Summary of District of Columbia solar incentives 2021
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.
On this page, you can:
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Learn what solar incentives are available to District of Columbia homeowners
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See what District of Columbia solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or District of Columbia solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
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.
Net energy metering in District of Columbia
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.
District of Columbia solar rebates
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.
Solar for All program
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.
SRECs in Washington DC
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.
Property tax exemption
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.
Cost of solar panels in your part of District of Columbia after all applicable solar incentives
Showing data for:
Prices based on a 10.2kW system, after 26% federal tax credit
Solar prices near you
Payback period
9.5-11.6 years
Net profit (savings less system cost)
$43,460-$53,118
Average size system installed in DC in 2021
10.2kW
Solar panel cost calculator
Best 10 solar companies in District of Columbia
5 solar companies in District of Columbia provide pricing on SolarReviews. Here are the best rated companies near you.
4.56 20 Reviews
Latest review
Robert, over 1 month
Very good price, professionalism and response to needs
Read more
Latest review
Robert, over 1 month
Very good price, professionalism and response to needs
4.19 35 Reviews
Latest review
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.
Read more
Average cost (5kW system)
$42,750 ($8.55 per watt)
Latest review
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.
4.17 7 Reviews
Latest review
TC Annapolis, over 1 month
Circa Energy is a honest, fast working and diligent company that has just helped my family during a hard time with our solar panels. They were there for emergency work after a leak made its way into our bedroom. As this was during the pandemic, this was especially hard for me, to let someone in and trust their work. Yet, there was Chip, the owner, making sure we had someone fixing the roof all the while, taking good care of the panels, without hesitation. He helped to us to understand all the nuisances of solar panels and power. He was patient and understood that this was stressful and honestly, emotional, for me and my family. I always felt heard and respected. In the end, he and Elena, the COO, were wonderful to work with! I highly recommend them to work on your current or new solar panels!!
Read more
Latest review
TC Annapolis, over 1 month
Circa Energy is a honest, fast working and diligent company that has just helped my family during a hard time with our solar panels. They were there for emergency work after a leak made its way into our bedroom. As this was during the pandemic, this was especially hard for me, to let someone in and trust their work. Yet, there was Chip, the owner, making sure we had someone fixing the roof all the while, taking good care of the panels, without hesitation. He helped to us to understand all the nuisances of solar panels and power. He was patient and understood that this was stressful and honestly, emotional, for me and my family. I always felt heard and respected. In the end, he and Elena, the COO, were wonderful to work with! I highly recommend them to work on your current or new solar panels!!
3.75 1 Reviews
Latest review
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.
Read more
Latest review
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
Latest review
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.
Read more
Average cost (5kW system)
$24,800 ($4.96 per watt)
Latest review
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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