Redding, CA Solar Panels
Solar Power in Redding
Redding’s abundant sunshine combined with California’s electricity rates—nearly double the national average at 31.86 cents per kWh—makes solar a smart investment for local homeowners. Understanding how solar panels for your home work in your area is the first step toward energy independence.
This guide covers everything from local permitting requirements to system sizing for Redding’s climate.
CALIFORNIA by the Numbers
How Much Do Solar Panels Cost in Redding, CA?
Our calculator uses real installation data from Redding homeowners—including those in Palo Cedro, Shasta Lake, and Anderson—to show you accurate solar costs for your neighborhood. Get personalized estimates based on actual local projects, not generic numbers.
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Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Redding’s 250+ sunny days annually make solar panels highly productive, with systems generating strong year-round energy despite seasonal variations.
- California electricity rates at 31.9¢/kWh are nearly double the national average, making solar a smart way to lock in predictable energy costs.
- A typical Redding solar system pays for itself in about 7 years while providing 25-year savings of approximately $91,000.
Redding Electricity Prices
Understanding electricity costs is essential when considering your home energy options. Here’s what Redding residents are paying and why it matters.
California’s electricity rates have jumped 40% since 2021, climbing from 22.8 to 31.9 cents per kWh in 2024. Meanwhile, the national average sits at just 16.5 cents per kWh—nearly half of what Redding residents pay.
Solar panels allow homeowners to generate their own electricity at a fixed cost. Instead of facing annual rate increases, you can produce power from Redding’s abundant sunshine and reduce your dependence on the utility grid.
Over 25 years, this difference adds up significantly. Generating your own electricity helps protect your household budget from future rate increases while taking advantage of one of Redding’s most reliable natural resources: sunshine.
Price of Energy: California vs National Average
Redding Area Utility Providers
Redding residents are served by Pacific Gas & Electric (PG&E), where 2023 electricity rates averaged 34.0¢ per kWh—more than double the national average of 16.0¢ and above California’s state average of 29.50¢.
California’s higher electricity costs stem from investments in grid infrastructure, wildfire prevention measures, and the state’s transition to renewable energy sources. PG&E’s rates reflect these system-wide upgrades and safety improvements across Northern California.
With electricity costs significantly above national benchmarks, Redding homeowners often explore solar as a way to stabilize their energy expenses. Generating your own power can help offset these higher utility rates over time.
Redding Utilities Electricity Rates
California Solar Incentives
Redding residents can access several state and local programs to reduce solar installation costs. Explore available solar incentives in California below.
California offers property tax exemptions, income-qualified rebates, and net billing programs. These incentives help offset upfront costs and ongoing savings, making solar more accessible for Redding homeowners across different income levels and community types.
Incentive programs change frequently. Research current eligibility requirements and act promptly, as funding for certain programs may be limited or expire.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Property Tax Exemption | State tax exemption | Any increase in value to your home tied to installing solar panels will not be taxed. | Learn More |
| Disadvantaged Communities Single-Family Affordable Solar Homes (DAC-SASH) Program | State program | If you meet key criteria on being in a disadvantaged community you will receive a generous incentive to install solar of $3 per watt. This can add up to $15,000 for a small system of kW. | Learn More |
| Equity Fund | State program | If you meet certain criteria, California is offering rebates that help bring some of the original Net Metering benefits to lower income communities that missed out when CA switched to NEM3.0 | Learn More |
California’s Property Tax Exemption for solar energy systems protects homeowners from paying additional property taxes when they install solar panels. Normally, home improvements that increase your property’s value result in higher property tax bills. However, this state tax exemption ensures that any increase in your home’s assessed value due to your solar installation is excluded from property tax calculations. This means you can enjoy the added value that solar brings to your home without the ongoing tax burden that typically comes with property improvements.
The financial benefit of this exemption can be significant over time. For example, if your solar system adds $20,000 to your home’s value and your property tax rate is 1%, you would save approximately $200 per year in property taxes—savings that continue for as long as you own the home. The exemption applies to both residential and commercial solar installations, including solar panels and any equipment necessary for the system to function. There are no income requirements or application fees, though you may need to file the appropriate form with your county assessor’s office to claim the exemption. This incentive works alongside other California solar programs to make clean energy more affordable and accessible for homeowners throughout the state.
The Disadvantaged Communities Single-Family Affordable Solar Homes (DAC-SASH) Program is a California state initiative designed to make solar energy more accessible to homeowners in disadvantaged communities. This program provides upfront financial incentives to help offset the cost of installing a solar energy system, making clean energy more affordable for qualifying households.
The program offers up to $3 per watt in capacity-based incentives. For example, if you install a 5-kilowatt solar system, you could receive up to $15,000 in upfront incentives to reduce your installation costs.
To qualify for DAC-SASH, you must meet several requirements: you need to own and live in your home, receive electrical service from Pacific Gas & Electric (PG&E), Southern California Edison (SCE), or San Diego Gas & Electric (SDG&E), be enrolled in or eligible for the CARE or FERA income-qualified utility bill assistance programs, and your property must be located in a designated disadvantaged community (DAC) area.
If you think you might qualify for this program, you can visit the GRID Alternatives website to learn more about eligibility requirements and how to apply. This incentive can be combined with other available programs to further reduce the cost of going solar.
The Equity Fund is a California state program that provides substantial rebates for home battery storage systems to low-income residents. Established in 2022 through Assembly Bill 209, this $630 million fund operates under the Self-Generation Incentive Program (SGIP) to make clean energy storage more accessible to communities that need it most.
Eligible homeowners can receive rebates of $150, $850, or $1,000 per kilowatt-hour of battery capacity installed, depending on their specific circumstances. The higher rebate rates ($850-$1,000/kWh) are available to customers enrolled in California’s CARE or FERA utility discount programs, residents of Disadvantaged Communities, members of California Tribal communities, and those living in areas with high fire risk or frequent power outages. For example, a 10 kWh battery system could qualify for up to $10,000 in rebates for eligible participants.
To qualify for the Equity Fund, you must be enrolled in or eligible for California’s CARE/FERA programs, live in a designated Disadvantaged Community, or reside in a California Tribal area. You must also receive electric service from Pacific Gas & Electric (PG&E), Southern California Edison (SCE), or San Diego Gas & Electric (SDG&E). Additionally, customers in these programs may be eligible for enhanced net billing credits under California’s NEM 3.0 program and can receive ongoing electric bill discounts of approximately 35% for CARE participants or 18% for FERA participants.
Net Billing in California is a program that credits you for the excess solar energy your system sends back to the electric grid. Unlike older net metering programs that credited exports at full retail rates, Net Billing (commonly called “NEM 3”) provides credits based on the avoided cost to the grid, which varies by hour and time of day. The value of your exported energy changes throughout the day, with higher credits typically during peak demand hours when electricity is most valuable to the grid.
The financial benefit depends on your utility company and when you export energy. For the three major investor-owned utilities (PG&E, SCE, and SDGE), Net Billing began April 15, 2023, and export credits are calculated hourly using each utility’s Avoided Cost Calculator. Any unused credits remaining at your annual anniversary month are paid out at approximately 3-5 cents per kWh. Imperial Irrigation District credits exports at $0.0698 per kWh with monthly settlement, while SMUD offers 7.4 cents per kWh. LADWP operates under traditional 1:1 net metering, where credits roll over indefinitely as dollar amounts on your account.
New solar customers applying after April 15, 2023 automatically fall under Net Billing. If you submitted a complete interconnection application by April 14, 2023, you may qualify for the previous NEM 2.0 program, but only if you don’t increase your system size or decrease it by more than 20%. Net Billing customers with PG&E, SCE, or SDGE can select their preferred true-up anniversary month by contacting their utility. Because export credits are generally lower than retail electricity rates, maximizing self-consumption of your solar energy—rather than exporting it—provides the greatest financial benefit under this program.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with California incentives.
Get a Free QuoteRedding Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Redding’s abundant sunshine and clear skies make it ideal for solar energy. With over 250 sunny days annually, your panels will generate strong year-round production despite seasonal variations.
Solar Production in Redding by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Redding
We’ve mapped every solar installation across America, and we’re excited to share this interactive view of Redding’s solar landscape. Explore which neighborhoods in your community have already made the switch to clean energy—you might be surprised by how many of your neighbors have gone solar!
Leasing Solar Panels
Redding homeowners served by Pacific Gas & Electric (PG&E) have access to Power Purchase Agreements (PPA) through Palmetto. With a PPA, you pay only for the electricity your solar panels generate at a set rate per kilowatt-hour, rather than paying the full system cost upfront.
This financing option means no large initial investment, no maintenance responsibilities, and immediate savings on your electricity bills. Your monthly payment varies with seasonal production—typically higher in summer when panels generate more power. Over the year, these payments average out to consistent savings compared to utility rates.
Compared to purchasing a system outright, a PPA eliminates equipment ownership costs and maintenance concerns. You benefit from clean energy without the financial commitment of buying panels, making solar accessible regardless of your budget. Learn more about whether leasing or buying solar fits your situation.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes strong financial sense in Redding. With over 250 sunny days annually and California electricity rates at 31.9¢/kWh—nearly double the national average—solar panels generate significant savings. A typical system pays for itself in about 7 years while providing approximately $91,000 in savings over 25 years.
Redding’s abundant sunshine ensures consistent year-round energy production. Combined with California’s property tax exemption and available incentive programs, solar offers Redding homeowners a reliable way to reduce energy costs and protect against future rate increases.
Redding residents served by Pacific Gas & Electric (PG&E) have access to California’s Net Billing program (NEM 3.0), which began April 15, 2023. This program credits you for excess solar energy sent to the grid at hourly rates based on avoided costs—typically lower than retail electricity rates.
Any unused credits at your annual anniversary are paid out at approximately 3-5 cents per kWh. Systems with complete interconnection applications submitted by April 14, 2023 may qualify for the previous NEM 2.0 program if system size changes stay within specific limits.
Yes, solar panels increase home value in Redding. Research shows that homes with solar systems sell for approximately 4.1% more than comparable homes without solar. For a median-priced Redding home, this translates to thousands of dollars in added value.
California’s property tax exemption ensures you won’t pay additional property taxes on the increased value from your solar installation. This means you benefit from the higher resale value without the ongoing tax burden, making solar an attractive investment for Redding homeowners.
Solar panel costs in Redding typically range from $15,088 to $24,677 depending on your home size and energy needs. A medium-sized home (2,000-3,000 sq ft) requires a 6.72 kW system costing approximately $19,414, with an average price of $2.89 per watt.
These prices reflect complete system costs including equipment, installation, and permitting. Most Redding homeowners see a payback period of about 7 years, with lifetime savings averaging $91,000 over 25 years based on current California electricity rates of 31.9¢ per kWh.
Yes, solar is financially worth it in Redding. With California electricity rates at 31.9¢/kWh—nearly double the national average—a typical solar system pays for itself in about 7 years while providing approximately $91,000 in savings over 25 years.
Redding’s 250+ sunny days annually ensure strong year-round production. Combined with California’s property tax exemption and net billing program, solar offers predictable energy costs and protection against future utility rate increases.
At Palmetto Solar, we bring a national perspective with local expertise to Redding. We’ve completed over 7,123 installations across California since 2020, giving us deep knowledge of local permitting, utility requirements, and climate conditions.
We offer competitive financing options and work with a trusted network of local installers who understand Redding’s building codes and PG&E interconnection processes. Our approach combines transparent pricing, quality equipment, and ongoing support to make your solar journey straightforward from quote to activation.