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District of Columbia

Information on selling in the State of District of Columbia

Updated over 2 months ago

✅ Federal Incentives

  • 30% Investment Tax Credit (ITC) for residential, commercial, and nonprofit solar

  • MACRS and bonus depreciation for businesses

  • IRA Direct Pay available for nonprofits and other tax-exempt entities


✅ State & Local Incentives

⚡ Property Tax Exemption

  • Solar energy systems are fully exempt from increases in property tax assessments

  • This exemption applies automatically and has no expiration date

⚡ Solar Renewable Energy Certificates (SRECs)

  • Homeowners earn 1 SREC for every 1 megawatt-hour (MWh) of electricity generated

  • SRECs can be sold for additional income and are among the most valuable in the country

  • As of January 1, 2025, out-of-state systems no longer qualify, further increasing the value of in-District systems

⚡ Net Metering

  • Net metering is mandatory for systems up to 1 megawatt

  • Customers receive full retail credit for electricity sent to the grid

  • Unused credits roll over month to month with no expiration

🌟 Solar for All

  • A local program offering free rooftop or community solar to residents earning 80% or less of the area median income

  • The program aims to cut energy bills in half for income-qualified participants

  • Funded and administered through the city government with the goal of reaching 100,000 homes by 2032


✅ Utility & Local Programs

  • Pepco provides standard net metering agreements and access to community solar

  • Additional local programs include Solarize DC (group-based purchasing discounts) and Solar Works DC (workforce training + installations)


✅ Policy & Standards

  • The Renewable Portfolio Standard requires 100% renewable electricity by 2032

  • A separate solar carve-out mandates at least 10% of electricity come from solar by 2041

  • Interconnection and permitting are streamlined and managed in coordination with the local utility and city government


✅ Nonprofit & Commercial Incentives

  • Nonprofits can receive 30% cash back through IRA Direct Pay

  • Businesses can apply MACRS accelerated depreciation and bonus depreciation

  • Commercial properties may also qualify for grants and PACE financing for energy upgrades

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