If you live in Sacramento, California, there’s good reason to install solar panels in your home. For one, Sacramento residents get a fair amount of sun — an average of 269 days a year. Homeowners can harvest that sun and reap the benefits of solar: Keeping more money in their wallets and helping the environment.
Further, Sacramento residents can take advantage of statewide incentives and local utility rebates. The state’s net metering program (though recently weakened) and the federal solar tax credit (recently strengthened) can reduce the upfront cost of going solar.
In California, more than two million households, businesses, farms and churches have gone solar, says Dave Rosenfeld, the executive director of Solar Rights Alliance, a nonprofit advocacy group for solar users in California. “The decision to get solar depends on your situation, the nature of your roof, how much sun you have and your finances, and also just what are the options available to you in the particular community you live in.”
Can solar panels save you money?
Interested in understanding the impact solar can have on your home? Enter some basic information below, and we’ll instantly provide a free estimate of your energy savings.
The potential savings you can scoop up hinges on a handful of factors — including the pitch and type of your roof, your location and your solar system size. We’ll walk you through what to anticipate should you install solar panels in Sacramento.
Best national solar panel companies in Sacramento
The following companies have all been reviewed by CNET and landed on our best list.
ADT Solar should be included in your search if you want strong warranties and the backing of a national company. A 25-year guarantee against your roof leaking is unmatched, except by solar installations that double as actual roofs. ADT also offers a wider selection of quality solar panels than other installers. Like the rest of the industry, ADT doesn’t offer much pricing info up front, but they do offer a price match guarantee. While we don’t have a ton of details about that guarantee, it makes your ADT quote even more flexible.
NRG Clean Power brings one of the solar industry’s most confident approaches to its work, offering a price match and 40-year warranty. NRG Clean Power is a solid bet as long as you live in Texas and California. NRG Clean Power does not offer leases or power purchase agreements, but they do provide solar panel cleaning and roofing services as well as a reliable equipment menu.
Solar panels are typically low maintenance equipment, but they’re also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it’s working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto’s monitoring service in to your payback period calculations.
If you’re looking for top-of-the-line solar panels, SunPower is you best choice. But don’t write them off if you’re looking for a less flashy installation that will get the job done. This year it started installing Qcells panels, which should make an installation from the longest-tenured company on our list more available to more people.
Elevation’s focus on your home’s energy efficiency isn’t the norm in the industry. If you’re planning on addressing energy efficiency first, working with Elevation allows you to keep the whole process with one company. Elevation’s solar equipment comes from well-established and well-regarded companies. Elevation’s warranties on workmanship and weatherization could be a bit longer.
If price is the thing you won’t budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. discussion online seems to suggest Tesla’s service is a bit of a gamble.
Momentum installs in 11 states without using subcontractors. While using in-house installers doesn’t guarantee a better experience, it does suggest you’re likely to get a more uniform experience from them. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in their crews’ ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum’s is five years, which can be beat.
Local solar panel companies in Sacramento
These local companies haven’t received a formal review from CNET, but might come up in your search for a solar company in Sacramento.
Founded in 2000, Sunrise Energy Solutions is a family-operated solar panel installer that provides home solar, heating and cooling services in Sacramento, Roseville and Granite Bay. It fulfills service and maintenance requests in “24 to 48 hours in most cases,” according to the company website.
Arvo Solar Sacramento serves residents living in Sacramento and surrounding communities. It offers solar panel installations, solar home inspections, solar batteries and solar panel cleanings.
Sacramento solar panel incentives and rebates
In the last decade, the cost of going solar in California has dropped by 43%. To further slash the cost of a home solar system, you can tap into tax incentives, rebates and special financing programs. Here’s what’s available for Sacramento residents.
| Program | Description |
|---|---|
| Federal tax credit | You can reduce your federal income tax bill by 30% of the cost of solar systems installed through 2032, after which the incentive is due to shrink. |
| Net metering programs | California has a net metering program governing its biggest three utilities, in which homeowners can sell back excess energy generated by their home system. Systems connected to the grid after April 15, 2023, will be under net energy metering 3.0, which compensates you at a much lower rate than its predecessor. The Sacramento Municipal Utility District has its own net metering system. |
| Residential PACE programs | Pace Programs offer an accessible way for homeowners to get financing to go solar. The loan is paid back over time through the property owner’s tax bill. Sacramento has four PACE providers. |
| Solar on Multifamily Affordable Housing (SOMAH) | Tenants and homeowners in Sacramento who are low-income may qualify for the SOMAH Program, which offers financial incentives for going solar. Tenants can save on electricity bills, and property owners can install solar for a lower cost. |
| Sacramento Municipal Utility District (SMUD) Rebates | Homeowners who are SMUD customers and install a solar battery are eligible for a $2,500 rebate and additional incentives for using your battery in certain ways. |
Cost of solar panels in Sacramento
According to the Sacramento Municipal Utility District, as of September 1, 2023, the monthly price for a residential bill at 750 kWh was $131, or $0.17 per kilowatt.
The price tag for your home solar panel system can vary. But Californians can expect to pay $10,000 to $20,000. This depends on your location, the size of the system, and available incentives, tax credits, and programs. If you want to be fully self-sufficient with your energy needs, the costs of a solar battery can range from $12,000 to $22,000.
How to determine which solar company is best for me
According to the Solar Energy Industries Association (SEIA), over 1,100 installers and developers operate in California. With a wide variety of options, it’s key to take your time to land on the best solar panel company for you.
Factors to mull over include a solar company’s reputation, length of warranties, and services offered.
“Make sure that they come out to your house,” Rosenfeld said. “Then, from there, ask a lot of questions, and ask for bids. Make sure the bids make sense to you, and that they explain it to you in a way that makes you feel confident that you’re in the driver’s seat. But if you feel like you’re getting a hard sell, then you should cross them off the list and move on.”
Rosenfeld recommended starting with a cursory review of solar companies on trusted review sites. Also, ask your neighbors for recommendations and their experiences working with different solar companies.
Installation factors to keep in mind
Before you reach out to a solar installer, sit down and get your head around the different factors that will impact your solar panel installation, like the following.
- Available local companies with good reputations
- Federal, state and local incentives, rebates and tax credits
- Net metering programs
- Tree cover and available sunlight
- Energy requirements of your home
- Whether you want to be entirely off the grid
- The pitch of your roof
- Anticipated maintenance needs and related costs
How to pay for solar panels in Sacramento
Homeowners in Sacramento can tap into rebate programs, statewide programs and the federal tax credit to save on the cost of a home solar system.
“Don’t let anyone tell you it’s free,” says Rosenfeld. “You’re paying for something, somewhere down the road.” And even with discounts, tax credits and other incentives, it’ll likely still cost you in the thousands to go solar. Here are some ways to pay for solar panels in California’s state capital.
Cash: If you have the funds in the bank and can afford it, paying for solar panels in cash means you won’t be saddled with long-term loan payments. It’ll save you on interest and fees, and you can enjoy the energy savings of going solar.
Solar loan: Solar installation companies frequently team up with banks and credit unions to offer solar loans. This could be a good choice if you don’t have the cash to pay for solar panels outright. Look carefully at the terms and conditions, and take your time shopping around and getting quotes.
Home equity loan or home equity line of credit: Home equity loans and HELOCs use the equity in your home to get financing to fund home improvement projects. Because you offer your home equity as an asset, the bank could seize your home if you fall behind on your loan payments.
Personal loan: Many online lenders and financial institutions offer personal loans. While largely unsecured, they often come with higher interest rates and shorter terms. Shop around and get at least several quotes before making a decision.
Solar lease or power purchase agreement: A solar lease and a power purchase agreement are ways to avoid the upfront costs of installing solar panels. However, when you lease panels, you need to pay to rent panels. With a power purchase agreement, a solar company installs the panels on your home, which means you pay for the energy generated. Both of these options can remove barriers to going solar, but reduce savings over the long term. High interest rates might be changing that calculation.
Frequently asked questions
What are the advantages of solar panels?
The benefits of solar panels include slashing your electricity bill, increasing your home value and reducing carbon emissions. With a solar battery, you can use power independent of the grid.
How long does it take to pay off solar panels?
It depends on the size of the home solar system, loan amount, and repayment plan, but it can take anywhere from six to 12 years to pay off a solar loan. On average, you’re looking at a 10-year payback period for a solar panel system until you recoup your investment.
Are solar panels worth it in Sacramento?
Solar panels in Sacramento can be worth it depending on your current electricity bill, available incentives and rebates and your financing route. According to the Sacramento Municipal Utility District, the average cost of the bills for Sacramento residents at 750 kWh is $131.
Does Sacramento offer a solar tax credit?
There isn’t a solar tax credit specific to Sacramento. But Sacramento residents can be eligible for the federal solar tax credit, rebates and other statewide programs to lower the upfront costs of going solar.
