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Home solar in District of Columbia

DC still has the most valuable solar credits (SRECs) in the country, about $370 per 1,000 kWh in April 2026, on top of full-retail net metering, but the compliance-fee ceiling drops $20 a year and the Mayor has asked the Council to cut SREC costs.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

26.0¢average home price per kWh (EIA, August 2026)
Strong case for solarHigh power prices (about 26 cents/kWh in August 2026), full-retail bill credits and SREC income of several hundred dollars per 1,000 kWh make the numbers strong. Risks: SREC values are drifting down with the falling fee schedule and political pressure, and the free Solar for All rooftop program took no new single-family homes in FY2026.

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Net metering Net metering available

Pepco credits solar you send to the grid against your bill; for standard-offer (Pepco supply) customers, extra kWh roll to the next bill and no transmission or distribution charges apply to the kWh your panels make. At the end of each calendar year, output above 100% of your yearly use is paid at the generation rate only; a year-end credit over $25 is refunded, smaller credits keep rolling over. Systems may be up to 1,000 kW and, since 2024, sized up to 200% of your past 12 months of use. There is no program-wide cap. Source

  • 2024: allowed system size reached 200% of past 12-month usage (up from 120% in 2020)

Solar credits (SRECs) Market open

Every 1,000 kWh (1 MWh) a DC-sited system makes earns one SREC that you (or a broker) can sell to power suppliers, who must buy solar credits for 5.0% of sales in 2026, rising to 15% by 2041. The PSC reports suppliers paid an average of $407 per SREC in 2025 and SRECs traded around $370 in April 2026. The legal price ceiling (solar alternative compliance payment) is $440/MWh in 2026, falling $20 a year to $300 in 2033-2041, then $100 from 2042. Only systems located in DC (or on a feeder serving DC) qualify, and an SREC can be used for 5 years. Source

Rebates and incentives

DC SRECs (Renewable Portfolio Standard solar carve-out)

About $370 per 1,000 kWh (April 2026, PSC); ceiling $440/MWh in 2026, $420 in 2027, $400 in 2028

Solar systems located in DC, certified by the PSC

open performance payment Source

Solar for All (DOEE, run with the DC Sustainable Energy Utility)

No-cost solar for income-qualified households; goal is to cut their electric bills by at least 50%

Households at or below 80% of area median income (scaled by household size)

waitlist grant Source

Taxes

Property tax: partial: solar systems are exempt from DC personal property tax (DC Code 47-1508(a)(11)); this mainly helps businesses and third-party owners (leases, PPAs). No real property tax exemption for home solar was found.
Sales tax: none found: no DC sales tax exemption for home solar equipment was found. Source

Solar laws

  • CleanEnergy DC Omnibus Amendment Act of 2018 (DC Law 22-257) (2019). Requires 100% renewable electricity by 2032, raised the solar carve-out, and made solar credits last 5 years instead of 3. Effective 2019-03-22. Source
  • Local Solar Expansion Amendment Act of 2022 (DC Law 24-314) (2023). Raised the local solar requirement to 15% of sales by 2041 and set the falling SREC price-ceiling schedule ($500/MWh through 2023 down to $300 in 2033-2041, $100 from 2042). Effective 2023-03-10. Source
  • Renewable Energy Portfolio Standard, solar requirement (DC Code 34-1432) (2026). Solar share is 5.0% in 2026, 5.65% in 2027, rising about 0.65 points a year to 15% in 2041. Qualifying systems must be in DC (or on a feeder serving DC) and up to 15 MW. Source
  • Net metering and community solar (DC Code 34-1518; 15 DCMR Chapter 9) (2025). Sets net metering for systems up to 1,000 kW and community solar (CREFs) up to 5 MW; residential community solar subscribers are credited at the full retail rate, and credits roll over month to month. Source
  • Solar for All (DC Code 8-1774.16) (2016). Directs DOEE to bring solar savings to at least 100,000 low-income households by 2032-12-31, funded by SREC compliance fees. Source
  • DOB solar permits (Solar Instant Permit and Solar Self-Certification) (2026). Most one- and two-family homes can get a Solar Instant Permit online with a third-party inspection; homes that do not qualify (such as historic properties) use the Permit Wizard, and DOB aims to finish solar plan reviews in 10 business days. Source

Community solar

Available: at the end of 2025 DC had 457 community solar projects (72.7 MW) serving 11,892 subscribers, with residential subscribers credited at the full retail rate.

Timeline

  1. Solar for All created (goal: 100,000 low-income households by 2032).
  2. CleanEnergy DC Omnibus Act takes effect: 100% renewable by 2032; solar credits last 5 years.
  3. Local Solar Expansion Act takes effect: solar carve-out to 15% by 2041; SREC price ceiling begins falling in 2024.
  4. Net metering system size limit reaches 200% of past usage.
  5. Out-of-District solar systems certified before Feb 2011 lose DC SREC eligibility.
  6. DOEE tells the DCSEU advisory board there are no new single-family Solar for All projects in FY2026 after budget cuts.
  7. DC has 373.7 MW of certified solar on 19,915 systems; suppliers paid an average of $407 per SREC in 2025.
  8. Mayor Bowser's FY2027 budget letter asks the Council to 'rightsize' SREC costs (says SRECs add about $20/month to bills).
  9. SREC price ceiling $440/MWh; solar requirement 5.0%.

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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