Solar Financing in District of Columbia
Lease vs. Buy vs. PPA — Complete financing guide for DC homeowners
Urgent tax credit deadlines
- Section 30D EV credit (up to $7,500) — expires June 30, 2026 (12 days left).
- Section 48E solar ITC safe harbor — construction must start by July 4, 2026 (16 days left).
Going solar in District of Columbia? With electricity rates averaging 17¢/kWh and good solar resources, choosing the right financing option can save you $26,950 or more over 25 years. This guide breaks down every option available to District of Columbia homeowners.
Avg Rate
17¢
per kWh
Solar Resource
Good
DC
Typical System
7kW
residential
Payback
~8.8 yrs
estimated
Solar Incentives & Tax Credits in District of Columbia
District of Columbia homeowners can take advantage of the following solar incentive programs:
Federal Solar Investment Tax Credit
30% federal tax credit via Section 48E for qualifying projects (leases, PPAs, commercial) that begin construction before July 4, 2026. The residential ownership credit (25D) expired December 31, 2025.
30% of system cost
DC SREC Market (RPS)
DC has one of the highest-value SREC markets in the country due to its aggressive RPS carve-out, averaging approximately $380/SREC.
~$2,660/year (SREC)
DCSEU Solar Rebate
The DC Sustainable Energy Utility offers upfront rebates of approximately $0.50/W for residential solar.
Up to ~$3,500
Property Tax Exemption
Solar energy systems are exempt from real property tax assessment for 20 years.
100% property tax exemption
Sales Tax Exemption
Solar equipment and installation are exempt from DC's 6% sales tax.
6% sales tax exempt
Net Metering in District of Columbia
DC mandates net metering at the full retail rate for systems up to 1 MW under PSC rules.
✓ District of Columbia offers a property tax exemption for solar installations, meaning your property taxes won't increase despite the added home value.
✓ District of Columbia exempts solar equipment from sales tax, saving you money at purchase.
Compare Financing Options in District of Columbia
See how cash purchase, solar loan, lease, and PPA compare based on District of Columbia's average rates:
Solar Financing Comparison for District of Columbia
Based on 17¢/kWh electricity rate and a 7kW system
Cash Purchase
Pay upfront — maximum long-term savings
- Upfront Cost
- $14,700
- Monthly Savings
- $139/mo
- Tax Credit Eligible
- Yes
Solar Loan
$0 down — own the system over time
- Down Payment
- $0
- Monthly Payment
- $144/mo
- Net Monthly
- $-5/mo
- Tax Credit Eligible
- Yes
Solar Lease
$0 down — provider owns the system
- Down Payment
- $0
- Monthly Payment
- $91/mo
- Net Monthly
- $48/mo
- Tax Credit Eligible
- No
Power Purchase Agreement
$0 down — pay per kWh produced
- Down Payment
- $0
- Annual Savings
- $1,127/yr
- Tax Credit Eligible
- No
Estimates based on average District of Columbia (DC) rates and system costs. For a personalized comparison, use our full financing calculator.
Lease vs. Buy vs. PPA in District of Columbia
Buying (Cash or Loan)
Best for: Maximizing long-term savings and home value.
- You own the system and all electricity it generates
- Eligible for the 30% Federal Tax Credit (~$6,300 on a 7kW system)
- Property tax exempt in District of Columbia
- Increases home value by an average of 4.1%
- Highest 25-year savings: ~$26,950
- You handle maintenance (panels need little)
Solar Lease
Best for: Zero upfront cost with predictable payments.
- $0 or low upfront cost
- Fixed monthly payment (no surprise bills)
- Maintenance and repairs typically covered
- Not eligible for tax credits or incentives
- Lower 25-year savings (~$14,350)
- May complicate home sale (lease transfer)
Power Purchase Agreement (PPA)
Best for: Paying only for what you produce, $0 down.
- $0 upfront cost
- Pay a per-kWh rate (typically lower than utility)
- Provider owns and maintains the system
- Not eligible for tax credits
- Rate escalates 2-3% annually (read the contract)
- Lowest 25-year savings of the three options
Solar Financing FAQ — District of Columbia
Is solar worth it in District of Columbia?
Yes, solar is an exceptionally strong investment in District of Columbia. With above-average electricity rates averaging 17¢/kWh and good solar resources, a typical 7kW system can offset most of your household electricity usage. The estimated payback period is 8-10 years, after which you enjoy more than a decade of largely free electricity. dc mandates net metering at the full retail rate for systems up to 1 mw under psc rules is the main policy factor to verify with your utility.
What solar incentives are available in District of Columbia?
District of Columbia residents can claim the 30% Federal Solar Investment Tax Credit (worth $6,300 on a typical 7kW system). The state also offers DC SREC Market (RPS), DCSEU Solar Rebate, Property Tax Exemption, Sales Tax Exemption. District of Columbia offers a property tax exemption, so your property taxes won't rise despite the added home value; District of Columbia exempts solar equipment from sales tax, saving you money at purchase.
Should I lease, buy, or get a PPA in District of Columbia?
Buying your solar system (cash or loan) maximizes long-term savings and qualifies you for the 30% Federal Tax Credit. On a typical 7kW system in District of Columbia, that's about $6,300 back. Buying yields roughly $26,950 in net savings over 25 years. Leasing or a PPA requires $0 down and includes maintenance, but you won't get tax credits and your 25-year savings will be much lower (around $14,350). If you can afford the upfront cost or qualify for a low-rate loan, buying is the clear winner in District of Columbia.
How much does a solar system cost in District of Columbia?
A typical 7kW residential solar system in District of Columbia costs approximately $21,000 before incentives. After the 30% Federal Tax Credit (~$6,300), the net cost drops to about $14,700. Actual costs vary based on equipment quality, installer, roof complexity, and whether you add battery storage. District of Columbia offers a property tax exemption, so your property taxes won't rise despite the added home value; District of Columbia exempts solar equipment from sales tax, saving you money at purchase.
Does District of Columbia have net metering?
DC mandates net metering at the full retail rate for systems up to 1 MW under PSC rules.
What is the solar payback period in District of Columbia?
The typical solar payback period in District of Columbia is approximately 8-10 years. With a net system cost of about $14,700 after the federal tax credit and annual electricity savings of roughly $1,499-$1,833 (based on 17¢/kWh), most District of Columbia homeowners see full payback within 10 years and enjoy 15+ years of largely free electricity thereafter.
Related Solar Tools
Estimates are based on District of Columbia average rates, system costs, and the 30% Federal Solar Investment Tax Credit. Actual savings vary by installer, equipment, roof, and utility policy.