Nathan Healy
Certified by Nathan Healy
Updated: February 2026
Quality Solar Panels Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar Power in Redding

California ranks 1st in the nation for residential solar installations — and it’s easy to see why. With residential electricity rates at 31.86 cents per kWh, more than twice the national average, Redding homeowners are increasingly turning to solar to help reduce their energy bills.

Whether you’re just starting to explore your options or ready to move forward, this guide covers everything you need to know about solar panels for your home — from how they work to what the installation process looks like here in Redding.

CALIFORNIA by the Numbers

1st Most residential solar in the United States
1926 Households have installed solar panels
5.4 Avg peak sun hours per day
~$91k Redding average savings over 25 years
02

How Much Do Solar Panels Cost in Redding, CA?

Based on real solar installations across Redding, Shasta Lake, Anderson, and surrounding areas, this calculator uses Palmetto’s local data to give you an accurate estimate of what solar installation could cost for your home.

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in California.
Recommended
System
6.72 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$89/mo
As low as
$89/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
  • No upfront investment
  • Palmetto handles all maintenance
  • 90% Production Guarantee
  • Comprehensive protection program included
03

Palmetto Reviews

04

Key Takeaways

  • Redding pays 31.9¢ per kWh for electricity — nearly double the national average — making solar one of the most effective ways to reduce your monthly energy bill.
  • Redding gets over 300 sunny days a year, giving homeowners some of the strongest solar production in California and an estimated $91,000 in savings over 25 years.
  • You don’t need to buy solar panels to save money. Palmetto’s LightReach lease lets Redding homeowners go solar with no upfront cost, starting at just $89/month.
05

Redding Electricity Prices

Electricity in Redding costs more than most of the country — and rates keep climbing. Here’s what the numbers show.

California’s residential electricity rate rose from 22.8¢ per kWh in 2021 to 31.9¢ in 2024 — nearly a 40% increase in just four years. The national average over that same period rose from 13.7¢ to just 16.5¢.

Solar can help Redding homeowners reduce their dependence on the grid. By generating your own electricity from the sun, you rely less on utility rates — which have shown no sign of slowing down.

A solar system is a long-term investment. Redding’s sunny climate means panels produce energy consistently year-round, helping homeowners lock in more predictable energy costs over time — even as utility rates continue to rise.

Price of Energy: California vs National Average

10¢
20¢
30¢
40¢
13.7¢
22.8¢
15.0¢
25.8¢
16.0¢
29.5¢
16.5¢
31.9¢
2021
2022
2023
2024
US Average
California

Redding Area Utility Providers

In Redding, CA, Pacific Gas & Electric (PG&E) is the primary utility provider. Based on 2023 data — the most recent available — PG&E’s residential electricity rate averaged 34.0¢ per kWh.

That 2023 rate is notably higher than both California’s state average of 29.50¢ per kWh and the national average of 16.0¢ per kWh — more than double the national figure. PG&E’s rates reflect the high cost of maintaining aging infrastructure across a vast service territory, along with California’s strict environmental compliance requirements.

When electricity costs this much, the math on solar installation in Redding, CA becomes easier to understand. Generating your own power reduces how much electricity you draw from the grid, which can meaningfully lower your monthly energy bill over time.

Redding Utilities Electricity Rates

PG&E
34.00¢
+112%
CA Average
29.50¢
+84%
US Average
16.0¢
06

California Solar Incentives

Redding homeowners have access to a range of solar incentives in California that can help reduce the upfront and long-term costs of solar installation.

Statewide programs like the Active Solar Energy System Property Tax Exclusion, PACE financing, DAC-SASH, SOMAH, and the RSSE Program are broadly available to eligible California residents, including those served by Redding Electric Utility (REU). Note that SGIP, NEM 3.0, and DAC-GT are administered through PG&E, SCE, and SDG&E — and do not apply to most Redding customers.

The federal residential solar tax credit has been eliminated. However, state and local incentives remain. For those considering a solar lease, Palmetto’s LightReach program applies the commercial ITC and passes those savings through as lower monthly payments.

Incentive Type Description Source
Net Billing Tariff (NEM 3.0) Net Metering California’s current net billing policy credits new solar customers for excess energy exported to the grid at time-varying wholesale rates, with a temporary export adder for PG&E customers in Redding who interconnect before end of 2027. Learn More
Self-Generation Incentive Program (SGIP) — General Market Rebate California’s SGIP offers rebates of approximately $150–$500 per kWh to general-market residential customers of PG&E, SCE, SoCalGas, and SDG&E who install qualifying battery storage systems. Learn More
Self-Generation Incentive Program (SGIP) — Equity & Equity Resiliency Rebate SGIP’s Equity and Equity Resiliency categories offer enhanced battery storage rebates of $850–$1,000 per kWh — covering 80–100% of installation costs — for low-income customers and those in high fire-threat areas. Learn More
Residential Solar and Storage Equity (RSSE) Program Rebate A $280 million SGIP-funded program offering rebates covering up to 100% of solar and battery storage installation costs for income-qualified California residential customers. Learn More
DAC-SASH (Disadvantaged Communities – Single-Family Affordable Solar Homes) Rebate A California state program offering $3 per watt (up to 5 kW) in solar installation incentives to low-income homeowners in the state’s most disadvantaged communities, administered by GRID Alternatives. Learn More
SOMAH (Solar on Multifamily Affordable Housing) Rebate A California program providing solar and energy storage financial incentives of up to $3.50 per AC Watt for multifamily affordable housing properties, directly benefiting low-income tenants. Learn More
Active Solar Energy System Property Tax Exclusion Property Tax Exemption California excludes the added value of a solar energy system from property tax assessments, meaning installing solar will not increase your property taxes, for systems completed before January 1, 2027. Learn More
PACE (Property Assessed Clean Energy) Financing Financing Program California homeowners can finance solar and battery storage installations through PACE, a no-upfront-cost loan repaid via property tax assessments over 10–20 years. Learn More
DAC-GT (Disadvantaged Communities – Green Tariff) Rebate The DAC-GT program provides income-qualified residential customers in disadvantaged communities with a 20% discount on their electricity bill by connecting them to utility-scale clean energy, without requiring rooftop solar installation. Learn More

California’s Net Billing Tariff (NBT), also known as NEM 3.0, went into effect on April 14, 2023, and applies to all new solar customers served by Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). Under this policy, excess solar energy exported to the grid earns bill credits based on time-varying wholesale rates — on average worth about 25% of retail electricity rates — rather than the full retail rate offered under the older NEM 2.0 program.

Residential PG&E customers in Redding who apply to interconnect before the end of 2027 are eligible for a temporary export adder, which provides slightly higher-than-normal bill credits for exported energy for nine years. To maximize savings under NEM 3.0, pairing solar with a battery storage system is strongly recommended, as stored energy can be used or exported during high-value evening hours when export credits are worth the most.

Customers who were grandfathered into NEM 1.0 or NEM 2.0 retain their original tariff terms, though under proposed AB 942, customers on older NEM tariffs for 10 or more years may be transitioned to NEM 3.0 starting July 1, 2026. If you purchase a home with an existing solar system installed under an older NEM program, you will be required to enroll in the current NEM tariff as of January 1, 2026.

The Self-Generation Incentive Program (SGIP), administered by the California Public Utilities Commission (CPUC), provides rebates to residential and non-residential customers who install qualifying battery storage systems on their side of the utility meter. For general-market residential customers of PG&E, SCE, SoCalGas, or SDG&E, the standard rebate is approximately $150 per kWh of storage capacity, which can cover roughly 15% of the cost of a typical home battery installation. For a 10 kWh battery, this could translate to $1,500 or more depending on current step levels.

To qualify, the battery storage system must be wired to function during a power outage (i.e., configured for backup power). The rebate amount is tiered and decreases as more customers claim it, so applying sooner is advantageous. Most residential systems are eligible for up to 30 kWh of storage under the general market program.

SGIP also offers an Advanced Payment option, allowing eligible customers to receive 50% of their incentive upfront before installation is complete, reducing out-of-pocket costs. You can check current program availability, find an approved developer, and start your application at the official SGIP website: www.selfgenca.com. Program administrators include PG&E ([email protected]) and the Center for Sustainable Energy ([email protected]).

California’s SGIP program provides significantly higher rebates for income-qualified customers and those living in high fire-risk areas. Under the Equity category, eligible customers can receive $850 per kWh of battery storage capacity, while those qualifying under the Equity Resiliency category can receive $1,000 per kWh. These enhanced rebates can cover 80% to 100% of the total cost of installing a battery storage system, making it essentially free for many qualifying households.

To qualify for the Equity Resiliency category, customers must live in a Tier 2 or Tier 3 High Fire-Threat District (HFTD) as designated by the CPUC, or have experienced more than two Public Safety Power Shutoff (PSPS) events. Customers do not need to prove fire damage — only their address and location on the CPUC fire risk map are required. Medically vulnerable customers may also qualify for enhanced rebates.

These rebates are available to customers of PG&E in Redding. Because SGIP uses a tiered rate structure, rebate values decrease as more customers enroll, so applying as early as possible is strongly encouraged. Visit www.selfgenca.com to check eligibility and begin your application.

The Residential Solar and Storage Equity (RSSE) program is a dedicated budget category within California’s SGIP, backed by $280 million in CPUC-authorized funding. Available for reservation beginning June 2, 2025, the RSSE program is designed to help low-income Californians access solar and battery storage at little to no cost. For an average-sized system — approximately 7 kW of solar and 10 kWh of battery storage — qualifying households can receive up to $21,700 toward solar and $11,000 toward battery storage, potentially covering 100% of installation costs.

To qualify, applicants must be California residential customers whose household income is at or below 80% of the Area Median Income (AMI) for their county, or who live in a designated disadvantaged community. Eligibility is also extended to customers enrolled in CARE, FERA, or other approved community-based low-income programs. Importantly, customer ownership of the system is not required — leases, Power Purchase Agreements (PPAs), and prepaid systems can all qualify for RSSE incentives.

The program allows a single-family household to receive incentives for up to a 15 kWh battery and a 5 kW solar system. An Advanced Payment option is available, allowing eligible customers to receive 50% of their incentive upfront to reduce out-of-pocket costs during installation. To check eligibility and apply, visit the official SGIP portal at www.selfgenca.com.

The Disadvantaged Communities – Single-Family Affordable Solar Homes (DAC-SASH) program provides $3 per watt in solar installation incentives to eligible low-income homeowners, up to a maximum system size of 5 kilowatts (kW). For a 5 kW system, this translates to a $15,000 incentive that can cover a significant portion — or in some cases the entirety — of installation costs. The program is funded at $8.5 million annually and runs through 2030.

To qualify, homeowners must live in one of the top 25% most disadvantaged communities statewide as identified by the CalEnviroScreen tool, and must be a billing customer of PG&E, SCE, or SDG&E. Income qualification is also required. The program is administered by the non-profit GRID Alternatives, which also provides workforce development and solar job skills training as part of its mission.

DAC-SASH is currently accepting applications. Homeowners in Redding can visit gridalternatives.org or www.gridsolar.org to check eligibility and apply. This program is an excellent option for qualifying homeowners who want to go solar at little to no cost while also benefiting from reduced electricity bills under California’s net billing tariff.

The Solar on Multifamily Affordable Housing (SOMAH) program provides financial incentives for installing solar systems and paired energy storage at multifamily affordable housing properties throughout California. The program is specifically designed to deliver clean energy benefits directly to low-income tenants who have historically lacked access to rooftop solar. Incentives are available at up to $3.50 per AC Watt for solar generation that serves tenant loads, and up to $1.19 per AC Watt for systems serving common areas.

SOMAH is available to property owners of income-restricted multifamily housing (typically affordable housing with deed restrictions) served by PG&E, SCE, SDG&E, or SoCalGas. The program is structured so that a meaningful portion of the solar bill savings must flow directly to the low-income tenants living in the building, not just to the property owner.

Scheduled funding collections continue through June 30, 2026, and incentives will remain available until funding is exhausted, with availability projected through 2032. Property owners and managers in Redding interested in applying should visit the official SOMAH program website at calsomah.org for eligibility details, approved contractors, and application instructions.

California’s Active Solar Energy System Exclusion ensures that homeowners who install solar panels will not see an increase in their property taxes as a result of the added value the system brings to their home. Normally, home improvements that increase a property’s assessed value trigger higher property tax bills — but qualifying solar energy systems are explicitly excluded from this reassessment under California law.

This exclusion applies to active solar energy systems completed before January 1, 2027. An “active solar energy system” includes solar panels used for electricity generation (photovoltaic systems), as well as solar water heating and space heating/cooling systems. The exclusion covers the full value of the solar installation, meaning there is no cap on the dollar amount of the exclusion.

This benefit is automatic and does not require a separate application in most cases — the exclusion is applied at the county assessor level when a building permit is filed for a solar installation. For official details and county-specific guidance, visit the California State Board of Equalization website at boe.ca.gov. This is a valuable long-term benefit for homeowners in Redding, as it preserves your property tax savings for the life of the system.

Property Assessed Clean Energy (PACE) financing is a unique funding mechanism available to California homeowners that allows them to install solar panels and battery storage systems with no money down. California is one of only a handful of states that offers PACE financing, making it an important option for homeowners who may not qualify for traditional solar loans or who prefer not to use home equity. Under PACE, the cost of the solar installation is repaid as an addition to your annual property tax bill over a term of 10 to 20 years.

Because the loan is secured by the property rather than the individual borrower, PACE financing is generally easier to qualify for than a conventional loan. The repayment obligation transfers with the home if it is sold, which can be a consideration for homeowners who may move before the loan is paid off. Interest rates are typically competitive, and the structured repayment schedule is designed so that energy savings offset the added tax payment.

PACE financing can be used in combination with other incentives such as SGIP battery rebates and the DAC-SASH solar incentive, potentially reducing or eliminating out-of-pocket costs entirely for eligible homeowners in Redding. To find PACE programs available in your area, contact your local utility or visit the California Energy Commission at energy.ca.gov.

The Disadvantaged Communities – Green Tariff (DAC-GT) program is a California initiative that enables income-qualified residential customers in disadvantaged communities to benefit from clean, renewable energy even if they are unable to install rooftop solar — for example, renters or homeowners with shaded or unsuitable rooftops. Participants receive a 20% discount on their electricity bill by being connected to utility-scale solar generation, making clean energy more accessible and affordable.

To be eligible, customers must meet the income requirements for either the California Alternate Rates for Energy (CARE) program or the Family Electric Rate Assistance (FERA) program, and must reside in a designated disadvantaged community. The program is available through the major investor-owned utilities — PG&E, SCE, and SDG&E — in their respective service territories.

DAC-GT is an important option for low-income residents of Redding who want to reduce their energy costs and support clean energy but cannot participate in rooftop solar programs. The 20% bill discount is applied directly to monthly utility bills, providing immediate and ongoing financial relief. For more information and to apply, contact your utility or visit the CPUC’s solar in disadvantaged communities page.

Ready to start saving with solar?

Speak with a Palmetto solar expert to find out exactly how much you can save with California incentives.

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07

Redding 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 enjoys over 300 sunny days annually, making it one of California’s best solar cities. Long summer days and clear skies drive strong year-round production, with only mild winter dips.

Solar Production in Redding by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

[SummerProduction] kWh/day

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)

[WinterProduction] kWh/day

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

[AnnualProduction] kWh/year

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 Estimate
08

Solar Panel Systems in Redding

We’ve mapped thousands of solar installations across the U.S. — and Redding is lighting up! Explore this interactive heatmap to see how many of your neighbors in communities across Redding, CA have already made the switch to solar.

09

Leasing Solar Panels

Redding homeowners served by Pacific Gas & Electric (PG&E) have access to Palmetto’s LightReach Power Purchase Agreement (PPA). With a PPA, instead of paying a fixed monthly amount, you pay for the electricity your panels actually produce — at a set rate per kilowatt-hour (kWh). That means your solar bill may be a bit higher in sunny summer months and lower in winter, though your average annual cost stays predictable.

Compared to buying a system outright, a PPA removes the need for a large upfront investment. There’s no system to maintain, no repair bills to worry about, and no performance monitoring to manage on your own — Palmetto handles all of that. You simply pay for the clean energy your panels generate, often at a rate lower than what PG&E charges.

If you’d like to understand how a PPA compares to other ways of going solar, Palmetto has a helpful guide on buying vs. leasing solar that walks through the key differences. For Redding homeowners looking to reduce their energy bills without the complexity of ownership, a PPA through LightReach is a straightforward way to get started.

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 More
10

Frequently Asked Questions

Yes. Redding gets over 300 sunny days a year, and PG&E’s residential electricity rate averages 34¢ per kWh — more than double the national average. That combination makes solar one of the most practical ways for Redding homeowners to reduce monthly energy costs, with an estimated $91,000 in savings over 25 years for an average-sized system.

If upfront cost is a concern, Palmetto’s LightReach lease removes that barrier entirely — Redding homeowners can go solar with no money down and start saving from day one, with payments starting as low as $89/month.

Redding is served by Pacific Gas & Electric (PG&E), which operates under California’s Net Billing Tariff (NEM 3.0) — not traditional net metering. Under NEM 3.0, excess solar energy exported to the grid earns credits based on time-varying wholesale rates, which are typically lower than your retail rate.

Redding homeowners who apply to interconnect before the end of 2027 are eligible for a temporary export adder through PG&E, which provides slightly higher credits for exported energy for nine years. To maximize savings under NEM 3.0, pairing your solar system with a battery storage system is strongly recommended, so you can use stored energy during high-value evening hours.

Yes, solar panels can increase home value in Redding. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a median-priced home in Redding, that could translate to a meaningful increase in resale value.

California also offers an Active Solar Energy System Property Tax Exclusion, which means installing solar will not raise your property taxes — so you gain the home value benefit without the added tax burden. Note that this exclusion applies to systems completed before January 1, 2027.

The most affordable way to go solar in Redding is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting at $89/month for a medium-sized home. Palmetto owns and maintains the system, so there’s nothing out of pocket to get started.

For homeowners who prefer to purchase outright, a typical 6.72 kW system in Redding costs around $19,414. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the solar cost calculator above for a personalized estimate.

For most Redding homeowners, solar makes strong financial sense — especially with PG&E rates averaging 34¢ per kWh, more than double the national average. An average-sized system is estimated to save around $91,000 over 25 years.

With Palmetto’s LightReach lease, there’s no upfront investment required. Your monthly lease payment — starting as low as $89/month — is typically less than your current electricity bill, meaning most Redding homeowners begin saving from day one.

Palmetto Solar is a top choice for Redding homeowners. As a national company with a strong local presence, we’ve completed 7,123 installations across California since 2020. We offer some of the most flexible financing options in the industry, including our LightReach lease — no upfront cost, starting at just $89/month.

With Redding’s 300+ sunny days and PG&E rates averaging 34¢/kWh, our vetted install network and comprehensive protection program help homeowners get the most out of solar — from day one through the life of the system.

With Palmetto’s LightReach lease, Redding homeowners pay one simple monthly payment that covers everything — the solar panel system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 6.72 kW system in Redding, the estimated monthly payment is approximately $89/month.

Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage over cash purchases, where the residential ITC was eliminated. Most Redding homeowners start saving from day one.