Sacramento Municipal Utility District (SMUD) customers who want to buy solar power can soon do so regardless of where they live and without committing thousands of dollars to own their own solar photovoltaic (PV) panels. Customers will soon be able to buy blocks of the power produced from large-scale solar installations. The innovative SMUD pilot program called SolarShares, will make solar available to all customers, including renters and occupants of multi-unit buildings.
The program is the first of its kind in California and provides all SMUD customers affordable options to purchase solar power. For less than $5 per month and up to about $30 per month, most customers can ensure that at least 10 percent and up to 50 percent of their energy comes from SMUD’s new solar farm. Actual price and percentage of consumption will depend on the customer’s annual energy use and the size of the “virtual” PV system they select. Customers will subscribe at a fixed, SMUD-subsidized price in increments that match or complement their lifestyle, energy use, and support for solar energy. Customers could even take their solar power with them if they move within SMUD service territory.
The program benefits the community as well, as it will add to the supply of local, clean, renewable power in the SMUD service area, helping meet peak energy demand while benefiting the environment. It also will offer customers choices for supporting the development of a more sustainable energy supply.
Putting big blocks of solar on the ground in open fields, or on existing commercial buildings as opposed to mounting small systems on thousands of rooftops, will reduce installation costs. Placing large solar installations near SMUD substations would further reduce costs.
SMUD already has solicited proposals from solar developers for one-megawatt projects in the District’s service area. The developers would take advantage of federal tax incentives to reduce installation costs. They would build, own, and operate the solar systems, entering into 20-year fixed- price contracts to sell all of the power to SMUD, and SMUD would then resell the power to participating customers.
SMUD expects the project to broaden the market for solar by providing a choice to customers who cannot or would not participate in current SMUD solar programs, due to site problems, installation issues, up-front costs, or building ownership. SMUD also sees the program as solar for everyone as it would increase customer equity by making solar-generated electricity affordable for all customer classes.
In the long term, SMUD expects the project to continue transformation of the solar market by taking advantage of economies of scale to lower the up-front cost of PV.
SolarShares complements the very popular SMUD Greenergy program, which provides an opportunity for customers to buy renewable or “green” power by paying an extra charge on their monthly bill. SMUD then matches up to 100 percent of their electric needs with purchases of renewable resources for use on the SMUD power system. The SMUD Greenergy program is the fifth-largest green pricing program in the nation with more than 30,000 customers enrolled. SolarShares is yet another SMUD solar program that demonstrates the electric utility’s leadership in delivering renewable power to its customers.
As the nation’s sixth-largest publicly owned utility, SMUD has been providing low-cost, reliable electricity for over 60 years to Sacramento County (and a small portion of Placer County). SMUD is a recognized industry leader and award winner for its innovative energy efficiency programs, renewable power technologies, and for its sustainable solutions for a healthier environment.
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