SMUD - Feed-in Tariff (California)

From Open Energy Information


Last modified on June 1, 2011.

Financial Incentive Program

Place California

Name SMUD - Feed-in Tariff
Incentive Type Performance-Based Incentive
Applicable Sector Commercial, Industrial, Residential, General Public/Consumer, Nonprofit, Schools, Multi-Family Residential, Agricultural
Eligible Technologies CHP/Cogeneration, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Municipal Solid Waste, CHP/Cogeneration, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Biodiesel, Fuel Cells using Renewable Fuels
Active Incentive No
Implementing Sector Utility
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount Rate varies depending on the year placed in service, time of day, time of year, and length of contract

Terms 10, 15 or 20 years
Program Administrator Sacramento Municipal Utility District

References DSIRE[1]


As of January 19, 2010, SMUD's feed-in tariff is fully subscribed. SMUD received applications for projects totaling more than 100 MW, the aggregate cap for the program. SMUD continued accepting applications for a period of time in the event a project in the queue was canceled, but announced in August 2010 that they would no longer accept new applications.

Sacramento Municipal Utility District (SMUD) offers a feed-in tariff for combined heat and power (CHP) and various renewable energy technologies. Every renewable energy technology that can be used to satisfy California's renewables portfolio standard is eligible for the feed-in tariff.

Unlike the feed-in tariffs offered by some European countries, which have a single fixed rate, SMUD's feed-in tariff varies by time of day, season, length of contract and production year, with the highest rates being paid during summer super peak times. Additionally, SMUD has two different feed-in tariff rate schedules; one for CHP and one for the renewable energy technologies. Both rate schedules are available through the program website listed above. For PV projects with 20-year contracts started in 2010, the average weighted production payment is estimated to be $0.139 per kWh.

The rates paid for CHP projects increase annually and participating projects will receive the new, higher rates every year. For example, a CHP project installed in 2010 will receive the 2010 rates throughout 2010. In 2011, the same CHP project will receive the 2011 rates.

Unlike the rates paid for CHP, the rates paid for renewable energy projects are dependent on the year the system is placed in service, with slightly higher rates being paid for systems installed in future years. Once a system is installed, it is locked into the rates established for that year throughout the life of the contract. For example, a renewable energy project constructed in 2010 will receive the 2010 rates for all future years in the contract.

The feed-in tariff is limited to systems 5 MW or less, and SMUD has set an initial aggregate capacity limit of 100 MW. Applicants will be charged a refundable cash reservation deposit of $20/kW and a non-refundable interconnection review fee of $1,400.

Incentive Contact

Contact Name Feed-in Tariff Program
Department Sacramento Municipal Utility District
Address P.O. Box 15830
Address 2 Attn: Power Contracts, Mail Stop A404
Place Sacramento, California
Zip/Postal Code 95852-1830
Phone (916) 732-6244


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"

Production Solar Photovoltaic Incentives

PV Residential Feed-in tariff $/KWh $0.14
PV Commercial Feed-in tariff $/KWh $0.14
PV Non-profit Feed-in tariff $/KWh $0.14
PV Performance-based incentive Feed-in tariff Max KW 5000
PV Rating AC

PV Number of Years Applies 20

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1.  "Database of State Incentives for Renewables and Efficiency (DSIRE)"