Sky-high summer cooling costs and recent changes from the Sacramento Municipal Utility District (SMUD) have many homeowners in Rosemont asking if solar is still a good investment. Since the switch to Net Billing (NEM 3.0), the rules have changed, and simply sending power back to the grid is no longer a path to huge savings. The new key to energy independence is pairing solar panels with a home battery.
Benchmark Cost Analysis
Solar + Battery System Cost in Rosemont (2026):
- Gross Cost: Around $23,500
- Federal Tax Credit (30%): -$7,050
- Net Cost After Incentives: $16,450
While a solar-only system might look tempting at just $8,050 after credits, it's a poor fit for SMUD's current Net Billing program. Without a battery, your exported solar energy is worth pennies, drastically reducing your savings. Nearly all new solar installations in the Sacramento area now include a battery to maximize self-consumption and financial returns.
Incentives & Tax Credits
Tax Credits & Incentives for Rosemont Homeowners:
- Federal Solar Tax Credit: The most significant incentive is the 30% federal ITC. For a $23,500 system, that's a direct $7,050 credit on your federal taxes, bringing your net cost down to $16,450.
- California Property Tax Exemption: Installing a solar system adds significant value to your home, but thanks to this exemption, your property taxes won't increase because of it.
Net Metering: Sacramento Municipal Utility District (SMUD)
NEM 3.0 (2023)
Critical 🔋
Understanding SMUD's Net Billing (NEM 3.0):
SMUD's shift to Net Billing in 2023 was a game-changer. Under the old system (NEM 2.0), you received generous credits for extra solar power sent to the grid. Now, the export credit is valued at only 5-8 cents per kWh—a fraction of the 27+ cents you pay to buy it back. This makes a battery essential. You store your excess solar energy in the battery for free and use it at night instead of selling it to SMUD for almost nothing.
Projected Savings
Your Expected Monthly Savings:
With a properly sized solar and battery system, you can generate your own clean power during the day and use that stored energy to power your home through SMUD's more expensive peak-rate evening hours. A typical Rosemont household can expect to save around $1,608 annually on electricity bills, achieving a full payback on the system in about 10 years while being protected from future SMUD rate hikes.