DC's Renewable Energy Standard Explained: What the RPS Means for Homeowners

DC's renewable energy standard requires electricity suppliers to source 100% of their retail sales from renewable energy by 2032 — and that mandate is the direct reason DC Solar Renewable Energy Certificates (SRECs) trade at roughly $360–$400 per MWh today, one of the highest rates in the Mid-Atlantic. If you own a home in the District and are thinking about solar, the RPS is the policy engine behind almost every financial incentive you will encounter.

We are City Renewables, a solar installation company based in Washington, DC. We design and install rooftop systems on DC rowhouses, detached homes, and small multifamily buildings. The numbers and program names in this post come from our day-to-day work with DC homeowners and from primary sources including the DC Public Service Commission (DCPSC) and the DC Department of Energy and Environment (DOEE).

What Is the DC Renewable Energy Standard?

The DC Renewable Energy Standard (RPS) is a legal requirement, codified at DC Code § 34-1431 ↗, that obligates every retail electricity supplier operating in the District to procure a set percentage of their power from eligible renewable sources each year. The standard was originally established in 2005 and has been strengthened several times — most significantly by the CleanEnergy DC Omnibus Amendment Act of 2018 ↗, which raised the final target to 100% renewable by 2032 and created a dedicated solar carve-out. That solar carve-out is the piece that matters most to homeowners. It requires suppliers to meet a specific share of their obligation using solar energy generated inside the District, which is why DC SRECs carry a premium over generic renewable energy credits. The DCPSC oversees compliance and publishes annual RPS reports tracking how suppliers are meeting their targets. Suppliers that fall short pay an alternative compliance payment — the Solar Alternative Compliance Payment (SACP) — currently set at $440 per MWh for 2026. That ceiling effectively sets the upper bound on what your SRECs can ever be worth in a given year.

How Does the RPS Create Value for Rooftop Solar Owners?

The RPS creates value for homeowners because it generates demand for the certificates your solar panels produce. Every 1,000 kWh your system generates creates one SREC. Electricity suppliers must buy enough SRECs to satisfy their solar carve-out obligation or pay the $440 SACP instead. Because buying SRECs is almost always cheaper than paying the SACP, there is a real, liquid market for the certificates your roof produces. As of spring 2026, DC SRECs are trading around $370 per MWh on platforms like Flett Exchange ↗ and SRECTrade. A typical DC rooftop system produces roughly 1,100–1,200 kWh per kW installed per year. A 7 kW system generates approximately 7,700–8,400 kWh annually — meaning 7 to 8 SRECs per year. At $370 each, that is $2,590–$2,960 in annual SREC income on top of your electric bill savings. That income stream is the most DC-specific financial benefit of going solar, and it exists entirely because of the RPS. For a deeper look at how to register and sell your certificates, see our DC SREC guide.

What Is the Solar Carve-Out and Why Does It Matter?

The solar carve-out is a sub-requirement within the broader RPS that mandates a specific percentage of retail electricity sales come from solar — and specifically from solar located in the District or in a limited set of adjacent jurisdictions. For 2026, the solar carve-out sits at 10% of total retail sales, rising incrementally toward the 2032 target. This geographic restriction is what keeps DC SREC prices elevated compared to states with broader carve-outs. A solar panel on a rooftop in Maryland generates a Maryland SREC, which trades at a fraction of DC prices because Maryland's market is larger and less constrained. Your DC address is, in a real sense, a financial asset when it comes to solar. The carve-out also covers community solar subscriptions, which is relevant if your roof is shaded or you rent — more on that below.

Does the RPS Affect Your Electric Bill Directly?

Yes, and the effect is not always positive in the short term. Electricity suppliers pass their RPS compliance costs on to ratepayers through the rates they charge. A June 2026 analysis by MidCity DC News noted that DC has seen sharper utility rate increases than much of the Mid-Atlantic, partly tied to the cost of meeting the RPS and related clean energy mandates. The 2018 CleanEnergy DC Omnibus Amendment Act stripped an affordability provision that would have capped rate impacts, a decision that continues to draw criticism from consumer advocates. So the RPS raises rates modestly for everyone — but it simultaneously creates the SREC income stream that makes rooftop solar financially attractive for those who can install it. The net result for a solar homeowner is almost always positive: SREC income plus net metering credits typically outweigh the marginal rate increase tied to RPS compliance. For a full breakdown of what DC solar actually costs and saves in 2026, see our DC solar incentives guide.

What Is DC Net Metering and How Does It Connect to the RPS?

DC net metering is a separate but complementary policy that credits solar homeowners for excess electricity they send back to the grid. Under DC's current net metering rules, Pepco credits excess generation at the full retail rate — roughly $0.13–$0.15 per kWh depending on your rate class. Net metering does not generate SRECs; it reduces your electric bill. The RPS and net metering work together: the RPS creates SREC income, and net metering reduces your monthly charges. Both are governed by DC law and overseen by the DCPSC. DC Code § 34-1432 covers net metering specifically. One important nuance: net metering credits roll over month to month but are reconciled annually, so oversizing your system beyond your annual consumption produces diminishing returns on the net metering side. Your SREC income, however, is not capped by your consumption — you earn certificates for every kWh you generate regardless of whether you use it or export it.

Who Qualifies for Solar for All DC?

Solar for All is a DC program administered by DOEE that provides free or heavily subsidized rooftop solar to income-qualified homeowners. To qualify for the single-family rooftop track, your household income must be at or below 80% of the Area Median Income (AMI). As of mid-2026, FY 2026 applications are being placed on a waitlist due to high demand — you can apply through the DCSEU application portal ↗. The program covers installation costs that would otherwise run $20,000–$35,000 for a typical DC rowhouse system. Participants still benefit from net metering and, depending on program structure, may retain some or all of their SREC income. Solar for All is funded in part by the Renewable Energy Development Fund, which is itself a creature of the RPS legislation. If you do not qualify for Solar for All, the Solar Advantage Plus program offers rebates for moderate-income households. Both programs exist because the RPS created the policy and funding infrastructure that made them possible.

How Does Community Solar Fit Into the RPS Framework?

Community solar allows DC residents who cannot install rooftop panels — renters, condo owners, or homeowners with heavily shaded roofs — to subscribe to a share of a larger solar array and receive bill credits. Community solar projects in DC generate SRECs just like rooftop systems, and those SRECs count toward the RPS solar carve-out. Subscribers typically save 5–15% annually on their electric bills through the credits applied by their utility. DOEE maintains a list of approved renewable energy service providers ↗ that includes community solar options. Community solar does not generate SREC income for the subscriber — the project developer retains the certificates — but it does let you participate in the clean energy economy the RPS created without owning panels. If you are on the fence between rooftop and community solar, the financial comparison usually favors rooftop ownership for homeowners who have a usable south- or west-facing roof with limited shading.

RPS Compliance Milestones and the Path to 100%

The DC RPS follows a scheduled ramp-up toward 100% renewable by 2032. Here is where the targets stand:

Sources: DCPSC RPS Reports; DC Code § 34-1431. Note that SACP levels are set by regulation and subject to revision.

As the solar carve-out percentage rises each year, demand for DC SRECs increases. More suppliers need more certificates. If DC solar capacity does not grow proportionally, prices stay elevated — which is good for existing system owners. If capacity grows faster than the carve-out, prices soften. The DCPSC publishes annual RPS compliance reports that track how close the market is to each threshold.

Key Steps to Benefit From the DC RPS as a Homeowner

If you want to turn the RPS into actual dollars, here is the practical sequence:

1. Get a site assessment. Confirm your roof has adequate solar access — south or west facing, minimal shading between 9 a.m. and 3 p.m. Our Green Zone assessment is a good starting point.
2. Choose your ownership structure. Purchased systems generate SRECs you own outright. Leased systems typically assign SREC rights to the installer — read contracts carefully.
3. Register with PJM-GATS. The Generation Attribute Tracking System (GATS) is the registry where DC SRECs are created and tracked. Your installer handles this at commissioning.
4. Select an SREC aggregator or broker. Platforms like Flett Exchange and SRECTrade let you sell certificates on the spot market or lock in multi-year contracts.
5. File for net metering with Pepco. Your installer submits the interconnection application; Pepco installs a bidirectional meter.
6. Check income-based programs. If your household is at or below 80% AMI, apply for Solar for All through DCSEU before committing to a purchased system.
7. Track your production annually. One SREC is issued per 1,000 kWh generated. Monitor your inverter data to confirm GATS registration matches actual output.

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FAQ

What is the DC Renewable Portfolio Standard?

The DC Renewable Portfolio Standard (RPS) is a law under DC Code § 34-1431 that requires all retail electricity suppliers in the District to source a rising percentage of their power from renewable energy, reaching 100% by 2032. It includes a solar carve-out that specifically requires a portion of that renewable energy to come from solar installations in or near the District.

What does the DC RPS mean for homeowners with solar panels?

For homeowners with solar panels, the DC RPS creates demand for Solar Renewable Energy Certificates (SRECs). Each 1,000 kWh your system generates produces one SREC, which you can sell to electricity suppliers who need them to meet their RPS obligation. In 2026, DC SRECs trade at roughly $360–$400 per MWh, generating meaningful annual income on top of electric bill savings.

What is the Solar Alternative Compliance Payment in DC?

The Solar Alternative Compliance Payment (SACP) is the penalty electricity suppliers pay when they cannot source enough solar SRECs to meet their carve-out obligation. For 2026, the DC SACP is set at $440 per MWh. It functions as a price ceiling for SRECs — certificates will not trade above this level because suppliers would simply pay the penalty instead.

How does DC net metering work with the RPS?

DC net metering and the RPS are separate policies that work together. Net metering credits you at the full retail rate (roughly $0.13–$0.15/kWh) for excess solar electricity you send to the grid, reducing your electric bill. The RPS creates SREC income from your total generation. You benefit from both simultaneously — net metering cuts your bill, and SRECs provide a separate revenue stream.

Who qualifies for Solar for All DC?

Solar for All DC is available to homeowners whose household income is at or below 80% of the Area Median Income (AMI). The program covers installation costs for rooftop solar at no charge to qualifying households. As of mid-2026, FY 2026 applications are on a waitlist. You can apply through the DCSEU at dcseu.com/ahep-sfa-apply.

Does the DC RPS raise electricity rates?

Yes, modestly. Suppliers pass RPS compliance costs on to ratepayers through utility rates. A June 2026 report noted DC has seen steeper rate increases than much of the Mid-Atlantic, partly due to clean energy mandates. For homeowners who install solar, SREC income and net metering credits typically more than offset the marginal rate increase tied to RPS compliance.

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The Bottom Line

The DC renewable energy standard is not abstract policy — it is the mechanism that puts real dollars in your pocket when you go solar in the District. The solar carve-out drives SREC prices, the Renewable Energy Development Fund backs programs like Solar for All, and net metering rules determine how your excess generation is valued. Understanding how these pieces connect helps you make better decisions about system size, ownership structure, and which incentive programs to pursue.

If you want to know whether your specific roof qualifies and what a system would actually produce and earn under current 2026 conditions, start with our Green Zone assessment. It takes about two minutes and gives you a site-specific production estimate before you talk to anyone about a contract.