Is Solar Worth It in Washington DC in 2026?
DC sits at latitude 38.9N — similar sun angle to Kansas City or Louisville, not California, and it produces roughly 1,319 kWh per installed kilowatt per year (NREL-modeled production for the District). That's a modest production number next to a Sun Belt state. What tips the math in DC's favor is the other side of the ledger: District electricity runs 21.9¢ per kWh (EIA preliminary 2025), among the higher residential rates in the country, and it has climbed 141 percent since 2005. Every kilowatt-hour your roof makes is one you don't buy from Pepco at that rate.
2026 changed the federal side of the math everywhere, DC included. The 30 percent federal tax credit that used to cut a system's price by a third ended for installs completed after December 31, 2025. What makes DC different is that it didn't just lose a credit and shrug — the District runs one of the country's most valuable SREC markets on top of full retail-rate net metering, a real, distinct revenue stream a homeowner across the river in Maryland or Virginia doesn't get on the same terms. Solar can still pencil out here. It just takes patience and a willingness to track SREC sales, not a one-time credit on your tax return. This page walks through DC's actual numbers.
Washington DC Electricity Prices Keep Climbing
Solar is a bet on future electricity prices: every kWh your panels produce is one you didn't have to buy. So before panels, look at where DC rates have been.
Full District of Columbia electricity price data (1990–2025)
| Year | District of Columbia (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 6.1 | 7.8 |
| 1991 | 6.6 | 8.0 |
| 1992 | 6.6 | 8.2 |
| 1993 | 7.2 | 8.3 |
| 1994 | 7.5 | 8.4 |
| 1995 | 7.6 | 8.4 |
| 1996 | 7.8 | 8.4 |
| 1997 | 7.9 | 8.4 |
| 1998 | 8.0 | 8.3 |
| 1999 | 8.0 | 8.2 |
| 2000 | 8.0 | 8.2 |
| 2001 | 7.8 | 8.6 |
| 2002 | 8.0 | 8.4 |
| 2003 | 7.8 | 8.7 |
| 2004 | 8.0 | 9.0 |
| 2005 | 9.1 | 9.5 |
| 2006 | 9.9 | 10.4 |
| 2007 | 11.2 | 10.7 |
| 2008 | 12.8 | 11.3 |
| 2009 | 13.7 | 11.5 |
| 2010 | 14.0 | 11.5 |
| 2011 | 13.4 | 11.7 |
| 2012 | 12.3 | 11.9 |
| 2013 | 12.6 | 12.1 |
| 2014 | 12.7 | 12.5 |
| 2015 | 13.0 | 12.7 |
| 2016 | 12.3 | 12.6 |
| 2017 | 12.9 | 12.9 |
| 2018 | 12.8 | 12.9 |
| 2019 | 13.0 | 13.0 |
| 2020 | 12.6 | 13.2 |
| 2021 | 13.1 | 13.7 |
| 2022 | 14.2 | 15.0 |
| 2023 | 16.5 | 16.0 |
| 2024 | 17.7 | 16.5 |
| 2025 * | 21.9 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
DC residential electricity has gone from roughly 9¢ per kWh in 2005 to 21.9¢ in 2025 — a 141 percent increase, well above the national average climb. The pace over the last decade has run about 5.4 percent a year, faster than general inflation. Pepco's distribution costs, grid modernization spending, and DC's renewable mandates all show up in the bill over time. None of that guarantees the next 20 years look like the last 20, but a dense, built-out city with no room to add cheap generation of its own is not a place where power reliably gets cheaper.
The Washington DC Sun, Month by Month
Panels respond to how high the sun climbs and how long it stays up, not to the temperature. At 38.9N, DC gets a real seasonal swing — strong summer days, noticeably weaker winter ones — and about 203 sunny days a year on average.
District of Columbia monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 94 |
| Feb | 102 |
| Mar | 118 |
| Apr | 123 |
| May | 126 |
| Jun | 122 |
| Jul | 125 |
| Aug | 121 |
| Sep | 108 |
| Oct | 106 |
| Nov | 93 |
| Dec | 82 |
| Year | 1319 |
Source: NREL PVWatts typical-year estimate (Washington), per installed kW at latitude tilt.
The practical read: late spring through late summer is when a DC roof does most of its work for the year, and that lines up with the months air conditioning pushes bills up. Winter production drops noticeably — shorter days and a lower sun angle both cut into output — which is exactly why DC's net metering rule matters: it lets you bank summer surplus and draw it down months later instead of losing it.
What Solar Costs in Washington DC in 2026
Installed solar in DC runs about $2.98 per watt as of mid-2026 (EnergySage local data), before any incentives. The typical DC system size is larger than in many states — around 10.5 kW — which reflects both the SREC economics (more production capacity means more certificates to sell) and DC rowhomes' higher per-square-foot electricity use.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $14,900 to $16,000 | ~6,600 kWh/yr (~$120/mo at 21.9¢) | Smaller rowhome, lower usage |
| 8 kW | $23,800 to $25,600 | ~10,550 kWh/yr (~$193/mo) | Average DC household |
| 12 kW | $35,800 to $38,500 | ~15,800 kWh/yr (~$288/mo) | Larger home, all-electric or heavy AC use |
A full 10.5 kW DC-average system lands around $31,000 gross — the range runs roughly $27,000 to $36,000 depending on roof complexity and equipment. With no federal credit in 2026, that gross price is close to what you actually pay up front; SREC income and the sales/property tax exemptions below help the payback later, not the check you write at signing.
Estimate Your Washington DC Payback
The calculator below is set to DC's average electricity rate and typical local sun production. Enter your own monthly bill to see an estimated system size, payback period, and 25-year savings. DC rates have risen about 5.4 percent a year over the last decade — a reasonable starting point for the inflation field, and you can adjust it to test a slower or faster future.
Washington DC Solar Incentives That Still Exist in 2026
Here's what's gone and what survived.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit (25D) ended for installations completed after December 31, 2025, with no phase-out. If a DC installer's quote still nets out a federal credit for a system you'll own, that quote is wrong.
- Still here — DC sales tax exemption: Solar energy systems and equipment are exempt from DC sales and use tax.
- Still here — DC property tax exclusion: The added value a solar system gives your home is excluded from your real property tax assessment. You have to apply to the DC Office of Tax and Revenue with proof of an operational, code-compliant system — it is not automatic, so don't skip the paperwork.
- The real incentive — SRECs: DC's Renewable Portfolio Standard requires electricity suppliers to buy a rising share of in-district solar generation. Because DC is small and short on rooftop and utility-scale solar supply relative to that mandate, Solar Renewable Energy Certificates here have historically traded well above other states' — roughly $360 to $400 per MWh currently, against a 2026 Solar Alternative Compliance Payment ceiling of $440/MWh. You must register your system in the DOEE/PJM-GATS solar registry after Permission to Operate before certificates start generating — this step is easy to miss and does not happen on its own.
- Not for a typical buyer — Solar for All: DOEE's Solar for All program gives free or heavily subsidized rooftop solar to income-qualified DC residents (household income at or below 80% of area median, or enrolled in SNAP/TANF/LIHEAP/SSI, among others). It's a means-tested giveaway aimed at 100,000 low- and moderate-income households by 2032, not a rebate available to a market-rate buyer.
- Partially — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit (48E) through 2027, but it belongs to the leasing company, not you. It may lower your monthly lease payment; it may just pad their margin. Compare any lease offer against a cash or loan purchase, especially once you factor in DC's SREC upside, which a lease company usually keeps for itself.
Net Metering in Washington DC
DC's net metering program is written into law — D.C. Code § 34-1518, part of the Clean and Affordable Energy Act of 2008 — not just a utility tariff that can be quietly rewritten. Eligible customer-generators (solar, wind, combined heat and power, fuel cells, and more) up to 1 MW get a full 1-for-1 retail-rate credit against the kWh they draw from Pepco. Excess credits roll over month to month with no expiration and no cash-out option — banked summer surplus can carry into winter, which matters given how much production drops in DC's darker months. DC also allows sizing a system up to roughly 200 percent of historical annual usage, more generous than the 100%-of-load caps most states use, part of why DC systems run larger than average. As of mid-2026 the program is stable, with no proposed rollback found in current research — but it's worth a quick check with DOEE or Pepco before signing a contract sized to that 200 percent ceiling.
How to Go Solar in Washington DC
Work through these steps in order.
- Pull your last 12 Pepco bills and find your true average monthly cost — DC rowhomes vary a lot by insulation and whether heat is electric.
- Check your roof's orientation and shading. Rowhome roofs are often shared or partially shaded by taller neighbors — get a shading study before you commit to a size.
- Confirm your roof has at least 10 to 15 years of life left before panels go on, or replace it first.
- Get at least three quotes and confirm none of them assume a federal tax credit you no longer qualify for.
- Ask each installer to walk through the SREC registration process explicitly — who files with DOEE/PJM-GATS after Permission to Operate, and whether they help you sell the certificates or leave that to you.
- Apply to the DC Office of Tax and Revenue for the property tax exclusion once your system is operational and code-compliant — it is not automatic.
- Compare each quote's payback period, including a conservative SREC estimate, against how long you plan to stay in the home.
For how panels work, sizing, and buying versus leasing in general, read our main solar panels guide — this page covers what's specific to DC. If your roof is due for replacement before you add panels, start with our roofing guide, and if your electrical panel may need an upgrade to handle a new system, see our electrical guide.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 values preliminary). Production estimates: NREL PVWatts. Net metering: D.C. Code § 34-1518. Solar for All: DOEE Solar for All and D.C. Code § 8-1774.16. Tax exemptions: DSIRE — DC solar program listings. SREC market: Xpansiv/SRECTrade — DC SREC Market. Cost data: EnergySage — Washington DC Solar Panel Cost 2026. We review these figures every six months.