SMUD will pay up to
$10,000
for your home battery.
SMUD's My Energy Optimizer Partner+ program pays a one-time enrollment incentive for qualifying home battery installations. Funds are limited and first come, first served. The 90-day enrollment window starts the day your system gets Permission to Operate.
- Up to $10,000 per household
- 90-day window from Permission to Operate
- We file the paperwork for you
- Tesla VPP: $110/quarter per Powerwall
How much SMUD actually pays.
The program pays $500 per kWh of qualifying battery capacity, minus a 20% reserve holdback. Here's how that lands on common systems.
| Battery | Capacity | Formula | Estimated rebate |
|---|---|---|---|
| Tesla Powerwall 3 | 13.5 kWh | 13.5 × $500 × 0.80 | ~$5,400 |
| Two Tesla Powerwall 3 | 27 kWh | 27 × $500 × 0.80 | ~$10,000 (household cap) |
| Enphase IQ Battery 5P | 5 kWh | 5 × $500 × 0.80 | ~$2,000 |
| Enphase IQ Battery 5P ×3 | 15 kWh | 15 × $500 × 0.80 | ~$6,000 |
SMUD My Energy Optimizer Partner+ rebate. Eligible SMUD residential customers may receive a one-time enrollment incentive of up to $10,000 per household, calculated as $500 per kWh of qualifying battery capacity minus a 20% holdback, when a qualifying battery is enrolled within 90 days of receiving Permission to Operate from SMUD and the customer participates in SMUD's Solar and Storage Rate. Ongoing quarterly grid-services payments are currently available only for Tesla Powerwall. Rebate amounts, eligibility, and program availability are set by SMUD and may change without notice. Funding is limited and may run out. Verify current terms at smud.org before signing.
Who qualifies for the SMUD rebate.
Five things SMUD checks before approving enrollment. We verify all of these before your install date.
You are a SMUD residential customer of record.
Your name is on the SMUD account at the installation address. Renters cannot claim the rebate unless the landlord is the SMUD account holder and consents.
The property is single family or qualifying individually metered multi-family.
Single family homes qualify directly. Some multi-family setups qualify if each unit is individually metered under SMUD.
The battery is on SMUD's approved equipment list.
Tesla Powerwall 3, Enphase IQ Battery 5P, and other models on SMUD's current approved list qualify. We confirm eligibility before any equipment is ordered.
You enroll within 90 days of Permission to Operate.
SMUD's clock starts the day PTO is issued. Miss this window and the rebate is forfeited. We track the deadline and file on your behalf before it expires.
You enroll in SMUD's Solar and Storage Rate.
Participation in SMUD's Solar and Storage Rate (SSR) is required for the rebate. We handle the rate switch as part of the enrollment process.
Solar panels are not strictly required for the battery rebate. You can add a standalone battery and still qualify. That said, most homes that add a battery without solar are doing it for outage backup, and the SMUD rebate still applies.
$110 per quarter, per Powerwall.
SMUD pays a quarterly grid-services incentive to Tesla Powerwall owners enrolled in the Virtual Power Plant (VPP) program. The battery contributes to the SMUD grid during peak demand events. SMUD preserves a 20% reserve in the battery throughout any grid event so you always have backup power.
The quarterly VPP payment is available for Tesla Powerwall only as of 2026. Enphase and other batteries receive the one-time enrollment incentive but not the ongoing quarterly payments. [CONFIRM Revolt Services Tesla Certified Installer status for VPP enrollment eligibility]
We file the rebate.
You don't manage any of it.
We confirm your eligibility before you sign anything.
We check your SMUD account, the battery model against the approved list, and your property type. No surprises after the install.
We install and pull the permit.
From signed contract to install day, typical timeline is 4 to 10 weeks. Most of that is permit approval and utility interconnection, not the install itself.
SMUD issues Permission to Operate. The 90-day clock starts.
The day PTO lands is the day the enrollment window opens. We track this date and do not let it expire.
We file the SMUD rebate enrollment.
We submit the My Energy Optimizer Partner+ enrollment paperwork to SMUD, including the SSR rate change request and VPP enrollment for Powerwall owners.
SMUD pays the rebate. You get a call from us confirming it.
The one-time incentive is credited to your SMUD account. Quarterly VPP payments begin on the first quarter after enrollment. Done.
SMUD rebate cities we install in.
These cities are in SMUD territory. If you're on PG&E, Roseville Electric, or Pioneer Community Energy, the SMUD rebate doesn't apply, but we still install batteries and the economics look different. Call us and we'll explain it for your utility.
On PG&E or another utility? See battery options for non-SMUD homes
SMUD rebate questions
we hear every week.
Will the SMUD rebate funds run out?
SMUD funds the program first come, first served. Funds can and do run out. There is no guarantee funds will be available when you are ready to install. The 90-day window starts from Permission to Operate, not from when you sign a contract. If you're thinking about a battery, the time to start is now, not after you've waited six months.
Can I get the SMUD rebate if I do a lease instead of a cash purchase?
No. On a prepaid lease, the financing company owns the battery. The SMUD rebate belongs to the system owner. If the SMUD rebate is important to your decision, the cash purchase path is the one that keeps it. We explain both paths in full at How It Works.
How long does installation take from start to finish?
From signed contract to Permission to Operate, typically 4 to 10 weeks. Permits and utility interconnection take the most time. The physical install is usually 1 to 2 days on site. We file the SMUD rebate enrollment within the 90-day PTO window. You don't manage any of it.
What happens to the SMUD rebate if I sell my home?
The one-time enrollment incentive is paid at enrollment, so it's already yours before any sale. The ongoing quarterly Tesla VPP payments ($110 per Powerwall per quarter) are tied to the battery's grid services enrollment. At sale, the buyer can continue enrollment in their own name to keep receiving those payments.
Can I add solar later and still get the SMUD rebate on the battery?
Yes. The SMUD My Energy Optimizer Partner+ rebate applies to qualifying batteries whether you pair them with solar or install the battery on its own. The 90-day enrollment window runs from Permission to Operate for the battery installation, not from the solar system.
Also worth reading.
Home Battery
See all the batteries we install and which ones qualify for the SMUD rebate.
See options →Powerwall vs Enphase
Both qualify for the SMUD rebate. Here's how they compare on capacity, cost, and VPP eligibility.
Compare →How It Works
Lease vs cash. The rebate only goes to cash buyers. See the full picture on both paths.
See both paths →Battery Backup Power
What a home battery actually does during a PG&E PSPS outage or SMUD grid event.
Learn more →
Get the SMUD rebate math
on your actual home.
We'll confirm your eligibility, size the battery to your usage, and show you what the rebate actually does for your payback timeline. Free. No obligation.