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SMUD - Non-Residential PV Incentive Program

Savings Category 
Maximum Rebate 

$650,000 for up-front incentives at current $0.65/W incentive level.

Program Info
Program Type 
Utility Rebate Program
Rebate Amount 

Expected Performance Based Incentive (for systems up to 1 MW): 0.65/watt AC; incentive adjusted based on expected performance
Performance Based Incentive: 0.10/kWh for 5 years or 0.06/kWh for 10 years
Incentives are decreased for systems > 1 MW

Sacramento Municipal Utility District

SMUD offers cash incentives to commercial, industrial, and non-profit customers who install solar photovoltaic (PV) systems. Customers have the option of taking a one-time, up-front payment through the Expected Performance Based Incentive (EPBI) or payments over the course of 5 years through the Performance Based Incentive (PBI)

As of February 2013, the current EPBI is $0.65/W-AC for systems up to 1 MW but will be adjusted based on the expected performance of the system, which is affected by factors such as inverter efficiency, orientation, tilt and shading. When determining the expected performance, factors such as components used, system orientation, and shading will be considered. An incentive calculator can be accessed at [].

Customers who install systems under the performance-based incentive (PBI) will have their actual energy production measured during the course of the contract period. Options include a 5-year PBI at $0.10/kWh. Systems greater than 1 MW would receive lower incentive rates.

Under a third-party power purchase agreement arrangement, participants are eligible for the 5-year PBI option only regardless of system size; the up-front incentive is not an option.

Note that these incentive amounts will decline over time as installation targets are met.

Rebate recipients must comply with SMUD interconnection and net-metering agreements and must agree that all environmental and air quality credits (also known as renewable energy credits) resulting from the installation remain with SMUD. Reduced incentive amounts can be negotiated should customer want to retain the RECs. The SMUD PV Incentive Handbook and other documents can be obtained at the following link: [