## 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](/content/solar/solar-panels-for-home/index.html) and installation.

### [CALIFORNIA](/content/local/california/index.html) by the Numbers

[1st](https://www.eia.gov/electricity/data/eia861/) Most residential solar in the United States  
[1926](https://www.eia.gov/electricity/data/eia861/) Households have installed solar panels  
[5.8](/content/local/peak-sun-hours/index.html) Avg peak sun hours per day  
[~$101k](/content/local/california/sacramento/#solar-cost-calculator/index.html) Sacramento average savings over 25 years

## 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.

LeaseCash Purchase

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

### Cost Breakdown

Your estimated investment

#### System Cost

$19,288

#### Price per Watt

$2.89

#### Final Cost

$19,288

### Savings

Your total financial benefit

#### Monthly Savings

Average utility bill reduction  
$230

#### Payback Period

Break-even point  
6.3 years

#### 25-Year Savings

$100,827  
[Get Your Personalized Quote](https://luminance.palmetto.com/home/buy-solar/step-1?utm_source=localorganic)

## 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.

## 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.

### Price of Energy: California vs National Average

0¢  
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  
[Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861](https://www.eia.gov/electricity/data/eia861/)

### 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.

### Sacramento Utilities Electricity Rates

| Utility | Rate |
| --- | --- |
| SMUD | 16.90¢ |
| CA Average | 29.50¢ |
| US Average | 16.0¢ |

[Source: US Energy Information Administration, 2023, Form 861, Table 6](https://www.eia.gov/electricity/sales_revenue_price/)

## California Solar Incentives

Several state and local programs can help lower the cost of going solar in Sacramento. Explore the [solar incentives in California](/content/local/california/sacramento/#incentives-table/index.html) 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.

| 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](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program) |
| 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](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/customer-generation/solar-in-disadvantaged-communities) |
| 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](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program) |
| 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](https://www.cpuc.ca.gov/somah) |
| 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](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/customer-generation/solar-in-disadvantaged-communities/the-disadvantaged-communities-green-tariff-dac-gt-program) |
| 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](https://dfpi.ca.gov/consumers/property-assessed-clean-energy-pace/) |

## 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

System Size: 5 kW 7 kW 10 kW

Daylight Hours  
Energy Production (kWh/day)  
[Source: National Renewable Energy Laboratory (NREL) PVWatts data; Sacramento, CA](https://pvwatts.nrel.gov/)

### What Can Your Solar System Power?

#### Summer Production (July)

59.6 kWh/day  
In July, your 10 kW system could power:

- **4.0 average homes** (15 kWh/day per home)  
- or Run central AC for **19 hours** AND power all other appliances  
- or Fully charge **6.0 Tesla Model 3** electric vehicles

#### Winter Production (December)

23.9 kWh/day  
In December, your 10 kW system could power:

- **1.6 average homes** (15 kWh/day per home)  
- or Keep your home heating system running for **11 hours**  
- or Fully charge **2.4 Tesla Model 3** electric vehicles

#### Annual Production

16,267 kWh/year  
Over a year, your 10 kW system could:

- **Offset 11 tons** of carbon dioxide emissions  
- or Equal the environmental benefit of **planting 195 trees**

---  
## 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.

### Frequently Asked Questions

**Does Sacramento, CA have net metering?**  
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.

**Do solar panels increase your home value in Sacramento, CA?**  
Yes, owned solar panels can increase your Sacramento home’s value. A [Zillow study](https://www.zillow.com/research/solar-panels-house-sell-more-23798/) found homes with solar sell for about 4.1% more.

**How much does it cost to go solar in Sacramento, CA?**  
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**.

**How does leasing solar work and what’s the approximate cost in Sacramento, CA?**  
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**.

**What solar incentives are available in Sacramento, CA?**  
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.