Electricity rate as of 2026-04-01. Sun hours: TurbineGenerator.org NREL-based data for Sacramento. 5.5 hours per day fixed-tilt annual average. Sacramento's inland valley location delivers more sun than coastal California, with hot dry summers and mild fog patterns limited to winter (the Tule fog). Over 260 sunny days per year is frequently cited for the Sacramento region.. Cost per watt: EnergySage marketplace data, April 2026, Sacramento County. Average installed cost $2.38 per watt. Sacramento is consistently one of the lowest per-watt markets in California due to high installer competition and straightforward permitting. Average system size approximately 10.64 kW, one of the largest average systems in the state.. Payback estimate assumes zero federal residential credit (Section 25D expired December 31, 2025) and current utility net-metering tariffs.

Net metering in Sacramento

SMUD Solar and Storage Rate (SSR): export compensation rate of 9.6 cents per kWh effective June 1, 2026, increased from 7.4 cents per kWh. This is a flat rate paid regardless of time of day or season -- one of the most straightforward export structures of any California utility. Legacy NEM customers (solar installed before March 1, 2022) may remain on the original NEM rate through December 31, 2030. SMUD updates the export rate every four years, capped at plus or minus 30% change per cycle. Eastern Sacramento County fringe areas (some parts of Folsom and Rancho Cordova) are served by PG&E and fall under NEM 3.0 with export credits of $0.05 to $0.08 per kWh.

Available programs

Solar incentives in Sacramento, CA for 2026

Incentives available in CA

Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).

Active solar incentives in CA
Program	Benefit	Eligibility	Status	Source
SMUD Battery Storage Rebate (My Energy Optimizer Partner+) Local/State Incentive	Up to $5,400 per Tesla Powerwall; household cap of $10,000 total. One of the largest residential battery rebates in the United States. Subject to change; verify current rebate amounts and enrollment requirements at smud.org before signing any battery contract. Household cap applies regardless of number of batteries installed.	SMUD residential customers. Battery must be paired with solar. Enrollment required within 90 days of receiving Permission to Operate (PTO). Verify current program details and availability at smud.org.	Active	DSIRE (opens in new tab)
SMUD Virtual Power Plant (VPP) Payments Local/State Incentive	$110 per quarter ($440 per year) per enrolled Tesla Powerwall for allowing SMUD to dispatch your battery during peak grid demand events. Two batteries = $880 per year in ongoing income. Ongoing income paid quarterly. Verify current VPP payment rates and enrollment requirements at smud.org. VPP dispatch events are automatic; SMUD manages timing to protect homeowner battery reserves.	SMUD residential customers enrolled in the My Energy Optimizer Partner+ program with qualifying battery storage. Requires SMUD VPP enrollment and maintained grid interconnection.	Active	DSIRE (opens in new tab)
SMUD Solar and Storage Rate -- Export Compensation Local/State Incentive	9.6 cents per kWh flat export rate (effective June 1, 2026), paid regardless of time of day or season. Rate updated every four years, capped at plus or minus 30% change per cycle. Rate is contractually fixed for four years from adoption date; next adjustment due approximately 2028-2030 cycle. Verify current rate at smud.org/Rate-Information/Solar-and-Storage-Rate.	All SMUD residential solar customers on the Solar and Storage Rate (SSR). Legacy NEM customers (solar before March 1, 2022) may remain on original NEM rate through December 31, 2030.	Active	DSIRE (opens in new tab)
California Solar Property Tax Exclusion Local/State Incentive	Excludes the added home value from solar from property tax assessment. A typical Sacramento system adds $18,000 to $28,000 in home value, all excluded from reassessment. Sunsets December 31, 2026 under current California law (Revenue and Taxation Code Section 73). Systems installed and permitted by December 31, 2026 lock in the exclusion. Verify at ftb.ca.gov.	All California homeowners installing solar. Applies automatically upon permit filing.	Active	DSIRE (opens in new tab)
AB 1124 Permit Fee Cap Local/State Incentive	Solar permit fee capped at $450 for systems under 15 kW. Statewide California law. No expiration date. California law. Applies to both the City of Sacramento and Sacramento County.	All California addresses. No AHJ may charge more than $450 for a standard residential PV permit.	Active	DSIRE (opens in new tab)

Data last verified June 29, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.

California property-tax exclusion sunsets December 31, 2026. Solar systems installed and permitted by December 31, 2026 lock in the exclusion for the life of the system under current California law (Revenue and Taxation Code Section 73). Systems installed in 2027 may not qualify if the Legislature does not extend the exemption. Verify current legislative status at ftb.ca.gov before signing a contract.

Why Sacramento homeowners are moving now

After the January 2025 wildfires, battery storage became a priority

Sacramento summers regularly record 20 or more days per year above 100 degrees Fahrenheit, making air conditioning responsible for 40 to 60 percent of a typical household's summer electricity bill. SMUD has initiated Public Safety Power Shutoffs (PSPS) during extreme heat events, interrupting power to vulnerable customers during the hours they need AC most. A solar-plus-battery system addresses both drivers simultaneously: solar covers daytime AC load when production is highest, and battery storage keeps AC running during a PSPS event or grid stress event. SMUD's battery rebate program ($10,000 household cap) and Virtual Power Plant income ($440 per year per Powerwall) mean Sacramento homeowners who install solar plus battery can achieve an 8 to 9 year net payback even without a federal tax credit -- making Sacramento the fastest-payback solar market in California for mainstream homeowners in 2026 despite having among the state's lowest electricity rates.

Source: SMUD PSPS events during extreme heat events 2023-2025; Sacramento heat dome analysis 2024; SMUD Solar and Storage Rate increase June 1, 2026 (2026).

Illustrative example

What does a typical Sacramento solar system actually cost and save?

Zero federal residential credit applied (Section 25D expired December 31, 2025). Figures are estimates based on market data as of 2026-06-29. Your numbers depend on your roof, your utility, and your bill.

System inputs

System size: 10.64 kW
Gross cost ($2.38/W): $25,320
Federal residential credit: $0 (expired Dec 31, 2025)
California property-tax exclusion: system value excluded from reassessment: Applied
AB 1124 permit fee cap: permit cost capped at $450: Applied
SMUD Solar and Storage Rate: 9.6 cents/kWh flat export compensation: Applied
Estimated net cost: $25,320

Estimated outcomes

Annual savings range: $1,700 to $2,400
Estimated payback: 11 years

Sacramento, SMUD territory: a 10.64 kW system at $2.38 per watt costs approximately $25,320 gross (solar only, no battery). No federal residential credit applies (Section 25D expired December 31, 2025). At SMUD's rate of approximately 17 cents per kWh with a flat export rate of 9.6 cents per kWh (effective June 1, 2026), annual savings from the solar-only system range from approximately $1,700 to $2,400, producing an estimated payback of approximately 11 years. The economics change substantially when battery storage is included: SMUD's battery rebate program offers up to $5,400 per Tesla Powerwall with a $10,000 household cap. Two Powerwalls add approximately $18,000 to the system cost but qualify for $10,000 in SMUD rebates, reducing the battery net cost to approximately $8,000. The SMUD Virtual Power Plant (VPP) program additionally pays $880 per year (two Powerwalls at $440 each) for allowing SMUD to dispatch your batteries during peak demand. With the battery rebate and VPP income, the typical Sacramento solar-plus-battery system achieves an estimated 8 to 9 year net payback -- the fastest in California for mainstream homeowners in 2026. All figures assume zero federal residential credit, current SMUD rates, and 5.5 peak sun hours per day. Verify current SMUD rebate amounts at smud.org before signing any contract.

Run the savings calculator for your specific address

Ready to see what solar works out to for your Sacramento home?

A free in-home assessment reviews your utility bill, your roof, your options, and every available incentive for your address. No pressure. No shared leads.

Book Your Free In-Home Estimate

Neighborhoods we serve

Solar in Sacramento: high-adoption areas, equity zones, and post-fire demand corridors

High-adoption neighborhoods

Established solar saturation; higher installers per block, active neighbor referrals, and permit history at LADBS.

Land Park
Curtis Park
East Sacramento
Midtown

Equity program target areas

Designated disadvantaged communities (DAC) eligible for SGIP equity resiliency, DAC-SASH, and other income-qualified programs. Income verification required.

Oak Park
Del Paso Heights
Valley Hi

Post-fire and growth corridors

Wildfire-affected and adjacent neighborhoods where battery storage demand surged following the January 2025 fires. Rebuilding homeowners and proximate neighbors with elevated grid-resilience priorities.

Elk Grove
Rancho Cordova
Folsom

LOCAL INSTALL PHOTO -- SACRAMENTO -- TO BE PROVIDED

Permitting and interconnection

How solar permitting works in Sacramento

Authority Having Jurisdiction (AHJ)

Permit office: City of Sacramento Community Development Department (Building Permits Section) for properties within city limits; Sacramento County Building Inspection Division for unincorporated county areas. Each has its own fee schedule.
SolarAPP+ status: SolarAPP+: Available (standard review)
Permit fee: Capped at $450 per California AB 1124 for residential solar systems under 15 kW. Sacramento County uses SolarAPP+ with automated instant permitting for eligible residential projects. City of Sacramento implemented streamlined online solar permitting; 2023 data showed a residential flat permit fee around $305 -- exact 2026 fee should be confirmed at the city portal before project start.
Typical contract-to-energization: 30 to 45 days total contract-to-PTO -- one of the fastest timelines in California. SMUD interconnection review is generally faster than PG&E or SDG&E. On-site installation is typically 1 to 3 days. Sacramento County SolarAPP+ provides automated instant permitting for eligible projects.

We handle the permit and interconnection filings

LADBS permit application and plan set preparation
SolarAPP+ submission for qualifying systems
LADWP or SCE interconnection application
Inspection coordination and utility sign-off
Certificate of Completion delivery to homeowner

Sacramento offers one of the fastest solar permitting and interconnection timelines in California. SMUD's interconnection process is specifically recognized as more efficient than investor-owned utility processes. Sacramento County uses SolarAPP+ for automated instant permitting. Confirm which AHJ (City or County) governs your property address before requesting a permit -- city and county fee schedules differ.

Your local Sacramento advisor

One advisor. No door-knockers. No shared leads.

Serving Sacramento and surrounding CA communities

Book Your Free In-Home Inspection

Land Park, Sacramento REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning SMUD battery rebate and VPP income, heat resilience motivation]

System: 10 kW rooftop solar plus two Powerwalls, SMUD territory

East Sacramento, Sacramento REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning SMUD's flat export rate and fast permitting timeline]

System: 11 kW rooftop solar, SMUD territory, SSR export rate

Folsom, Sacramento County REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial from master-planned community with new-construction solar mandate context]

System: 12 kW rooftop solar plus battery, SMUD territory (Title 24 new construction upgrade)

For business owners and property managers

Commercial Solar in Sacramento: SMUD Territory and Section 48E

SMUD serves Sacramento's commercial and industrial base with some of the most favorable utility solar economics in California: a flat 9.6 cents per kWh export rate, no NEM 3.0 export penalty, and aggressive battery incentive programs for commercial customers. The federal Section 48E commercial investment tax credit (30% base credit for projects starting construction by July 4, 2026) combined with MACRS accelerated depreciation creates a closing window for Sacramento commercial properties. State government campus buildings, distribution centers, and agricultural processing facilities throughout Sacramento County benefit from SMUD's stable low-cost rates and straightforward interconnection process. After July 4, 2026, the Section 48E construction-start window closes.

See commercial solar options

Commercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.

Schedule a Free Commercial Assessment

Sacramento solar questions

What Sacramento homeowners ask

City-specific answers. Every number references your utility and your permit office.

Does SMUD have NEM 3.0 in Sacramento?

No. SMUD (Sacramento Municipal Utility District) is a publicly owned utility and is NOT subject to the CPUC's NEM 3.0 Solar Billing Plan, which applies only to California investor-owned utilities (PG&E, SCE, and SDG&E). SMUD operates its own Solar and Storage Rate (SSR) with a flat export compensation rate of 9.6 cents per kWh effective June 1, 2026, paid regardless of time of day or season. This is approximately 20 to 90 percent higher than NEM 3.0 export credits from investor-owned utilities. Note: some eastern Sacramento County fringe areas (parts of Folsom and Rancho Cordova) are served by PG&E, not SMUD, and those customers do fall under NEM 3.0.

What is the SMUD battery rebate and VPP program?

SMUD offers up to $5,400 per Tesla Powerwall through its My Energy Optimizer Partner+ program, with a household cap of $10,000 total. This is one of the largest residential battery rebates in the United States. Additionally, SMUD's Virtual Power Plant (VPP) program pays $110 per quarter ($440 per year) per enrolled Powerwall for allowing SMUD to dispatch your battery during peak grid demand events. Two Powerwalls earn $880 per year in ongoing VPP income. Enrollment in the battery rebate must occur within 90 days of receiving Permission to Operate. Verify current rebate amounts and program availability at smud.org before signing any contract.

How fast is solar permitting in Sacramento?

Sacramento has one of the fastest solar permitting and interconnection timelines in California. Sacramento County uses SolarAPP+ for automated instant permitting for eligible residential projects. The City of Sacramento has its own streamlined online permitting system. SMUD's interconnection review is generally faster than PG&E, SCE, or SDG&E. Total contract-to-Permission-to-Operate timeline is typically 30 to 45 days -- significantly faster than the 6 to 14 weeks typical in Bay Area markets.

Why is Sacramento good for solar despite lower electricity rates?

Sacramento's electricity rate of approximately 17 cents per kWh is lower than other California metros, which extends payback periods for solar-only systems compared to SDG&E (46 cents) or SCE (34 cents) territory. But SMUD's $10,000 battery rebate, $440 per year per Powerwall VPP income, and 9.6 cents per kWh flat export rate stack in ways that create a uniquely favorable total economics package. The typical Sacramento solar-plus-battery system achieves an estimated 8 to 9 year net payback in 2026 -- among the fastest in California. Sacramento also has the lowest installed cost per watt in California at $2.38 per watt, and 260+ sunny days per year with 5.5 peak sun hours daily.

Is solar worth it in Sacramento to offset summer heat bills?

Yes, and this is the primary local use case. Sacramento regularly records 20 or more days above 100 degrees Fahrenheit per year. Air conditioning can account for 40 to 60 percent of a household's summer electricity bill. A solar system generates maximum output during the hottest part of the day -- exactly when AC demand peaks. Adding a battery lets you store excess midday solar for early-evening cooling hours or for use during a PSPS event when SMUD cuts power during extreme heat. Solar addresses Sacramento's most acute electricity cost driver while also providing resilience against heat-related grid stress events.

More solar resources for California:

California solar guide All cities

Ready for your free in-home solar estimate in Sacramento?

An independent advisor visits your Sacramento home, reviews your utility bill and roof, and explains every incentive available at your specific address. No pressure. No shared leads. No commissions.

Book Your Free In-Home Estimate Run the Savings Calculator First

Solar Installers in Sacramento, CA: Your 2026 Guide