Federal solar credit ended Dec 31, 2025
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Solar costs · District of Columbia

Solar Panel Cost in District of Columbia

Updated Data verified Nov 5, 2026

A typical District of Columbia home uses 639 kWh a month[1] of electricity. Covering that with solar takes a system of about 5.5 kW est.[1,2], which costs roughly $17,000 to $23,000 est.[1,2,3] before incentives at the state's median installed price. With District of Columbia's average residential price of 24.86¢ per kWh[4], our model puts payback at about 10 years est.[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

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District of Columbia solar at a glance

Average electricity price24.86¢/kWh[4]Jan–Aug 2026 average (preliminary)
Average home use639 kWh/mo[1]2024 average
Solar output per kW1,392 kWh/yr[2]PVWatts estimate for Washington
Median installed price$3.60/W[3]Estimate, before incentives
Typical system5.5 kWSized to cover 100% of use
Typical price$19,800Estimate, before incentives
Year-1 savings$1,900Estimate
Payback10 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: District of Columbia net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ). Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in District of Columbia by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in District of Columbia.

Estimated cost, output and payback by system size in District of Columbia
SystemPrice before incentives[3]After incentiveskWh in year 1[2]Year-1 savings[4][5]Payback (years)
4 kW$14,400$14,4005,570$1,38010
6 kW$21,600$21,6008,350$1,91010
8 kW$28,800$28,80011,140$1,91013
10 kW$36,000$36,00013,920$1,91016
12 kW$43,200$43,20016,700$1,91018

Incentives that lower the price in District of Columbia

Federal · tax creditEnding soon

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[6]

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 · performance paymentAvailable

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.[7]

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
State · rebateWaitlist

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.[8]

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

All District of Columbia incentives, including utility and local programs →

How District of Columbia utilities credit your solar

Pepco must offer net metering in DC: each month's excess generation is credited in kWh on the next bill (full retail offset), and only year-end excess beyond 100% of your annual use is paid out, at the generation rate only. Credits over $25 at year-end are refunded; smaller balances carry over.[9]

We have not added every District of Columbia utility yet, so the estimates on this page use the state-level rule: District of Columbia net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ).[5]

Full District of Columbia net metering and export-credit rules →

FAQ

Frequently asked questions

How much do solar panels cost in District of Columbia?

At the state median installed price of $3.60 per watt est.[3], a 5.5 kW est.[1,2] system that covers a typical home's use costs about $19,800 est.[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in District of Columbia?

For a cash purchase at the state's average electricity price of 24.86¢ per kWh[4], our model estimates about 10 years est.[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)[10] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.

Change log

  1. 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)).
  2. 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)).
  3. 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)).
  4. 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).
  5. 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)).