By Claire WhitakerUpdated November 2026
SMUD net metering changes affect how much your rooftop solar production is worth on your bill. If you already have panels, or you are planning a system in the Sacramento Municipal Utility District service area, this guide explains what the new rules mean in practical terms. You will learn how to check which billing option applies to your account, how to read your monthly statement, and what to do before a new rate schedule takes effect.
Understand What Changed for SMUD Solar Customers
Under the older arrangement, excess power you sent to the grid was credited at close to the full retail rate, so each kilowatt-hour you exported offset one you later drew. Recent SMUD changes move customers toward time-sensitive export credits, meaning the value of your solar depends on when you produce power, not just how much. Midday exports during spring and early summer generally earn less than they did before, while evening usage is priced higher.
Shopping for one? See our guide: Net Metering in Virginia vs Virginia Community Solar: Which Should You Choose?.
Check your SMUD account settings and rate schedule to confirm exactly which version applies to you. Existing customers and new interconnections may be placed on different schedules, and the effective date depends on when your system was approved.
Review Your Current Rate Schedule and Billing Option
Start by pulling your last three to six monthly bills. Look for separate lines for energy purchased from the grid, solar energy exported, and any net balance carried forward. These lines tell you how much solar is being credited and at what rate. If your statement only shows a single net figure, ask SMUD customer service to break it down by time-of-use period.
- Log in to your SMUD account and note your current rate plan name.
- Download or record the last three bills, including meter read dates.
- Identify the peak, off-peak and export lines for each billing period.
- Compare total exports against total imports to estimate your net position.
- Write down any questions about the effective date or your grandfathering status.
Estimate How the Changes Affect Your Bill
Most homeowners see the biggest impact in the months when solar production is highest and household demand is lowest. A simple way to estimate this is to compare your monthly exports for the last year against the rate periods they fall into. A system that exported heavily in April and May will show a larger drop in credit value than one that mostly covered summer evening load.
| Factor | What to check | Why it matters |
|---|---|---|
| Export timing | Share of exports during midday hours | Midday credits may be lower under new schedules |
| Evening usage | Kilowatt-hours drawn after sunset | Evening imports may be priced higher |
| Seasonal pattern | Spring and summer versus winter bills | Seasonal swings change net balance |
| Battery storage | Whether you have or plan to add a battery | Shifting exports can improve value |
For a broader view of how credits are calculated, see Xcel Net Metering Rates: How Your Solar Credit Is Calculated (Step-by-Step), which walks through the same logic in a different utility territory. Keep in mind that every utility uses its own formulas, so use it for concepts rather than SMUD-specific numbers.
Decide Whether to Adjust Your System or Usage
Once you understand your billing pattern, you have a few options. Some owners shift large loads such as laundry, dishwashing and EV charging into the midday window to use solar directly rather than exporting it. Others add a battery so they can store midday production for evening use. Sizing matters here: an oversized array may export more than it can credit well, while an undersized one leaves you buying more power at peak rates.
Before adding equipment, get a written estimate from a licensed installer that models your actual SMUD interval data. Net metering rules change, and a system designed for last year’s credit structure may not pencil out under current terms. A licensed electrician or solar professional should review any panel or wiring changes.
Common Mistakes
- Assuming old credit values still apply without checking your current rate schedule.
- Looking only at annual totals and missing the seasonal swings that drive the bill.
- Running large appliances at night when solar is no longer available to offset them.
- Adding panels or batteries without modeling the new export rates first.
- Ignoring the effective date for your interconnection, which can determine which rules apply.
FAQ
Do the SMUD net metering changes apply to existing solar systems?
It depends on your interconnection date and the specific rate schedule on your account. Check your SMUD account or call customer service to confirm whether you are grandfathered.
Will my bill definitely go up after the changes?
Not necessarily, but many owners see lower export credits during midday hours. Whether your total bill rises depends on your usage pattern, system size and whether you shift loads.
Should I add a battery because of the changes?
A battery can help by storing midday production for evening use, but it is only worth it if the numbers work for your home. Ask a licensed installer to model your SMUD interval data before you buy.
Conclusion
SMUD net metering changes shift the value of your solar production toward when you generate and when you use power. Start by reviewing your last several bills, then estimate how midday exports and evening imports affect your net balance. Confirm your rate schedule with SMUD and consult a licensed solar professional before making equipment decisions.
Related reading
- Virginia Net Metering Changes: What Homeowners Need to Know Now
- Illinois Net Metering Changes: What Homeowners Need to Know
Ready to choose one?
About Claire Whitaker
Claire Whitaker is part of our editorial team and reviews and edits our home solar guides, checking product details against manufacturer specifications and owner feedback.
