How much can you really save by installing solar panels on a home in Folsom in 2026? With high SMUD electricity rates and sunny weather, the potential is strong, but the best financial outcome depends on the right system design. The key is understanding how SMUD compensates you for solar power and whether a battery makes sense for your home.
From rates to ROI—continue in the savings calculator.
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Estimated Solar System Costs in Folsom (2026)
For a typical Folsom home, a 6.6 kW solar system is a common size to offset a large portion of an average $258 monthly electric bill. Here are the estimated upfront costs before any financing, keeping in mind the federal tax credit for homeowners is no longer available for 2026 installations.
- 6.6 kW Solar-Only System: The estimated cost is $16,830.
- 6.6 kW Solar System with 10 kWh Battery: The total estimated cost is $31,830.
These prices reflect the full installed cost. The primary financial incentive remaining is a valuable property tax exclusion from the state of California.
Incentives & Tax Credits
Key Financial Benefit: California Property Tax Exclusion
Even without a federal tax credit in 2026, Folsom homeowners have a major advantage. California's property tax exclusion for active solar systems means your property taxes will not go up because you installed solar panels. This ensures the value added to your home doesn't come with a higher tax burden, making the investment's return even clearer.
Net Metering: Sacramento Municipal Utility District
Net Billing (low export)
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Understanding SMUD's Solar Export Rates
Folsom is in SMUD territory, and its rules for solar are different from PG&E's. Under SMUD's current structure for new solar customers, the electricity you use directly from your panels is worth the full retail rate you'd otherwise pay (around $0.323/kWh). However, any excess electricity you send to the grid is credited at a much lower rate, modeled here at $0.113/kWh.
This export rate difference is why a battery is recommended. By storing your excess solar energy, you can use it in the evening instead of selling it to SMUD for a low price and then buying it back for a high price just a few hours later. The battery helps you keep the full value of your solar production.
Projected Savings
Projected Savings and Payback Period
Installing solar is not just about today's bill; it's a long-term strategy to protect against rising utility costs. Here’s how the numbers break down for a typical Folsom household:
- A solar-only system is projected to save about $1,970 annually, with an estimated payback period of 7.8 years.
- A solar and battery system increases the annual savings to $2,921. While the upfront cost is higher, the payback period remains attractive at 8.9 years, and it delivers superior long-term value and energy independence.
Owned panels can also be a useful long-term home-value feature, adding appeal for future buyers who are looking to avoid high electricity bills.