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 Sacramento

With over 260 sunny days each year, Sacramento is a natural fit for solar. In fact, California ranks first in the nation for residential solar installations. If you’ve been curious about making the switch, you’re in the right place.

Electricity costs are a real concern here, with prices climbing 56% between 2020 and 2024. Solar gives Sacramento homeowners a way to take control of their energy. This guide covers what you need to know about home solar panels and installation.

CALIFORNIA by the Numbers

1st Most residential solar in the United States
1926 Households have installed solar panels
5.8 Avg peak sun hours per day
~$101k Sacramento average savings over 25 years
02

How Much Do Solar Panels Cost in Sacramento, CA?

Curious what solar really costs in Sacramento? This calculator uses real installation data from homes across the area, including Elk Grove, Roseville, Folsom, Citrus Heights, and Rancho Cordova. Enter a few details to see local, firsthand estimates built for your neighborhood—no guesswork, just honest numbers to help you decide.

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

  • Sacramento gets over 260 sunny days a year, making it one of the best places in the nation for home solar production.
  • California electricity prices rose about 40% from 2021 to 2024, so solar can help you take control of rising, unpredictable energy costs.
  • State and local incentives are still available, including battery rebates through SGIP, equity programs like DAC-SASH, and no-money-down PACE financing.
05

Sacramento Electricity Prices

With over 260 sunny days a year, Sacramento is a natural fit for solar—especially as electricity prices keep climbing.

California electricity rates jumped from 22.8 cents per kWh in 2021 to 31.9 cents in 2024, a roughly 40% rise. That’s nearly double the U.S. average of 16.5 cents per kWh.

Solar offers Sacramento homeowners a way to take control. By generating your own power, you can rely less on rising SMUD rates and better predict what your energy will cost each month.

Over time, that control adds up. As grid prices continue climbing, a solar system can help protect your budget from future increases while powering your home with clean, local sunshine.

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

Sacramento Area Utility Providers

In Sacramento, most homes get power from SMUD. In 2023, SMUD’s rate was 16.9¢ per kWh—close to the national average of 16.0¢ and well below California’s state average of 29.5¢ (2023 data).

SMUD is a community-owned utility, which helps keep rates lower than many California providers. Still, its 2023 price sits just above the national average, and energy costs can rise over time as demand grows.

Solar panel installation gives Sacramento homeowners a way to manage those costs. By generating your own power, you rely less on utility rates. Learn more about home solar panels and how installation works.

Sacramento Utilities Electricity Rates

SMUD
16.90¢
+6%
CA Average
29.50¢
+84%
US Average
16.0¢
06

California Solar Incentives

Several state and local programs can help lower the cost of going solar in Sacramento. Explore the solar incentives in California below.

California offers rebates for battery storage through SGIP, plus equity programs like DAC-SASH and RSSE for income-qualified homeowners. PACE financing lets you install solar with no money down, repaid through your property taxes.

While the federal 30% tax credit ended, state and local incentives remain. Leasing through LightReach simplifies things, since Palmetto handles the commercial ITC and passes savings through lower monthly 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 Sacramento. 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 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 in California. 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 in Sacramento 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. 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 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 Sacramento 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

Sacramento 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.

Sacramento enjoys hot, dry summers and abundant sunshine, making it ideal for solar. Even with foggy winter mornings, a well-designed system captures plenty of year-round energy to power your home.

Solar Production in Sacramento 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 Sacramento

We’ve mapped solar installations across the United States, right down to the neighborhood level. Explore this interactive map of Sacramento to see how many of your neighbors have made the switch to solar. Click any hexagon to discover how communities near you are embracing clean energy.

09

Leasing Solar Panels

Sacramento homes are served by the Sacramento Municipal Utility District (SMUD). At this time, our LightReach lease and PPA financing options aren’t available in SMUD territory, so leasing isn’t an option for most Sacramento homeowners just yet.

In many other California areas served by PG&E, SCE, or SDG&E, LightReach offers a solar lease or Power Purchase Agreement (PPA). With these plans, Palmetto owns and maintains the system, so there’s no large upfront cost and no repairs to handle yourself, unlike a cash purchase.

Curious how these options compare? Learn more about whether to buy or lease solar panels, and explore how LightReach makes going solar simple.

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. In Sacramento, most homes are served by the Sacramento Municipal Utility District (SMUD), which uses a Net Billing (export credit) structure rather than traditional one-to-one net metering.

Under SMUD’s program, the solar energy your panels send to the grid is credited at the Export Compensation Rate of 7.4 cents per kWh, with monthly settlement. That rate can adjust every four years by up to 30% of the prior rate.

Yes, owned solar panels can increase your Sacramento home’s value. A Zillow study found homes with solar sell for about 4.1% more. This applies to purchased systems you own outright, not leased ones.

With a leased system, the buyer may assume the lease agreement, so resale can work differently. In SMUD territory, most Sacramento homeowners purchase their systems, keeping the added value.

With a LightReach lease, Sacramento homeowners can go solar for a low fixed monthly payment—starting around $88/mo for a medium home—with no upfront cost. Palmetto owns and maintains the system, so you avoid repair and installation expenses.

A cash purchase is another option, running roughly $14,860 to $25,233 depending on home size. 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 specific pricing.

With a solar lease through Palmetto’s LightReach program, you pay one simple monthly amount that covers the panels, installation, monitoring, maintenance, and a 90% Production Guarantee—all with no upfront cost. For a typical 6.67 kW system in Sacramento, the estimated payment is about $88/month.

Because Palmetto owns the system, it claims the commercial tax credit and passes those savings on through lower payments. Since the lease is often less than your current electric bill, you can start saving from day one.

Sacramento homeowners can access several state and local solar incentives. These include battery storage rebates through California’s SGIP and the income-qualified RSSE (AB 209) program, equity programs like DAC-SASH and DAC-GT for disadvantaged communities, and PACE financing, which allows no-money-down installation repaid through property taxes.

The federal 30% tax credit is no longer available for cash purchases after the 2025 federal law change. However, a LightReach lease still benefits, since Palmetto claims the commercial ITC and passes those savings through lower monthly payments.

Yes. Sacramento’s climate is well suited for solar, with over 260 sunny days and hot, dry summers that drive strong year-round production. Panels still generate power on cloudy days and through foggy winter mornings, just at lower levels.

Production naturally varies by season. Output peaks in summer, when longer daylight hours boost daily generation, and dips in December, when shorter days and winter fog reduce sunlight. A well-designed system accounts for these patterns to power your home all year.

At Palmetto, we’ve completed over 13,826 solar installations across California since 2020, giving Sacramento homeowners the strength of a national company with a genuine local focus. We pair a trusted install network with some of the best financing options in the industry.

With over 260 sunny days a year and rising SMUD-area energy costs, Sacramento is a great place for solar. We help you understand your options clearly, so you can decide what fits your home, roof, and budget.