Is Solar Worth It in District of Columbia in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for District of Columbia homeowners — without the federal ITC.
Cost Per Watt
$3.50
installed
Electricity Rate
$0.150
per kWh
Payback (No ITC)
18 yr
current reality
Payback (With 30% ITC)
12.6 yr
hypothetical
25-Year ROI
39%
return on investment
Incentive Breakdown — District of Columbia
Available incentives for a typical 7kW residential solar system in District of Columbia
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
$1,225DC offers a Renewable Energy Tax Credit of up to 5% of installation costs, capped based on system size.
SREC Market
~$2,660/yrDC has a very high-value SREC market due to the RPS carve-out, averaging approximately $380/SREC.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
Solar equipment exempt from state sales tax
Low-Income Program
AvailableDistrict of Columbia offers programs to help low-income households access solar energy.
Key Incentives: State tax credit worth $1,225; Property tax exemption for solar; Sales tax exemption on solar equipment; SREC market value ~$2,660/year; Utility rebate of $3,500; Low-income solar program available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in District of Columbia
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.50/W
- Gross Cost
- $24,500
- Federal ITC
- $0
- Net Cost
- $24,500
- Annual Savings
- $1,357/yr
- Payback Period
- 18 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.50/W
- Gross Cost
- $24,500
- Federal ITC (30%)
- -$7,350
- Net Cost
- $17,150
- Annual Savings
- $1,357/yr
- Payback Period
- 12.6 years
Impact: Without the federal ITC, District of Columbia homeowners face a 5.4-year longer payback period — paying $7,350 more out of pocket.
Net Metering Policy — District of Columbia
How District of Columbia compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
DC mandates net metering at full retail rate for systems up to 1 MW under PSC rules.
Cost Per Watt Benchmark — District of Columbia
District of Columbia Average
$3.50/W
National Average
$3.05/W
Typical 7kW System
$24,500
District of Columbia's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in District of Columbia breaks even in 18.0 years. With the former 30% ITC, payback would drop to 12.6 years.
Without Federal ITC
18
years to break even
With Former 30% ITC
12.6
years to break even
Production Details
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