Switching to solar energy can be expensive but the benefits usually outweigh the initial cost over time. Harnessing the power of the sun can ultimately help you save money and it’s better for the environment. If you’re in Sacramento, it’s worth noting that residents enjoy an average of 269 sunny days each year. That’s a compelling reason to install solar panels on their homes and reap their benefits, keeping more money in their pockets and protecting the environment.
Furthermore, all California residents can take advantage of both federal and statewide incentives and tax rebates to help make the switch to solar an easier endeavor. The federal major tax credit on all clean energy additions to homes was strengthened by the Inflation Reduction Act. When tax season rolls around, you’ll be able to recoup 30% of the costs of these clean energy installations via your taxable income.
There are a number of local incentives for Sacramento residents to take advantage of, too. Although the state’s net metering program was recently weakened with the controversial NEM 3.0 legislation, there are still local programs such as Solar on Multifamily Affordable Housing, which allows disadvantaged residents to benefit from cheaper electricity, as landlords get free solar panel system installation.
Below, we’ll walk you through what to anticipate when you’re looking for the best solar panel installation companies in Sacramento.
Best national solar panel companies in Sacramento
Palmetto Solar
Best overall
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.
NRG Clean Power
Best in California and Texas
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 it does provide solar panel cleaning and roofing services as well as a reliable equipment menu.
SunPower Solar
Best solar panels
If you’re looking for top-of-the-line solar panels, SunPower is your best choice. But don’t write it 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 available to more people.
Elevation
Whole home approach
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.
Tesla Solar
Most affordable
Tesla’s solar branch seems to be the least loved of Elon Musk’s ventures. Even Tesla’s Solar Roof seems to get more love.
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
All in-house installers
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 Momentum. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in its crews’ ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum’s is five years, which isn’t the best.
EnergyPal
Most versatile
EnergyPal is more than just a middleman. It’ll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options and offers responsive customer service support.
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 reputable solar companies 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.
How to determine which solar company is best for you
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.”
According to the Solar Energy Industries Association (SEIA), over 1,000 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 the services they have on offer.
“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.
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 will vary, but Californians can expect to pay somewhere between $10,000-$20,000. Your specific price tag will depend on the location of your home, the size of the solar panel system you need installed 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 tack on an additional $12,000-$22,000 to your bill.
Here’s the average cash price for a typical solar panel system in Sacramento before factoring in tax credits and incentives, according to data from FindEnergy.com.
Average cost of solar panels in Sacramento
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| Typical system size (kW) | Price per watt | Total installed cost | Cost after 30% federal tax credit | |
| Sacramento | 5 | $3.47 | $17,350 | $12,145 |
| National average | 8.6 | $3.67 | $31,558 | $22,091 |
The infographic below provides a visual of the average total price, cost per watt and system size for solar panel systems across different states, according to data from FindEnergy.com. The prices shown do not factor in fluctuations from tax credits or state solar incentives. If FindEnergy doesn’t have solar data for a particular state, it appears grayed out on the map.
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 both federal and local tax incentives, rebates and special financing programs. Sacramento residents get the full advantages of California residence, which means there are many benefits for switching to clean energy in the city.
The big federal incentive is a major tax credit which was shipped with the Inflation Reduction Act. This is a 30% rebate on the cost of any clean energy addition to your home, and you’ll be able to claim it during tax season. If this rebate surpasses your taxable income, the savings will roll over to next year.
The state of California has many incentives and initiatives to help encourage homeowners to install solar panels, too. One incentive that applies to all solar panel system owners is net metering, which allows you to sell your energy back to the grid when you produce more than you need. Then, during times when your system can’t produce enough electricity to power your household, you’re able to pull from the grid for free according to the credits you’ve built up. NEM 3.0 means you won’t be trading your energy back and forth at a one-to-one rate, but you’ll still be able to benefit from the excess energy your solar panels generate.
Special residential PACE loans incentivize homeowners to go solar as well. These loans incentivize a clean energy switch because they’re paid back from a homeowner’s property tax bill. There are four separate PACE programs that Sacramento residents can take advantage of.
The Sacramento Municipal Utility District rebates are a special incentive designed for residents within this district — this incentive offers up to $2,500 for solar battery installation and then qualifies you for SMUD battery optimization during peak grid hours.
Finally, there are programs that are designed to enable disadvantaged Sacramento residents to have access to solar energy. The Solar on Multifamily Affordable Housing program enables landlords to install solar panels for free, while tenants are able to reap the benefits of a reduced electricity bill.
Sacramento solar incentives
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| 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 | 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 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. |
Installation factors to keep in mind
Before you reach out to a solar installer, consider the different factors that will impact your solar panel installation, such as the following:
Tree cover and available sunlight: While California gets great sunlight, you’ll have to make sure that there are no obstacles that could cast shade upon your solar panel system. Tree cover can prevent sunlight from reaching your solar panels, meaning they won’t produce the optimal amount of energy for your household.
Energy requirements of your home: Depending on how many appliances you’re running within your household, you’ll need a solar panel system that will support your needs. Make sure to consult with your installer to make sure you’ll have equipment that will both fit on your roof and fit your needs.
Off-grid status: When installing solar panels, you can still be somewhat reliant on the grid for energy outside of peak sun hours. Net metering policies make relying on the grid more feasible in California, but you’ll likely still have to pay for a small portion of the energy you’re drawing into your home. A solar battery can charge during peak sun hours and take you fully off the grid, but it’s going to increase the cost of your installation as well.
The pitch of your roof: Since solar panels need to be taking in the most sunlight possible to efficiently produce energy, the pitch and angle of your roof is an important consideration pre-installation. If your roof isn’t built in a way that’s optimal for solar panels, you might not be able to install a system that meets your energy needs. Here’s all the information you need to find out if your roof is the right pitch and angle for solar panel installation.
Anticipated maintenance needs and related costs: Solar panel systems are installed on your roof, so it stands to reason that your roof needs to be in good condition for a solar panel installation. No trustworthy installer will let you install a solar panel system on a roof that can’t support it. Going solar already takes a substantial amount of money, and adding maintenance fees will stack the bill even higher.
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 with cash means you won’t be saddled with long-term loan payments. It’ll save you money on interest and additional fees, and you can enjoy the energy savings of going solar after a much shorter solar payback period.
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 four to five quotes from different banks or credit unions before making your 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 they’ll heavily impact your long-term savings. As interest rates on loans are starting to climb, though, a solar lease or power purchase agreement might become more appealing.
How we found the best solar panel companies
The companies we listed above as “the best” are curated from CNET’s best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we’ve completed a full review on a company or not, it’s always a good idea to get multiple quotes from different installers before choosing a company.
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?
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.