Solar power in Sacramento, California
SMUD offers a net metering program, which makes it easy for homeowners to wipe out their bills.
There is also the federal solar tax credit covering the a large part of the cost of the system— 26% in 2020, or 22% in 2021.
With these incentives being set to step down or to close people need to act now to receive the full benefits of going solar.
Net Metering Broken Down
Net metering offered by SMUD gives you full retail value for unused power exported to the grid.
When more power is exported than drawn from the grid credit is provided to future bills still at full value. At the end of the yearly billing cycle remaining credit is deposited into your account.
What gives net metering importance is that solar produces the most power during the day when most people aren't home. SMUD isn't affected by NEM-2 rule changes, making net metering returns in Sacramento slightly higher than the rest of California
The average cost of installing residential solar panels in Sacramento,
California in 2024 is
$2.72 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Sacramento, CA
is $13,600.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in California is only 573kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Sacramento solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our California solar savings calculator can do this because it contains a database of the electric rates charged by Pacific Gas & Electric Co, Sacramento Municipal Util Dist
How much can solar panels save you in Sacramento
What does the cost of a real solar system look like?
Facts about installing a 6.06kW solar system in Sacramento, CA
This system would offset 100% of your energy usage if your typical monthly bill is $171, however your situation may vary so try our Sacramento solar calculator to get a result tailored to you.
$12,198
Net cost of system
5 Years 4 Months
Average payback time
8,621 kWh
Annual power production
6¢/kWh
Levelized cost of solar energy
42¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 6.06kW system
Life-time savings on this system over the next 25 years
$73,714
(Prices shown after repayments of capital)
145
Solar companies in Sacramento, CA that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Sacramento
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,416 | $6,929 |
| 4kw | $8,377 | $9,047 |
| 5kw | $10,286 | $11,109 |
| 6kw | $12,077 | $13,043 |
| 7kw | $13,831 | $14,937 |
| 8kw | $15,451 | $16,687 |
| 9kw | $17,050 | $18,414 |
| 10kw | $18,500 | $19,980 |
Find out what system size you need for your home
Going solar in California
Check out all of the ways energy providers of California can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Property Tax Exclusion for Solar Energy Systems | State | Property Tax Incentive |
| Sonoma County - Energy Independence Program | Local | PACE Financing |
| NEM 2.0 | State | Net Metering |
| SMUD - PV Residential Retrofit Buy-Down | Utility | Rebate Program |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
