How much do solar panels cost in Washington D.C.?

The average cost of a solar panel system in Washington, D.C., can vary based on several factors, including system size, type of equipment, and installation specifics. The average DC homeowner needs a system size of around 9.31 kW to power their home. The estimated cost for such a solar panel installation would be approximately $29,840 before incentives. However, this cost can be reduced by 30% due to the federal Residential Clean Energy Tax Credit bringing the initial effective cost to around $20,888. The cost can be reduced further by utilizing Solar Renewable Energy Credits (SRECs) and the Washington D.C. Solar Property Tax Exemption.

Taking all this into account and including the money you will save on your electricity bill, the average solar energy system in DC will pay for itself in about 4 years. Considering most solar systems last at least 25 years, going solar can be a great investment that saves you a lot of money on your home energy bill.

You have a few different options when it comes to paying for your solar panel system giving you the flexibility to choose the one that works the best for you.

With this option, you pay for the system in full at the time of installation, giving you full ownership and allowing you to reap all the benefits and incentives that come with going solar. Solar panels produce clean energy that leads to significant financial benefits for homeowners after the payback period. This option provides the most long-term savings and ROI. Some benefits of paying cash for a Solar150 solar panel system are:

• You directly benefit from the 30% federal tax credit to reduce net investment amount.
• Replace your electric bill with an income stream. Participate in DC’s solar renewable energy credit (SREC) market to earn credits worth three times what you pay per kWh for electricity. Our average residential install earns between $4,000 - $6,000 per year from SREC income and electric savings.
• Increase your property value without paying property taxes on any value increase due to your solar energy system installation.
• 25-year workmanship and equipment warranties.
  

Getting a solar loan

A solar loan allows you to finance your solar panel system while retaining ownership. Through a solar loan, you can spread the cost of the system over several years, making it a more affordable choice upfront. Monthly payments are made, and you still benefit from the various incentives and savings associated with solar energy. As your monthly payments may be lower than your previous electricity bills, many find this method to be financially manageable over time. Additionally, once the loan is paid off, you'll enjoy the full benefits of solar energy, significantly lowering your home energy expenses for years to come. Some benefits of getting a solar loan with Solar150 include:

• Solar energy installation with zero down payment and zero out of pocket cost.
• 100% financing is available through our solar loan programs.
• We provide some of the lowest interest rates available in the market for Solar with $0 fees added to your loan for qualified customers.
• A free detailed comparison of your own financing compared to ours. This includes home equity loans, low rate credit card offers, home refinancing and energy efficient mortgages.
• You directly benefit from the 30% federal tax credit to reduce net investment amount.
• Replace your electric bill with an income stream. Participate in DC’s solar renewable energy credit (SREC) market to earn credits worth three times what you pay per kWh for electricity. Our average residential install earns between $4,000 - $6,000 per year from SREC income and electric savings.
• Increase your property value without paying property taxes on any value increase due to your solar energy system installation.
• 25-year workmanship and equipment warranties.

For more info on solar loans and financing with Solar150 click here.

Power Purchase Agreement (PPA)

With a PPA, you pay for the solar energy produced by the system at a rate lower than your current utility rate, leading to immediate savings on your energy bills. This option allows homeowners to benefit from solar power without the responsibility of installation or maintenance costs, as these are typically covered by the leasing company or the provider of the PPA. PPAs can be appealing for those looking to offset their energy costs without the long-term commitment of ownership. However, it’s essential to consider the implications for property value and the potential loss of certain tax benefits when choosing this option. At Solar150 we offer 2 types of PPAs depending on the state of your roof and current electrical system.

PPA with roof repair, tree trimming/removal, and or electrical upgrades

With this option all of the details in the section above apply. Additionally, if your property needs a new roof, tree trimming, tree removal, and or electrical upgrades, Solar150 will take care of these improvements at zero cost to you. Some additional details on this option are below.

• Your power won't be free but you will purchase the power that your solar system produces at a reduced fixed rate for the next 20 years (50-80% cheaper than PEPCO).
• 20-year full system maintenance plan is included.
• All roof improvements will be done by one of our GAF Platinum Certified Roofing Contractors that offer manufacturer warranties of up to 50 years on shingles.
• All electrical upgrades will be performed and or supervised by 1 of our 3 master electricians.
  

Free Power Agreement

Our Free Power Agreement is a PPA where, if your home meets our roof condition and solar access requirements, we can install solar panels and provide electricity to your home for 20 years at zero cost to you. This means you get a solar energy system and power to your home for 20 years 100% FREE! This may sound too good to be true but we promise you it's not. This is made possible by high valued SRECs and Washington DC's energy initiative to be powered 100% by renewable energy by 2032. This is one of our renewable energy solutions that offers significant benefits, including clean and sustainable energy alternatives for both residential and commercial clients, at low or zero cost. Some additional details on this option are below.

• All power from the system is provided to you for free for 20 years. 
• 20-year full system maintenance plan included.
• A reduction in your energy bills by up to 100%
• You may also receive payments from your utility company for excess energy produced.
  

Which option is right for me?

Not sure which option is right for you? Don't worry, we will do all the work! Just click the button below and fill out the form. We will provide a cost savings analysis, and structure a proposal comparing the options available to you, all for FREE.

What are the best Washington D.C. solar incentives?

Washington D.C. has pledged to be powered by 100% renewable energy by 2032. For this reason, it's residents are offered some of the best solar incentives in the country. Comprehensive solar resources are available to homeowners, providing information on local, state, and federal incentives, as well as tools like a Solar Calculator to estimate savings and navigate the complexities of adopting solar power.  Below are the top three solar incentives you can leverage to make your transition to solar energy more cost-effective.

* Based on an average system size of 9.31 KW

Residential Clean Energy Tax Credit for Solar Installations in Washington D.C.

The Residential Clean Energy Tax Credit is one of the most significant incentives available to homeowners in Washington D.C. looking to invest in solar energy. This federal tax credit allows eligible homeowners to claim 30% of the total cost of their solar energy system installation on their federal income tax return. The process begins when homeowners install a solar energy system that meets the necessary requirements—specifically, the system must be located at a primary residence and must be operational. After installation, homeowners can file IRS Form 5695 to claim the credit during tax season.

For example, suppose a homeowner invests in a solar panel system that costs $29,840. Under the Residential Clean Energy Tax Credit, they could claim 30% of that total cost, translating to a tax credit of $8,952. This means the homeowner effectively reduces their total tax liability by this amount, significantly lowering the overall cost of the solar installation. If the homeowner owes $10,000 in taxes that year, the tax credit would reduce their obligation to $1,048, making solar energy not only more environmentally friendly but also financially advantageous.

Additionally, it's important to note that any unused tax credit can be carried over to subsequent tax years, allowing homeowners to benefit from the credit even if they do not have sufficient tax liability in the year of installation. This flexibility ensures that individuals can maximize their savings from this incentive over time, making solar energy a compelling option for those looking to invest in renewable energy within Washington D.C.

Solar Renewable Energy Certificates (SRECs) in DC

Washington D.C. has a goal to be powered 100% by renewable energy by 2032 and you can get paid to help by selling SRECs produced by your solar panel system. Washington DC solar companies play a crucial role in this initiative by connecting residents and businesses with top-rated local professionals for effective solar panel installation. When you install solar panels and generate electricity, you earn one Solar Renewable Energy Credits or SREC for every 1,000 kilowatt-hour (KWh) of energy your system produces. These SRECs can be sold to utility companies that need to buy them to meet state-mandated renewable energy goals. This means that as a homeowner, you have a chance to make extra money from your solar energy system.

Getting SRECs is a simple process. After your solar panels are installed and start generating power, you'll need to register your system with the D.C. Department of Energy and Environment. This registration helps track how much energy your system produces and the SRECs you earn. Once registered, your energy production is monitored, and you receive SRECs based on how much electricity you generate over a certain time period. 

For example, if your solar system produces 10,000 KWh of electricity in a year, you will earn 10 SRECs. With the current market price of SRECs around $400 each for 2024, selling your 10 SRECs could earn you an extra $4,000 annually. This additional income helps cover the cost of your solar installation, making the switch to solar energy even more financially rewarding. Plus, as more people seek renewable energy, the value of SRECs could go up, giving you even more savings and potential profit from your solar investment.

Washington D.C. solar property tax exemptions

The Washington D.C. Solar Property Tax Exemption is a significant incentive for homeowners considering the installation of solar panels. This exemption means that by law, the increased value of your property due to solar installations will not be subject to property taxes. For example, if you install a solar energy system valued at $30,000, your home’s assessed value might increase by the same amount. However, because of this exemption, you won't face additional property taxes based on that $30,000 increase. Considering the average property tax rate in D.C. is around .55%, this could save you approximately $165 annually.

Is net metering available in Washington D.C.?

Yes it is! Net metering is a very useful feature for homeowners in Washington D.C. who choose to go solar. Essentially, it allows solar customers to bank any excess electricity their solar panels generate and feed back into the grid. When your solar system produces more energy than your home consumes, the surplus power goes to the local utility company, PEPCO for DC, and you earn credits for this contribution. When your home requires more electricity than your solar panels generate—typically during evenings or cloudy days—these earned credits are applied to offset your energy usage meaning your won't pay for electricity until your credits run out. 

There are two important things to note with regards to these energy credits:

• PEPCO credits you in kWh not in dollars, so you can only apply the credits to your actual energy usage and not to an fixed rates on your monthly bill.

• Energy credits do roll over from month to month but do not roll over at the end of the calendar year. This means any unused energy credits you have will stack each month until the end of December. However, at the end of the calendar year your credits don't just expire, instead PEPCO will pay you out the cash value for any unused credits. An example of how this works is below.

Consider a homeowner who installs a solar energy system that generates a total of 600 kWh during a month, but they only use 400 kWh. The 200 kWh surplus is sent back to the grid, resulting in a 200 kWh credit on their account. Now let's say the next month is unusually cloudy and their solar system is only able to produce 200 kWh but their home still uses 400 kWh. The 200 kWh banked from the previous month will be applied, resulting in the homeowner not having to pay for any extra electricity for that month. Let's say that same homeowner has 500 kWh of unused credits at the end of December. PEPCO will multiply those unused kWh credits (500) by the generation cost of each kWh (currently 8.8 cents as of mid 2024) and send you a check for $44.

As you can see, net metering helps take advantage of those sunny summer months and store any extra energy for the winter when it might be more cloudy. This helps optimize your solar energy system and keep your electricity bill low year round, even when the sun isn't shining.

The Benefits of Solar Panels

The solar energy system you install on your roof or on the ground can last an average of 30+ years. To add to your peace of mind, Solar150 offers a variety of bumper-to-bumper warranties that are backed directly by our installers. We also offer an exclusive 3rd-party warranty that includes both labor and equipment. The choice is yours. 

When you go solar, you can:

• Reduce or eliminate your electricity bill
  
• Stop worrying about the increasing cost of electricity
  
• Increase your home value
  
• Get paid for the power you generate with SRECS

Solar Panel Maintenance and Repair

Regular maintenance and repair are crucial to ensure the optimal performance and longevity of solar panels. In Washington D.C., various solar companies and organizations offer comprehensive solar panel maintenance and repair services to keep your system running efficiently.

Solar panel maintenance typically includes:

• Cleaning: Regular cleaning of solar panels to remove dirt, debris, and other obstructions that can reduce energy production.
• Inspection: Routine inspection of solar panels and inverters to identify any issues or potential problems.
• Repair: Timely repair or replacement of damaged or faulty solar panels and inverters.

Solar panel repair services in Washington D.C. may include:

• Panel replacement: Replacement of damaged or faulty solar panels with new ones.
• Inverter repair: Repair or replacement of inverters that convert DC power from solar panels to AC power for the grid.
• Electrical work: Repair or replacement of electrical components, such as wiring and connectors, that connect solar panels to the grid.

Regular maintenance and repair can help to:

• Ensure optimal energy production: Regular upkeep ensures that solar panels are producing energy at their maximum potential.
  
• Extend the lifespan of solar panels: Proper maintenance and timely repairs can extend the lifespan of solar panels, reducing the need for premature replacement.
  
• Reduce energy costs: Efficiently operating solar panels can help to lower energy costs by maximizing energy production.

By investing in regular maintenance and repair, you can ensure that your solar panels continue to provide reliable and efficient renewable energy for years to come.

* Based on an average system size of 9.31 KW

Community Solar in Washington D.C.

Community solar is an excellent option for residents and businesses in Washington D.C. who want to enjoy the benefits of solar energy without installing solar panels on their property. This innovative approach allows multiple individuals or organizations to share the advantages of a single solar array, making it particularly appealing for those who rent or have limited space for solar panels.

In Washington D.C., community solar programs are offered by various solar companies and organizations. These programs typically involve a shared solar array that is installed and maintained by a third-party provider. Participants in the program can purchase a share of the solar array and receive a credit on their electricity bill for the energy produced.

Community solar programs in Washington D.C. offer several benefits, including:

• Reduced electricity bills: Participants can save money on their electricity bills by receiving a credit for the energy produced by the shared solar array.
• Increased access to solar energy: These programs make it possible for residents and businesses to benefit from solar energy even if they don’t have the space or resources to install solar panels on their property.
• Environmental benefits: Community solar programs promote the use of renewable energy and reduce reliance on fossil fuels, helping to lower greenhouse gas emissions and mitigate climate change.

By participating in a community solar program, you can contribute to a greener future while enjoying the financial benefits of solar energy.

Solar Potential for Commercial Buildings in Washington D.C.

Commercial buildings in Washington D.C. have a tremendous potential for solar energy production. With the city’s high solar irradiance and favorable policies, commercial buildings can significantly reduce their energy costs and environmental impact by installing solar panels.

According to a study by the District of Columbia’s Department of Energy and Environment, commercial buildings in Washington D.C. have the potential to generate over 1.5 billion kilowatt-hours of electricity per year through solar energy. This is equivalent to powering over 150,000 homes and reducing greenhouse gas emissions by over 1.2 million metric tons.

To tap into this potential, commercial building owners and managers can consider the following options:

• Rooftop solar installations: Installing solar panels on rooftops can provide a substantial source of renewable energy and reduce energy costs.
• Solar carports and parking garages: Solar panels installed on carports and parking garages can offer additional energy production and help reduce the urban heat island effect.
• Community solar programs: Participating in community solar programs can provide access to solar energy for commercial buildings that may not have the space or resources for on-site solar installations.

By exploring these options, commercial buildings in Washington D.C. can harness the power of solar energy, contributing to a sustainable future while enjoying significant cost savings.