Solar Savings in Sacramento: Rates and 2026 Math

How Much Can You Save in Sacramento?

Sacramento homeowners on SMUD (Sacramento Municipal Utility District) pay an average of $240/month at 13.7¢/kWh (Tier 1) and 21.9¢/kWh (Tier 2). With 5.2 peak sun hours per day, a properly sized system can offset 80-90% of your usage, cutting the average bill from $240 to ~$0/month.

What Drives Savings in Sacramento?

• SMUD (Sacramento Municipal Utility District) rate structure: At 21.9¢/kWh for Tier 2, every kWh your panels produce offsets your most expensive grid usage first. That is where the math gets compelling.
• 5.2 peak sun hours: Solid sun exposure for reliable year-round production.
• NEM 3.0 (since April 2023): Export credits are now ~7.4 cents/kWh flat, year-round, so self-consumption matters most. Size your system for your daytime usage, not maximum export.
• Rate escalation: SMUD (Sacramento Municipal Utility District) rates have increased 15% (2021-2023), about 3% per year approved through 2027. Each year you wait, your baseline bill grows, making the solar investment more valuable in hindsight.