should hold a C-10 electrical or C-46 solar license (SMUD, checked September 23, 2026).

1. Your contractor applies through SMUD’s PowerClerk portal and pays the fee.
2. SMUD reviews the application and emails an approval.
3. The system is installed and passes local permits and inspections.
4. SMUD installs the meter and issues permission to operate.

If your contractor goes out of business mid-project, SMUD says its interconnection team can help transfer the application to a new one. How to check a contractor before that happens is in how to check a solar installer’s license.

SMUD’s battery incentive: My Energy Optimizer Partner+

This is SMUD’s one cash incentive for home energy equipment, and it changed on the day this page was checked. SMUD: “Effective Sept. 23, the upfront enrollment incentive will be reduced from $500 per kWh (up to $10,000 per household) to $300 per kWh (up to $6,000 per household).” Projects submitted for interconnection by September 22 and enrolled by December 31, 2026 keep the higher level. Everyone must enroll within 90 days of permission to operate.

• What you agree to. SMUD can dispatch the battery when demand is highest, and always leaves a 20% reserve at the end of an event. You keep full use of the battery in an outage.
• How much. SMUD’s amounts reflect that 20% reserve. Its table lists $2,400 at the new rate for a 10 kWh battery.
• Which batteries. Eguana, Enphase, Franklin, SolarEdge, Sonnen and Tesla. Ongoing quarterly payments are currently for Tesla batteries only: $110 for one, $220 for two, $330 for three or more.
• Who cannot join. You must be on the Solar and Storage Rate. Individual rental units and MED Rate customers are not eligible.

Source: SMUD, battery storage for homeowners, checked September 23, 2026. Whether a battery pays in your case is in home battery storage in California.

SolarShares: solar without panels on your roof

Residential SolarShares lets a SMUD customer take power from solar farms in the Sacramento region instead of installing panels. SMUD adds a charge or credit to your bill each month for 20 years, or until you leave; if you rejoin later, the 20 years start again. SMUD says it maintains and operates the solar panels, and “if you move, your SolarShares move with you” (SMUD, checked September 23, 2026).

Years 13 to 20 are in SMUD’s terms and conditions. Solar and Storage Rate customers and Neighborhood SolarShares customers cannot join; Greenergy customers are moved off Greenergy if they do. SolarShares does not satisfy California’s solar requirement for new homes or ADUs, and Neighborhood SolarShares for new construction is closed to new applications.

Leases and PPAs in SMUD territory

SMUD does not regulate the contract between you and a solar provider. Asked what happens at the end of a lease or PPA, SMUD’s answer is to contact your solar provider about its terms (SMUD). With a 9.6¢ export credit, check how much of a PPA’s modeled output the provider assumes you use at home, because you pay the PPA price for every kWh, including the ones you export. What to compare is in how to compare solar PPA companies and what a solar leasing company does.

Other utilities run very different programs; see PG&E’s solar programs and LADWP’s solar programs.

A referral request is optional and separate

California Rate Relief is a referral service. We are not a licensed contractor. We are not SMUD and do not run or decide eligibility for any SMUD program; enroll through SMUD.