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Washington, D.C. is leading the charge in solar energy with a robust array of incentives designed to make solar power more accessible and affordable. From generous tax credits and rebate programs to favorable net metering policies, the District offers several financial benefits that can significantly reduce the cost of solar installations for residents and businesses. In this article, we’ll break down Washington, D.C.’s key solar incentives, detailing how they work and how you can take full advantage of them to cut your energy bills and contribute to a more sustainable and eco-friendly future.
The Residential Clean Energy Credit
The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.
To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.
Solar Renewable Energy Certificates (SRECs)
Washington D.C. aims to generate 10% of its electricity from solar by 2041, and you can get paid to contribute. Through the SREC program, you earn one D.C. SREC for every megawatt-hour (MWh) of clean electricity your solar panels produce. These SRECs can then be sold in the market. Most solar owners work with a broker to simplify the process of selling SRECs to utility companies, with the broker paying you directly.
As of 2024, D.C. SRECs can sell for up to $400 each, making them some of the most valuable in the country. For example, a 5-kilowatt system producing around 6 MWh annually could earn approximately $2,400 per year from SRECs alone.
Solar for All
The Community Power Coalition (CPC) is launching its “Powering America Together” initiative through the Solar for All (SFA) program. This initiative will collaborate with the U.S. Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC brings together experienced community solar professionals who have worked as developers, lenders, trainers, and technical assistance providers. The program focuses on supporting low-income community solar projects, reducing carbon emissions, lowering energy costs, and fostering quality jobs, community wealth-building, energy resilience, and equitable workforce development.
Washington D.C.’s Solar for All Program will use financing and private capital to expand residential solar, energy storage, and related upgrades, specifically benefiting low-income residents. Funding from the Greenhouse Gas Reduction Fund (GGRF), administered by the Department of Energy and Environment (DOEE), will help low-income and disadvantaged residents by providing savings, quality jobs, enhanced power outage resilience, and opportunities for community ownership. The program will also include enabling upgrades like energy efficiency retrofits, roof repairs, and electrical improvements to maximize solar potential for low-income homeowners, reduce energy burdens, and create training and employment opportunities in renewable energy and the building trades.
The Clean Energy Fund of Texas (TxCEF), in partnership with the Bullard Center for Environmental and Climate Justice at Texas Southern University (BCECJ), aims to provide technical assistance, private capital, and grants to minority-serving institutions. Together, they plan to develop residential community solar projects in low-income and disadvantaged communities facing energy policy and grid challenges. These projects are expected to reduce emissions, lower utility bills, generate shared revenues through community ownership, and attract private capital investment.
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Disclaimer
The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.
