DC Solar Overview
Washington DC has one of the most attractive solar markets in the country, thanks to an exceptionally valuable SREC market. DC's aggressive renewable energy standards have created premium SREC prices that make solar financially compelling even for smaller systems. Combined with Pepco's net metering, DC residents have excellent solar economics.
Pepco Programs
Pepco Net Metering
Pepco serves Washington DC with favorable net metering policies:
- Full retail credit: Excess generation credited at retail rate
- Monthly rollover: Credits carry forward
- System size limit: Up to 100% of annual usage
- Interconnection: Standard DC process
Pepco Rate Details
| Rate Component | Details |
|---|---|
| Average Rate | ~$0.13-0.16/kWh |
| Net Metering Credit | Full retail rate |
| Customer Charge | ~$7-10/month (not offset) |
| Rate Trend | Gradually rising |
DC SREC Market
DC's SREC market is the star of the show. The District's small geographic size and ambitious renewable standards have created premium SREC values.
DC SREC Details
- Value: $300-500+ per SREC (market fluctuates, often premium)
- Annual earning: ~7-8 SRECs for a 7 kW system
- Additional income: $2,100-4,000/year!
- Market driver: DC's solar carve-out in Renewable Portfolio Standard
Federal Tax Credit (2026 Update)
| Purchase Type | Federal Credit | Notes |
|---|---|---|
| Cash/Loan Purchase | None (25D expired) | Ended Dec 31, 2025 |
| PPA/Lease | 30% (48E) | Through Dec 2027 |
Costs & Savings in Washington DC
Typical System Costs
| System Size | Gross Cost | Est. Annual Value* |
|---|---|---|
| 5 kW | $15,000-17,000 | $2,200-3,500 |
| 7 kW | $21,000-24,000 | $3,100-4,800 |
| 10 kW | $30,000-34,000 | $4,400-6,800 |
*Includes electricity savings + SREC income; SREC values fluctuate
Savings Breakdown
- Electricity offset: $160-190/year per kW
- DC SREC income: $300-500/year per kW (market dependent)
- Total value: $460-690/year per kW
- Payback period: 3-6 years (with strong SREC market)
- 25-year savings: $50,000-90,000+
DC-Specific Considerations
Historic Districts
Much of DC is subject to historic preservation rules:
- HPRB review: Historic Preservation Review Board may need to approve
- Visibility restrictions: Street-visible panels may be limited
- Rear installations: Often easier to approve
- Flat roofs: DC row homes with flat roofs often avoid visibility issues
Row Homes & Townhouses
- Flat roofs: Very common in DC; good for ballasted systems
- Limited space: Row home roofs may limit system size
- High SREC value: Even smaller systems are worthwhile in DC
- Shared walls: No side-access needed for installation
Condos & Co-ops
- Building approval: Condo associations must approve
- Common area solar: Some buildings install shared systems
- Individual challenges: Individual rooftop access often limited
- Community solar: Alternative for condo owners
The Bottom Line
Washington DC has exceptional solar economics—among the best in the US.The premium SREC market, combined with Pepco net metering, creates 3-6 year payback periods. Even small systems on row home roofs can be highly profitable.
Best candidates: Any DC homeowner with viable roof space. The economics are so favorable that even modest systems make financial sense. Historic district requirements add complexity but are usually navigable.
Act while SREC values are high: DC's SREC market could change as more solar is installed. Current premium values make acting sooner rather than later advantageous for locking in attractive economics.
Small system? Still worth it: In markets with weak net metering, small systems struggle. In DC, even a 3-4 kW system on a row home roof can deliver excellent returns thanks to SREC income.
Questions About DC Solar?
Our AI can help you understand Pepco programs, DC SRECs, historic district rules, and whether solar makes sense for your District home.
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