Sacramento · CA
Solar Companies in
Sacramento, CA
Sacramento homeowners pay $17,500–$26,000 for a typical 8 kW solar system in 2026. The federal 30% residential tax credit expired December 31, 2025; California's property tax and sales tax exemptions remain active. At Sacramento Municipal Utility District (SMUD)'s rate of $0.142/kWh, most systems pay back in 12–17 years.
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5.4 hrs/day
Peak Sun Hours
$1,380/yr
Avg. Annual Savings
12–17 yrs
Payback Period
$17,500–$26,000
Avg. System Cost
2026 update: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 cannot claim it. Solar leases and PPAs are the exception — the installer can still claim commercial credits and pass savings through in the monthly rate. Full 2026 ITC guide →
About Solar in Sacramento
Why Sacramento Homeowners Are Going Solar in 2026
Sacramento's most important differentiator from the rest of California is SMUD — Sacramento homeowners are not subject to PG&E's NEM 3.0 rules, which dramatically reduced solar economics for PG&E customers in 2023. SMUD's net metering is significantly more favorable, making Sacramento one of the best ownership markets in California in 2026.
Key solar facts for Sacramento
- 5.4 peak sun hours per day
- Sacramento Municipal Utility District (SMUD) average rate: $0.142/kWh
- Average monthly bill: $148
- Popular system size: 8 kW
- Permit timeline: Sacramento City permits typically take 2–4 weeks. SMUD interconnection approval adds 3–6 weeks. Sacramento has an online solar permitting portal.
Active Incentives
Sacramento Solar Incentives in 2026
SMUD Net Metering
Net MeteringSMUD offers net metering under its own tariff — Sacramento homeowners are NOT subject to PG&E's NEM 3.0 rules. SMUD's net metering credits excess generation at a rate closer to retail than NEM 3.0.
Value: SMUD net metering rate (more favorable than NEM 3.0)
California Solar Property Tax Exclusion
Property TaxCalifornia excludes the added value of solar installations from property tax assessments through the Active Solar Energy System exclusion.
Value: 100% exclusion on added value
SMUD Solar Incentive Program
RebateSMUD periodically offers rebates and incentives for solar and solar-plus-storage installations. Check SMUD's current program availability — offerings change annually.
Value: Varies by program year
Net Metering in Sacramento
Sacramento homeowners served by SMUD are NOT subject to PG&E's NEM 3.0 rules. SMUD operates its own net metering tariff, which is generally more favorable than NEM 3.0. Verify current SMUD net metering terms before signing a contract.
Solar Leases & PPAs in Sacramento
Solar leases and PPAs are available in Sacramento through SMUD-approved installers. SMUD's more favorable net metering (vs. NEM 3.0) makes Sacramento ownership economics stronger than most of California.
How much does solar cost in Sacramento?
Detailed cost breakdown, financing options, and payback analysis for Sacramento homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
Sacramento Solar FAQ
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Sacramento Solar at a Glance
Solar Installers Serving Sacramento and Surrounding Areas
Our network of pre-vetted solar installers serves Sacramento and these nearby communities:
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