Life After 25D: Solar Economics in DC Now

What ended

The federal residential clean energy credit, known as 25D, ended on January 1, 2026 for systems owned by homeowners. It used to cover a large share of the price of solar and batteries charged by solar, and many quotes were built around it.

Without it, a DC system costs its full installed price: about $3.00 to $3.40 per watt, or roughly $15,000 to $18,000 for a 6 kW system.

Who feels it most

Owners who planned a cash purchase around the credit feel the change most directly, since the price they were counting on is now the full price. Battery buyers feel it too, because batteries charged by solar were covered and add a large amount to a project.

Owners whose payback rested mostly on SRECs feel it least. For many DC homes, the credits were always the larger part of the value.

What still pays in DC

The District's own programs carry most of the value. DC SRECs sold for about $360 to $455 each in 2026, typically adding $2,200 to $3,200 a year for a home system. Pepco credits exported solar at the full retail rate under net metering, so daytime surplus is not wasted.

For income-qualified households, the Solar Advantage Plus rebate offers up to $10,000 toward solar or solar plus storage. Solar for All was waitlisted as of mid-2026.

Batteries after the credit

Without the federal credit, a battery in DC has to be justified as backup rather than as a discounted add-on. A 10 kWh class battery typically costs $12,000 to $16,000 installed. For households that need reliable power through outages, that can still be worth it; for others, adding a battery later remains an option.

Why the District's market holds up

Three rules keep DC credits valuable. Only systems physically inside the District can earn them, which limits supply. The solar requirement suppliers must meet rises from 5 percent in 2026 toward 9 percent by 2032, which grows demand. And the $440 alternative compliance payment for 2026 sets a high ceiling.

Behind all three sits the District's renewable portfolio standard, which calls for 100 percent renewable electricity by 2032 and a 10 percent local solar share by 2041.

Leases and power purchase agreements

Some companies now push leases and power purchase agreements, where they own the system and you pay for the panels or the power. Those can work, but read who keeps the SRECs, how the payment escalates and what happens when you sell the house. In most DC leases, the company keeps the credits, which is where most of the value is.

Running your own numbers

1. Get a price per watt and a production estimate for your address.
2. Multiply estimated annual production in megawatt-hours by a conservative SREC price.
3. Add the Pepco bill savings from net metering.
4. Divide the installed price by the yearly total for a rough payback.
5. Check whether any rebate applies to your household.

Mistakes to avoid now

• Accepting a quote that still shows the federal homeowner credit as a saving.
• Signing a lease without checking who keeps the SRECs.
• Oversizing the system beyond what net metering can credit.
• Skipping the roof and panel check to get a lower number.
• Leaving SREC registration as an afterthought.

Each one either inflates the promised savings or quietly gives away the District's main solar advantage.

Sources

1. City Renewables: Cost of solar per watt in DC, 2026
2. City Renewables: Electrification incentives in DC after the federal ITC sunset
3. City Renewables: DC SREC prices in 2026
4. City Renewables: DC SREC guide
5. Xpansiv: District of Columbia SREC market
6. EnergySage: DC solar rebates and incentives
7. Wikipedia: Solar power in Washington, D.C.

Figures are as published by the sources above in 2026 and can change. Call (202) 978-0232 to check how they apply to your address.