Solar Incentives in District of Columbia
District of Columbia homeowners installing solar in 2026 have access to several active programs. The DC Solar Renewable Energy Credits (SREC) program, administered by the Public Service Commission, allows certified solar systems to earn one SREC per megawatt-hour generated; those credits are sold into a market at prices set by supply and demand, not by statute, because electricity suppliers must source at least 5.0% of retail sales from solar in 2026, rising to 15.0% by 2041. Income-qualified residents may apply to Solar for All, run by the DC Department of Energy and Environment, which provides no-cost solar installations or community solar subscriptions targeting a roughly 50% reduction in electricity bills. Net energy metering is available through Pepco under Public Service Commission oversight for systems up to 1,000 kW; compensation rates for exported generation vary and are governed by PSC net metering rules, not a single flat rate. Renters and those without suitable rooftops may subscribe to a Community Renewable Energy Facility for monthly bill credits. Additional support includes a 100% personal property tax exemption for qualifying solar equipment and a preserved real property tax exemption for solar use on exempt-institution properties under DC Code § 47-1005(e), amended by D.C. Law 26-55. DC PACE financing, administered by DC Green Bank, allows repayment of solar project costs through voluntary property tax assessments over up to 20 years.
The federal landscape shifted significantly for 2026 installations. The residential Clean Energy Credit under Internal Revenue Code § 25D — which had provided a 30% credit on eligible solar costs — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners completing a new residential solar installation in 2026 do not qualify for that federal credit. The loss of this incentive meaningfully extends payback periods compared to prior years, making the District's state-level programs and the local electricity rate environment more central to any financial analysis.
With residential electricity averaging approximately 25.00 cents per kilowatt-hour as of March 2026 — a notable increase of about 4.60 cents year-on-year — each kilowatt-hour of solar generation offsets a relatively high retail cost, which supports payback calculations even without the expired federal credit. SREC revenue, net metering credits, and avoided electricity costs together constitute the primary financial return for most DC homeowners in 2026.
All figures here are verified as of June 2026 against official sources; programs, credit rates, and eligibility rules change with each legislative session and utility rate case, and the Public Service Commission of the District of Columbia
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in District of Columbia
Solar Renewable Energy Credits (DC Renewable Portfolio Standard solar carve-out)
The District's renewable energy portfolio standard requires electricity suppliers to source a rising share of retail sales from solar energy: not less than 5.0% in 2026, climbing each year to 15.0% in 2041 and thereafter. Suppliers meet the solar requirement by buying solar renewable energy credits (SRECs) from certified solar energy systems no larger than 15 MW that are located in the District or in locations served by a distribution feeder serving the District, which sustains a local SREC market for system owners. Owners certify systems through the Public Service Commission's RPS Portal; under the Renewable Energy Portfolio Standard Amendment Act of 2024 (D.C. Law 25-217), legacy out-of-District systems certified before February 1, 2011 were decertified effective January 1, 2025, tightening the market to local solar.
| Amount | One SREC per MWh generated; market-priced (not fixed by statute). Solar requirement: 5.0% of retail sales in 2026, rising annually to 15.0% in 2041 and thereafter. |
|---|---|
| Who qualifies | Owners of solar energy systems no larger than 15 MW located within the District or served by a distribution feeder serving the District, certified by the DC Public Service Commission through the RPS Portal (as-built construction drawings required with each application). |
| Administered by | Public Service Commission of the District of Columbia |
Source: DC Code § 34-1432 (renewable energy portfolio standard); D.C. Law 25-217; PSC RPS Portal program page Official source →
Solar for All
Solar for All is the District's flagship income-qualified solar program, run by the Department of Energy and Environment with partner organizations. It installs solar on single-family homes and develops community solar projects serving renters and residents of multi-family buildings, with the goal of bringing solar benefits to 100,000 low-to-moderate-income District families. DOEE states that all participants should expect 50% savings on their electricity bill over 15 years. Participation is income-qualified; applicants check eligibility and apply at solarforall.doee.dc.gov.
| Amount | No-cost solar (single-family installations or community solar subscriptions) producing an expected 50% electricity bill savings over 15 years. |
|---|---|
| Who qualifies | Low-to-moderate-income District households (homeowners via single-family installs; renters and multi-family residents via community solar); income qualification determined by DOEE at solarforall.doee.dc.gov. |
| Administered by | DC Department of Energy and Environment (DOEE) |
Source: Program page; Solar for All Program established by DC Code § 8-1774.16 Official source →
Net Energy Metering
District law directs the Public Service Commission to operate a net energy metering program for eligible customer-generators — residential or commercial customers with on-premises generating facilities of not more than 1,000 kW that use renewable resources, cogeneration, fuel cells, or microturbines, are interconnected with Pepco's system, and primarily offset the customer's own electricity use. Meters must measure flow in both directions; when the customer draws more than they export in a billing period they are billed only for the net electricity, and when exports exceed consumption the customer may receive compensation under the Commission's net metering rules. Detailed crediting mechanics are set by Commission regulation rather than fixed in the statute.
| Amount | Net billing of consumption against exports each billing period; compensation for excess generation per DC PSC net metering rules (15 DCMR). |
|---|---|
| Who qualifies | Residential or commercial customers in the District with on-premises systems of not more than 1,000 kW using renewable resources (including solar), cogeneration, fuel cells, or microturbines, interconnected with the electric company and intended primarily to offset the customer's own load. |
| Administered by | Public Service Commission of the District of Columbia / Pepco |
Source: DC Code § 34-1518; customer-generator defined at DC Code § 34-1501(15) Official source →
Community Renewable Energy Facilities (community solar)
District law authorizes community renewable energy facilities (CREFs) — renewable generation located in the District whose output value is credited to subscribers, letting renters and households without suitable roofs benefit from solar. A CREF may produce no more than 5 MW, must have at least 2 subscribers, and a subscriber may offset no more than 120% of their prior 12 months' consumption (the 120% cap does not apply to Solar for All projects). Residential subscribers are credited at the full retail CREF credit rate (generation, transmission, and distribution charges); unused credit value carries over month to month until used, and all subscriber billing meters must be in the District.
| Amount | Monthly bill credits equal to the subscriber's allocated kWh times the CREF credit rate — full retail distribution rate for residential subscribers, standard offer service rate for commercial subscribers; excess credit value carries over month to month. |
|---|---|
| Who qualifies | District electric customers who subscribe to a CREF of up to 5 MW with at least 2 subscribers; subscriptions limited to 120% of the subscriber's previous 12-month consumption (except Solar for All projects). |
| Administered by | Public Service Commission of the District of Columbia / Pepco (SOS administrator credits subscribers) |
Source: DC Code § 34-1518.01; CREF and CREF credit rate defined at DC Code § 34-1501(9B), (12A) Official source →
Solar Energy System Personal Property Tax Exemption
Systems using exclusively solar energy, as defined in DC Code § 34-1431(14), are exempt from the District's personal property tax under DC Code § 47-1508(a)(11). The District's personal property tax applies to tangible business property, so this exemption chiefly benefits businesses and other entities that would otherwise report solar equipment on the FP-31 personal property tax return. Cogeneration systems producing both electricity and useful thermal energy are separately exempt under § 47-1508(a)(12) as of October 1, 2016.
| Amount | 100% exemption of qualifying solar energy systems from DC personal property tax. |
|---|---|
| Who qualifies | Owners of systems using exclusively solar energy as defined in DC Code § 34-1431(14); relevant to businesses and organizations subject to the District personal property tax. |
| Administered by | DC Office of Tax and Revenue |
Source: DC Code § 47-1508(a)(11) (solar); § 47-1508(a)(12) (cogeneration) Official source →
Real Property Tax Exemption Preserved for Solar, Storage, and EV Charging Use
Under DC Code § 47-1005, property of a tax-exempt institution that is used to produce rent or income is ordinarily put back on the tax rolls. Subsection (e), most recently amended by D.C. Law 26-55 (effective December 6, 2025), carves out buildings or grounds used for solar energy generation, energy storage (collection and storage of solar-generated energy, customarily via battery systems), solar energy management activities complying with Energy Star guidelines, or electric vehicle charging — these uses do not cost an exempt property its real property tax exemption. This is a narrow provision protecting tax-exempt institutions that host solar, storage, or EV charging, not a general homeowner exemption.
| Amount | Preservation of an existing 100% real property tax exemption when exempt buildings or grounds are used for solar generation, energy storage, solar energy management, or EV charging. |
|---|---|
| Who qualifies | Institutions, organizations, and entities whose real property is already exempt from DC real property taxation and that use buildings or grounds for solar energy generation, energy storage, Energy Star-compliant solar energy management activities, or EV charging. |
| Administered by | DC Office of Tax and Revenue |
Source: DC Code § 47-1005(e), as amended by D.C. Law 26-55, § 7222 (2025) Official source →
DC PACE (Property Assessed Clean Energy)
DC PACE finances energy improvements — including clean energy projects — for District property owners through voluntary special tax assessments attached to the property. Qualified owners opt in to project financing repaid on their property tax bill over terms of up to 20 years, and the assessment can stay with the property when it is sold. As of October 1, 2021 the program is administered by the DC Green Bank; DOEE remains the District's sponsoring agency.
| Amount | Project financing repaid through a voluntary property tax assessment; repayment terms up to 20 years; amounts set per project. |
|---|---|
| Who qualifies | Qualified District property owners (in practice commercial, multifamily, and institutional properties) undertaking energy efficiency or clean energy improvements; opt-in via DC Green Bank. |
| Administered by | DC Green Bank (program transitioned from DOEE October 1, 2021) |
Source: DOEE DC PACE program page Official source →
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Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.