Why Install Solar Power in Sacramento, CA?

| Article Highlights

California is the US state with the largest population, and also home to around 50% of the installed solar power capacity in the nation. Therefore, it should come as no surprise that the state capital of Sacramento is a great place to invest in a residential PV system.

If you happen to live in this city, you have access to a broad range of financing options and rebates for going solar. With the high local costs of electricity, averaging at around 19 cents per kWh, you are guaranteed to get a swift payback and a solid return from your investment.

As if the local incentives and high electricity prices were not enough, the city also gets an incredible amount of sunlight.

The yearly solar radiation has an average value of nearly 6 peak-sun hours per day, and in the summer months it goes as high as 8 peak sun-hours. When you multiply all of the energy your solar PV system pumps out on a yearly basis and the high price of electricity, you end up with yearly savings exceeding $1300, which increase continuously with inflation.

You can talk with the experts at Solar Nation to learn more about photovoltaic technology and its benefits, as well as to get in touch with the best solar installers in Sacramento.


What are the Tax Breaks and Incentives for Going Solar in Sacramento, CA?

The list of incentives for going solar starts with the $500 rebate from the Sacramento Municipal Utility District (SMUD), which is an immediate financial benefit before you PV system even starts to produce energy.

You are also allowed to claim a federal tax credit equivalent to 30% of the PV system cost (after the rebate). Together, these two incentives essentially slash down the cost of going solar by around one third.

What about property taxes? Well… if you live in California, they stay the same after installing a solar PV system. This is a great deal considering your home becomes more valuable and more energy efficient at the same time.

There is also a great option for low-income households, called the Single-Family Affordable Solar Homes Program (SASH). This program is for homes that qualify as affordable housing, and where the total income is below 80% of the median value.

There are cases where families are granted a rebate for the full price of the PV system: with zero initial investment, this program technically offers an infinite rate of return!

Another strong point of the solar power policy in Sacramento is the net metering framework, which ensures you save cash for every single kWh produced, even if you don’t consume it: utilities are required by law to monitor your consumption and roll over any surplus energy production to the next electricity bill, and any credit not consumed after a 12-month period is paid back to you in cash.

Incentives can be a complex topic, but fortunately our experts are here to offer you guidance. You can contact them today to learn more.


What are the Financing Options for Solar Power in Sacramento, CA?

leasing and PPA in Sacramento makes solar investment a viable optionEven with lots of sunlight and nice incentives, there is another vital ingredient for solar power to be viable: financing options.

Fortunately, these are not in short supply in the state of California. Paying for a PV system in cash yields maximum savings in the long term because there is no interest to pay, but with financing it becomes more affordable because you don’t have to pay several thousand dollars all at once!

Perhaps the lowest-risk options are leases and Power Purchase Agreements (PPAs). In both cases, the solar PV array is installed on your property, but owned and maintained by a third party.

They charge you a monthly fee that is below your total electric bill, which provides guaranteed savings from month one.

The only difference between both types of agreements is how the payment is calculated:

- Leasing a solar PV system is no different than leasing a home or car: you pay a fixed monthly fee to use it. Any difference between your electric bill reduction and your lease payment becomes savings that stay in your pocket.

- With a PPA, the company providing you the solar PV system is like a miniature utility company with you as the only customer. You agree to purchase all of the energy produced by the PV system, at a lower price than what the local utility would charge you.

The only drawback of leases and PPAs is that you miss out on the rebates and tax credits, which go to the PV system operator.

If you want to own the system but are unwilling to purchase it in cash, consider taking a low-interest loan. Keep in mind you will need to have an excellent credit record, and it also helps to have a lot of equity in your home.

The interest rate of the loan has to be low to allow the solar PV system to pay it off completely with energy savings; in other words, a solar PV system is not something you can buy with a credit card!


How Can I Find the Best Solar Installers in Sacramento, CA?

To get in touch with the best solar contractors in Sacramento, you just have to contact our experts. They will offer you guidance, tell you where to get the best solar panels and making sure you get the best quotes.

You only have to follow a very simple procedure:

1. Fill out our solar form, which is the basis for solar installers to analyze your situation.

2. Compare quotes from local installers. We recommend you compare at least three.

3. Select the solar installer who offers the best proposal according to your needs.

4. Start achieving energy benefits right away, as soon as you get your next electricity bill.

Always hire a professional contractor, because that way you get top-quality work and are also safeguarding your property. Solar power is eco-friendly, but that doesn’t mean anyone can handle it: a single string of solar modules can have a direct current output of several hundred volts!



Investing in solar power in Sacramento grants you access to all the state-wide incentives plus a nice $500 rebate from the local municipal utility.

Combine this with the 30% federal tax credit, the high price of electricity and the abundant sunshine, and solar power becomes an excellent deal.

Find Solar Panel Experts in Sacramento CA today! See Your Savings