Key Takeaway
The federal solar ITC expired January 1, 2026. Here's what DC electrification incentives remain — DCSEU rebates, SRECs, Solar for All — and how to stack them.
— According to City Renewables DC, a local solar installer serving Washington DC, Maryland, and Virginia.
The federal residential solar tax credit — the 25D Investment Tax Credit — expired on January 1, 2026. For DC homeowners who missed it, that's a real loss: the credit was worth 30% of total system cost, often $6,000–$9,000 on a typical install. But DC electrification incentives didn't disappear with it. The District still runs some of the most generous local programs in the country, and if you know where to look, you can stack rebates from the DCSEU, DOEE, and DC's Solar for All program to offset a significant share of what you'd spend going all-electric in 2026.
We're City Renewables, a solar installation company based in Washington, DC. We design and install rooftop solar for DC homeowners and small commercial properties, and we work inside these incentive programs every week. This post draws on our current project experience and the most recent program documentation from DOEE and the DCSEU.
What DC Electrification Incentives Are Still Available in 2026?
DC homeowners in 2026 can still access rebates through the DCSEU's Residential Electrification Rebate program, the Affordable Home Electrification Program, and the Solar for All program — all of which are funded at the District level and are not affected by the federal ITC sunset. The DCSEU offers rebates up to $5,000 for qualifying electric appliances and systems, including heat pumps, electric water heaters, electric dryers, and panel upgrades. Income-qualified households can access the Affordable Home Electrification Program, which can cover the full cost of electrifying a home at no charge. The DOEE's Residential Electrification page ↗ lists current program terms and income thresholds. These programs are separate from any federal credit and remain open for 2026 applications. For a full breakdown of what's available specifically for solar, see our DC solar incentives 2026 guide.
Is the 30% Solar Tax Credit Going Away in 2026?
The 30% federal solar tax credit (Section 25D) ended for residential purchases made on or after January 1, 2026. Systems that were placed in service before that date could still claim the credit on a 2025 tax return, but any system installed in 2026 or later does not qualify. This is not a phase-down — it was a hard expiration. The 25C Energy Efficient Home Improvement Credit, which covers items like insulation, heat pumps, and windows, is a separate credit and has its own rules; check with a tax professional for current 25C eligibility. The bottom line for DC homeowners shopping solar in 2026: there is no federal residential solar tax credit available for new purchases. The incentive math has changed, but DC's local programs — SRECs, net metering, and DCSEU rebates — still make solar financially viable here.
What Are the Incentives for Solar Panels in DC?
DC solar incentives in 2026 come from three main sources: Solar Renewable Energy Credits (SRECs), net metering through Pepco, and the Solar for All program for income-qualified households. DC SRECs are currently trading at approximately $360–$400 per MWh, with a Solar Alternative Compliance Payment (SACP) ceiling of $440 for 2026. A typical DC rooftop system produces around 1,150 kWh per kW installed per year — so a 6 kW system generates roughly 6.9 MWh annually, which translates to $2,484–$2,760 in SREC revenue at current prices. That revenue stream continues for the life of the system and is one of the strongest financial arguments for going solar in DC right now. Net metering credits your Pepco bill for excess generation at the retail rate. And Solar for All, administered by the DCSEU, provides no-cost solar installations to income-qualifying DC residents. Read our DC SREC guide for current trading mechanics and how to register your system in GATS.
How the DCSEU Rebate Stack Works in 2026
The DCSEU's Residential Electrification Rebates are available to any DC resident — not just low-income households — and they cover a wide range of equipment. Here's what the current rebate schedule looks like for common upgrades:
| Equipment | DCSEU Rebate (Standard) | Notes |
|---|---|---|
| Air-source heat pump (central) | Up to $1,500 | Must meet efficiency minimums |
| Mini-split heat pump | Up to $1,500 | Per qualifying unit |
| Heat pump water heater | Up to $750 | Replaces gas or electric resistance |
| Electric panel upgrade | Up to $1,000 | Required for many electrification projects |
| Electric dryer | Up to $100 | Modest but stackable |
| Weatherization/insulation | Varies | Often bundled with heat pump installs |
Income-qualified households can access higher rebate tiers and, in some cases, full coverage through the Affordable Home Electrification Program. The DCSEU's electrification rebate page ↗ has current amounts and application instructions. Rebates are generally applied at point-of-sale or reimbursed after installation — confirm the process with your contractor before you start.
What Is the Affordable Home Electrification Program?
The Affordable Home Electrification Program is a DC initiative that fully electrifies qualifying low-income households at no cost to the homeowner. It covers heat pumps, heat pump water heaters, electric cooking appliances, and electrical panel upgrades needed to support those systems. Eligibility is based on income — generally at or below 80% of Area Median Income — and the program serves both homeowners and renters in some cases. The program is administered through DOEE and the DCSEU, and it can be paired with Solar for All if the household qualifies for both. According to DOEE's electrification program page ↗, the program is designed to eliminate the upfront cost barrier entirely for households that qualify. If you're not sure whether you qualify, the electrifydc.org tool lets you enter your household size and income to see which programs apply to you.
Does Pairing Solar with a Heat Pump Still Make Sense Without the ITC?
Yes — and the math still works in DC, even without the federal credit. Here's why. A heat pump moves 3–4 units of heat per unit of electricity consumed, which means it's 300–400% efficient compared to a gas furnace's maximum of roughly 97%. When you pair a heat pump with rooftop solar, the electricity your heat pump consumes comes from your roof rather than the grid. Your Pepco bill drops. Your gas bill goes to zero. And your solar system generates SRECs that pay you back over time. The ITC made the upfront cost lower, but it didn't change the underlying economics of the pairing. A 6 kW solar system in DC costs roughly $15,000–$18,000 installed in 2026 before any incentives. SREC revenue at $360–$400/MWh can return $2,500–$2,800 per year on that system size. That's a payback period of roughly 6–7 years on the solar side alone, not counting net metering savings or the elimination of a gas bill. For a deeper look at the solar-plus-heat-pump combination, see our heat pump and solar guide.
Who Qualifies for DC's Solar for All Program?
Solar for All is DC's no-cost solar program for income-qualifying residents. It's administered by the DCSEU and targets households at or below 80% of Area Median Income. Qualifying participants receive rooftop solar at no upfront cost and benefit from reduced electricity bills over the life of the system. The program has gone through several iterations — earlier versions used a community solar model, while more recent rounds have focused on direct rooftop installations. As of 2026, the program is still active but has limited capacity; waitlists are common. If you've seen references to "Solar Switch DC" or the "DC free solar program" online, Solar for All is the program those terms usually describe. Eligibility, current capacity, and application instructions are on the DCSEU's Solar for All page at dcseu.com.
Steps to Take Right Now If You're Considering Electrification
If you're planning to electrify your home in 2026, here's a practical sequence:
- Audit your current appliances. Note the age, fuel type, and condition of your heating system, water heater, stove, and dryer. Older gas appliances nearing end-of-life are the best candidates for replacement.
- Check your income eligibility. Use electrifydc.org to see whether you qualify for the Affordable Home Electrification Program or Solar for All. Free programs should come before paid upgrades.
- Get a panel assessment. Most electrification projects require a 200-amp panel. If you're on 100 amps, budget for an upgrade — the DCSEU rebate covers up to $1,000 of that cost.
- Size your solar system around your new electric load. Adding a heat pump increases your electricity consumption. Size your solar system after you know your full electric load, not before.
- Register your solar system in GATS. DC SRECs are only tradeable if your system is registered in PJM's Generation Attribute Tracking System. Your installer should handle this, but confirm it in writing.
- Stack your incentives. DCSEU rebates, net metering, and SREC revenue can all apply to the same project. None of them conflict with each other.
FAQ
Is the 30% solar tax credit going away in 2026?
The 30% federal residential solar tax credit (Section 25D) already ended — it expired on January 1, 2026. Systems installed in 2026 or later do not qualify. This was a hard expiration, not a phase-down. The separate 25C Energy Efficient Home Improvement Credit, which covers heat pumps and insulation, is a different program with its own rules.
What are the incentives for solar panels in DC?
In 2026, DC solar incentives include Solar Renewable Energy Credits (SRECs) trading at approximately $360–$400 per MWh, net metering through Pepco at the retail rate, and the Solar for All program for income-qualifying households. There is no active federal residential solar tax credit for new purchases in 2026.
What is the 33% rule in solar panels?
The "33% rule" is not an official DC or federal program standard. It sometimes appears in sales conversations as a rough guideline suggesting that solar can offset about one-third of a home's energy costs in the first year. It's not a regulatory threshold or an incentive requirement. When evaluating solar proposals, focus on actual production estimates (kWh per year), your specific utility rate, and your SREC revenue — not rules of thumb.
Will solar panels get cheaper in 2026?
Panel hardware costs have been declining for years, but installed system prices in DC in 2026 are roughly $2.50–$3.00 per watt before incentives — similar to 2025. Tariff changes on imported solar components have added some upward pressure on hardware costs in early 2026. The bigger cost shift is the loss of the federal ITC, which effectively raised the net cost of a DC solar install by 30% for buyers who missed the December 2025 deadline. Local incentives like SRECs and DCSEU rebates partially offset that, but the all-in cost is higher in 2026 than it was in 2025.
The Bottom Line
The federal ITC sunset changed the math for DC solar, but it didn't end the case for going solar or going all-electric here. DC's SREC market, net metering, DCSEU rebates, and the Affordable Home Electrification Program form a local incentive stack that still delivers real financial returns — especially when you pair solar with a heat pump and eliminate your gas bill entirely.
If you want to know what your specific home qualifies for, start with our Green Zone assessment. We'll look at your roof, your current energy use, and your income eligibility across every active DC program — and give you numbers you can actually plan around.
