State solar guide
District of Columbia has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (verify at your assessment) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Washington DC offers full retail 1-to-1 net metering through PEPCO, the sole investor-owned utility serving DC residential customers. Credits roll forward each month and offset future bills with no annual reset, allowing indefinite accumulation of credit balances. There is no announced proposal to change DC's net metering structure as of June 2026. The net metering value is compounded by DC's exceptionally high retail rate of 23.97 cents per kWh, making each kilowatt-hour of self-consumed or net-metered generation worth more here than in any other state in this region.
PEPCO (Potomac Electric Power Company, the sole residential IOU in DC): full retail 1-to-1 net metering with no annual reset; credits accumulate indefinitely and offset future bills. PEPCO is the only investor-owned electric utility serving DC residential customers. There are no rural cooperatives or competing IOUs in the District. SREC income earned separately through DC's renewable portfolio standard market and is not part of net metering credit.
Program: NM1_full_retail. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific District of Columbia utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for District of Columbia homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| District of Columbia Solar Incentives State and local programs Incentive amounts and availability change frequently. Verify at dsireusa.org before relying on any program. | See description Solar for All Program: DC's income-qualified program provides solar at no cost or reduced cost for qualifying DC residents (homeowners and renters), aiming to serve 100,000 income-eligible families by 2032. This is a major differentiator for the DC market; income-qualified households can potentially receive solar at no upfront cost. Administered by the DC Department of Energy and Environment (DOEE). No general residential cash rebate is available from PEPCO as of June 2026 beyond the Solar for All program for qualifying households. | District of Columbia homeowners. Verify current programs at dsireusa.org. | Limited | DSIRE (opens in new tab) |
| District of Columbia Solar Property Tax Exemption Property tax exemption Confirm exemption filing requirements with your county assessor. | Exemption on solar-added home value (amount varies by local tax rate and system size) DC law exempts the added assessed property value from a solar installation from real property tax assessment. An application is required with the DC Office of Tax and Revenue, with proof of installation provided. The exemption applies to residential solar installations and reduces ongoing carrying costs. | District of Columbia residential property owners with qualifying solar installations. | Active | DSIRE (opens in new tab) |
| District of Columbia Solar Sales Tax Exemption Sales tax exemption Verify that your specific installation and municipality qualify for the District of Columbia sales tax exemption. | State sales tax savings on system equipment and installation DC does not charge sales tax on solar energy equipment, consistent with a general exemption for clean energy equipment. | District of Columbia homeowners purchasing qualifying solar energy systems. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Savings example
This example uses real District of Columbia market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
An 8 kW system at the EnergySage May 2026 DC average of $2.86 per watt costs approximately $22,880. The federal residential credit is zero (Section 25D expired December 31, 2025). DC has no local income tax credit for solar. The transformative economic factor in DC is the SREC market: at approximately $360 to $440 per MWh, this system producing approximately 8 MWh per year earns approximately $2,880 to $3,520 per year from SRECs alone. Adding electricity bill savings from full retail PEPCO net metering at 23.97 cents per kWh (the highest retail rate in this regional group) produces estimated combined annual value of $4,600 to $5,800, yielding an illustrative payback of approximately 5 to 6 years. SREC income requires brokerage; the estimate uses gross SREC proceeds before broker fees. The SACP declines from $440 in 2026 toward $300 by 2033, so earlier installations capture higher SREC prices over their early years. Figures are illustrative. Your in-home assessment will use your actual utility bill, roof space, and current SREC market price.
District of Columbia homeowner savings example (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Permit requirements in District of Columbia vary by municipality. Verify permit timelines and fees with your installer and local Authority Having Jurisdiction (AHJ).
Commercial solar in District of Columbia
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many District of Columbia business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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Frequently asked
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