Washington D.C. Solar Incentives: Tax Credits & Rebates Guide

Solar power in Washington, D.C.

In Washington, D.C., solar energy accounts for more than half of the city’s electricity generation. Solar plays an important role in the district’s economic life as well as its power production. Residents can save money and reduce their carbon footprint by investing in solar power. Keep reading to learn more about the costs and benefits of solar panels and whether they’re right for your home.

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Washington, D.C., solar panel cost

The price of solar panels is measured in dollars per watt. In Washington, D.C., the average solar panel cost is $3.99 per watt, according to Find Energy. The cost of solar panels in Washington, D.C., depends on a variety of factors. These can include the size and components of your system, your location, the type of solar panels you choose, local labor and permitting costs, and more. You can expect to pay about $23,940 for the average-sized 8.6 kilowatt (kW) residential solar panel system in Washington, D.C. This cost is lower than the U.S. average of $31,558, according to the Lawrence Berkeley National Laboratory. The following table shows how the District of Columbia’s average prices compare to the U.S.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does Washington, D.C., solar save you money?

Switching to solar panels saves you money over time because you won’t have to pay for power from the grid. The length of time it takes you to save the amount of money you invest in your panels is known as the payback period. With an average monthly electricity bill of $116.77, Washington, D.C., residents can expect to have a 12-year payback period on a 6 kW solar panel system. This calculation takes into account the 30% federal tax credit on your solar panel system.

Given that each home requires a different solar system size, the following table shows a range of sizes and solar panel counts at the average price per watt of $3.99.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Washington, D.C., solar panel incentives or rebates

There’s no doubt solar panels are a large investment. To help make them more affordable, the federal government and many state and local governments have created solar incentives.

First, the federal government offers a 30% tax credit for solar systems installed on your primary or secondary home. The Residential Clean Energy Credit can help you recover thousands from your solar panel purchase.

Washington, D.C., offers several other incentives highlighted in the following table.

Why choose Washington, D.C., solar power?

Investing in solar power has a number of advantages, including energy bill savings, energy independence, and environmental benefits.

Lower energy costs

One of the major benefits of investing in solar power is that you can reduce your energy costs. Anytime you power your home with solar panels, you aren’t paying for electricity from the traditional energy grid. Over time, using solar panels can lead to substantial electricity cost savings.

Establish energy independence

Another benefit of having solar panels on your home is the opportunity to establish energy independence. The ability to generate your own electricity reduces your reliance on the power grid. You can also reduce your exposure to price hikes on the energy market. If you install a solar battery, you can increase your energy independence even more.

Go green

Traditional electricity generation emits greenhouse gasses that can pollute air and water and contribute to climate change. However, solar is a renewable energy source, and its generation doesn’t have the same harmful environmental effect.

Should I buy or lease my solar panels?

When you decide to install solar panels on your home, you can choose to buy or lease them. While both options have some major advantages, buying your own solar panels is ultimately the most cost-effective. It allows you to take advantage of federal and city tax perks, which aren’t available when you lease solar panels. Buying your panels also provides greater long-term energy savings. Owning your solar panels can increase your home’s resale value by $15,000 on average.

However, an upfront cash purchase is not accessible to everyone. The following table explores the pros and cons of other ways to access solar in Washington, D.C.

Washington, D.C., solar panel companies

When you decide to install solar panels on your home, you’ll have plenty of options in Washington, D.C. Thanks to the rising popularity of solar power, the District of Columbia has over 25 installers for you to choose from. Before selecting an installer, you can use our solar resources to get familiar with the industry and learn what to expect with your solar panel installation.

Here are some of the top solar installers in Washington, D.C., to consider during your search.

Solar installer	Year founded	Financing options	Warranty terms
	1985	Cash purchase, solar loan, or lease	25-year full system warranty
	2007	Cash purchase, solar loan, or lease	10-year quality warranty; customers who lease their systems receive coverage on maintenance and monitoring

What to look for in a solar contractor

A trusted solar contractor will be licensed and offer certification for staff members. Reputable installers utilize high-quality products from exceptional manufacturers with strong warranties. Check each company’s customer reviews — a top solar installer in Washington, D.C., will show a history of excellent customer service. The right solar contractor should also offer attractive financing options to make your purchase more attainable.

Beware of free solar panels in Washington, D.C., scam

There is no such thing as free solar panels in Washington, D.C. However, some unscrupulous actors try to lure people into unfavorable loan deals by claiming to offer free panels. Others may use this trick to get you to share your personal information with them. The best way to avoid scams like these is to inform yourself about the solar industry in Washington, D.C., with the information provided on this page. SaveOnEnergy can help you understand solar installation cost basics to determine whether you’re looking at a genuine offer.

Important solar installation factors to consider

Solar power can be an excellent investment, helping homeowners save money and reduce their environmental footprint. However, there are a few factors to consider before opting for solar panels.

• Roof condition: According to the Department of Energy, solar panels are most effective on south-facing roofs with slopes between 15 and 40 degrees. It’s also best to replace or repair your roof, if necessary, prior to installing solar panels.
• Sunlight: For solar panels to be most efficient, it’s important they get a lot of direct sunlight. Before making the investment in solar panels, consider how much sunlight your solar panels are likely to get. Consider trimming or removing any trees that may obstruct light from your solar array.
• HOA restrictions: If you have a homeowners association (HOA), there may be additional considerations before you install solar panels. Washington, D.C., has a solar access law prohibiting HOAs from blocking solar installations. However, you may still need to navigate your HOA’s rules or approval requirements.