Understanding electricity rates in Sacramento is essential for homeowners and renters aiming to manage their household budgets effectively. This guide offers a detailed analysis of current electricity rates, average residential electricity bills, factors influencing prices, and strategies for reducing electricity costs in Sacramento as of 2025.
Legal Disclaimer: The electricity rates and costs mentioned in this article are based on research and publicly available data as of 2025. These figures are subject to change and may vary based on location, provider, and consumption patterns. We encourage readers to verify current pricing and policies directly with SMUD or other local providers.
Current Electricity Rates in Sacramento (2025)
Sacramento residents primarily receive electricity service from the Sacramento Municipal Utility District (SMUD). As of 2025, SMUD’s residential electricity rates vary seasonally and according to different pricing plans:
Pricing Plans Explained
Time-of-Day (5-8 p.m) Rate
The Time-of-Day (TOD) rate is the standard rate for residential customers. This plan encourages customers to save money by shifting energy usage outside peak hours (5 p.m. – 8 p.m.). Additional incentives are available for electric vehicle, solar, and battery storage customers, enhancing environmental sustainability by reducing grid strain.
| Season | Off-Peak Rate | Mid-Peak Rate | Peak Rate |
|---|---|---|---|
| Summer (June 1 – Sept. 30) | $0.1505/kWh | $0.2077/kWh | $0.3655/kWh |
| Non-summer (Oct. 1 – May 31) | $0.1215/kWh | – | $0.1678/kWh |
Critical Peak Pricing
This optional plan provides discounted rates during the summer in exchange for higher rates during specific peak events when grid demand is highest. Peak events may occur anytime during summer and last between 1 to 4 hours. This plan utilizes the My Energy Optimizer® program for thermostats to help maintain affordable energy use.
| Season | Off-Peak Rate | Mid-Peak Rate | Peak Rate | Peak Events |
| Summer (June 1 – Sept. 30) | $0.1305/kWh | $0.1877/kWh | $0.3655/kWh | $0.5000 + period pricing |
| Non-summer (Oct. 1 – May 31) | $0.1183/kWh | – | $0.1678/kWh | – |
Fixed Rate
A fixed rate plan charges a consistent price for electricity usage regardless of time. This rate averages 4% higher than the standard Time-of-Day rates.
| Season | All Day Rate |
| Summer (June 1 – Sept. 30) | $0.2126/kWh |
| Non-summer (Oct. 1 – May 31) | $0.1295/kWh |
SMUD also charges a fixed monthly fee known as the System Infrastructure Fixed Charge (SIFC), currently set at $25.50 per month. For the latest updates, visit SMUD’s official website.
For the latest updates, visit SMUD’s official website.
Understanding SMUD’s Time-of-Day (TOD) Rates
SMUD employs a Time-of-Day (TOD) rate structure designed to encourage energy use during off-peak hours:
- Peak Hours (5 p.m. – 8 p.m.): Highest electricity rates to reflect increased demand.
- Mid-Peak Hours (12 p.m. – 5 p.m.): Moderate rates.
- Off-Peak Hours (All other times): Lowest rates, ideal for running major appliances.
Average Electricity Bills in Sacramento
The average residential electricity consumption in Sacramento is approximately 750 kWh per month. Using the rates mentioned above, a typical Sacramento household can expect to pay an average monthly electricity bill of around $130. This compares favorably to higher-priced cities like San Francisco and Los Angeles, where average monthly bills often exceed $150.
Factors Influencing Electricity Rates in Sacramento
Several key factors impact electricity pricing in Sacramento:
- Renewable Energy Initiatives: SMUD has aggressively pursued renewable energy sources such as solar, wind, and hydroelectric power, helping stabilize and control electricity costs.
- Infrastructure and Grid Maintenance: Investments to modernize the electrical grid and maintain reliable service influence pricing.
- Regulatory and Environmental Policies: State mandates requiring reduced emissions and increased renewable energy integration can influence rates, though SMUD’s proactive approach has kept costs competitive.
How to Save on Electricity Costs in Sacramento
Reducing electricity costs is achievable with several practical strategies:
- Shift Consumption to Off-Peak Hours: Schedule high-energy appliance usage for off-peak periods.
- Increase Energy Efficiency: Invest in energy-efficient appliances, LED lighting, and enhanced home insulation.
- Solar Energy: Installing solar panels can significantly lower your electricity bills by reducing reliance on the grid. For more information about solar energy solutions in Sacramento, explore the resources available through Sacramento County.
- Participate in SMUD Programs: Utilize incentives and rebates offered by SMUD for energy efficiency upgrades.
Comparing Sacramento Rates to Other California Cities
| City/Utility | Average Rate (¢/kWh) | Avg. Monthly Bill (750 kWh) |
|---|---|---|
| Sacramento (SMUD) | 17.2 | $130 |
| Los Angeles (LADWP) | 20.0 | $150 |
| San Francisco (PG&E) | 24.0 | $180 |
| State Average | 26.0 | $195 |
For a detailed statewide comparison, you can explore the average electricity bills across California.
Conclusion
Sacramento’s electricity rates remain among the most competitive in California due to proactive management by SMUD and substantial investments in renewable energy. By understanding your rate structure and adopting energy-efficient practices, you can further reduce your electricity costs.
