Is solar worth it in District of Columbia?
For a typical District of Columbia home in 2026, solar is worth it: about a 4.7-year payback and $76,463 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 4.7 yrs6 kW, paying cash
- Electricity price
- 24.2¢per kWh, U.S. 18.0¢
- Solar production
- 1,391kWh per kW per year
- Exports credited at
- RetailFull retail net metering
The numbers for a typical District of Columbia home
| Electricity use | 629 kWh a month (District of Columbia average) |
|---|---|
| Best-value system | 6 kW, producing 8,348 kWh a year (111% of use) |
| Price | $22,400 at about $3.65/W |
| First-year savings | $1,822 |
| Payback | 4.7 years |
| 25-year net | $76,463 (20.2% a year return) |
| Rate increase assumed | 4.0% a year, from District of Columbia's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is expensive: 24.2¢ per kWh over the last 12 months, 35% above the U.S. average (18.0¢).
- Most utilities credit exported solar at or near the retail rate, so you get full value for midday surplus.
- A typical system here produces about 1,391 kWh per kW per year (ranked #24 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in District of Columbia
Full retail net metering. DC offers net metering through Pepco: exported electricity earns bill credits that roll over indefinitely. DC also has one of the most valuable solar REC (SREC) markets in the country, roughly $360 per MWh in 2026.
Systems up to 100 kW credited at full retail value (generation, transmission and distribution components) for net excess; larger systems credited at generation/supply value. Monthly netting with rollover.
- Netting: monthly
- Unused credits: Credits carry forward indefinitely; no annual expiration (verify Pepco tariff).
- System size limit: 1000 kW
- Fixed charges: Pepco DC customer charge applies; no special solar charge.
- Last major change: Clean Energy DC Omnibus Act (2019) and later net metering updates.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Pepco (Potomac Electric Power Co.) | ~100% of retail | Full retail net metering for systems <=100 kW. |
Solar incentives in District of Columbia
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| DC SRECs | srec | Solar systems earn ~1 SREC per MWh; 2025-2027 vintages traded near $360/MWh in mid-2026 (down from ~$400+). Solar ACP falling from $460 (2025) toward $360/MWh by 2030, capping future prices. Many installers buy SRECs upfront. Eligibility: Systems located in DC registered with PSC. | active |
| Solar for All (DC Sustainable Energy Utility) | low income | No-cost solar or community solar subscriptions for income-qualified households. Eligibility: Households at or below 80% AMI. | active |
| Solar property tax exemption | property tax exemption | Solar energy systems are exempt from DC real property tax assessment (D.C. Code 47-1508). Eligibility: Residential systems. | active |
What solar costs in District of Columbia
A fair cash price is around $3.65 per watt before incentives. For the 6 kW system that fits a typical home, expect roughly $18,600 to $26,300; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 21,479
- Share of homes
- 6.6%
- Residential solar capacity
- 207 MW
- Growth over the past year
- +61.1%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in District of Columbia
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Pepco | 324,763 | 23.5¢ | 761 kWh/mo | Worth it |
Solar by city in District of Columbia
Protect yourself when buying
- Check the license. DC Department of Licensing and Consumer Protection (DLCP) electrical contractor/master electrician license; home improvement contractor license. Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. Yes. DC law limits HOA/condo restrictions on solar (Solar access protections in Clean Energy DC; verify specifics).
- Community solar. Yes - DC community renewable energy facilities (CREF) program, very active.
Questions about solar in District of Columbia
Is solar worth it in District of Columbia in 2026?
For a typical District of Columbia home, solar is worth it. A 6 kW system costing about $22,400 after state incentives saves about $1,822 in the first year and pays back in about 4.7 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in District of Columbia?
A reasonable cash price is around $3.65 per watt before incentives, or roughly $18,600 to $26,300 for a 6 kW system.
Does District of Columbia have net metering?
DC offers net metering through Pepco: exported electricity earns bill credits that roll over indefinitely. DC also has one of the most valuable solar REC (SREC) markets in the country, roughly $360 per MWh in 2026.
Is there a solar tax credit in District of Columbia?
The 30% federal credit for homeowners ended for systems installed after 2025. District of Columbia does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.
How do I check a solar installer's license in District of Columbia?
DC Department of Licensing and Consumer Protection (DLCP) electrical contractor/master electrician license; home improvement contractor license.. Look up any installer with the state's license search at https://dlcp.dc.gov/.
Policy research current as of October 2026; sources include dcpsc.org, energysage.com, spglobal.com. Electricity data: EIA, through July 2026. Found something out of date? Tell us.