Solar Guide for Sacramento Municipal Utility District (SMUD) Customers

If you're a Sacramento Municipal Utility District (SMUD) customer considering solar energy, you're making a smart financial decision. With residential electricity rates averaging 16.8 cents per kWh, solar panels can dramatically reduce or even eliminate your monthly electric bill. The typical Sacramento Municipal Utility District (SMUD) customer spends approximately $134 per month on electricity — money that could be working for you instead of going to the utility.

Sacramento County

Sacramento Municipal Utility District (SMUD) has a reduced rate net metering policy. While the buyback rate of 11.76¢/kWh is lower than the 16.8¢/kWh retail rate, solar remains highly economical. The key is to size your system to match your daytime consumption as closely as possible, maximizing direct savings at the retail rate. Any excess generation still earns you credits, just at the reduced buyback rate.

An 8kW solar system for a Sacramento Municipal Utility District (SMUD) customer costs approximately $22,560 before the 30% federal Investment Tax Credit. After the ITC, your net cost drops to about $15,792. This system produces enough clean energy to save you approximately $2,418 per year, resulting in a payback period of roughly 2.9 years.

After your system pays for itself, you'll enjoy 19+ years of dramatically reduced electricity costs. Over a 25-year period, total savings for Sacramento Municipal Utility District (SMUD) customers are estimated at $60,450 — and that's without accounting for the likely 2-3% annual increase in electricity rates that would make your savings even greater.