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

Nathan Healy is a Vice President at Palmetto, where he helps homeowners cut through the confusion around solar and figure out whether it actually pencils out for their home, roof, and budget. With energy prices climbing and the federal incentive landscape shifting, his focus is simple: give people a straight, honest answer instead of a sales pitch.

He reviews Palmetto’s local solar guides so the costs, incentives, and utility details on this page reflect what’s really happening in your area.
He believes in solar so much, that he had Palmetto install solar on his own parents’ house, the home he grew up in.

01

Solar Power in Redding

With its abundant sunshine and long stretches of clear days, Redding is one of California’s best places to power your home with solar energy. And with California’s residential electricity rates averaging 31.86 cents per kWh, many Redding homeowners are looking for ways to take control of their energy costs.

California ranks 1st in the nation for residential solar installations, and it’s easy to see why. This guide walks you through what to expect, and you can explore our overview of home solar panels to learn more.

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?

See what solar really costs in Redding using our calculator, built from actual installations across the area. We’ve gathered firsthand pricing data from homes in Enterprise, Cascade, Sunset Terrace, and nearby neighborhoods, so you get a clear, local estimate you can trust—no guesswork, just real numbers from your community.

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
6.67 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$88/mo
As low as
$88/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’s abundant sunshine makes it one of California’s best places for solar, helping homeowners offset high electricity rates that reached nearly 32 cents per kWh in 2024.
  • A typical Redding home can save around $91,000 over 25 years with solar, offsetting roughly 100% of average electricity use with a system that pays for itself in about 7 years.
  • You can go solar with no upfront cost through a LightReach lease, or explore California incentives like SGIP battery rebates, DAC-SASH, and PACE financing to lower your costs.
05

Redding Electricity Prices

With abundant sunshine and long stretches of clear days, Redding is one of California’s best places to power your home with solar.

Electricity costs in California keep climbing. Residential rates jumped from 22.8 cents per kWh in 2021 to nearly 32 cents per kWh in 2024, far above the national average.

Solar panel installation helps Redding homeowners take control. By generating your own power, you rely less on the grid and shield yourself from unpredictable rate increases year after year.

Over time, solar installation in Redding can offer lasting value. As utility prices rise, the energy you produce stays yours—bringing stability and predictable costs for decades to come.

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, most homes are powered by PG&E. In 2023 (the latest available data), PG&E’s rate reached 34.0¢ per kWh—well above the national average of 16.0¢ and California’s state average of 29.50¢.

Why so high? PG&E serves a large, mountainous region, so maintaining lines, upgrading equipment, and covering wildfire prevention costs all add up. These expenses get passed along to customers, pushing local rates above state and national levels.

Redding’s abundant sunshine makes solar a smart way to offset these rising costs. By generating your own power, you can reduce how much electricity you buy—and gain more predictability over your monthly energy bills.

Redding Utilities Electricity Rates

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

California Solar Incentives

Redding homeowners can tap into several solar incentives in California that help lower the upfront cost of going solar.

These programs include battery storage rebates through SGIP, income-qualified options like DAC-SASH and the AB 209 RSSE program, and flexible options such as PACE financing that let you repay through your property tax bill.

While the federal 30% tax credit has ended, state and local incentives remain. LightReach leasing simplifies things, since Palmetto handles the commercial ITC and passes savings through lower payments.

Incentive Type Description Source
Self-Generation Incentive Program (SGIP) – Battery Storage Rebate Rebate California’s SGIP provides rebates for residential battery storage systems, with the highest incentives reserved for income-qualified households through the AB 209 Residential Solar and Storage Equity (RSSE) program. Learn More
DAC-SASH – Disadvantaged Communities Single-Family Solar Homes Program Rebate DAC-SASH provides up to $3 per watt in solar installation rebates — effectively free solar — for income-qualified homeowners in California’s designated disadvantaged communities, administered by GRID Alternatives. Learn More
SGIP RSSE – AB 209 Residential Solar and Storage Equity Program Rebate The AB 209-funded RSSE program offers low-income California households up to $1,100/kWh for battery storage and $3,100/kW for paired solar, potentially covering 100% of installation costs. Learn More
SOMAH – Solar on Multifamily Affordable Housing Rebate SOMAH provides solar installation incentives of up to $3.50 per AC Watt for multifamily affordable housing properties, with benefits directed to low-income tenants, and is active through 2032. Learn More
DAC-GT – Disadvantaged Communities Green Tariff Rebate The DAC-GT program gives income-qualified residents in disadvantaged communities who cannot install rooftop solar a 20% discount on their electricity bill by crediting them with utility-scale clean energy. Learn More
PACE Financing – Property Assessed Clean Energy Rebate California’s PACE program allows homeowners to finance solar and battery storage installations with no money down, repaying the loan through their property tax bill over 10–20 years. Learn More

The Self-Generation Incentive Program (SGIP) is California’s primary rebate program for home battery storage systems, available to residents of Redding. As of 2026, the General Market, Equity, and Equity Resiliency ratepayer-funded tiers are closed to new applicants. The only active pathway is the Residential Solar and Storage Equity (RSSE) program, funded by AB 209 with $280 million in state funds. This tier offers up to $1,100/kWh for battery storage and $3,100/kW for paired solar, potentially covering 100% of system costs for qualifying households. However, most of this budget is already reserved and new applications are being placed on a waitlist.

To qualify for the RSSE program, you must be a residential customer of PG&E, SCE, SoCalGas, or SDG&E with a household income at or below 80% of the Area Median Income (AMI), or be enrolled in an income-based assistance program. Priority is given to customers in disadvantaged communities (DACs), high fire-threat districts, or areas that have experienced two or more Public Safety Power Shutoff (PSPS) events. Incentives are calculated on usable battery capacity (kWh) and cannot exceed the total installed cost of the system.

Even though the RSSE budget is currently waitlisted, it is worth applying to secure your place in line, as funding may become available. The program is administered through the SGIP portal at selfgenca.com. Eligible battery technologies include grid-tied lithium-ion systems from approved manufacturers. Incentives typically apply to up to 30 kWh of capacity for standard residential projects, or up to 80 kWh for households qualifying under resiliency criteria.

The Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program offers income-qualified homeowners in Redding’s disadvantaged communities an incentive of up to $3 per watt for solar systems between 1 and 5 kW, which can effectively cover the full cost of a rooftop solar installation. The program is active through 2030 and is administered by GRID Alternatives, a nonprofit organization. Applications are processed directly by GRID Alternatives — not through private solar installers — so homeowners should contact them directly to begin the process.

To be eligible, you must meet all three of the following criteria: (1) receive electric service from PG&E, SCE, or SDG&E (2) own and occupy a single-family home as your primary residence; and (3) live in a disadvantaged community (DAC) as identified by the CalEnviroScreen 4.0 map (top 25% of census tracts statewide). Additionally, your total household income must fall within CARE or FERA program limits — through May 31, 2026, that means no more than $52,875 for a 1–2 person household or $94,125 for a 5-person household.

DAC-SASH is one of California’s most impactful solar equity programs, specifically designed to bring the benefits of rooftop solar to households that would otherwise be priced out. To apply or check eligibility, complete the online form at GRID Alternatives’ website or call toll-free at (866) 921-4696. Because this program targets underserved communities, it also includes workforce development and solar job training components.

The Residential Solar and Storage Equity (RSSE) program, funded through AB 209 with $280 million in state appropriations, is the most generous solar and battery incentive currently available to homeowners in Redding. It offers $1,100/kWh for battery storage and $3,100/kW for paired solar installations, with the potential to cover 100% of system costs for qualifying low-income households. The program opened for reservations on June 2, 2025, and is available to customers of PG&E, SCE, SDG&E, and LADWP (LADWP applications were expected to open by end of 2025).

Eligibility requires that your household income be at or below 80% of the Area Median Income (AMI), or that you are enrolled in an income-based assistance program such as CARE or FERA. Preference is given to households located in designated disadvantaged communities (DACs), high fire-threat zones, or areas that have experienced repeated Public Safety Power Shutoffs (PSPS). The incentive is structured as a rebate applied to the installed cost of the system and cannot exceed total project costs.

As of April 2026, most RSSE sub-budgets are fully reserved and new applicants are being placed on a waitlist. However, some sub-budgets (such as the SCE RSSE-AB 209 POU sub-budget) have shown small amounts of remaining funding. Homeowners are encouraged to apply through the official SGIP portal at selfgenca.com to secure a waitlist position, as additional funding rounds may become available. This program can be combined with the DAC-SASH solar rebate for maximum savings.

The Solar on Multifamily Affordable Housing (SOMAH) program provides financial incentives for installing solar photovoltaic systems on multifamily affordable housing properties in California, including in Redding. Building owners and affordable housing developers can receive up to $3.50 per AC Watt for solar generation that directly benefits tenants, and $1.19 per AC Watt for systems serving common areas. The program is funded by up to $100 million annually from electric utility Greenhouse Gas Auction Proceeds and has been extended through 2032 under Senate Bill 355 (2023).

SOMAH is designed to bring the economic benefits of solar energy to low-income renters who cannot install their own rooftop systems. Eligible properties must be located in California’s disadvantaged communities (DACs), defined as census tracts scoring in the top 25% statewide on the CalEnviroScreen tool. The program is administered by a consortium of nonprofits including the Center for Sustainable Energy (CSE), GRID Alternatives, the Association for Energy Affordability (AEA), and the California Housing Partnership Corporation (CHPC).

As of May 22, 2026, SOMAH has paused integrated battery storage incentive additions in PG&E service territory until further notice, though solar-only incentives remain available. A waitlist form is available for active applications in the PowerClerk portal. Property owners and developers interested in the program should visit calsomah.org for eligibility details, application instructions, and to connect with program administrators.

The Disadvantaged Communities – Green Tariff (DAC-GT) program is designed for income-qualified residents in disadvantaged communities who are unable to install rooftop solar — such as renters or homeowners with unsuitable roofs. Through this program, eligible customers in Redding receive a 20% discount on their electricity bill by being credited with energy from utility-scale clean energy sources. The program is available through PG&E, SCE, and SDG&E and was approved and improved by the CPUC as part of a broader 2024 decision that also launched the new Community Renewable Energy (CRE) Program.

To qualify, customers must meet the income eligibility requirements for either the California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) programs, and must reside in a designated disadvantaged community (DAC). This program is specifically intended for those who cannot participate in rooftop solar programs like DAC-SASH or SOMAH, ensuring that the benefits of clean energy reach all income levels in underserved communities.

The DAC-GT program requires no installation or upfront cost — the bill discount is applied directly to your monthly electric bill once you are enrolled. Customers interested in enrolling should contact their utility (PG&E, SCE, or SDG&E) directly or visit the CPUC’s program page for more information. This program can be a meaningful source of ongoing savings for renters and others who lack access to traditional solar incentives.

Property Assessed Clean Energy (PACE) financing is a state-supported program administered by the California Department of Financial Protection and Innovation (DFPI) that allows homeowners in Redding to install solar panels and battery storage systems with no money upfront. Instead of a traditional loan, the financing is tied to your property and repaid through your property tax bill over a period of typically 10 to 20 years. Because the debt is secured by the property rather than the borrower, PACE programs often offer competitive interest rates and are accessible to homeowners who may not qualify for traditional financing.

One of the key advantages of PACE financing is that it is transferable — if you sell your home, the remaining balance can transfer to the new owner along with the property, which can be a selling point when marketing a solar-equipped home. PACE financing can be used for solar panel systems, battery storage, and other qualifying clean energy improvements. California is one of only a handful of states that offers PACE financing, making it a unique option for homeowners in the state.

It is important to understand that PACE is a loan, not a grant or rebate — you will pay interest over the life of the financing term, and the repayment obligation is attached to your property. Homeowners should carefully review the terms, interest rates, and total cost before entering a PACE agreement. The DFPI provides consumer protections and oversight for PACE providers in California. PACE financing can be combined with other incentives such as SGIP battery rebates and the property tax exclusion to reduce overall system costs.

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 Quote
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 hot, sunny summers and abundant clear days, making it excellent for solar. While winter brings shorter days and some rain, a well-designed system still captures strong year-round production here.

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 solar installations across the country, right down to the neighborhood level. Explore this interactive heatmap to see how many of your Redding neighbors have already switched to solar. Click any hexagon to discover how communities across the area are embracing clean energy, one home at a time.

09

Leasing Solar Panels

Redding homes are served by Pacific Gas & Electric (PGE), and in this territory Palmetto offers a solar Power Purchase Agreement (PPA) through LightReach. With a PPA, you simply pay a set price for each kilowatt-hour your panels produce, rather than buying the system outright.

Because production is higher in Redding’s sunny summers, your solar bill rises in those months and dips in winter. Over a year, savings usually match what a fixed monthly lease would offer, so you get flexibility without a large upfront cost.

Unlike paying cash, a PPA means Palmetto owns the system and handles all maintenance and repairs. That removes the guesswork of ownership. To compare your options, explore our guide on whether to buy or lease solar.

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!

Explore LightReach Leasing
10

Frequently Asked Questions

Yes. Most Redding homes are served by Pacific Gas & Electric (PG&E), which uses California’s current Net Billing program, known as NEM 3.0. Any solar energy you send to the grid earns an export credit based on the utility and the time of day it’s exported.

Because credit values change hourly, pairing your panels with battery storage can help you get more from the energy you produce in Redding.

Yes. In Redding, solar panels can increase your home’s value when you own or purchase the system outright. A Zillow study found that homes with solar panels sell for approximately 4.1% more than comparable homes without them.

This added value applies to owned systems, not leased or PPA arrangements. With a leased system, resale may work differently, since the buyer typically assumes the existing lease agreement rather than gaining owned equipment.

In Redding, you can go solar with no upfront cost through a LightReach lease, paying a low fixed monthly amount as low as $88/month for a medium-sized home. Palmetto owns and maintains the system, so there’s no large investment to recoup.

If you prefer to buy, a typical cash system runs around $19,000. Note that the federal 30% tax credit is no longer available for residential cash purchases after the 2025 federal law change. See the calculator above for pricing by home size.

With a solar lease like Palmetto’s LightReach program, you pay one simple monthly payment that covers everything: the panels, installation, monitoring, maintenance, and a 90% Production Guarantee. There’s no upfront cost, and Palmetto owns and maintains the system.

In Redding, a typical 6.67 kW system runs about $88/month. Because Palmetto claims the commercial tax credit and passes savings along, your payment stays low. Since it’s often less than your current electric bill, you can start saving right away.

For many Redding homeowners, solar can be worth it financially, especially with electricity rates near 32 cents per kWh and abundant local sunshine helping panels produce plenty of power year-round.

With a LightReach lease, there’s no upfront investment. Because your monthly lease payment is typically less than your current electricity bill, you can start saving from day one, while Palmetto owns and maintains the system.

Yes, solar makes strong sense in Redding. With abundant sunshine, long stretches of clear days, and PG&E rates near 32 cents per kWh, homeowners can offset roughly 100% of their electricity use and save around $91,000 over 25 years.

Upfront cost isn’t a barrier either. With LightReach, Palmetto’s solar lease program, you can go solar with no money down and start saving from day one, while Palmetto owns and maintains the system.

Solar panels are low maintenance. With no moving parts, they typically need little more than occasional cleaning, and Redding’s clear, sunny weather keeps them producing reliably year-round.

With a LightReach plan, Palmetto owns the system and handles all maintenance, monitoring, and repairs at no extra cost. It also includes a 90% Production Guarantee, so you can feel confident your panels keep performing.