The Solar Showdown You Need to Read!

☀️ Why Go Solar in the Sacramento Area?

1. Abundant Sunshine

Sacramento boasts over 260 sunny days per year, making it an ideal location for solar energy production. This high solar potential means that solar panels can generate significant electricity, reducing reliance on the grid and lowering energy bills.

2. Financial Incentives

• Federal Tax Credit: Homeowners can take advantage of the 30% federal solar tax credit, which significantly reduces the upfront cost of installing solar panels. This credit is available through 2032, after which it will decrease unless renewed.

• State Incentives: California offers additional incentives, such as the Self-Generation Incentive Program (SGIP), which provides rebates for installing energy storage systems like batteries.

• Property Tax Exclusion: Solar energy systems in California are exempt from property tax assessments, meaning your property's value won't increase for tax purposes due to the addition of solar panels.

• 3. Net Metering

California's Net Energy Metering (NEM) program allows solar panel owners to receive credits for excess electricity they generate and send back to the grid. These credits can offset electricity costs during times when solar production is low, such as at night.

💰 Cost and Savings

The cost of installing solar panels in Sacramento has decreased significantly over the years. As of 2025, the average cost per watt is approximately $2.27, making a typical 5 kW system around $11,359 before incentives. After applying the 30% federal tax credit, the net cost drops to about $7,951. 

Over a 25-year period, homeowners can expect to save approximately $154,378 on electricity bills, with the system paying for itself in just over 4.6 years.

🔋 Battery Storage Options

Pairing solar panels with battery storage systems enhances energy independence and provides backup power during outages. Programs like SGIP offer incentives for installing batteries, further reducing costs.

🌿 Environmental Impact

Switching to solar energy reduces greenhouse gas emissions and reliance on fossil fuels. By generating clean electricity, homeowners contribute to a more sustainable and environmentally friendly energy landscape.

📞 Getting Started

If you're ready to explore solar energy options in Sacramento, consider reaching out to one of the reputable installers mentioned above for a consultation. They can assess your home's suitability for solar, provide detailed quotes, and guide you through the installation process.

Embracing solar energy not only offers financial benefits but also contributes to a cleaner, more sustainable future for Sacramento and beyond.

☀️ Buying vs. Leasing Solar: What's the Difference?

1. Ownership

• Purchase (Cash or Loan):
  You own the system outright. With a loan, you’ll own it once it’s paid off.

• Lease or Power Purchase Agreement (PPA):
  A third party owns the system. You pay to use the solar energy it produces.

2. Upfront Cost

• Purchase:

  • High upfront cost (unless financed with a loan).

  • Eligible for the 30% federal tax credit + any state/local incentives.

• Lease/PPA:

  • Little to no upfront cost.

  • Not eligible for tax credits (they go to the solar company).

3. Monthly Payments

• Purchase:

  • If paid in cash: $0 monthly for panels, just reduced utility bills.

  • If financed: Monthly loan payment (usually less than prior utility bill).

• Lease/PPA:

  • Fixed monthly lease or per-kWh usage rate.

4. Long-Term Savings

• Purchase:

  • Much greater lifetime savings (often $20K–$60K+).

  • Payoff in ~5–7 years, then free electricity.

• Lease/PPA:

  • Lower total savings.

  • Fixed escalation clauses may increase payments over time.

5. Home Value

• Purchase:

  • Adds value to your home (especially with owned systems).

• Lease/PPA:

  • Can complicate a home sale.

  • Buyer must assume the lease or you must buy it out.

6. Maintenance

• Purchase:

  • You’re responsible, though most panels have 20–25 year warranties.

• Lease/PPA:

  • Provider maintains the system as part of the agreement.

Which Is Better for Sacramento Area Homeowners?

With Sacramento’s sunny climate, rising utility rates, and available tax incentives, purchasing solar (especially with a loan) is often the better long-term financial decision if you:

• Plan to stay in your home 5+ years

• Can take advantage of tax credits

• Want to maximize savings and add value to your property

Leasing may be a better option if you:

• Can’t use the tax credit (e.g., low taxable income)

• Don’t want the responsibility of ownership

• Need a no-money-down option

Final Thought

If you’re in Sacramento and ready to go solar, your best bet is to get quotes for both purchase and lease options from reputable local providers. That way, you can compare the actual costs, savings, and long-term benefits based on your specific home and financial goals.

Ready to talk about solar and how it can benefit your home? Need a reputable solar company referral? Let’s talk!
📞 Scott Ostrode – 916-799-1662
📧 Scott@TeamOstrode.com

 We're here to help you explore your options and make confident, informed decisions in today’s market.