GoSolarIndex

Washington D.C. Solar Incentives, SRECs & Net Metering (2026)

A

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.

ProgramAmount / BenefitStatus
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 AllNo-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 Systems100% 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 TypeFull retail rate
System Size LimitUp to 200% of 12-month historical usage
Rollover RulesExcess 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.

UtilityResidential rateCustomers
Potomac Electric Power Co16.58¢/kWh285,878
CleanChoice Energy, Inc.21.14¢/kWh6,940
SmartEnergy Holdings, LLC17.57¢/kWh4,186

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

A

Written by Aditya Patil