SMUD's page announces a lower home battery incentive effective September 23: new interconnection applications now get $300 per kWh, up to $6,000 per household, down from $500 per kWh and $10,000.
So the timing of your interconnection application decides the amount. Here's how SMUD's program works, from SMUD's page checked on October 9, 2026.
How Much Is the SMUD Battery Incentive?
SMUD's one-time enrollment incentive is $300 per kWh, up to $6,000 per household, for interconnection applications received on or after September 23. Projects submitted for interconnection by September 22 and enrolled by December 31, 2026 keep the earlier $500 per kWh, up to $10,000.
| Interconnection application | Enrollment incentive (SMUD's page) |
|---|---|
| Submitted by September 22 and enrolled by December 31, 2026 | $500 per kWh, up to $10,000 per household |
| Received on or after September 23 | $300 per kWh, up to $6,000 per household |
Either way, you must enroll in the program within 90 days of getting permission to operate (PTO) from SMUD. SMUD's page also says ongoing quarterly incentives are currently available only for certain batteries; other qualified batteries get the enrollment incentive only.
Who Qualifies for the SMUD Battery Incentive?
You need a battery storage unit installed at your home and must be on SMUD's Solar and Storage Rate. Individual rental units aren't eligible yet, and customers on the MED Rate can't join. Income-qualified customers whose equipment SMUD fully covers can join but don't get the enrollment incentive.
SMUD says multifamily homes (apartments, condos and duplexes) are eligible under the same tenant restrictions. And SMUD's page lists the battery manufacturers that qualify, so check it before you choose a system.
How Does My Energy Optimizer Partner+ Work?
When you join, SMUD can use your battery to reduce energy use during the hours when demand is highest. SMUD says participants keep full access to their battery during an outage, and it always leaves a 20% reserve at the end of an event in case of an overnight outage.
There's also a one-time interconnection fee when you add a new solar system with storage or a battery only. SMUD says the fee doesn't apply when you add a battery to an existing solar system.
Has the Federal Tax Credit for Batteries and Solar Ended?
Yes, for 2026 installations. The federal 25D credit, which the IRS says covered solar panels and battery storage technology, ended for expenditures made after December 31, 2025, according to IRS Fact Sheet FS-2025-05. An expenditure counts as made when installation is completed.
So SMUD's incentive is the main money for a 2026 battery in SMUD territory. The guide to the federal home energy credits that ended covers 2025 installations.
Official Sources
Every SMUD amount and rule on this page comes from SMUD's own Battery storage for homeowners page, checked on October 9, 2026.
- SMUD: Battery storage for homeowners, the My Energy Optimizer Partner+ incentive and rules
- IRS: Residential Clean Energy Credit, what the ended 25D credit covered, including battery storage
- IRS FS-2025-05, the IRS table showing when each federal credit ended
Frequently Asked Questions
Does SMUD give a rebate for a home battery in 2026?
Yes. SMUD's My Energy Optimizer Partner+ pays a one-time enrollment incentive of $300 per kWh, up to $6,000 per household, for interconnection applications received on or after September 23. You must be on SMUD's Solar and Storage Rate and enroll within 90 days of permission to operate.
Can renters get the SMUD battery incentive?
Not yet for individual rental units. SMUD's page says individual rental units are ineligible until SMUD finds a way for owners and tenants to both benefit. Multifamily homes are eligible, but the same tenant restrictions apply, according to SMUD's page checked October 9, 2026.
Does SMUD charge a fee to connect a battery?
SMUD says there's a one-time interconnection fee when you add a new solar system with battery storage, or a battery storage system alone. If you add battery storage to an existing solar system, the interconnection fee doesn't apply. Your solar installer should already know about this fee.
Adding a battery in SMUD territory? See the verified incentives for your address with the free rebate calculator.