Battery storage transforms ADU solar economics in Sacramento under SMUD's NEM 3.0 net billing rules. A Tesla Powerwall, Enphase IQ Battery, or FranklinWH paired with your ADU solar lets you store cheap solar energy and use it during expensive peak hours.
Title 24 does not require a battery on most ADUs in Sacramento — only solar PV. Batteries are optional, but the math has shifted dramatically under NEM 3.0: exporting solar energy to SMUD now pays roughly 75% less than it did under the old NEM 2.0 program.
That means storing your ADU solar energy in a battery and using it later is now significantly more valuable than exporting it. Most Sacramento homeowners adding solar to a new ADU are also adding at least one battery.
Most ADUs in Sacramento pair well with a single 10–13.5 kWh battery — enough to run essential loads (refrigerator, lights, internet, mini-split HVAC, EV charging at low amperage) for 12–24 hours during a SMUD outage.
SMUD time-of-use rates create a large price spread between peak (typically 4–9 PM) and off-peak hours. A battery lets your ADU store free solar energy during the day and discharge it during peak — avoiding the highest-priced kWh charges entirely.
In Sacramento (climate zone 12), a properly sized solar + battery ADU system typically achieves payback in 7–10 years under NEM 3.0, compared to 12–15+ years for solar alone.
Adding a single 13.5 kWh battery to your ADU solar project in Sacramento typically adds $9,000–$13,000 cash. After the 30% federal Investment Tax Credit, the effective cost drops to $6,300–$9,100. SGIP rebates may further reduce cost for qualifying SMUD customers in Sacramento County.
A battery-equipped ADU keeps essential loads running during SMUD grid outages — including PSPS (Public Safety Power Shutoff) events that affect parts of California each fire season. For tenants in Sacramento who work from home or rely on medical equipment, this is often the deciding factor.
No. California Title 24 requires solar PV but does not mandate battery storage on ADUs in Sacramento. Batteries are optional but increasingly common under NEM 3.0.
Tesla Powerwall 3 is the most common choice for Sacramento ADUs due to its integrated inverter and 13.5 kWh capacity. Enphase IQ Battery 5P is preferred for modular sizing on smaller systems.
Yes. The 30% federal Investment Tax Credit applies to standalone batteries 3 kWh or larger, even if installed without solar — though most Sacramento ADU projects install both together.