Does SMUD offer net metering in Sacramento?

Yes — SMUD credits the solar you export to the grid in Sacramento under California's modified net metering, valued at ~70–90% of retail. That credit is what lets a well-sized system zero out most of your annual bill.

Is solar worth it in Sacramento?

At 5.6 peak sun hours, a 6.9 kW system in Sacramento produces about 11,283 kWh a year. With $0 federal credit, this model puts payback near 11.6 years and about $32,806 over 25 years after a $21,045 net cost. It is a model, not a quote.

::SACRAMENTO_INCENTIVES // 2026

SacramentoSolar Incentives 2026: Rebates, Tax Credits & Net Metering

Q: How much do solar panels cost in Sacramento?

The 6.9 kW system that fits a typical Sacramento home (about a $130/month bill) costs around $21,045 before incentives. With $0 federal credit, the net cost in this model is roughly $21,045. Use the calculator on this page with your actual SMUD bill.

Updated October 2026 · SMUD · California

Sacramento homeowners installing in 2026 cannot claim the federal residential credit. What remains is SMUD net metering. At 5.6 peak sun hours a day, a home with a $130/month bill (about 929 kWh) needs roughly a 6.9 kW system — 18 panels — and pays back in about 11.6 years.

Federal residential credit

CA State Credit

—

Local Utility

SMUD

Net Metering

Active

Est. System Size

6.9 kW

Annual Production

11.3k kWh

Net cost ($0 federal)

$21,045

Est. Payback

11.6 yrs

::SACRAMENTO_CALCULATOR

::INPUT_PARAMETERS

Monthly Electric Bill (USD)

State

Roof (sq ft, optional)

Solar Incentives Available in Sacramento

The federal residential credit does not apply to a Sacramento system installed in 2026. California does not add a state income tax credit in this dataset. SMUD sets the local rules for crediting the solar power you export.

SMUD is a municipal utility with its own solar buyback rules — generally simpler than PG&E's NEM 3.0.

How Much Solar Sacramento Homes Produce

Sacramento gets 5.6 peak sun hours a day, so each 1 kW of panels produces about 1,635 kWh per year here. A 6.9 kW system — the size that fits a typical $130/month SMUD bill — generates roughly 11,283 kWh annually, worth about $1,580 in avoided electricity in year one and more as rates rise.

SMUD Net Metering in Sacramento

SMUD credits excess solar generation from Sacramento homes under California's modified net metering (~70–90% of retail). A right-sized system can bring net annual electricity costs close to zero. See full California net metering rules →

How Much Do Solar Panels Cost in Sacramento?

At California's 2026 average of $3.05/watt, the 6.9 kW system most Sacramento homes need runs about $21,045 before incentives. The federal residential credit is $0. Net cost in this model is about $21,045, with payback around 11.6 years. Those figures use $0 federal credit.

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Frequently Asked Questions

Sacramento homeowners installing in 2026 cannot claim the federal Residential Clean Energy Credit. SMUD offers net metering. SMUD is a municipal utility with its own solar buyback rules — generally simpler than PG&E's NEM 3.0.