Washington DC renewable and solar energy incentives
District of Columbia Renewable and Solar Energy Incentives
Renewable Energy Incentive Program (Commercial/Residential)
This revamped incentive program funded by the Sustainable Energy Trust Fund gives purchasers of PV solar panel or wind turbine systems a substantial rebate for the purchase and installation of their renewable energy system.
- Incentive amounts:
o $3.00/W DC for the first 3 kW installed
o $2.00/W DC for the following 7 kW installed
o $1.00/W DC for the next 10 kW installed
o Incentives are capped at a maximum of $33,000 per site per year.
- To qualify, systems must be recently purchased and installed and come with at least a 1-year warranty. They must also come with a performance meter that comes with at least a 5-year warranty.
- Systems must exceed 1 kW in size to be considered for this program.
- Systems need to be grid-linked and installed by a licensed professional, whereby a 1-year warranty is purchased for the installation of the system.
Residential Energy Efficient Appliance Rebate Program – PEPCO (Residential)
- PEPCO offers a rebate award for residents of Washington DC who purchase energy-efficient refrigerators, water heaters and central air conditioners.
- Rebate Amounts: Refrigerators: $50, central AC units: $25, water heaters: $20.
o Incentives are capped at $50, $125 (5 rebates), and $20 for refrigerators, AC units and water heaters respectively.
- All refrigerators and AC units must be Energy Star-rated and water heaters must have an efficiency factor of at least 0.93 to be eligible for this rebate program.
Net Metering (Residential/Commercial)
Residents and businesses in Washington DC have the option to net meter their renewable energy systems, allowing them to sell electricity back to utility companies. Only investor-owned utilities participate in net metering.
- Qualifying systems: Solar thermal electric, PV, wind, hydroelectric, biomass, fuel cells, geothermal, CHP/Cogeneration, tidal, microturbines and anaerobic digestion.
- Systems must not exceed 1 MW in size to qualify.
- Reimbursement is represented in the form of credit on the participants following electric bill.
Federal Tax Credit (Residential/Commercial)
Taxpayers are granted a personal tax credit of 30% of the total expenses, which include installation of residential solar panel systems, solar thermal systems, fuel cells and labor expenses. Residential wind energy installations and geothermal pumps are also eligible for this tax credit.
- Solar electric systems and solar thermal heaters have no maximum incentive.
- If there is excess federal tax credit, it may be carried over to the subsequent taxable year only if it surpasses tax liability.
- This may continue on through consecutive years until 2016, under which unused credit may or may not be expunged.
Federal Energy Conservation Subsidy Exclusion (Residential)
- Public utilities provide residential purchasers with an exemption of 100% of energy conservation subsidies.
- The overall worth of an installation or renewable utility regardless of the energy conservation capacity, will be excluded from the buyer’s gross income.
- Customers who participate in a utility company’s energy conservation program may be given a reduced rate of electricity utilized or a nonrefundable credit of the price of electricity on the customer’s monthly electric bill.
Energy-Efficient Mortgages (Residential)
With this federal loan program, homeowners may utilize energy-efficient mortgages (EEM) to either supplement or completely fund renewable energy systems.
Example: 4KW System – Residential Installation Cost
Average Electric Bill: $250/mo
Projected Annual Bill Escalation: 5%
Cost Per Watt: $6.50
* Estimated System Cost: $26,000
* Federal/State Tax Credit: $4,500
* State/Utility Rebate: $11,000
* Net Cost: $10,500
* Cumulative Lifetime Savings (25 Years): $35,656
* Investment Return: 13.5%
Savings of 60% on the total cost of your solar system through incentives