Washington, DC Solar: The SRECs Earn More Than the Power Saves

A typical District system is 9.03 kW and costs about $28,986 in cash at $3.21 per watt. On Pepco bill savings alone it pays back in about 11.6 years, simple payback before incentives. Keep and sell its SRECs and they add about $4,670 a year at the April 2026 price of about $370 each, more than the power saves. Sign the SRECs away and that money is not yours.

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DC SRECs: about $370 each now, capped at $100 from 2042

District law makes electricity suppliers buy solar credits, called SRECs. Your system earns one for every 1,000 kWh it makes, and whoever owns them can sell them. No rebate or tax credit here is worth as much.

$370Price per SREC

The Public Service Commission’s reading for mid-April 2026. It was $424 in April 2025.

12.6SRECs a year

From the typical 9.03 kW system’s 12,633 kWh. About $4,670 at $370, before broker fees and tax.

$440Price cap in 2026

Set by law. It falls $20 a year to $300 in 2033, then to $100 in 2042.

5 yearsHow long an SREC lasts

From the month the power was made. After that it cannot be sold to a supplier.

The legal cap on a DC SREC, and the most 12.6 SRECs could bring
YearCap per SRECMost for 12.6 SRECs
2026$440$5,559
2027$420$5,306
2028$400$5,053
2030$360$4,548
2032$320$4,043
2033 to 2041$300$3,790
2042 and later$100$1,263
Why there is a cap, and why the price can sit below it
  • Suppliers must get 5.0% of the power they sell in the District from solar in 2026, rising to 15% in 2041. They prove it with SRECs.
  • A supplier that is short pays a fee per missing kWh instead: 44¢ in 2026, which is $440 per SREC. No supplier pays more than the fee, so it works as a ceiling. The cap is $380 in 2029 and $340 in 2031.
  • Buyers and sellers set the price below that ceiling. The PSC’s table shows $373 in April 2026 and $424 in April 2025.
  • The last column is the cap times 12.633 SRECs, the same output every year. It is the most the SRECs could bring, not a forecast. Panels make a little less each year.

District payback: 11.6 years on bill savings, with SREC money on top

The same 9.03 kW roof and the same Pepco bill savings. Our payback counts the bill savings only. Whoever keeps the SRECs also collects their money.

9.03 kW, $28,986 cash, 12,633 kWh in year one
Who keeps the SRECsPepco bill savingsSREC incomeYearly totalSimple payback before incentives
You, sold at about $370 each$2,505about $4,670about $7,17511.6 years, SRECs on top
The company, or nobody sells them$2,505$0$2,50511.6 years

Swipe the table sideways to see every column.

How we calculated this
  • Output: 9.03 kW × 1,399 kWh per kW = 12,633 kWh a year.
  • Pepco credits exported kWh one for one, so every kWh counts at Pepco’s price: 22.92¢, its District average from August 2025 to July 2026 (EIA), less the $18.09 monthly customer charge, is 19.83¢. 12,633 kWh × 19.83¢ = $2,505 a year.
  • Payback: $28,986 ÷ $2,505 = 11.6 years, simple payback before incentives. No upkeep, price rises, financing or panel aging are counted.
  • SRECs: about 12.6 a year × about $370 = about $4,670 a year before broker fees. They are income on top, not part of the payback. Prices move, and the $440 compliance fee for 2026 is the ceiling.
  • Power above your yearly use earns less: see the Pepco section.

SREC prices move. The cap is $440 in 2026 and falls to $300 in 2033, so ask each installer which SREC price it used for each year.

Cash, loan, lease or PPA: who sells the SRECs from a District roof

District law does not hand the SRECs to the homeowner. The contract does, or does not. Look for “renewable energy credits” or “environmental attributes” and see whose name follows.

Ways to pay, and who ends up with the SRECs
Way to pay
Who owns the panels
Who keeps the SRECs
Check before you sign
Cash
You
You, unless the contract assigns them
That the SRECs are not assigned to the installer
Loan
You
You, unless the contract assigns them
Cash vs. financed price, and any dealer fee
Lease
The company
Whoever the contract names
If the company keeps them, their value as a lower payment
PPA
The company
Whoever the contract names
Who keeps them, and the PPA rate against the 24.2¢ you pay now

Swipe the table sideways to see every column.

Who files what before the SRECs pay

Pepco before switch-on

  1. Your installer applies to Pepco to connect the system and for net metering.
  2. Pepco puts in a two-way meter.
  3. Extra power shows up as kWh credits on later bills.

PSC and GATS to create SRECs

  1. The system is certified by the PSC. It decides within 30 business days unless it asks for more information.
  2. Output is recorded in GATS, the regional credit tracking system, at least twice a year.
  3. The SREC owner sells to a supplier, directly or through a broker that takes a fee per SREC.

A newly certified system can count power back to January 1 of the year it is certified. Power made before that earns no SRECs, so ask who files the certification and by when.

Pepco net metering: kWh for kWh, then a December true-up

Pepco delivers power to every District home. Solar power you use lowers your bill right away, and power you send out comes back as kWh credits.

Pepco bill credits

24.20¢ per kWh, District average

What District homes paid on average, August 2025 to July 2026, fixed charges included. Send out 100 kWh more than you use in June, and 100 kWh come off a later bill.

Credits: carry over from month to month.

Each December

Above 100% of use

Power you made above your yearly use is paid at the generation rate only, the supply part of your rate. A year-end credit over $25 is refunded; $25 or less carries over.

Next: size the system to your use, not past it.

A competitive supplier

Its contract rate

If another company sells you power and Pepco only delivers it, Pepco still gives kWh credits. The supply part is credited at the rate in your supplier’s contract.

Next: ask the supplier, in writing, how it bills solar homes.

Size limits, and what credits do not cover
  • A home system can be sized up to 200% of your past 12 months of use. The legal limit for any net-metered system is 1,000 kW.
  • A bigger system makes more SRECs, but power above 100% of your yearly use earns only the generation rate. Ask your installer to show both numbers for the size in your quote.
  • Credits do not cover charges that are not per kWh, such as the monthly customer charge.

District prices: $3.21 per watt, near the top of the Cost Index

$0.32 above the $2.89 US average and 49th lowest of 51 (the 50 states and DC). Maryland is $2.80 and Virginia $2.79. These are modeled cash prices, not quotes we collected.

Cash price by size, and the SRECs each size makes
Size
kWh a year
SRECs a year
Cash price
4 kW
5,596
5.6
$12,840
6 kW
8,394
8.4
$19,260
9.03 kW (typical)
12,633
12.6
$28,986
12 kW
16,788
16.8
$38,520
Where the sizes and prices come from
  • 9.03 kW is the median size District homeowners installed in 2025 (Berkeley Lab, 1,975 systems). Size yours to your own use.
  • Output uses about 1,399 kWh per kW a year. Shade from trees or taller buildings lowers it.
  • One SREC per 1,000 kWh. SRECs are counted whole; the decimals show a year’s share.
  • A system you own gets no federal tax credit after December 31, 2025.

DC Solar for All: a rooftop waitlist and free community solar

The District’s program for lower-income households has two parts, and they are not equally open. DCSEU’s apply page still showed its waitlist notice on October 19, 2026.

80%Income limit

Of area median income, or help from a federally approved assistance program.

WaitlistFree rooftop system

Funding was limited for the year to September 30, 2026. Every application goes on a waitlist until further notice.

about $500Community solar, a year

A free share of a solar array elsewhere in the District, for up to 15 years while you qualify.

4 unitsLargest building for a roof system

Single-family homes, or buildings of two to four units where you have your own meter.

DCSEU tells you within 30 days whether you are eligible. Income-verified applicants may be referred to DOEE, the District’s energy department, for a community solar place. If you get a rooftop system, DCSEU’s contractor maintains it for 20 years. The law keeps the program running until the end of fiscal year 2032.

Do not sign with a solar company while you wait: a signed solar contract makes the home ineligible. Community solar earns you no SRECs.

Renters, condos and co-ops in the District
  • Renters can apply for a Solar for All rooftop system with the owner’s agreement.
  • Any Pepco customer can subscribe to a paid community solar project. DOEE says subscribers save 5% to 15% a year on average. A subscription can cover up to 120% of your past year of use.
  • Since July 17, 2018, a condo, co-op or homeowners association cannot ban solar on your own property or on a roof that covers only your unit (D.C. Code 8-1774.51). It can still set reasonable rules that are not about looks.

Three installers with District offices, A to Z

Not ranked. Facts from their own sites and from DC and Maryland license records, read October 13 to 15, 2026.

EDGE Energy

Office
Washington, DC (headquarters Beltsville, MD)
Licenses
Maryland 98688, active. No DC business license record found on October 14, 2026: ask for its number
Warranty
No solar warranty terms published; a general satisfaction guarantee
More facts
Founded
2006 (company says)
Ways to pay
Cash, loan, PPA through a partner; no lease listed
EDGE Energy profile

Ipsun Solar

Office
Washington, DC, and Fairfax, VA
Licenses
DC home improvement contractor 420227000070 and general contractor 410525000564, both active
Warranty
Qcells panels 25 years; workmanship offered, term not published
More facts
Owner
Part of Civic Renewables since 2024 (company says)
Ways to pay
Cash, loan, lease, PPA through partners
Ipsun Solar profile

Solar Solution

Office
Washington, DC (headquarters, Brookland)
Licenses
DC general contractor 410522000557, active to April 30, 2030. Its DC home improvement contractor license shows “Expired – Final Penalty” (DC records, October 15, 2026). Whether the general contractor license covers home solar was not checked by us: ask
Warranty
Workmanship offered, term not published; Enphase batteries 15 years
More facts
Solar since
2008 (company says)
Ways to pay
Cash, loan, $0 PPA in which Solar Solution owns the system for 20 years and keeps the SRECs
Solar Solution profile

Before you sign with any installer, ask for its DC Home Improvement Contractor license number and check that it is active with the Department of Licensing and Consumer Protection. How we check installers.

What a District quote must say about SRECs, size and licenses

  • SREC owner in writingYour name, or the company’s and the dollars you get for them.
  • SREC price by yearThe price used for each year, never above that year’s cap: $440 in 2026, $420 in 2027.
  • Two savings linesPepco bill savings and SREC income shown apart, and SREC income not also taken off the price.
  • Size against your useYear-one kWh next to your past 12 months of use, since power above 100% earns only the generation rate.
  • Paperwork ownerWho certifies the system with the PSC, who reports output to GATS and the fee per SREC sold.
  • A DC license numberThe company’s DC Home Improvement Contractor license, active on the day you sign.

Ready to compare District quotes?

Ask each installer who keeps the SRECs and which SREC price it used.

Check your Washington, DC roof and savings

EcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us. This is not an application to DC Solar for All. Privacy policy

Washington, DC Solar FAQs

When does a new system start earning SRECs?

Once the PSC certifies it. A newly certified system can count power back to January 1 of the year it is certified, and one certified in January can go back one more year. The PSC decides within 30 business days unless it asks for more information.

Is SREC income taxed?

It may count as taxable income. Ask a tax professional how to report it before you count on the full amount.

Can I still claim the 30% federal tax credit?

No, not for a system you own placed in service after December 31, 2025. The District has no tax credit of its own.

Does the District tax solar equipment?

Systems that use only solar energy are exempt from the District’s personal property tax (D.C. Code 47-1508). That is separate from the real property tax on your house, so ask the Office of Tax and Revenue how it assesses a home with panels.

Can my condo board or HOA block my panels?

Not on your own property or on a roof that covers only your unit. District law has said so since July 17, 2018. The association can still set reasonable rules that are not about looks, and it can say no on other shared areas.

Who wrote and checked this District guide

Sources (19 documents, each with the date we read it)
  1. EcoGen Solar Cost Index, September 2026: Washington, DC$3.21 per watt, 9.03 kW median size (Berkeley Lab 2025, 1,975 systems), about 1,399 kWh per kW, 12,633 kWh, $0.32 above the $2.89 US average, 49th lowest of 51. Read October 14, 2026.
  2. EcoGen worth-it analysis: Washington, DCPayback from our per-utility figures of October 19, 2026: Pepco’s EIA 12-month price, 22.92¢, less its $18.09 monthly customer charge. No upkeep counted.
  3. U.S. EIA: average residential electricity price by state24.20¢ District average, August 2025 to July 2026.
  4. DC Public Service Commission: 2026 Renewable Energy Portfolio Standard reportAbout $370 per SREC in mid-April 2026; $373 (April 2026) and $424 (April 2025); one credit per 1,000 kWh. Read September 30, 2026.
  5. D.C. Code 34-1434: compliance fee for the solar requirementThe SREC price cap for each year. Read September 30, 2026.
  6. D.C. Code 34-1432: renewable energy portfolio standardSolar share 5.0% in 2026, 15% from 2041. Read September 30, 2026.
  7. DC PSC rules, 15 DCMR Chapter 29Certification within 30 business days, credits back to January 1, reporting at least twice a year, five-year SREC life. Read September 30, 2026.
  8. DC PSC rules, 15 DCMR Chapter 9: net energy meteringkWh credits, the December true-up, the $25 refund rule, the 200% size limit and supplier crediting. Read September 30, 2026.
  9. D.C. Code 34-1501: definitionsNet metering for systems of up to 1,000 kW. Read September 30, 2026.
  10. DCSEU: Apply for Affordable Home Electrification and Solar for AllIncome limit, waitlist notice, 30-day eligibility answer, community solar referral. Read October 19, 2026.
  11. DCSEU: Solar for All20 years of maintenance on rooftop systems. Read September 29, 2026.
  12. DOEE: Solar for All resident resourcesCommunity solar credits for up to 15 years. Read September 30, 2026.
  13. D.C. Code 8-1774.16: Solar for All ProgramRuns until the end of fiscal year 2032. Read September 30, 2026.
  14. DOEE: Solar in the DistrictCommunity solar savings of 5% to 15% on average; no District tax incentives. Read October 1, 2026.
  15. D.C. Code 8-1774.51: solar in associationsCondo, co-op and HOA rules, effective July 17, 2018. Read September 30, 2026.
  16. D.C. Code 47-1508: personal property tax exemptionsExemption for systems using only solar energy. Read September 30, 2026.
  17. IRS: Residential Clean Energy CreditNo credit for property placed in service after December 31, 2025. Read September 30, 2026.
  18. DC Department of Licensing and Consumer Protection: basic business licenses (DC open data)Installer license numbers and status. Read October 15, 2026.
  19. Maryland Department of Labor: license queryEDGE Energy license 98688. Read October 13, 2026.
Dean Mahmoud
Written by

Dean Mahmoud

CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.

About Dean
Trevor Guilday
Checked by

Trevor Guilday

Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.

About Trevor