DC wants to cut solar credits. Here's what that means for free solar.
If you've been thinking about solar in DC — free or paid — there's something happening at the Wilson Building you should know about. Nothing has been voted on. But it's on the table, and it would change the math for every homeowner in the city.
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What's being proposed
DC electric bills have gone up faster than anywhere in the country — about 87% since 2020. Mayor Bowser's office says part of the reason is the city's solar program, and has proposed three changes to the Council:
1. Push back the deadlines
Freeze and extend the target dates for DC's renewable energy standard.
2. Lower the SREC price ceiling
Cap what DC solar credits can sell for. This is the one that hits homeowners directly.
3. Cut the local solar target
Roll the 2041 goal from 15% back to 10%, undoing a law the Council passed in 2022.
The mayor's staff presented this at Council hearings in June and July. As of mid-September there is no bill and no scheduled vote. Council member Charles Allen, who chairs the committee that would handle it, has said publicly he's against it. But the mayor's office has called it relief they could "deliver almost immediately," so it isn't going away on its own.
Why SRECs are the whole game
Here's the part most homeowners never hear.
Every time a rooftop system in DC produces 1,000 kilowatt-hours, it earns one Solar Renewable Energy Credit. Pepco is required by law to buy a certain number of these, so they have real value — right now about $360–400 each in DC. A typical rowhouse roof produces 6–10 of them a year.
That's $2,000–4,000 a year, and it's the reason DC solar works the way it does:
If you buy a system, the SREC checks are most of your payback. The 30% federal tax credit for purchased systems ended January 1, 2026, so SRECs are now the main incentive left.
If you get a $0 system — the kind we install — the SRECs are how the installer gets paid. You get the panels and the lower Pepco bill; the company takes the credits. No credits, no free solar.
For comparison, Maryland's SREC is worth about $50 and Virginia's about $20. That's why free solar exists in DC and not across the line in Silver Spring.
What happens if the cut passes
Two different outcomes, depending on which side of the deal you're on.
If you already have a system — bought or $0 — you should be fine. Allen's point to the mayor's office was exactly this: thousands of people made decisions based on current law, and you can't "pull the rug out." Existing contracts and existing systems are the hardest thing to touch politically. That's not a guarantee, but it's where the Council is leaning.
If you're still deciding, the risk is real:
Buyers would see their SREC income drop, and a system that pays back in 7–8 years today could take 12 or more.
$0 programs would stop. Installers can't put a system worth tens of thousands of dollars on your roof for free if the credits that pay for it are cut in half.
What you can do
Say something. Solar United Neighbors is collecting messages from DC homeowners to the Council. It takes two minutes and the Council does read them:
Tell the DC Council: defend local solar →
Don't wait for the vote. If you've been on the fence, the safest position is to have a system installed under today's rules. A $0 agreement locks in your terms for the life of the contract, and the SREC risk sits with us, not you.
We'll update this page as the proposal moves. Last updated September 18, 2026.
Sources: The Washington Sun, July 13, 2026 · Solar United Neighbors · DC PSC 2026 RPS Report · Flett Exchange DC SREC prices
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