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SB 868 takes effect Jan 1, 2027. See what changes

Plug-in solar savings on Merced Irrigation District

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The short answer: on Merced Irrigation District's RES-2 rate of 26.97¢/kWh,[source] the example kit (800 W, $1,000) saves about $214 a year and pays for itself in about 4.7 years, assuming typical placement and that you use most of its power at home.

What the example kit saves on Merced Irrigation District

Where the panels goSaves a yearPays back in
Excellent: south-facing, tilted, no shade$2823.6 years
Typical: well-placed$2144.7 years
Shaded or vertical balcony$1556.4 years

Power you send back to the grid is valued at $0, so a kit sized to what you use during the day saves the most. Run your own numbers, including how savings add up over the years.

Where this rate comes from

Our sum of Merced Irrigation District's RES-2 schedule, effective July 1, 2026: energy charge by tier plus the power cost adjustment ($0.01, from July 1, 2026) and the environmental charge ($0.00407). That is $0.15287 for the baseline block (716 kWh in summer, 486 in winter) and $0.26967 above it. We use the upper tier. Percentage charges and the $30 monthly customer charge are excluded. Merced ID resets its power cost adjustment each November 1 and May 1; the November 2026 value wasn't posted when we checked, so your bill may differ.[source]

Discounts

CARE and FERA are CPUC programs for investor-owned utilities, so they don't apply here. City, district and co-op utilities run their own discount programs, which we haven't verified.

SB 868 and Merced Irrigation District

SB 868 covers local publicly owned utilities such as Merced Irrigation District, as well as investor-owned utilities. Merced Irrigation District may ask you to register a qualifying kit through a simple online form, but can't charge fees related to it.[source] Read SB 868 explained and run through the checks before you buy.

Estimates only. Not electrical, legal or financial advice.

Frequently asked questions

How much could a plug-in solar kit save on Merced Irrigation District?
About $214 a year for an example 800 W kit with typical placement, at Merced Irrigation District's RES-2 rate of 26.97¢/kWh, paying back in about 4.7 years. Your result depends on your usage and where the panels go.
Does SB 868 apply to Merced Irrigation District customers?
Yes. The law covers both investor-owned and local publicly owned electric utilities. Merced Irrigation District may ask you to register a qualifying kit online, but can't charge fees related to it.

Next steps

Estimate your savingsSee the kit trackerJoin the waitlist

Sources

  1. Merced Irrigation District: RES-2 residential rates (opens in a new tab) · checked Nov 1, 2026
  2. CalMatters Digital Democracy: SB 868 as chaptered (Chapter 985, Statutes of 2026), with the Legislative Counsel's Digest (opens in a new tab) · checked Oct 23, 2026