Washington D.C. Solar Incentives, SRECs & Net Metering (2026)
Written by Aditya Patil · Last updated 2026-09-24
Going solar in Washington D.C. offers a rare combination of excellent policies. Between Pepco's true one-to-one net metering and some of the highest Solar Renewable Energy Credit (SREC) values in the country, the District is one of the most profitable places to own a solar system.
$145
Avg. monthly bill
24.39¢/kWh
Avg. rate
Full retail rate
Net metering
1:1 credit for exports
Available
SRECs
High market demand
System pricing in the District
Because Washington D.C. is a unique, dense urban market with a mix of historical rowhouses, flat roofs, and complex permitting requirements, average statewide pricing metrics often don't accurately reflect what an individual homeowner will pay. Installations may require specialized racking or upgrades, making project costs highly specific to your property.
However, the overall financial picture is heavily subsidized by the D.C. SREC market and robust local incentives. While the upfront gross cost might be higher than in sprawling suburban states, the long-term payback is frequently superior. To get an accurate sense of cost and payback, we recommend using the solar calculator with a custom quote tailored to your specific roof.
Incentives, SRECs & rebates
D.C. residents benefit from powerful local incentives, most notably the SREC program, which pays you ongoing income for the clean energy your system produces.
| Program | Amount / Benefit | Status |
|---|---|---|
| Solar Renewable Energy Credits (SRECs) | Variable market rate. You earn 1 SREC for every 1 MWh (1,000 kWh) of solar energy produced. Because of D.C.'s aggressive Renewable Energy Portfolio Standard and solar carve-out, SREC prices in the District are historically among the highest in the country. | open |
| Solar for All | No-cost solar installations for income-qualified homeowners, designed to cut electric bills by at least 50% for 15 years. | open |
| Personal Property Tax Exemption for Solar Energy Systems | 100% exemption from personal property tax for the value of the solar energy system, preventing the installation from increasing your property tax assessment. | open |
Net metering / export rules
Washington D.C. offers full retail net metering for residential and commercial customers. Through Pepco, customers receive a one-to-one credit at the full retail rate (including generation, transmission, and distribution charges) for any excess solar electricity sent back to the grid.
| Policy Type | Full retail rate |
| System Size Limit | Up to 200% of 12-month historical usage |
| Rollover Rules | Excess credits roll over indefinitely |
Exported energy is credited at the full retail rate. Systems can be sized up to 200% of the customer's historical 12-month energy usage. Excess credits roll over indefinitely to future billing cycles.
Top utility providers
Pepco is the primary utility for D.C., but residents may also see alternative energy suppliers operating within the District.
| Utility | Residential rate | Customers |
|---|---|---|
| Potomac Electric Power Co | 16.58¢/kWh | 285,878 |
| CleanChoice Energy, Inc. | 21.14¢/kWh | 6,940 |
| SmartEnergy Holdings, LLC | 17.57¢/kWh | 4,186 |
Batteries & Virtual Power Plants
Energy Wise Rewards
Pepco's demand-response program allowing the utility to cycle central air conditioners or heat pumps during high demand. A dedicated VPP/DERMS pilot for batteries is under development by the DCPSC but is not yet open to individual customers.
Lease vs. Buy in D.C.
In Washington D.C., owning your system outright (via cash or a solar loan) is highly recommended over a lease or Power Purchase Agreement (PPA). If you lease a system or use a PPA, the third-party installation company retains the rights to your system's SRECs. Because D.C. SRECs are so valuable, relinquishing them to a third party means you lose out on thousands of dollars of potential income.
Estimate your own numbers
Ready to see how the numbers stack up for your property? Use the solar calculator with your own usage and project details.
FAQ
Are solar panels worth it in Washington D.C.?
Absolutely. Washington D.C. represents one of the strongest financial markets for solar in the country. Thanks to full retail net metering from Pepco and an extremely lucrative Solar Renewable Energy Credit (SREC) market driven by the District’s aggressive clean energy mandates, solar installations often see rapid payback periods and significant long-term returns.
How does net metering work in D.C.?
The District mandates full retail net metering. This means for every excess kilowatt-hour of solar electricity you export back to the grid, you receive a one-to-one credit at your full retail electricity rate. These credits roll over indefinitely, and you are allowed to build a system that offsets up to 200% of your historical 12-month energy usage.
What are D.C. SRECs and why are they so valuable?
You earn one Solar Renewable Energy Credit (SREC) for every 1 MWh (1,000 kWh) of solar electricity your system generates. Utility companies are required to buy these credits to meet D.C.’s Renewable Energy Portfolio Standard. Because the local solar carve-out is aggressive, D.C. SRECs command some of the highest prices in the nation, providing a substantial ongoing income stream for system owners.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil