Plug-in solar savings on SMUD
Last updated
The short answer: on SMUD's Time-of-Day RT02 rate of 13.76¢/kWh,[source] the example kit (800 W, $1,000) saves about $109 a year and pays for itself in about 9.2 years, assuming typical placement and that you use most of its power at home.
What the example kit saves on SMUD
| Where the panels go | Saves a year | Pays back in |
|---|---|---|
| Excellent: south-facing, tilted, no shade | $144 | 7.0 years |
| Typical: well-placed | $109 | 9.2 years |
| Shaded or vertical balcony | $79 | 12.6 years |
Power you send back to the grid is valued at $0, so a kit sized to what you use during the day saves the most. Run your own numbers, including how savings add up over the years.
Where this rate comes from
SMUD's standard Time-of-Day (5-8 p.m.) rate, effective January 1, 2026, plus the $0.0003/kWh state surcharge. A kit makes most of its power at midday, so we use the off-peak price: $0.1550 in summer (June to September) and $0.1285 the rest of the year, month-weighted. On summer weekdays from noon, midday power is worth the $0.2139 mid-peak price, so your savings may be a little higher. SMUD's non-time-of-use Fixed Rate (RF01) is $0.1371 non-summer and $0.2189 summer.[source]
Discounts
CARE and FERA are CPUC programs for investor-owned utilities, so they don't apply here. City and district utilities run their own discount programs, which we haven't verified.
SB 868 and SMUD
SB 868 covers local publicly owned utilities such as SMUD, as well as investor-owned utilities. SMUD may ask you to register a qualifying kit through a simple online form, but can't charge fees related to it.[source] Read SB 868 explained and run through the checks before you buy.
Estimates only. Not electrical, legal or financial advice.
Frequently asked questions
- How much could a plug-in solar kit save on SMUD?
- About $109 a year for an example 800 W kit with typical placement, at SMUD's Time-of-Day RT02 rate of 13.76¢/kWh, paying back in about 9.2 years. Your result depends on your usage and where the panels go.
- Does SB 868 apply to SMUD customers?
- Yes. The law covers both investor-owned and local publicly owned electric utilities. SMUD may ask you to register a qualifying kit online, but can't charge fees related to it.