Will SMUD's 2022 Slash of Net Metering Credits Drop California's Solar Panel Leads

Will SMUD's 2022 Slash of Net Metering Credits Drop California's Solar Panel Leads

In California’s capital, solar customers are going to see a massive decrease in the amount of net metering credits they’ll receive. The Sacramento Municipal Utility District (SMUD) recently voted to cut down net metering credits to a flat rate of 7.4 cents per kWh. That is a 44% decrease from the current credit range. But before a recent step down that took effect in June, Sacramento’s solar homes were getting anywhere from 12.77 cents per kWh and 31.05 cents per kWh.

This isn’t the only financial setback SMUD will be imposing. Its proposal includes a new one-time

interconnection fee for solar systems. Small home systems will require a $900 fee, while interconnections for businesses and nonprofits will cost as much as $2,500-$5,000.

Such steep fees are hardly proportional, especially considering that the charge for investor-owned systems is a mere $145. SMUD is burdening small individual customers with a hefty initial cost, one that will only make going solar even less affordable for average Sacramento residents.

When New Rates Take Effect As of January 1st, 2022, these rates will be applied to new PV customers, home buyers who purchase a property with a pre-existing system, and PV customers who desire their system capacity to be greater than 1kW or 10%.

Legacy net metering customers will only see the rate drop at the beginning of 2031. They are fortunately protected by state policies that

secure consistent net metering rates throughout the lifetime of their solar installation.

Hostility Met in Kind SMUD made these changes even in the wake of major protests from Sacramento residents and community representatives. They have taken damaging action against the city’s solar customers, tanking power savings and making energy less affordable in a region where utility costs are already considered heavily burdensome.

In their coverage of this development, Solar Power World published a quote from Adriana

Santana, a local mother of six who had just installed solar on her home the previous year: “I can’t believe SMUD is not supporting working families by allowing them to use solar to reduce their bills when we are struggling with COVID and under-unemployment… My bill used to be over $400/month, and I was drowning in debt. I was falling behind on my bill payments and was having to sacrifice because if I pay $400 to SMUD, that’s money I don’t have for groceries for two weeks for my kids. I invested in solar to save money and it worked, but now SMUD is trying to pull the rug out from under me and my neighbors.”

Sacramento’s Solar Market Will Suffer In the wake of SMUD’s new policies, the outlook for Sacramento’s solar economy doesn’t look good. It has been estimated by the California Solar and Storage Association that the solar

market for existing homes will contract by 4050%.

Residential solar panel leads are going to drop significantly. Local contractors can expect to have a much harder time finding customers who can afford to go solar with the new changes, and who will still see solar as a valuable investment.

Sacramento’s contractors can combat the fallout by working with Grid Freedom to fill their gaps in leads. As the nation’s most effective lead generator, we are able to supply ample connections to residential customers - fully screened, exclusive, and appointment-ready.

Only customers who are ready and able to buy solar make it through our selection process, so you can have full assurance knowing that you’re only investing in high-ROI leads.

Find Solar Customers www.GridFreedom.com

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Will SMUD's 2022 Slash of Net Metering Credits Drop California's Solar Panel Leads Grid Freedom, Inc. 2430 RT 34 Manasquan, NJ - 08736, United States Call: 855.596.9567 Email: accounts@gridfreedom.com Website: https://gridfreedom.com