Sacramento, CA Solar Panels
In This Guide
- 01 Solar Energy in Sacramento
- 02 Solar Cost Calculator
- 03 Sacramento Reviews
- 04 Key Takeaways
- 05 Sacramento Electricity Prices
- 06 California Solar Incentives
- 07 Sacramento Solar Production
- 08 Solar Installations in Sacramento
- 09 Choosing an Installer
- 10 Leasing Solar Panels
- 11 Frequently Asked Questions
Solar Power in Sacramento
Solar installation in Sacramento can help homeowners make use of the region’s abundant sunshine, but the right setup depends on your household’s energy use, roof, and utility.
SMUD and PG&E customers may have different rates and solar rules, so understanding your service area is an important first step. Learn what to consider with our guide to home solar panels.
CALIFORNIA by the Numbers
How Much Do Solar Panels Cost in Sacramento, CA?
Explore estimated solar installation costs using Palmetto’s records of real installations in Sacramento-area communities, including Elk Grove, Folsom, Roseville, and Rancho Cordova. See how local project data can help you understand what homeowners may pay, based on your home and system details.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Sacramento’s sunshine supports solar year-round, though summer output is higher than winter; your roof, energy use, and system size shape production.
- Your utility matters: SMUD and PG&E have different rates and solar rules, so confirm your provider before estimating solar’s value.
- Solar costs and savings vary by home; compare cash and eligible financing options, and check program rules before counting on incentives.
Sacramento Electricity Prices
Electricity costs can shape the value of going solar in Sacramento—but statewide averages aren’t the same as your utility’s rates.
California’s average residential electricity price climbed from 22.8¢ per kWh in 2021 to 31.9¢ in 2024, while the U.S. average rose from 13.7¢ to 16.5¢. These are statewide and national figures, not Sacramento utility rates.
A rooftop solar system can generate electricity at home and reduce power bought from the grid. The impact depends on energy use, system size, and whether service is through SMUD or PG&E; rates and solar policies differ.
Over time, producing some electricity at home may help offset changing utility bills and add predictability, though results vary with system costs, maintenance, usage, and utility rules. Solar is a long-term investment, not a guarantee of savings.
Price of Energy: California vs National Average
Sacramento Area Utility Providers
In Sacramento, electricity rates depend on whether a home is served by SMUD or PG&E. The latest figures available here are from 2023: SMUD averaged 16.9¢ per kWh and PG&E 34.0¢.
For comparison, 2023 averages were 16.0¢ per kWh nationally and 29.5¢ statewide. SMUD was slightly above the national average and below California’s; PG&E was above both.
These figures show a difference between local providers but don’t explain what drives their rates. Solar installation can help offset some grid electricity use, and its potential value depends on your utility rate and household energy use.
Sacramento Utilities Electricity Rates
California Solar Incentives
Sacramento-area households may find state and local programs to help offset solar costs. Explore solar incentives in California in the table below.
Options include income-qualified solar and battery rebates, affordable-housing incentives, financing, qualifying property-tax exclusions, approved-project sales-tax exclusions, utility bill discounts, and export credits. Eligibility, utility territory, and funding matter; DAC-GT is a tariff discount, not a rooftop rebate.
State and local programs remain available. With a LightReach lease, Palmetto handles the commercial investment tax credit and passes savings through as lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| GoGreen Home Energy Financing — Solar Plus Battery | Financing | Eligible homeowners and renters may access participating-lender financing for solar bundled with battery storage, with program materials describing loan principal up to $75,000 for solar-plus-battery projects. | Learn More |
| Active Solar Energy System New Construction Exclusion | Property Tax Exclusion | Qualifying active solar energy systems generally are excluded from adding assessed value to a California property, with the state exclusion scheduled to sunset January 1, 2027. | Learn More |
| CAEATFA Sales and Use Tax Exclusion (STE) for Approved Projects | Sales and Use Tax Exclusion | Approved participating parties may receive a sales/use-tax exclusion for qualifying alternative-energy, distributed-generation, or storage property purchased for an approved project; it is not a general household solar exemption. | Learn More |
GoGreen Home uses credit enhancements to help participating lenders offer financing for eligible home energy improvements, including solar paired with battery storage. Program materials describe a loan-principal ceiling of up to $75,000 for solar-plus-battery projects; this is financing, not a rebate or grant, and borrowers must repay the loan.
Homeowners and renters may qualify for eligible properties and measures when served by a participating utility or community choice aggregator and using an enrolled contractor. Interest rates, fees, approval criteria, and loan terms are set by participating lenders. Confirm that the proposed solar-and-storage project and contractor qualify before applying.
California’s Active Solar Energy System New Construction Exclusion generally prevents the value attributable to a qualifying active solar energy system from increasing the property’s assessed value. This can reduce the property-tax impact of adding qualifying solar equipment, but it is an assessment exclusion rather than an upfront rebate.
The exclusion is scheduled to sunset on January 1, 2027, so it is relevant to qualifying projects in 2026. Treatment can depend on the equipment and how it is installed; the exclusion should not be assumed to cover a standalone battery. Contact the county assessor to confirm how the rules apply to a specific property and project.
California’s Sales and Use Tax Exclusion can reduce or eliminate sales/use tax on qualifying property purchased by an approved participating party or its construction contractor for an approved project. Eligible project categories can include specified alternative-energy, distributed-generation, and energy-storage technologies.
This is a project-approval program, not a blanket sales-tax exemption for a homeowner buying rooftop panels or a battery. Applicants must satisfy the program’s project, party, and approval requirements, so homeowners should not assume a residential purchase qualifies. Consult CAEATFA’s current program materials before including a tax exclusion in project economics.
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 QuoteSacramento 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’s sunny, dry summers support strong production, while winter clouds, valley fog, and shorter days can reduce it. With a well-designed system, solar can still work year-round.
Solar Production in Sacramento 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 Sacramento
We’ve organized solar installation data from across the country to create this interactive Sacramento map. Click a hexagon to see how many installations it represents, and explore the neighborhoods and communities where your neighbors have made the switch to solar.
How to Choose a Solar Installer in Sacramento
Verify the license
In California, the contractor or contracting business doing the work must hold an active license from the California Contractors State License Board (CSLB) in a classification authorized for the project. Authorized photovoltaic classifications include C-46 Solar and C-10 Electrical, plus certain other classifications such as A and, within its scope, B. A project that requires a permit is not eligible for the small-work licensing exemption. Check the business name, active status, and classification in the CSLB license lookup; make sure you know which licensed contractor is responsible for the work.
Look for certified installers
Ask whether the people designing or installing your system hold a relevant credential from the North American Board of Certified Energy Practitioners (NABCEP), and which credential they hold. Ask about manufacturer certifications, too: these may reflect training or qualification tied to a specific brand. Find out who holds each credential and what work it covers. Certifications can help you compare experience and training, but they do not replace checking the contractor’s CSLB license.
Compare quotes the same way
Request itemized proposals with the same assumptions. Compare:
- System size in kilowatts (kW) and price per watt.
- Panel and inverter brands and models.
- Estimated annual production in kilowatt-hours (kWh), and the assumptions behind each estimate.
- Warranty terms for panel product and performance, inverter, workmanship, and roof penetrations.
- Who will handle permits and utility interconnection approval.
- Total cost or monthly payment, plus any escalator and how it changes payments over time.
Ask each installer to explain differences in system size, equipment, production estimates, and contract terms rather than comparing only the headline price.
Permits, interconnection and your HOA
Your city or county enforcing agency—usually its building department—handles local permit review and inspections, including structural, electrical, and fire-code review. Utility interconnection approval is separate; ask who submits the application and tracks approval. Sacramento-area customers may be served by Southern California Edison Co, Pacific Gas & Electric Co., Los Angeles Department of Water & Power, or Sacramento Municipal Utility District (SMUD). Confirm your utility and its process with the installer. Rule 21 describes interconnection requirements for CPUC-jurisdictional utilities, but it is not a universal process for every utility.
If you have an HOA, ask what plans or documents it requires and when to submit them. California Civil Code §§ 714 and 714.1 generally bar restrictions that effectively prohibit rooftop solar and a general HOA policy prohibiting household rooftop solar, while allowing reasonable restrictions that do not significantly increase cost or reduce efficiency. See the California code.
Red flags
- Pressure to sign the same day or claims that you cannot take time to compare proposals.
- An installer that cannot show an active, appropriately classified license, or crews whose responsible licensed contractor is unclear. Out-of-state crews alone do not establish a problem; ask who is accountable for the work.
- Vague production estimates, without a clear annual kWh figure or explanation.
- A large upfront deposit without a clear written payment schedule and contract terms.
- Promises of federal homeowner tax credits for purchases in 2026; homeowner credits ended December 31, 2025.
If you have a concern about construction or home-improvement work, CSLB handles complaints involving licensed and unlicensed contractors and provides a solar-specific complaint form.
Leasing Solar Panels
Palmetto’s solar financing options depend on your utility. In Sacramento, a solar power purchase agreement (PPA) is available to eligible PG&E customers. Palmetto’s program is not currently open to SMUD customers, so check your utility bill to confirm your provider and availability.
With a PPA, you pay for the electricity the panels produce at an agreed price per kilowatt-hour, rather than a fixed monthly lease amount. Payments may vary by season as production changes. Learn more about buying or leasing solar.
Compared with paying cash, a PPA can avoid the upfront system purchase. The system provider also handles maintenance, while cash buyers own the equipment and are responsible for its upkeep. See details about Palmetto LightReach.
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. Sacramento homeowners can receive credits for solar electricity sent to the grid, but the rules depend on whether the home is served by SMUD or PG&E.
SMUD credits exported electricity at 7.4¢ per kWh, with monthly settlement; the export rate can change every four years. PG&E uses Net Billing (NEM 3) for new interconnection applications submitted after April 14, 2023, paying hourly export credits that vary by time and grid value. Check your utility bill to confirm your provider.
Yes, an owned solar panel system may increase a Sacramento home’s value. A Zillow study found homes with solar panels sold for about 4.1% more on average. That figure is not a guarantee; value can vary with the home, system, and market.
This potential increase applies to purchased systems, not leased or other third-party-owned (TPO) systems. A lease or PPA may affect resale differently because the buyer may need to assume the agreement.
In Sacramento, the LightReach lease option has no upfront cost and a fixed monthly payment. The calculator above estimates $65–$119 per month depending on home size; its medium-home estimate is $88 per month.
For a cash purchase, the calculator estimates $14,860–$25,233, with $19,288 for a medium home and a 6.67 kW system. The federal 30% tax credit is no longer available for residential cash purchases following the 2025 federal law change. Actual costs depend on your home and system.
With Palmetto’s LightReach lease, Palmetto owns and installs the solar system; you pay one monthly amount. For a typical 6.67 kW Sacramento system, estimate about $88/month, based on 1,440 kWh per kW annually and $0.11/kWh. There’s no upfront cost.
The payment includes monitoring, maintenance, and comprehensive protection, plus a 90% production guarantee. Palmetto claims the commercial 30% Investment Tax Credit as owner and passes savings through in lower payments. Lease payments are typically below a homeowner’s current electric bill, so savings may begin once the system operates.
Eligible Sacramento households may find income-qualified solar or battery rebates, affordable-housing incentives, GoGreen solar-plus-battery financing, utility-bill discounts, and export credits. California excludes qualifying active solar systems from property-tax assessment increases; this exclusion is scheduled to end Jan. 1, 2027. Sales-tax exclusions are limited to approved projects.
The federal 30% residential tax credit ended for cash purchases after the 2025 law change. For LightReach leases, Palmetto claims the commercial ITC and says it passes savings through as lower monthly payments.
Yes. Solar panels work in Sacramento’s climate, which averages about 5.8 peak sun hours per day. The region’s sunny, dry summers support strong production.
Panels also generate electricity on cloudy days, though at a lower rate. Winter fog, cloud cover, and shorter daylight hours reduce output, so production varies by season and is generally higher in summer than winter.
There’s no single best solar installer for every Sacramento home. Compare system design, installation experience, clear pricing, warranties, and financing, and check whether the proposal accounts for your utility—SMUD or PG&E—because rates and solar rules differ.
Palmetto Solar serves Sacramento with a national installation network and local project experience, including 13,826 installations in California since 2020. We offer financing choices; review the terms and confirm which options are available for your utility and home.