The nation’s capital is gearing up for a brighter future with its climate and energy plan. It plans to cut greenhouse gas emissions in half by 2032, so you can be sure that they’re taking solar seriously. DC already has a few incentives in place to help households go solar.
Solar Renewable Energy Certificates (SRECs)
D.C. residents can sell the Solar Renewable Energy Certificates(SRECs) that their panels generate for up to $500 per megawatt-hour (MWh). What that means to you: if you install a 5 kilowatt (kW) system that generates 5 MWh per year, you could earn as much as $2,500 annually by selling your certificates in the SREC market. Utilities will purchase SRECs to meet D.C.’s Renewable Portfolio Standard (RPS) goal of sourcing 10 percent of its electricity needs from solar sources by 2040.
Property tax exemptions
Thanks to the Solar Energy System and Co-generation System Personal Property Tax Credit, you can also avoid paying any additional property taxes on the value you are adding to your house by installing that solar energy system.
When you put solar panels on your roof, you want to make sure you get credit for all of the power your system generates. Luckily, Washington D.C. has a net metering policy that credits you for the extra electricity your system produces, and allows you to use those credits when your system doesn’t generate enough power. Pepco (Potomac Electric Power Company) offers the top utility net metering program in the D.C. area.
Federal Tax Credit
Need more incentives to go solar? How about the Federal Solar Investment Tax Credit?
The Solar Investment Tax Credit, known as the ITC, offers a percentage tax credit towards the cost of purchasing and installing your solar panel system. Currently the Federal ITC is 30%, but that is set to change in 2020.