Is Solar Worth It in Washington D.C.?

Your PEPCO bill keeps climbing. The average Washington D.C. homeowner pays about $0.13 per kilowatt-hour for electricity, and that rate has risen consistently over the past decade. Solar panels give you a way to lock in your energy costs for 25 years or more, and D.C. has some of the strongest financial incentives for solar in the entire country.

This guide covers what solar costs in D.C., what incentives are available right now, how long it takes to break even, and whether your home is a good fit. By the end, you’ll have the numbers you need to decide whether going solar makes sense for you.

Does Washington D.C. get enough sun for solar?

D.C. receives about 4.0 to 4.5 peak sun hours per day on average, enough to run a productive solar system year-round.

D.C. is not the sunniest city in the country, but it doesn’t need to be. Modern solar panels generate electricity efficiently in partly cloudy conditions, not just direct sunlight. The District gets more than 150 sunny days per year, and today’s high-efficiency panels, many producing 400 to 450 watts each, are designed to perform well in the mid-Atlantic climate.

Shade from trees or nearby buildings can reduce output, but a professional installer will evaluate your roof’s exposure before designing a system. If your roof isn’t ideal, D.C. also offers community solar options for renters and homeowners who don’t have south-facing roof space.

What does solar cost in Washington D.C.?

The average solar installation in D.C. costs about $3.01 per watt. A 5 kW system runs around $15,071 before any incentives.

Your actual cost depends on system size, panel brand, roof type, and any upgrades your installer recommends. A typical D.C. installation ranges from $12,810 to $17,332 for a 5 kW system. Larger systems for bigger homes scale proportionally.

Estimated costs and savings by system size

Source: EnergySage marketplace data. Savings estimates include net metering and SREC income projections.

These numbers shift depending on what incentives you qualify for. The federal Investment Tax Credit (ITC) covered 30% of system costs through December 31, 2025, but that credit has now expired following the passage of the One Big Beautiful Bill in July 2025. D.C.’s own incentive programs remain in place and still deliver strong financial returns.

What solar incentives are available in D.C. right now?

Even without the federal tax credit, D.C. homeowners have access to some of the most valuable solar incentives in the country. SRECs alone can return thousands of dollars per year.

Here’s a breakdown of what’s available:

DC Solar Renewable Energy Credits (SRECs)

SRECs are the standout incentive in D.C. Every time your solar panels generate 1,000 kWh of electricity, you earn one SREC. You can sell those SRECs to utility companies that need them to meet D.C.’s Renewable Portfolio Standard. As of 2024, each D.C. SREC sells for around $400, among the highest prices in the country. An 8 kW system that generates about 10 MWh per year can earn you roughly $4,000 annually just from SRECs, in addition to your utility savings.

Most homeowners work with an SREC aggregator or broker to handle the transactions. The D.C. Office of Energy and Environment (DOEE) provides more information on the program, and most local installers, including Solar Energy World, set up the SREC registration process as part of installation.

Net metering through PEPCO

PEPCO is the primary utility in D.C., and its net metering program is one of the most favorable in the region. When your panels produce more electricity than your home uses, the excess goes back to the grid and PEPCO credits that energy against future bills. Credits are valued at the full retail rate (about $0.13/kWh) and carry over month to month through the end of each calendar year.

This means you can build up credits during sunny summer months and draw them down in winter. You will still pay PEPCO’s fixed monthly service charge of about $18, but many D.C. homeowners with correctly sized systems pay close to nothing for actual electricity.

Property tax exemption

D.C. offers a 100% property tax exemption for the added home value from solar installations. If your home’s value increases by $20,000 after going solar, your property tax bill stays the same. This exemption runs for the life of your system and applies automatically once your installation is permitted and inspected.

Solar for All and Solar Advantage Plus

Income-qualified D.C. homeowners can access two additional programs. The Solar Advantage Plus Program (SAPP) provides up to $10,000 toward the cost of a 3 to 4 kW system for eligible low-income residents. The Solar for All program, administered by the D.C. Sustainable Energy Utility (DCSEU), goes further, covering the full installation cost for qualifying households and reducing their electricity bills by up to 50%.

Both programs are first-come, first-served. You can find eligibility requirements at the DC solar incentives page or contact the DOEE directly.

How long does it take for solar to pay for itself in D.C.?

The average payback period for solar in D.C. is about 4 years, one of the shortest in the country for a major metro area.

A 4-year payback on a 25-year system means you are generating free electricity for roughly 21 years after break-even. Over the full system lifetime, EnergySage estimates that the average D.C. homeowner saves more than $103,000 in electricity costs from an average-sized installation.

That figure is influenced by three factors that work together in D.C.: your savings on PEPCO bills each month, the SREC income your system generates, and the value of net metering credits that offset power you draw from the grid at night or in winter. The cost of solar in D.C. is moderate compared to what you save, especially when SREC income is factored in.

What if you don’t own your roof or have limited roof space?

Renters and condo owners in D.C. can participate in community solar projects, which the District calls Community Renewable Energy Facilities (CREFs). You subscribe to a share of an off-site solar array and receive credits on your PEPCO bill. There are no panels to install and no upfront equipment costs.

As of the end of 2023, there were 367 community solar installations active in D.C., according to DOEE data. Subscriptions are available through PEPCO’s community solar portal and do not require homeownership.

What about rooftop constraints and grid interconnection fees?

D.C. has a higher urban density than most places where solar is installed. Some homes have north-facing roofs, extensive shading, or older electrical panels that need upgrades before solar can be added. These factors can add cost, but they are manageable.

One issue specific to D.C.: roughly 15% of homeowners who apply for solar permits receive requests from PEPCO for grid interconnection upgrades, averaging about $9,560 in additional fees, according to a survey by the Chesapeake Solar and Storage Association (CHESSA). If your home is flagged for this, your installer can help you understand the options, including whether resizing your system reduces or eliminates the upgrade requirement.

Is solar worth it in D.C. today?

For most D.C. homeowners with a suitable roof, yes, solar is worth it. The combination of SREC income, net metering, and the property tax exemption creates a financial profile that is hard to match in other markets. Payback periods under five years are common, and the long-term savings are substantial.

The federal tax credit is no longer available for systems installed after December 31, 2025. That changes the first-year math but does not eliminate the case for solar. SREC income and utility bill savings still deliver strong returns. If you want to understand what current incentives apply to your specific situation, review the DC solar incentives overview and the latest changes to solar tax credits on the Solar Energy World blog.

The best way to know for certain is to get a customized estimate for your home. Your roof size, annual electricity usage, system size, and PEPCO service area all affect the numbers.

Find out what solar saves you in D.C.

Solar in Washington D.C. delivers some of the strongest financial returns in the country. SREC income, PEPCO net metering, and a full property tax exemption add up to real savings. The payback period is short. The long-term upside is significant.

Get a free, no-obligation solar estimate from Solar Energy World. We’ll calculate your expected monthly savings, SREC earnings, and total 25-year return based on your actual home, roof, and energy usage. It takes less than 5 minutes to get started.

Quick answers to common D.C. solar questions

Does D.C. get enough sun for solar to work? 

Yes. D.C. averages more than 150 sunny days per year and about 4.0 to 4.5 peak sun hours daily. Modern solar panels perform well in this climate.

What is an SREC and how does it work in D.C.? 

A Solar Renewable Energy Credit (SREC) represents 1,000 kWh (1 MWh) of solar electricity produced by your system. D.C. utilities must buy SRECs to meet the District’s renewable energy standard. You earn one SREC per MWh and can sell each for around $400 through an SREC broker. Learn more on the SRECs and net metering page.

Can I go solar if I rent or live in a condo? 

Yes, through D.C.’s community solar program. You subscribe to a share of an off-site solar array and receive PEPCO bill credits based on your share’s output. No installation is required.

What financing options are available for solar in Washington D.C.? 

You can purchase a system outright with cash or through a solar loan. Solar leases and Power Purchase Agreements (PPAs) let you start with $0 down, though you won’t own the system and won’t qualify for SRECs. Solar Energy World offers both purchase and lease options. Visit the solar tax credits page for more on how financing affects your incentives.