There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Washington D.C. now has the nation’s most aggressive Renewable Portfolio Standard, and a nice solar carve-out to boot. That means the district requires utilities here to source a huge chunk of their electric mix from renewable energy sources, like the solar panels on your rooftop.
If you’re lucky enough to own any kind of property here with a view of the sun (south, east, or west-facing), it makes a lot of sense to connect with installers who can turn keys to make your installation happen. There are also new low and moderate income programs for solar energy here that are second to none.
Read on to learn all you need to know about investing in home solar power in Washington D.C.
Learn what solar incentives are available to District of Columbia homeowners
See what District of Columbia solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or District of Columbia solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in District of Columbia
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.
Pepco (D.C.’s only electric utility) offers a standard net metering contract to all residential customers. For all systems under 100 kW, all surplus electricity is credited to your next bill at the full retail rate. Surplus may be carried over indefinitely. All that is superb, and net metering is very strong for residential customers here.
Unfortunately, Washington D.C. no longer offers any cash rebates to people who purchase solar panels. There are still a few nice incentives available in the District, though.
First established in 2016, Washington D.C.’s Solar For All Program has a goal of bringing the benefits of solar to 100,000 low- and moderate-income households by the year 2032.
The program provides community solar shares to homeowners and renters who are at 80% of area median income or below, currently around $100k for a family of 4. The program promises a 50% reduction in utility bills over a 15-year subscription.
For more information about the program, visit the program manager’s website, the D.C. Sustainable Energy Utility (DCSEU), an independent non-profit utility, and overseen by the D.C. Department of Energy and Environment (DOEE).
As this is a community solar program, you don’t even need to have a property with solar panels on it to qualify for this program. You simply see if you’re eligible, and enroll to get your solar shares at an offsite facility which then credits your utility bills over the next 15 years.
In addition to creating electricity, your solar panels create solar renewable energy certificates (SRECs). SRECs are proof of the green value of electricity, and your utility company can buy them from you to avoid hefty alternative compliance fees from the local government for not meeting their clean energy goals.
Since the solar energy carve out of the RPS is so strong in DC, the alternative compliance fees are relatively high. Therefore, SREC prices here are around $400 per SREC. If you have a 6kW system, you can generate about 8 of them a year and sell them for cool $3,100 over the first year.
Until the state’s solar carve out is met, you can expect a similar amount annually over the 15 year term of your SREC sale agreement ! For this 6kW solar system example, your cumulative SREC profits can amount to roughly $35,000. That’s a huge reward as a solar panel owner in Washington DC.
We can stand up and applaud that the District gives you a 100% property tax exemption on all that extra home value you get from your solar power.
Showing data for:
Prices based on a 10.2kW system, after 26% federal tax credit
5 solar companies in District of Columbia provide pricing on SolarReviews. Here are the best rated companies near you.
4.56 20 Reviews
Robert, 1 week ago
Very good price, professionalism and response to needs
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Robert, 1 week ago
Very good price, professionalism and response to needs
4.25 5 Reviews
Can't Stop Smiling, over 1 month
I met Elena and I had a hard time making up my mind about solar panels. After she showed me why I should go with Circa Energy I pondered more with why I should go green and could never get over how patient and caring Elena was with what I wanted. I am looking forward to seeing what the end of the matter will be. However, no matter how it turns out, I'm happy to have met Elena.
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Can't Stop Smiling, over 1 month
I met Elena and I had a hard time making up my mind about solar panels. After she showed me why I should go with Circa Energy I pondered more with why I should go green and could never get over how patient and caring Elena was with what I wanted. I am looking forward to seeing what the end of the matter will be. However, no matter how it turns out, I'm happy to have met Elena.
4.19 35 Reviews
Anonymous, over 1 month
Borrego Solar sold off their residential business. The people that they sold it to have folded. No one responds to my inquires about system warranty service. Up a $35000.00 creek without a paddle it seems.
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Average cost (5kW system)
$42,750 ($8.55 per watt)
Anonymous, over 1 month
Borrego Solar sold off their residential business. The people that they sold it to have folded. No one responds to my inquires about system warranty service. Up a $35000.00 creek without a paddle it seems.
3.75 1 Reviews
Anonymous, over 1 month
Our experience with Solar Solution has been consistently positive from the quotation/bidding phase through the time of installation and subsequent customer service follow ups. Our 14 panel solar array (3.22 kW) was installed in one day back in April 2011. It has proven to be one of the best investments that we have ever made. <br /><br />The financial incentives in the District of Columbia are so attractive that I if you have a suitable location with plentiful hours of sun you are crazy not to look at solar power. The payback period for our set up was originally 5.6 years but with the recent major increase in value of Solar Renewable Energy Credits (SRECs) this will be shortened. Solar Solution managed (and continue to manage) the whole SREC payment process as well as ensuring that we received the DC Credit of 30% of the total installation costs. The Federal Gov pays another 30% Solar Solution provided all of the necessary paperwork and follow up. In addition, Solar Solution were very helpful in dealing with their contacts in PEPCO to expedite the installation of the new 'smart' meter that is part of a solar installation.<br /><br />We've had a couple of very minor issues since installation and the company responded immediately to address the issues. In short, Atta and his crew are great to work with and we would recommend them to anyone considering solar power without hesitation.
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Anonymous, over 1 month
Our experience with Solar Solution has been consistently positive from the quotation/bidding phase through the time of installation and subsequent customer service follow ups. Our 14 panel solar array (3.22 kW) was installed in one day back in April 2011. It has proven to be one of the best investments that we have ever made. <br /><br />The financial incentives in the District of Columbia are so attractive that I if you have a suitable location with plentiful hours of sun you are crazy not to look at solar power. The payback period for our set up was originally 5.6 years but with the recent major increase in value of Solar Renewable Energy Credits (SRECs) this will be shortened. Solar Solution managed (and continue to manage) the whole SREC payment process as well as ensuring that we received the DC Credit of 30% of the total installation costs. The Federal Gov pays another 30% Solar Solution provided all of the necessary paperwork and follow up. In addition, Solar Solution were very helpful in dealing with their contacts in PEPCO to expedite the installation of the new 'smart' meter that is part of a solar installation.<br /><br />We've had a couple of very minor issues since installation and the company responded immediately to address the issues. In short, Atta and his crew are great to work with and we would recommend them to anyone considering solar power without hesitation.
3.75 1 Reviews
Anonymous, over 1 month
This is a reputable company. Rep Brian Gonzalez made the whole process smooth and hassle-free. I'm very happy with my solar panels and enjoying a $9 a month power bill.
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Average cost (5kW system)
$24,800 ($4.96 per watt)
Anonymous, over 1 month
This is a reputable company. Rep Brian Gonzalez made the whole process smooth and hassle-free. I'm very happy with my solar panels and enjoying a $9 a month power bill.
Dan Hahn
February 11, 2021
Learn how the White House has used solar energy, beginning with the Carter Administration to the present Biden Administration as a symbol for national clean energy policy.
Ben Zientara
January 26, 2021
This annual report ranks the states for friendliness to home solar based on their net metering programs.
Ben Zientara
July 2, 2020
Across the US, several states have programs that provide free solar panels for low-income households.
Ben Zientara
January 21, 2019
A solar carve-out is a law that sets a specific goal for electricity generation from solar panels. Solar carve-outs in the United States often include incentives that reward solar owners for the energy their panels generate. The incentives can be worth th
Catherine Lane
March 5, 2021
Agrivoltaics combines solar with farmland to help farms save on their electricity bills and even produce more crops.