SMUD Cut Its Battery Rebate.
You Still Get $3,240 Back per Powerwall.
SMUD homeowners in Sacramento, Elk Grove, Rancho Cordova, Citrus Heights, Carmichael and Folsom still get a one-time rebate of $3,240 per Tesla Powerwall 3, up to $6,000 per household. Tesla owners also earn up to $440 per year per Powerwall through SMUD's virtual power plant. Franklin, Enphase and SolarEdge batteries qualify for the rebate too. You must be on SMUD's Solar and Storage Rate to qualify.
Powerwall 3
per Year (VPP)
After PTO
per SMUD
What do Sacramento homeowners ask most about the SMUD battery rebate?
How much is the SMUD battery rebate now?
$3,240 per Tesla Powerwall 3, up to $6,000 per household. SMUD lowered the rebate on September 23, 2026. It was $5,400 per Powerwall before that.
Does SMUD pay you to have a Tesla Powerwall?
Yes. SMUD pays Powerwall owners up to $110 per quarter per battery, about $440 a year, for joining its virtual power plant. You can skip any event in the Tesla app.
Who installs home batteries for the SMUD rebate near Sacramento?
Solar With Watts handles battery-only and solar-plus-battery projects for SMUD homeowners. Mars Home Solutions installs them under CSLB number 1065773. Ed Watts has 400-plus California installs.
How do the Maxwell Power discount, SMUD rebate and VPP payments stack?
The SMUD battery rebate stacks with your other savings. SMUD homeowners in Sacramento, Elk Grove, Rancho Cordova, Citrus Heights, Carmichael and Folsom can combine three layers. First, a Maxwell Power prepaid discount at signing. Second, SMUD's rebate of $3,240 per Powerwall. Third, up to $440 a year per Powerwall from SMUD's virtual power plant.
At Signing
Pay once or finance
Yours in year 6
After PTO
one-time
$6,000 household cap
Ongoing
ongoing
Tesla only
SMUD can change program amounts. We confirm your exact figures in your quote.
+ $6,000 SMUD enrollment rebate
+ up to $880/yr VPP payments
+ Full ownership in year 6
No credit pull · About 2 minutes · No obligation
| Battery | SMUD Rebate | VPP Payments | Maxwell Prepaid | Best For |
|---|---|---|---|---|
| ⭐ Tesla Powerwall 3 (13.5 kWh) | ✓ $3,240 each | ✓ Up to $440/yr each | ✓ Yes | Full stack, best combined value |
| Enphase IQ Battery 5P (5 kWh) | ✓ $1,200 each | ✗ Not eligible | Ask us | Homes with Enphase microinverters |
| SolarEdge Home Battery | ✓ Per-kWh rate | ✗ Not eligible | Ask us | Homes with SolarEdge inverters |
| Other SMUD-approved (Franklin, Sonnen, Eguana) | ✓ Per-kWh rate | ✗ Not eligible | Ask us | Check SMUD's approved list |
| † SMUD rebate = battery capacity (kWh) × 80% × $300, up to $6,000 per household, for projects submitted on or after 9/23/26. Only Tesla Powerwall qualifies for ongoing VPP payments. Run your numbers with our Powerwall Calculator, or see how the Maxwell Power prepaid plan works. | ||||
What changed with the SMUD battery rebate on September 23?
SMUD cut its battery rebate by 40 percent on September 23, 2026. One Powerwall 3 now earns $3,240 instead of $5,400, and the household cap dropped to $6,000. VPP payments and the 90-day enrollment window did not change. SMUD's terms let it adjust the amount at its discretion, so check your number before you decide.
| SMUD Battery Rebate | Before 9/23/26 | From 9/23/26 |
|---|---|---|
| Rate | $500 per kWh on 80% of capacity | $300 per kWh on 80% of capacity |
| 1 Powerwall 3 (13.5 kWh) | $5,400 | $3,240 |
| 2 Powerwall 3s | $10,000 (capped) | $6,000 (capped) |
| Household cap | $10,000 | $6,000 |
| VPP payments (Tesla) | Up to $110 per quarter per Powerwall | Unchanged |
| Enrollment window | 90 days after PTO | Unchanged |
Sources: Tesla's SMUD program page and SMUD's My Energy Optimizer Partner+ terms. The old rate required interconnection paperwork by 9/22/26.
See My Cost at the New RateIs a home battery worth it for your Sacramento home?
For most SMUD homes that use a lot of power on summer evenings, yes. Not every home needs one, though. Here's who benefits most in SMUD territory, and who should think twice. To see your own numbers, use our Powerwall Calculator.
- You use a lot of power on summer weekday evenings. SMUD's summer peak is about 38 cents per kWh from 5 to 8 PM, versus about 16 cents off-peak. A charged battery covers that window.
- You already have solar, or you're adding it. On SMUD's Solar and Storage Rate, power you send back earns 9.6 cents per kWh. Storing it for the evening is usually worth more.
- Outage protection matters to you. A Powerwall switches on by itself when the grid goes down. How long it lasts depends on what you run. The Powerwall Calculator estimates it for your home.
- You want the full stack. The Maxwell Power prepaid discount, SMUD's $3,240 rebate per Powerwall, and up to $440 a year in VPP payments all apply together.
- You use very little power in the evening. If your bill is under about $100 a month, there's less peak usage for a battery to cover.
- You're on SMUD's older net metering rate. Getting the rebate means moving to the Solar and Storage Rate, where exports earn 9.6 cents per kWh. We compare both rates with your own usage before you decide.
- You're moving soon. SMUD's program asks for 3 years of enrollment, and leaving early can mean paying part of the rebate back. Ask us how a home sale is handled.
- You're adding solar and your roof needs replacing. Replace the roof first so the panels don't have to come off later. A battery alone mounts on a wall, so this only matters for solar. See our roofing page →
- You're not a SMUD customer. This program covers SMUD homes in Sacramento, Elk Grove, Rancho Cordova, Citrus Heights, Carmichael, Folsom, Orangevale and Fair Oaks. Roseville Electric and PG&E homes have different programs. PG&E battery rebate → · Check your territory →
| Period | Hours | SMUD Price (2026) | What Your Battery Does |
|---|---|---|---|
| Summer peak (Jun 1 – Sep 30) | 5–8 PM weekdays | $0.3765 per kWh | Powers your home, so you buy less at the top price |
| Summer mid-peak | Noon–5 PM and 8 PM–midnight weekdays | $0.2139 per kWh | Charges from solar, or covers evening use after 8 PM |
| Summer off-peak | Midnight–noon weekdays, all day weekends and holidays | $0.1550 per kWh | Grid power is cheapest, so the battery holds its charge |
| Non-summer peak (Oct 1 – May 31) | 5–8 PM weekdays | $0.1776 per kWh | Smaller gap from off-peak, so most savings come in summer |
| Non-summer off-peak | All other hours | $0.1285 per kWh | Stays charged and ready for outages |
| VPP payments (Tesla) | About 20 events a month | Up to $110 per quarter per Powerwall | SMUD pays you, and you keep a 20% backup reserve |
What do SMUD homeowners ask before adding a battery?
The questions Sacramento, Elk Grove, Folsom and Citrus Heights homeowners ask most before signing. Plain answers, no sales spin.
SMUD pays $300 per kWh on 80 percent of your battery's capacity, up to $6,000 per household. For a 13.5 kWh Tesla Powerwall 3, that's $3,240. Two Powerwalls calculate to $6,480, so the $6,000 household cap applies. This rate took effect for projects submitted on or after September 23, 2026, per Tesla's SMUD program page. We confirm your exact amount in your proposal. Use our Powerwall Calculator to estimate your savings.
You lose the one-time rebate. SMUD requires enrollment within 90 days after Permission to Operate (PTO), the date SMUD approves your system to run. The clock starts at PTO, not at your install date. Tesla owners enroll through the Tesla app. We remind you when PTO comes through and walk you through enrollment so the window doesn't slip by.
No. A battery on its own can qualify. SMUD's Solar and Storage Rate schedule covers storage-only homes, and every rebate customer goes on that rate. If you already have solar on an older SMUD net metering rate, you'll need to move to the Solar and Storage Rate to get the rebate. We compare both rates with your usage first. Use our Powerwall Calculator to estimate your savings.
Yes. The Maxwell Power prepaid discount comes off at signing, and SMUD's rebate is paid after PTO as a separate program. Maxwell Power owns and maintains the system for 6 years, then it's yours at no extra cost. Tesla owners also earn up to $440 a year per Powerwall in VPP payments. We show all three amounts in your proposal before you commit. See how the Maxwell Power prepaid plan works →
SMUD pays Powerwall owners up to $110 per quarter per battery to help the grid during peak events. That's about $440 a year per Powerwall, for up to 3 Powerwalls. Events run about 20 times a month, usually with a day's notice, and you can opt out of any event in the Tesla app. SMUD can adjust the payment rate once a year. VPP payments are for Tesla Powerwall only, per SMUD's program terms.
Yes. When you enroll, your Powerwall's event backup reserve is set to 20 percent, so it keeps that charge for outages during VPP events. On a Powerwall 3, that's about 2.7 kWh. If a storm or shutoff is coming, you can opt out of an event in the Tesla app and keep your battery full. Use our Powerwall Calculator to see what your home's backup would cover.
Tesla Powerwall 3 comes with a 10-year warranty that guarantees at least 70 percent of its capacity at the end of that period. After 10 years, it keeps working at reduced capacity. If you want longer coverage, we offer an optional 30-year warranty through Solar Insure that includes one battery replacement after Tesla's warranty ends. Ask us to add it to your proposal.
Talk to us before you list. SMUD's program asks for 3 years of enrollment, and un-enrolling early means paying back part of the rebate, per SMUD's program terms. If you're on the Maxwell Power prepaid plan, the buyer takes over the agreement. See the full home battery guide →
Most battery installs take a single day, and solar plus a battery usually takes one to two days. Permits and SMUD's approval add several weeks before your Permission to Operate (PTO) date. After you enroll, SMUD mails the rebate check within 30 days, per Tesla's SMUD program page. Remember, your 90-day enrollment window starts at PTO, not at install.
Yes. It's open to SMUD electric customers in Sacramento, Elk Grove, Rancho Cordova, Citrus Heights, Carmichael, Folsom, Orangevale, Fair Oaks and nearby communities. If your electric bill comes from SMUD, you're in the right territory. Rocklin, Loomis and El Dorado Hills are PG&E territory, and Roseville has Roseville Electric. Those homes have different programs. PG&E battery rebate → · Check your service area →
The Powerwall Calculator shows how long a battery would run the appliances you care about, and how many Powerwalls your home needs. It takes about 2 minutes.
What would a Powerwall cost you after the SMUD rebate?
SMUD still pays $3,240 per Powerwall 3, up to $6,000 per home. Add the Maxwell Power prepaid discount at signing and up to $440 a year per Powerwall in VPP payments. The Powerwall Calculator sizes your battery and shows your cost in about 2 minutes. We confirm every number in your proposal before you commit to anything.
See My Cost After the SMUD Rebateper Powerwall 3
per SMUD
per Powerwall (Tesla)
after PTO