Solar Financing & Incentives in Sacramento, CA (2026)
The rules changed in 2026. The federal residential tax credit has ended, but going solar can still pay off, especially once you know which incentives apply to your utility and how to finance the system. Solectric helps you find the right option and handles the paperwork.
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SOLAR INCENTIVES IN SACRAMENTO FOR 2026
Here is a straight answer on what changed, what is gone, and what still saves you money this year.
Is there a federal solar tax credit in 2026?
For most homeowners, no. The federal residential solar tax credit, the 30% credit many people remember, ended for systems completed after December 31, 2025. If you buy a system with cash or a loan in 2026, there is no federal credit to claim. The only exception is a lease or PPA, which we cover below.
Does California have a solar tax credit?
No. California does not offer a statewide income tax credit for residential solar, and it never really has. What it does offer is a property tax break and a handful of utility and state programs, and that is where the real savings still live.
The California property tax exclusion
When you add solar, the value it adds to your home is left out of your property tax assessment, so your taxes do not rise because of the system. Under current law this applies to systems placed in service before January 1, 2027, which makes 2026 the window to lock it in.
If you are a SMUD customer
Most of Sacramento County is served by SMUD, which sets its own rules. SMUD replaced net metering with its Solar and Storage Rate, where the energy you send to the grid is credited at a flat rate, currently around 9.6 cents per kWh.
That is well below the retail price, so the most value comes from using your own solar and pairing it with a battery. SMUD does not offer rebates for solar panels, but it does offer battery storage incentives and a program that pays you for sharing stored energy at peak times.
If you are a PG&E customer
In the parts of the region served by PG&E, solar falls under NEM 3.0 net billing, which also rewards pairing solar with a battery. Battery rebates through the state SGIP program still exist, but in 2026 they are limited mostly to income-qualified households and are largely waitlisted, so most homeowners should not count on them.
Leases and PPAs: the one place a federal credit still helps
With a lease or PPA, a third party owns the system and can claim the commercial version of the federal credit, then pass the benefit to you through a lower rate or reduced upfront cost. It is the only route where federal tax value still reaches a homeowner in 2026.
Flexible financing with low-rate, adjustable-term loans.
● You own the system
● Little to no money down
● Fixed monthly payments over the term
● Rates and terms depend on the lender and your credit
Maximize your savings with a cash purchase. Simple, smart, and sustainable.
● You own the system outright
● Lowest lifetime cost and fastest payback
● No monthly payment
● Our recommended option when it fits your budget
Rent your system from SunPower, replacing your utility bill.
● A third party owns the system
● $0 or low upfront cost
● A fixed monthly rate, often lower than your current utility bill
● The one route where the federal commercial credit can be passed through to you
WHY FINANCE WITH SOLECTRIC
We Help You Find What Actually Saves You Money
Incentives in 2026 depend on your utility, your income, your equipment, and your timing, and the details change often. As a local team that works across both SMUD and PG&E territory, we tell you exactly what you qualify for, model your real savings, and handle the applications and paperwork. No guesswork, no pressure.
FAQs
Can I still get the 30% solar tax credit in 2026?
Not on a system you buy with cash or a loan. The federal residential credit ended for systems completed after December 31, 2025. A lease or PPA is the only way to still capture federal tax value, because the system owner claims it and passes it on to you.
Is solar still worth it without the federal tax credit?
For many Sacramento homes, yes, though the math is tighter than it used to be. Rising utility rates, the property tax exclusion, and pairing solar with a battery are what drive the savings now. We will show you your actual numbers before you commit.
What incentives do SMUD customers get?
SMUD customers use the Solar and Storage Rate rather than net metering. SMUD does not rebate solar panels, but it does offer battery storage incentives and a program that pays for shared stored energy. The exact amounts change, so we confirm current figures with you.
When does the California property tax break end?
Under current law it applies to systems placed in service before January 1, 2027, so 2026 is the window to secure it.
Do you offer financing?
Yes. We offer cash purchase, solar loans, and lease or PPA options, and we help you choose the one that fits your budget and goals.