Question 1

How much does a solar panel system cost in Washington, D.C.?

Accepted Answer

The gross cost of a solar panel system in Washington, D.C. typically ranges from $15,000 to $30,000 depending on your energy needs and the system size. Note: the 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 and is not available for systems installed in 2026 or later.

Question 2

Are there Washington, D.C.-specific solar incentives?

Accepted Answer

Yes! Washington, D.C. offers a property tax exemption, a sales tax exemption, and an SREC market. Specific local programs include: Property and sales tax exemptions; among the highest SREC values in the nation. Important: the 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 and is not available for systems installed in 2026 or later.

Question 3

How long is the payback period for solar in Washington, D.C.?

Accepted Answer

Payback periods vary significantly based on your specific utility's net metering policy, system cost, available incentives, electricity usage, and financing terms. There is no single accurate statewide figure. A local installer can provide a personalized estimate using your actual utility rates, your home's solar production potential, and current incentive eligibility. Note: the 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 and does not apply to systems installed in 2026 or later, which meaningfully affects payback calculations compared to older online estimates.

Question 4

How much can I save over 25 years with solar in Washington, D.C.?

Accepted Answer

By locking in your electricity costs and avoiding future utility rate hikes, Washington, D.C. residents can expect to save tens of thousands of dollars over the 25-year guaranteed lifespan of a solar system. Exact savings depend on your monthly bill, but frequently exceed $25,000 to $40,000.

Question 5

What electricity rate does Pepco charge in Washington, DC — and why does it matter?

Accepted Answer

Pepco (Potomac Electric Power Company) is the sole electric distribution utility serving Washington, DC. As of 2026, Pepco's blended residential rate — combining distribution charges and default supply — is roughly 23–24 cents per kilowatt-hour, placing DC among the higher-rate jurisdictions nationally. This matters for solar economics: every kilowatt-hour your panels produce offsets electricity you would otherwise buy at roughly 23–24¢/kWh, so the financial case for solar in DC is meaningfully stronger than in states with rates of 10–13¢/kWh.

A few important nuances:
- DC has a deregulated retail electricity market, meaning you can choose a competitive third-party electricity supplier instead of Pepco's Standard Offer Service. Pepco's Standard Offer Service (SOS) supply-only rate is roughly 16¢/kWh; the full blended rate including distribution charges is higher.
- A Pepco rate increase took effect July 1, 2026, representing roughly a 7% increase for an average residential customer. Rate hike history is relevant to solar projections — rising rates increase the value of every kilowatt-hour your system produces.
- Pepco also charges a fixed monthly customer charge of roughly $7.39, which you will continue to pay even with solar.
- Exact rates vary by rate schedule and change periodically. Always check your actual Pepco bill for the most current figures before using any per-kWh number in a financial projection.

Question 6

How does DC's SREC market work — and why is it the biggest financial differentiator for DC solar?

Accepted Answer

Washington, DC's Renewable Portfolio Standard (RPS) includes a dedicated solar carve-out — roughly 15% of electricity sold in DC must come from solar sources. Because meeting that target requires utilities and retail suppliers to demonstrate solar compliance, they must obtain Solar Renewable Energy Certificates (SRECs).

Here's how SRECs work for you as a DC homeowner:
- For every 1,000 kWh (1 MWh) of electricity your solar system produces, you earn one SREC
- You can sell that SREC to Pepco or other obligated parties as a separately tradeable asset, entirely apart from the electricity savings on your bill
- A typical residential 7–10 kW system in DC might produce 7–10 SRECs per year
- At prices recently reported in the $350–$400 per SREC range, that can represent roughly $2,500–$4,000 per year in additional income on top of electric bill savings

Important caveats you must verify before projecting SREC income:
- SREC prices fluctuate based on market supply and demand, compliance deadlines, and state policy
- DC's Solar Alternative Compliance Payment (SACP) — the penalty utilities pay per missing SREC — sets an effective price ceiling; it has been cited at figures between $300 and $440 depending on the source and year
- Get current spot and contract prices from a DC SREC broker or aggregator before assuming any specific dollar figure
- SREC income is generally taxable as ordinary income; consult a tax professional

This combination of the SREC market and DC's high electricity rates (~23–24¢/kWh) is why DC's solar economics are frequently cited as among the strongest in the country — despite modest sun hours. No other state consistently offers both factors at the same level.

Question 7

How does DC's net metering work in 2026, and how does it compare to other states?

Accepted Answer

DC's net metering rules are governed by Title 15 of the DC Municipal Regulations, Chapters 9 (Net Energy Metering Rules) and 40 (interconnection rules). Several features make DC's net metering unusually favorable:

1. No aggregate capacity cap: DC has no statewide cap on total net metering enrollment. Every Pepco DC customer who installs solar qualifies — there is no waitlist or closed program due to a utility hitting a threshold, unlike many states where net metering has been closed or curtailed for this reason.

2. Full retail-rate (1:1) crediting: Exported solar kilowatt-hours are credited at the full retail rate, meaning each unit you send to the grid offsets one unit you would otherwise buy at Pepco's blended rate.

3. No credit expiration: Unused monthly bill credits roll forward indefinitely — they are never forfeited. Many states force an annual true-up in which unused credits are either forfeited or compensated at a lower avoided-cost rate. DC does not do this.

4. System size eligibility: Systems up to 1 MW are eligible for net metering, and community solar projects up to 5 MW qualify — far above typical residential system sizes, leaving headroom for larger systems.

Always confirm current net metering terms directly with Pepco before signing a solar contract, as regulations can change.

Question 8

Does DC offer a property tax exemption for solar?

Accepted Answer

Yes. DC's Solar Energy System and Cogeneration System Personal Property Tax Credit provides a 100% exemption from any increase in assessed property tax value attributable to installing a solar energy system. This means your annual property tax bill will not rise simply because your home's assessed value increased due to solar panels.

There is currently no expiration date on the books for this exemption. Confirm with the DC Office of Tax and Revenue that your assessment reflects the exemption after your system is installed and permitted.

Question 9

Is there a sales tax exemption for solar in DC?

Accepted Answer

Yes. Solar equipment purchases are exempt from DC's sales tax. This exemption should be reflected in your installer's written quote as a point-of-purchase exemption. Ask your installer explicitly to confirm the exemption is applied and request a line-item breakdown.

Question 10

Does DC offer an income tax credit for solar installations?

Accepted Answer

No. DC does levy a personal income tax, but there is no dedicated DC income tax credit specifically for solar installation costs.

This is a common point of confusion: DC's SREC program provides ongoing cash income from selling solar certificates — but that is a separate market mechanism, not a tax credit, and the income is generally taxable rather than tax-favored. Do not conflate SREC sales revenue with a tax credit.

The financial incentives available in DC are: the SREC market (cash income, taxable), net metering bill credits, the property tax exemption on added value, and the sales tax exemption on equipment.

Question 11

What is DC's Solar For All program, and who qualifies?

Accepted Answer

DC's Solar For All program is a specific initiative aimed at extending the benefits of solar energy to income-qualified residents. It is not a general homeowner incentive.

The program's goal is to bring free or heavily discounted solar access — through either rooftop installation or a community solar subscription — to 100,000 low- and moderate-income DC households by 2032. Eligible participants could see their electric bills reduced by up to 50%.

Solar For All is targeted at low- and moderate-income households that qualify under program income thresholds. It is administered separately from standard rooftop solar incentives. If you believe you may qualify, contact the DC Department of Energy and Environment (DOEE) for current eligibility criteria and enrollment information.

If you are a typical homeowner not seeking income-qualified assistance, the standard DC solar incentive path — SREC market, net metering, property tax exemption, and sales tax exemption — applies to you instead.

Question 12

How much sun does Washington, DC get?

Accepted Answer

Washington, DC receives roughly 4.0 to 4.6 peak sun hours per day on an annual average basis — estimates vary by source and measurement method, so treat this as a general range rather than a precise figure. This places DC slightly below the commonly cited national average of around 4.5–5.0 peak sun hours per day.

What this means practically: a solar system in DC will produce somewhat less electricity per panel per year than the same system in sunnier markets like Phoenix or Los Angeles. However, because DC's electricity rates are among the higher in the country (~23–24¢/kWh) and because each kilowatt-hour produced also avoids purchasing grid electricity at that rate — plus the ability to earn SREC income — DC's solar economics remain strong despite its modest solar resource.

Ask any installer to model production using NREL PVWatts data specific to your address, roof pitch, and orientation. The difference between a south-facing and a west-facing roof, or between a shaded and an unshaded array, can matter more than the regional average figure.

Question 13

Is there a federal tax credit available for DC solar installations in 2026?

Accepted Answer

No — not for residential solar systems installed in 2026 or later.

The 30% federal residential solar tax credit (Section 25D of the Internal Revenue Code) expired December 31, 2025 under the One Big Beautiful Bill Act. It does NOT apply to solar energy systems installed in 2026 or later.

Many installer websites, online solar calculators, and marketing materials still display a 30% federal credit in their cost estimates. That figure no longer applies to new residential purchases in 2026. DC homeowners buying a solar system in 2026 should not include a federal income tax credit in their financial projections.

The financial incentives actually available in DC for a 2026 residential solar installation are:
1. SREC market income (ongoing, taxable, verify current prices)
2. Net metering bill credits (1:1 retail rate, no expiration of unused credits)
3. Property tax exemption on added assessed value (no current expiration)
4. Sales tax exemption on equipment

If you are exploring a solar lease or power purchase agreement (PPA) rather than purchasing the system outright, ask the installer in writing whether any federal commercial Investment Tax Credit (Section 48E ITC) is factored into their pricing — that is a separate commercial credit, not a residential purchaser benefit.

Question 14

What is a realistic payback period for solar in Washington, DC?

Accepted Answer

Payback period in DC depends on your specific electricity usage, roof characteristics, system size, SREC income (which fluctuates), and actual Pepco rate schedule. Any single payback figure cited without these details should be treated skeptically.

The DC factors that work in your favor:
- High electricity rates (~23–24¢/kWh blended), meaning each kWh your system produces saves more than in lower-rate states
- SREC income potential (roughly $350–$400 per SREC at recent prices, verify current market), representing several hundred to potentially several thousand dollars per year depending on system size — significantly accelerating payback
- Full 1:1 net metering with no credit expiration
- No federal residential tax credit applies to 2026 systems (Section 25D expired December 31, 2025), which is a headwind compared to systems installed before the expiration

Get multiple bids with full written projections. Ask each installer to show: the per-kWh rate used in their savings model, the annual production estimate in kWh/year (verified against NREL PVWatts for your address), and — critically — whether and how they are modeling SREC income, at what price per SREC, and how they handle SREC price uncertainty. The SREC assumption can swing the payback period significantly; treat any rosy SREC projection with appropriate skepticism and verify independently.

Solar Panel Calculator for Washington, D.C.

Estimate Your Solar Savings

Why Go Solar in Washington, D.C.?

SREC Market — DC Consistently Ranks Among the Highest-Value in the Country

No Net Metering Cap — Every Pepco DC Customer Qualifies

100% Property Tax Exemption on Added Value — No Expiration

Sales Tax Exemption on Solar Equipment

Common questions about going solar in Washington, D.C.