The DC Solar
Incentives Guide

The Federal 30% Tax Credit

The Residential Clean Energy Credit lets you subtract 30% of your solar system's installed cost directly from your federal tax bill. It's a credit, not a deduction — dollar-for-dollar.

Who qualifies

• You own the home (primary residence or secondary)
• You purchase the system outright (cash or loan) — not a PPA or lease
• The system is installed and placed in service in the tax year claimed

What counts toward the 30%

• Solar panels and racking
• Inverters and balance-of-system components
• Battery storage (3+ kWh capacity)
• Labor, permitting, and inspection fees
• Sales tax on eligible components

If your tax bill is small

The credit is non-refundable in any single year, but unused credit rolls forward until it's fully claimed. A retiree with a $2,000 tax liability and a $9,000 credit doesn't lose $7,000 — it carries to the next year.

DC SRECs Demystified

DC SRECs (Solar Renewable Energy Certificates) are the single most undervalued part of DC solar economics. DC SRECs are the highest-priced in the country.

How they work

For every 1,000 kWh your system produces, you earn 1 SREC. DC's Renewable Portfolio Standard requires utilities to buy SRECs from DC-located solar systems, and the price floor is structured to keep DC SRECs valuable.

Real numbers

• DC SREC market price (2025-2026 range): roughly $350–$450 per SREC
• An 8 kW DC system produces ~10,000 kWh/year = ~10 SRECs/year
• At $400/SREC, that's $4,000/year in SREC income
• SREC II program length: 10 years from system commissioning

Selling your SRECs

Most homeowners sell through a broker (SRECTrade, Sol Systems, Knollwood). Brokers handle DC PSC registration and the spot-market sales. Brokers take a 5–10% cut. Long-term contracts at a fixed price are also available — they trade some upside for predictability.

Solar for All

DOEE's Solar for All program installs solar on qualifying DC homes at no cost. It's run by DOEE (Department of Energy & Environment) and delivered through approved contractors.

Who qualifies

• DC residence (own or rent — both have pathways)
• Household income at or below 80% of Area Median Income
• Lower bills are the goal — participants get bill credits from a community solar share

What you should know

Solar for All has a waitlist. Income thresholds for "80% AMI" in DC are higher than most homeowners assume — for a family of four it's well above six figures in some recent program years. Check the DOEE site for the current AMI table before you assume you don't qualify.

Solar for All is generally not stackable with private rooftop incentives — it's a different ownership model. If you qualify, it's typically the best path; if not, the private path (federal credit + SRECs) usually wins.

The DC Property Tax Exemption

DC exempts the added home value from a residential solar installation from property tax assessments. Translation: your assessment doesn't go up because you went solar, even though your home is now worth more.

How to confirm it

• After installation, check your annual assessment notice from the DC Office of Tax and Revenue
• If solar value appears to be included, file a Schedule H or contact OTR — solar should be exempted automatically but verify
• Keep your installation documentation in case of any reassessment dispute

This isn't a flashy benefit, but on a property worth $700K with $20K of added solar value, it saves several hundred dollars a year in property tax — and it's permanent for the life of the system.

Cash vs Loan vs PPA

Three financing paths. Same panels on the same roof can return wildly different numbers depending on which one you pick.

Six Common Quote Mistakes

Things we routinely see on competitor proposals that cost DC homeowners thousands.

1. SRECs not itemized. Some PPA quotes show "estimated savings" without separating bill savings from SREC income. If SRECs aren't called out, the installer is keeping them.
2. Federal credit shown as cash savings. The 30% credit is real, but only if you have enough tax liability to use it. Asking "what's your typical federal tax liability?" is a fair question to confirm applicability.
3. Production estimates above 1,300 kWh/kW/year. DC averages closer to 1,200–1,250 kWh/kW/year on a south-facing roof. Numbers above 1,300 usually need verification of orientation and shading.
4. Battery quoted at "no extra cost". Batteries roughly double the system cost. If a battery looks free, it's bundled into the solar pricing or financed separately.
5. "Locked-in rate" without an escalator clause. Many PPAs have a 1.9–2.9% annual escalator. Read the contract — a "locked rate" that climbs 2.9%/year is not locked.
6. No production guarantee. Reputable installers warrant production. If your contract has a 25-year equipment warranty but no production guarantee, you're carrying the underperformance risk.

How They Stack: A Real Example

Take a DC homeowner with a $200/month Pepco bill, buying an 8 kW system with a solar loan.

These are estimates based on DC-typical assumptions. Real numbers depend on roof orientation, shading, financing terms, and SREC market price. Run your own numbers at cityrenewables.com/solar-calculator or get an exact proposal at cityrenewables.com/survey.