District of Columbia residential solar energy incentives

Renewable energy incentive program

This is a rebate program for solar photovoltaic and wind energy systems which is funded through the Sustainable Energy Trust.

Rebates start at $3 per watt for the first 3 kW installed capacity followed by $2 per watt for the next 7 kW then $1 for the next 10 kW.]

System qualifications:

Systems must be new and carry a one year warranty on installation.

Systems must have a performance meter with a five year warranty.

System size must be at least 1 kilowatt.

Net metering

Net metering is available to residents who have renewable energy equipment such as solar, wind, geothermal, biomass or hydroelectric power systems that is capable of calculating the flow of electricity in two directions.

The net excess generation is given to the customer at the utilities retail rate as a credit on the customer’s next bill.

Maximum capacity is set at 1 MW.

Residential renewable energy tax credit

This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.

Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.

The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.

This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion

This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.

The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.

Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages

This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.