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Federal incentives
Federal Residential Clean Energy Credit (25D)
30% for systems installed 2022–2025; not available for installations completed after December 31, 2025[1]
The 30% federal credit for homeowners who bought solar ended with Public Law 119-21. A system counts in the year its installation is completed, so paying in 2025 for a 2026 installation does not qualify.
- Who
- Homeowners who bought and installed a system by December 31, 2025 claim it on IRS Form 5695 for that tax year.
- Deadline
- December 31, 2025
- Checked
- November 5, 2026
Business credit for leased and PPA systems (48E)
Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[2]
If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.
- Who
- Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
- Deadline
- December 31, 2027
- Checked
- November 5, 2026
State incentives in District of Columbia
DC Solar Renewable Energy Certificates (SRECs)
1 SREC per MWh (1,000 kWh) produced, sold at market prices that fluctuate; the solar compliance fee that effectively caps SREC prices is 44 cents/kWh ($440/MWh) in 2026, 42 cents in 2027, stepping down to 30 cents by 2033.[3]
Owners of solar systems in DC (credits belong to the system owner); sold through an SREC broker or aggregator.
- Who
- Owners of solar systems in DC (credits belong to the system owner); sold through an SREC broker or aggregator.
- Deadline
- None set in the source
- Checked
- November 5, 2026
Solar for All single-family rooftop solar (DOEE / DCSEU)
Rooftop solar installed at no cost for income-qualified households, with installer maintenance for 20 years; funding is limited and FY2026 applications were waitlisted.[4]
DC households in a single-family home or building of four or fewer units, Pepco customers, with income at or below 80% of Area Median Income or enrolled in SNAP, TANF or SSI.
- Who
- DC households in a single-family home or building of four or fewer units, Pepco customers, with income at or below 80% of Area Median Income or enrolled in SNAP, TANF or SSI.
- Deadline
- None set in the source
- Checked
- November 5, 2026
How these incentives stack
Cash rebates are paid first and usually reduce the cost a tax credit is based on. State tax credits only help if you owe enough state income tax. Exemptions (sales and property tax) apply automatically or through a form, and they do not reduce what you owe the installer on paper, so check that a quote does not charge tax that the law exempts. The calculator applies the programs it can model and lets you switch utility rebates on or off.
FAQ
Frequently asked questions
Does District of Columbia have a solar tax credit?
No. District of Columbia offers exemptions and utility programs instead of a state income tax credit; see the list above.
Can I still get the federal solar tax credit?
No, not if you buy the system and installation is completed after December 31, 2025 (Federal Residential Clean Energy Credit (25D)[1]). If a company leases you the panels or sells you the power, that company may still claim a business credit and may pass some value on through the price.
sources
[ 4 ]Every number on this page links to one of these sources. Dates show when we last checked each one.
- IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026
- Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
- Solar in the District - DOEEdoee.dc.gov · checked Nov 5, 2026
- Install solar panels on my home for free - Front Door DC (DC Government)frontdoor.dc.gov · checked Nov 5, 2026
Incentive list last re-checked November 5, 2026. Programs change; confirm with the program before you sign.
Change log
- Monthly output per kW in Washington updated to [90.8, 102.8, 126.3, 130.8, 133.3, 140.4, 147.4, 131.0, 119.8, 108.8, 84.6, 75.4] kWh/kW/month (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
- Average solar radiation on the panels in Washington updated to 4.9 kWh/m2/day (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
- Solar output per kW in District of Columbia (PVWatts, Washington) updated to 1391.5 kWh/kW/yr (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
- DC Solar Renewable Energy Certificates (SRECs): now "1 SREC per MWh (1,000 kWh) produced, sold at market prices that fluctuate; the solar compliance fee that effectively caps SREC prices is 44 cents/kWh ($440/MWh) in 2026, 42 cents in 2027, stepping down to 30 cents by 2033." (active).
- What the rule says updated to “the customer-generator’s next monthly bill will be credited in kWh for the excess generation. At the end of the calendar year (December), excess generation that exceeds 100%” (15 DCMR Chapter 9: Net Energy Metering, Section 903.3 (DC PSC compiled, updated 4-7-25)).