Solar resource
Your solar production in Washington
4.54 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Washington, DC. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
Pepco (Potomac Electric Power Company) electricity rate
$0.14/kWh residential
- Utility
- Pepco (Potomac Electric Power Company)
- Residential rate
- $0.14/kWh (blended)
Pepco customers with solar receive net metering credits at the full retail rate under DC PSC net metering rules. DC's SREC-II (Solar Renewable Energy Credit) trading program adds significant income on top of net metering savings — DC SRECs consistently trade at the highest prices nationally (~$350–$450/SREC as of 2025–2026). A typical 6 kW DC system generates approximately 7.1 SRECs/year, adding $2,485–$3,195/year in SREC income.
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Incentives
Available solar incentives in Washington, DC
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| DC SREC-II (Solar Renewable Energy Credits) | Srec | ~$350–$450 per SREC (1 SREC = 1 MWh generated); 7+ SRECs/year for a 6 kW system | State |
| DC Solar for All | Rebate | Low-income customers may receive free solar and bill credits; moderate-income rebates available | Local |
| DC Property Tax Exemption for Solar | Exemption | Solar system value excluded from real property tax assessment | Local |
| Pepco Net Metering | Net Metering | Retail rate credit (~$0.14/kWh) for excess solar exported to the grid | Utility |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $17700
- Federal ITC (30%)
- −$5310
- Net system cost
- $12,390
- Installed cost per watt
- $2.95/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — Mid-Atlantic median installed cost for systems 3–10 kW.
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $989
- Simple payback period
- 12.5 years
- 25-year net savings
- $12335
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in Washington
- Your panels produce power in DC's four-season climate Washington, DC averages 4.54 peak sun hours per day. A 6 kW system produces roughly 7,068 kWh/year — enough to cover the majority of a typical DC household's electricity use. Production peaks in April–May and June, slowing through December–January.
- An inverter converts DC to AC A string inverter or microinverters convert DC electricity from the panels to AC electricity your home uses. Modern inverters achieve 96–99% conversion efficiency.
- You use solar power instead of buying from Pepco Every kWh your system produces offsets what you buy from Pepco at approximately $0.14/kWh. A 6 kW system in DC produces ~7,068 kWh/year — saving approximately $989/year in electricity costs.
- Excess power flows back to Pepco at retail rate Excess solar exported to the Pepco grid is credited at the full retail rate under DC PSC net metering rules. Credits carry forward month-to-month; unused credits at your annual anniversary are paid at the wholesale avoided cost rate.
- Your system earns DC SRECs — the highest in the US Every 1,000 kWh your system produces generates one Solar Renewable Energy Credit (SREC). DC SRECs trade at $350–$450 each — the highest prices nationally, driven by DC's aggressive RPS solar carve-out. A 6 kW DC system generates ~7.1 SRECs/year worth ~$2,485–$3,195/year. This SREC income is typically 3x larger than annual electricity savings and transforms DC solar economics.
- You claim the 30% federal tax credit In the installation tax year, claim a 30% federal Investment Tax Credit on the full installed cost. On a $17,700 system, that's $5,310 off federal income taxes — reducing your net cost to $12,390 before SREC income.
FAQ
Common solar savings questions for Washington, DC
How much can I save with solar in Washington, DC?
A 6 kW system in DC produces roughly 7,068 kWh/year and saves approximately $989/year in Pepco electricity costs. After the 30% federal ITC, net system cost is about $12,390 — giving a payback of ~12.5 years on energy savings alone. However, DC SREC-II income (~$2,840/year at $400/SREC × 7.1 SRECs) dramatically changes the math: with SREC income, effective payback drops to 3–4 years and 25-year net value exceeds $60,000.
What is DC SREC-II and why are DC SRECs so valuable?
DC's Renewable Portfolio Standard (RPS) requires electricity suppliers to source a portion of their supply from solar generation and imposes a Solar Alternative Compliance Payment (SACP) of $500/SREC for non-compliance. This creates strong, legislatively mandated demand for DC SRECs. DC consistently has the highest SREC prices in the US — typically $350–$450/SREC as of 2025–2026 — compared to $10–$50 in most other SREC states. A 6 kW DC system generates ~7.1 SRECs/year at $400/SREC = $2,840/year. SRECs are sold through aggregators like SRECTrade.com or SolSystems.
What is DC Solar for All?
DC Solar for All, administered by DC DOEE, provides free solar installations with guaranteed electricity bill savings to income-qualified DC residents (generally households at or below 80% of Area Median Income). For moderate-income households, additional rebates and financing may be available. The program reflects DC's commitment to equitable solar access. Check doee.dc.gov/solar-for-all for current eligibility, enrollment periods, and program status.
How does Pepco net metering work in DC?
Pepco credits excess solar exported to the grid at the full retail rate under DC PSC net metering rules. Credits carry forward month-to-month on your bill. At your annual billing anniversary, any remaining unused credits are paid at the wholesale avoided cost rate. DC net metering is available for systems up to 1,000 kW — well above typical residential sizes. Verify current Pepco net metering terms at pepco.com/solar.
Does DC have a property tax exemption for solar?
Yes. DC Code §47-845.02 provides a real property tax exemption for the added value attributable to a solar energy system. At DC's residential property tax rate of $0.85 per $100 of assessed value (for homes under $500K), a $17,700 system installation saves approximately $150/year. Applications are filed with the DC Office of Tax and Revenue (OTR).
How many solar panels does a DC home need?
A typical DC home using 500–700 kWh/month needs a 5–8 kW system — roughly 13–21 standard panels at 380–400 W each. Use the calculator above with your monthly Pepco bill to get a tailored estimate. Given the extremely favorable SREC economics in DC, many homeowners choose to install larger systems to maximize SREC income.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://doee.dc.gov/service/solar-incentives
- https://doee.dc.gov/solarforall
- https://www.pepco.com/at-home/programs-and-services/solar-energy/
- https://openei.org/apps/USURDB/
- https://code.dccouncil.gov/us/dc/council/code/sections/47-845.02
- https://www.srectrade.com/
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-18.