Solar Incentives and Rebates in the District of Columbia (2026): SRECs, Solar for All and Tax Breaks

The biggest solar incentive in the District of Columbia is its market for solar renewable energy credits (SRECs). DC SRECs were assessed at about $358 to $360 per megawatt-hour in August 2026, far higher than in most states. Income-qualified homeowners may also get no-cost solar through Solar for All, and the District offers a personal property tax exemption and net metering through Pepco. Here is what is available as of November 2026.

• DC SRECs were assessed near $358 to $360 per MWh in August 2026, but the District's solar alternative compliance payment is scheduled to fall from $460 for 2025 to $360 by 2030.
• Solar for All installs rooftop solar at no cost for income-qualified District homeowners, first come, first served and subject to funding; EnergySage reported a waitlist in mid-2026.
• DC law exempts systems that use only solar energy from personal property tax, which matters most for leased and third-party-owned systems.
• Pepco must offer net metering; credits carry forward, and the District caps a system at 1,000 kW.
• Systems completed after December 31, 2025, cannot use the federal 30% residential clean energy credit.

DC solar incentives at a glance

How DC SRECs work and what they pay

The District's renewable portfolio standard requires electricity suppliers to buy a set share of their power from local solar. Every megawatt-hour (1,000 kWh) your system makes earns one SREC. Suppliers buy SRECs to meet the rule. If they come up short, they pay a fee called the solar alternative compliance payment, which acts as a price ceiling.

That is why DC SRECs are worth so much. S&P Global reported on August 10, 2026, that its Platts unit assessed DC SRECs for the 2025, 2026 and 2027 vintages at about $358 to $360 per MWh as of August 6. EnergySage put 2026 prices at $360 to $400 per MWh in a guide updated September 29, 2026. As an illustration only, a 5 kW system making about 6 MWh a year would earn roughly $2,160 to $2,400 a year at $360 to $400 per MWh, before any broker fees.

Why SREC values may drop

Two trends point to lower prices over time:

• A falling ceiling. The compliance payment is scheduled to drop from $460 per MWh for 2025 to $360 by 2030.
• More supply. The District's 2026 RPS report counted 373.7 MW of eligible solar at the end of 2025, above a 293 MW target. S&P quoted a utility analyst saying that "indicates oversupply, which should lead to a decline in SREC prices."

EnergySage says most owners use a broker, who sells the SRECs and pays the owner. Compare broker terms and fees, and do not let an installer assume today's price will hold for 15 years.

Solar for All and other help for income-qualified households

Solar for All is run by the DC Sustainable Energy Utility (DCSEU). For single-family homes, it installs rooftop solar at no cost through local contractors. The installer maintains the system for 20 years, and roof repairs can be included if needed. The DCSEU says the system has the potential to offset electricity costs by as much as $500 a year.

You qualify if you take part in a program such as SNAP, TANF, LIHEAP, WAP or SSI, or if your household income is under the limit. For a four-person household, the limit is $131,100. The program is first come, first served and depends on funding. The DCSEU's page does not mention a waitlist, but EnergySage reported one for new applicants as of mid-2026, with fiscal 2026 funds largely reserved. Ask the DCSEU where things stand before you apply.

There is no broad battery rebate for all DC homeowners, according to EnergySage. The DCSEU's report for early 2026 said a single-family battery storage pilot was presented to the DC Energy Storage Working Group in March 2026; ask the DCSEU whether it has opened. Some guides also mention other income-qualified solar rebates, but we could not confirm a current one with the District, so ask the DCSEU or the Department of Energy and Environment directly.

Tax exemptions for solar in the District of Columbia

D.C. Code 47-1508(a)(11) exempts "systems using exclusively solar energy" from the District's personal property tax. That matters most for businesses and companies that own systems on someone else's roof, such as in a lease or power purchase agreement. Some industry guides say solar equipment is also exempt from DC sales tax, but we could not find that exemption in the District's sales tax law (D.C. Code 47-2005), so ask your installer how sales tax is handled on your contract.

On the federal side, the IRS says the residential clean energy credit is not allowed for expenditures made after December 31, 2025. Its August 2025 guidance says a solar expenditure counts as made when installation is complete, so a home system finished in 2026 does not qualify. Read more in is there still a federal solar tax credit.

Net metering as part of DC's solar incentives

Pepco is required to offer net metering; competitive electricity suppliers are not. Excess generation is credited in kilowatt-hours, and credits carry forward until they are used. At the end of each calendar year, any surplus above 100% of your yearly use is paid at the generation rate only, and Pepco issues a refund if that amount is over $25. Systems can be up to 1,000 kW. Our guide to net metering in the District of Columbia explains the details.

Questions to ask before you count on DC incentives

Because so much of a DC solar project's value can come from SRECs, the details in your contract matter more than in most places. Before you sign, ask:

• Who owns the SRECs? If you lease or sign a power purchase agreement, the company that owns the system usually keeps the credits. Make sure the savings estimate matches who gets paid.
• What SREC price does the estimate assume? A quote built on $400 per MWh for many years will look better than one built on a falling price. Ask to see the math at a lower price, too.
• Could you qualify for Solar for All? If you might qualify for a no-cost system, find out from the DCSEU where you stand before paying for one.
• How is the system sized? Year-end surplus is paid only at the generation rate, so extra panels earn less than the ones that cover your own use.

Our guide on how to compare solar quotes side by side shows how to line up offers.

How to apply for DC solar incentives

1. Check income programs first. If you might qualify for Solar for All, contact the DCSEU before you sign with a private installer.
2. Get your system certified for SRECs. Your installer or SREC broker usually handles registration so your system can earn credits.
3. Compare SREC brokers. Ask about fees, contract length and how often you are paid.
4. Confirm net metering paperwork. Your installer applies to Pepco for interconnection.
5. Review the full quote. Use our solar quote checker to test price and savings claims.

Is solar worth it in DC without the federal credit?

For many owners, SREC income still makes the math work, but it is less certain than it was. Prices have eased and the ceiling is falling, so build your budget on bill savings first and treat SREC income as a bonus. Check expected production on our District of Columbia solar panels page, and see how your rate compares on our DC electricity rates page.

Next steps

If you may qualify, contact the DCSEU about Solar for All. Otherwise, gather quotes with conservative SREC assumptions and check them with our solar quote checker.