Cost of solar panels in Washington, D.C. (2025)

How much do solar panels cost in Washington, D.C?

With professional installation, a typical 6-kilowatt residential solar panel system in Washington, D.C., costs $18,360. That price drops to $12,852 after using the full federal solar investment tax credit (ITC).

The ITC is not a rebate or a refund. It goes toward what you owe on federal income taxes.

Most installers price systems based on wattage. “Cost per watt” is similar to the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Washington, D.C., the average cost per watt is $3.06.

The size of your solar panel system is a big factor in your overall solar costs. A typical Washington, D.C., household needs a 9.3 kW system to offset enough energy costs to make solar viable. Depending on your household energy usage, you might need a smaller or larger system.

Average solar panel installation cost by system size in Washington, D.C.

The table above doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence and essential if you go off-grid.

Are solar panels worth it in Washington, D.C?

We’ve talked to thousands of people who have already gone solar across the country. It’s generally worth it if you like the idea of more energy independence and a smaller carbon footprint. It also makes financial sense — over 25 years, Washington, D.C., homeowners with solar panels avoid $63,114 in utility costs on average.

High upfront costs are the biggest barrier for a lot of homeowners wanting to go solar, which is why so many people finance. In the best-case scenario, if you finance solar panels, your monthly loan payments are much less than what you would be paying for traditional utility bills.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Not everyone says they’re saving enough to justify the investment, though. For instance, Richard in Washington, D.C., said his solar company rep failed to clearly explain the contract, promised undelivered goods and withheld a copy of the agreement, ultimately resulting in significantly higher costs than expected. “At this point, I really regret ever getting my panels installed,” Richard told us.

Unhappy solar customers often tell us about slow installations, faulty equipment and hidden fees. These problems are usually specific to a particular solar company and not related to solar energy in general. With the right solar partner, you should be able to power your house with cheap, clean energy for decades.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Washington, D.C.

The equipment (solar panels, inverters, mounting hardware and other electrical accessories) is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Permits and other soft costs (utility fees and maintenance, for example) make up the rest of the total price tag.

Solar panel efficiency

High-efficiency panels generate more power per square foot, which lets you produce the same energy with fewer panels. However, lower-efficiency panels may be more cost-effective if space isn't a concern.

Average solar panel efficiency rates range 15% to 20%.

Monocrystalline panels are generally considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference between the two comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Other solar equipment costs

A solar array is more than just the panels — residential solar systems also need mounting equipment, wiring, inverters and sometimes batteries.

• Solar batteries: A battery stores energy for later use. Prices depend on the battery’s storage capacity, lifespan, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Inverters: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Expect to pay $1,000 to $3,000.
• Monitoring systems: This lets you track how much energy your system produces and alerts you if there are any problems. Some companies include a solar monitoring system as part of a package deal with your installation. If not, you can get one for $80 to $400.

Size of your system

Considering that the cost difference between a 6-kilowatt system and a 7-kilowatt system is thousands of dollars, it’s smart to upgrade any old appliances before going solar. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. You need fewer solar panels if you use less electricity, making the whole system cheaper.

» WATT’S THE DIFFERENCE? Kilowatt vs. kilowatt-hour

Condition of your roof

Quality solar panels should last 25 to 30 years, so you need your roof to last just as long. Otherwise, you’ll have to pay to remove the panels, fix your roof and reinstall them again. This is a frustrating and expensive process — avoid it if you can. If you’ve been thinking about replacing your roof, it’s a good idea to do that before getting solar panels.

Other cost factors

Good solar installation companies make sure your system is set up for optimal performance, but this expertise comes at a price.

• Labor costs: Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the DIY route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.
• Local permits: You or your installer will have to secure a permit through the DC Department of Buildings (DOB). You can learn more about the solar permitting process on the DOB’s website.
• Ongoing costs: Solar panels require minimal maintenance, but there’s still an associated cost. Potential repairs and periodic cleaning also add to the lifetime cost of your solar panel system.

How can I pay for solar panels in Washington, D.C?

When it comes to paying for your solar system, you have options, including loans and leases. Each scenario has pros and cons, and your choice affects the overall costs of going solar.

• Solar loans: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan terms typically last eight to 20 years.
• PACE financing: You also have PACE (Property Assessed Clean Energy) financing available through the DC Green Bank. PACE loans are repaid through a special tax assessment on your property.
• Solar leases: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option. Home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Solar incentives, tax credits and rebates in Washington, D.C.

The federal solar investment tax credit (ITC) is the best financial incentive for most homeowners going solar in Washington, D.C. The ITC is worth 30% of your system’s total cost, including equipment, labor and permits, and goes toward what you owe on federal income taxes.

The ITC drops to 26% in 2033 and then 22% in 2034.

Besides the federal solar tax credit, Washington, D.C., has multiple local incentives to reduce solar costs. For instance, you might be eligible for rebates through the District of Columbia Sustainable Energy Utility. There is also a property tax exemption. A solar property tax exemption means that — for tax purposes — the addition of a solar energy system won't cause an increase in your property's assessed value. Essentially, your property tax bill won't go up because your solar panels increase your home’s market value.

Compare solar installation companies in Washington, D.C.

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Washington, D.C.

Bottom line

D.C.'s climate makes it a great location for going solar. The main drawback is the high cost of purchasing and installing the panels and equipment. Overall, many residents we've talked to say the long-term savings outweigh the upfront expense.

Solar costs and savings: Washington, D.C., vs. nearby states