Redding, CA Solar Panels
Solar Power in Redding
Redding, CA enjoys over 270 sunny days a year — making it one of the best places in California for solar panel installation. With electricity rates at 31.86 cents per kWh — almost twice the national average — it’s no surprise that more Redding homeowners are exploring solar as a way to reduce their energy bills.
Whether you’re just getting started or ready to take the next step, this guide covers everything you need to know about solar panels for your home in Redding, CA.
CALIFORNIA by the Numbers
How Much Do Solar Panels Cost in Redding, CA?
Curious what solar actually costs in Redding? This calculator uses real installation data from Palmetto customers across Redding, Shasta Lake, Anderson, and Palo Cedro to give you a local, accurate estimate — no guesswork, no generic numbers.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Redding gets over 300 sunny days a year — making it one of California’s best cities for solar, with average 25-year savings of around $91,000.
- Electricity in Redding costs 34¢/kWh through PG&E — more than double the national average — giving homeowners a strong reason to explore generating their own power.
- You can go solar in Redding with no upfront cost through Palmetto’s LightReach lease, starting as low as $89/month with maintenance included.
Redding Electricity Prices
Electricity in California is expensive — and the numbers show it’s only getting more costly over time.
California’s electricity rate has climbed from 22.8 cents per kWh in 2021 to 31.9 cents per kWh in 2024. That’s nearly double the national average of 16.5 cents per kWh — a gap that continues to widen.
Solar energy gives homeowners a way to generate their own power at home. Rather than relying entirely on the grid, solar panels let you offset a portion of your electricity consumption with energy from the sun.
Over the long term, that independence from rising utility rates can make a meaningful difference. As California electricity costs continue to climb, homeowners with solar are better positioned to manage their energy usage with greater predictability.
Price of Energy: California vs National Average
Redding Area Utility Providers
Redding, CA residents are primarily served by PG&E. According to 2023 data (the most recent available), PG&E’s average electricity rate is 34.0¢ per kWh — well above both state and national benchmarks.
PG&E’s 34.0¢ rate significantly exceeds California’s 2023 state average of 29.50¢ and the national average of 16.0¢. These elevated costs reflect ongoing investments in wildfire mitigation, aging infrastructure upgrades, and grid maintenance across Northern California.
When electricity costs run this high, many Redding homeowners find it worthwhile to understand how solar energy works. Generating your own power can reduce how much electricity you draw from the grid each month.
Redding Utilities Electricity Rates
California Solar Incentives
Redding homeowners may qualify for several solar incentives in California that can help reduce the upfront cost of going solar.
California’s SGIP program offers rebates of up to $3,100/kW for solar and $1,100/kWh for battery storage for income-qualified households. The DAC-SASH program provides up to $3/watt for eligible homeowners in disadvantaged communities. Both programs are available statewide, including Redding.
The federal residential solar tax credit is no longer available. One option worth understanding: leasing solar through Palmetto’s LightReach program means Palmetto claims the commercial ITC and passes savings along through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| SGIP – Residential Solar & Storage Equity (RSSE) – AB 209 | Rebate | A state-funded rebate of $3,100/kW for solar and $1,100/kWh for battery storage available to income-qualified California households, potentially covering 100% of system costs. | Learn More |
| DAC-SASH – Disadvantaged Communities Single-Family Solar Homes Program | Rebate | An upfront solar installation rebate of up to $3/watt for income-qualified homeowners in California disadvantaged communities, administered by GRID Alternatives through 2030. | |
| Federal Commercial Solar Investment Tax Credit (ITC-48E) – Third-Party Owned Systems | Tax Credit | Businesses and third-party solar owners (lease/PPA providers) can claim a 30%+ federal Investment Tax Credit for solar projects that begin construction before July 4, 2026, with savings often passed to homeowners through prepaid leases at a ~30% discount. | Learn More |
The Self-Generation Incentive Program (SGIP) Residential Solar and Storage Equity (RSSE) budget is the only active SGIP pathway in 2026. Funded by $280 million in state dollars under AB 209, it offers $3,100 per kW for paired solar and $1,100 per kWh for battery storage — generous enough to cover 100% of system costs for many households. For example, a typical 7 kW solar system paired with a 10 kWh battery could receive up to $21,700 for solar and $11,000 for the battery, totaling $32,700 in incentives.
To qualify, your household income must be at or below 80% of the Area Median Income (AMI), or you must be enrolled in the CARE, FERA, or ESA utility assistance programs. You must also be a residential customer of PG&E, SCE, SDG&E, SoCalGas, or LADWP. Systems must be sized to the home’s actual electricity usage — batteries larger than 15 kWh for single-family homes require justification based on energy consumption.
As of early 2026, the $280 million budget is fully reserved, but new applications are accepted on a waitlist and funded as existing reservations cancel. The best way to apply is through an SGIP-approved installer. All applicants must enroll in a qualified Demand Response program within one year of reserving funds. Check current funding availability at selfgenca.com.
The Disadvantaged Communities – Single-Family Affordable Solar Homes (DAC-SASH) program provides an upfront rebate of up to $3 per watt for solar installations, which can cover $12,000–$15,000 of the cost of a typical 4–5 kW system. The program is funded at $8.5 million annually and remains active through 2030, making it one of the most valuable solar incentives available to qualifying Californians in 2026.
To be eligible, you must: (1) receive electrical service from PG&E, SCE, or SDG&E (2) own and occupy a single-family home as your primary residence; (3) live in a Disadvantaged Community (DAC) as identified by the CalEnviroScreen 4.0 map; and (4) have a total household income within CARE or FERA program limits. You can verify your address using the CalEnviroScreen tool at oehha.ca.gov/calenviroscreen.
The program is administered by GRID Alternatives, a nonprofit solar installer. The rebate covers equipment and installation costs, though out-of-pocket expenses may apply for roof repairs, panel upgrades, or permitting fees. To get started, complete the online eligibility form at gridalternatives.org or call GRID Alternatives toll-free at (866) 921-4696 for a pre-screening conversation.
While the federal residential solar tax credit (25D) has expired for homeowner-purchased systems, the commercial Investment Tax Credit (ITC-48E) remains available for third-party owned solar systems — including those installed under leases and Power Purchase Agreements (PPAs). Solar companies that own and install systems on residential rooftops can claim a base credit of 30% of system costs, with bonus adders of up to 10% each for projects in low-income communities, energy communities, or on Indian land — potentially reaching 40% or more.
For homeowners in Redding, the most practical benefit comes through prepaid solar leases: because the third-party owner claims the commercial ITC, they can pass the equivalent ~30% savings directly to you as a reduced purchase price at the point of sale. This effectively replicates the financial benefit of the expired residential ITC without requiring you to have any personal tax liability. PPAs offer a similar benefit — you pay nothing upfront and lock in a per-kWh rate below your utility’s current price.
To qualify for the commercial ITC, projects must begin construction before July 4, 2026. Projects that miss this deadline must be placed in service by December 31, 2027 to remain eligible. If you are considering a solar lease or PPA, act promptly to ensure your provider can begin construction in time to capture the credit and pass the savings to you. LightReach is currently the only California PPA provider offering battery storage under the same agreement — an important consideration for PG&E customers in Redding under NEM 3.0.
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 enjoys over 300 sunny days annually, making it one of California’s best cities for solar. Long summer days and minimal cloud cover mean consistently strong year-round energy production.
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 solar installations across Redding to show just how many of your neighbors have made the switch. Explore the heatmap below to see which neighborhoods and communities are going solar. Click any hexagon to see the number of installations in that area!
Leasing Solar Panels
If you’re not ready to purchase solar panels outright, Palmetto offers an alternative through LightReach — a Power Purchase Agreement (PPA) available to Redding homeowners served by Pacific Gas & Electric (PG&E). With a PPA, you don’t own the system. Instead, you agree to buy the electricity your panels produce at a fixed rate per kilowatt-hour (kWh) — typically well below what PG&E charges. Because solar production is higher in summer, your PPA bill will be a bit higher in summer and lower in winter, but your annual savings are comparable to a lease.
The advantages over a cash purchase are significant. There’s no upfront cost, no loan to manage, and no maintenance responsibilities. Palmetto owns the system and handles everything — monitoring, repairs, and upkeep — for the life of the agreement. With PG&E’s rate currently at 34¢/kWh, locking in a lower solar rate through a PPA can make a real difference on your monthly energy bill from day one.
Wondering whether a PPA or outright purchase makes more sense for your situation? This guide breaks down the key differences so you can make an informed decision based on your home, budget, and energy goals.
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 LeasingFrequently Asked Questions
Yes, solar makes strong sense in Redding. With over 300 sunny days per year and PG&E electricity rates at 34¢/kWh — more than double the national average — Redding homeowners are well-positioned to reduce their energy costs with solar. Average 25-year savings are estimated around $91,000.
Upfront cost doesn’t have to be a barrier. Palmetto’s LightReach solar lease program lets Redding homeowners go solar with no money down, starting as low as $89/month, with maintenance included — so savings begin from day one.
Redding is served by Pacific Gas & Electric (PG&E), which operates under California’s NEM 3.0 (Net Billing) program. Under NEM 3.0, solar energy exported to the grid earns an hourly export credit based on the avoided cost to the grid — which varies by time of day. This replaced the older NEM 2.0 program for new applicants after April 14, 2023.
Excess credits are settled annually during your True-Up month, and any remaining balance is paid out at the avoided cost rate — typically around 3–5 cents per kWh. Because export credits are lower under NEM 3.0, pairing solar with a battery storage system can help Redding homeowners maximize self-consumption and overall savings.
Yes, solar panels can increase your 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 Redding home, that could represent a meaningful increase in resale value.
It’s worth noting that this benefit typically applies to owned systems, not leased panels. If you purchase your solar system outright, buyers generally view it as a valuable home upgrade that reduces ongoing energy costs — especially relevant in Redding where PG&E rates run at 34¢/kWh.
With Palmetto’s LightReach lease, Redding homeowners can go solar for as low as $89/month with no upfront cost. Palmetto owns and maintains the system, so there’s nothing out of pocket to get started.
For a cash purchase, 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 calculator above for a personalized estimate based on your home size.
For Redding homeowners, solar can be financially worthwhile from day one — especially through a lease. With Palmetto’s LightReach program, there’s no upfront cost. Your monthly lease payment is typically less than your current PG&E bill, so many homeowners see immediate savings.
With PG&E rates at 34¢/kWh — more than double the national average — Redding is well-suited for solar. A typical system can generate an estimated $91,000 in savings over 25 years, making solar a financially sound option for most homeowners.
We believe Palmetto Solar is the best choice for Redding homeowners. As a national company with deep California roots, we’ve completed 7,123 installations across California since 2020 — backed by a strong local installer network and an approval rating over 85%.
We offer some of the most flexible financing options in the industry, including our LightReach lease starting at just $89/month with no upfront cost. Whether you prefer to lease or purchase, our team makes going solar in Redding straightforward and transparent from start to finish.
With Palmetto’s LightReach program, Redding homeowners can lease solar with no upfront cost. One simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. For a typical 6.72 kW system, the estimated monthly payment is approximately $89/month — often less than a current PG&E bill.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to homeowners through lower monthly payments — a key advantage over a cash purchase, where the residential ITC is no longer available.