✅ 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
