Free solar DC 2026: what's changed this year
Free solar is still available for DC homeowners in 2026 — but several things have shifted since last year. Pepco rates are higher, grid capacity is tighter in some neighborhoods, and the window for the best deals is narrowing. Here's the honest update.
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If you looked into free solar in DC a year or two ago and decided to wait, you're not alone. A lot of DC homeowners have been watching and wondering whether 2026 is the right time to act — or whether the program is still even available. The short answer: it's still real, it's still worth it, but the landscape has changed in ways that matter.
What's changed in 2026
Pepco rates hit a new high
DC electricity now costs approximately 23.9¢/kWh — up significantly from recent years and 42% above the national average. Every month you delay going solar is another month paying Pepco's record rates. The savings from a free PPA are larger in 2026 than they've ever been.
Grid capacity is tighter
Pepco's aging infrastructure is creating interconnection bottlenecks in certain DC neighborhoods. Some homeowners who apply for solar in 2026 are waiting longer for Pepco approval — and a small number are being told their area needs costly grid upgrades before solar can connect. This wasn't nearly as common two years ago.
SREC values are declining on schedule
DC SRECs started at $500 per credit (the SACP ceiling through 2023). In 2026, the SACP dropped to $300 and spot prices are around $360. This matters more if you're considering a solar loan (where you collect SRECs) than a free PPA (where the solar company collects them). SRECs are projected to stabilize around $200-$250 through 2041.
Federal 30% tax credit expired
Trump's One Big Beautiful Bill, signed July 4, 2025, eliminated the 30% residential solar tax credit (Section 25D) effective December 31, 2025. Homeowners who purchase solar with cash or a loan in 2026 get $0 federal credit. However, free PPA programs are actually unaffected — the solar company (as system owner) still claims the commercial ITC and passes those savings to you through the free install.
Free PPA programs are still active
Despite the changes above, legitimate free PPA programs are still operating in DC in 2026. Solar companies can still make the economics work because DC's high electricity rates and SREC market — even at lower values — still justify the investment. But availability isn't unlimited, and not every home qualifies.
Why 2026 savings are bigger than ever
Here's the math that matters. A typical 10kW solar system in DC produces around 11,000 kWh per year. At Pepco's current rate of 23.9¢/kWh, that's roughly $2,629 per year in electricity savings — or about $220 per month off your Pepco bill.
Two years ago, when Pepco rates were lower, the same system saved less. As rates have climbed, the financial benefit of a free PPA has grown proportionally. And because Pepco rates are expected to keep rising — driven by ongoing grid infrastructure investment across the District — the value of locking in $0 electricity costs only increases over time.
At 23.9¢/kWh, a DC homeowner with a free 10kW solar system saves an estimated $2,600+ per year on their Pepco bill — with zero upfront cost and zero monthly payment. That's the strongest case for free solar DC has ever seen.
What hasn't changed
The fundamentals of free solar in DC remain the same as they've always been. A Power Purchase Agreement (PPA) means a solar company installs panels on your roof at no cost to you. You own nothing, pay nothing, and owe nothing. The company owns the system, maintains it, and earns income from the SRECs your panels generate. You get the electricity savings.
No loan. No monthly payment. No maintenance headaches. If a panel fails, the solar company fixes it — not you. The simplicity of this arrangement is why free PPAs remain the most popular solar option for DC homeowners who want real savings without financial complexity or risk.
What also hasn't changed: not every home qualifies. Your roof needs to be in good condition, oriented reasonably toward the sun, and free from excessive shading. And Pepco still needs to approve your interconnection — which, as noted above, is taking longer in some parts of DC than it used to.
Should you go solar in 2026 or wait?
This is the question we get most often, and the honest answer depends on your situation. But here's what the data says about waiting.
Pepco rates have increased almost every year for the past decade. There is no credible scenario in which DC electricity becomes significantly cheaper — the utility has billions of dollars of grid infrastructure to pay for, and ratepayers foot the bill. Every year you wait is another year of paying full Pepco rates with no offset.
Grid capacity is also becoming a real constraint in certain neighborhoods. Homeowners who apply in 2026 are generally getting through the process — but the window where any DC home can sail through interconnection approval without complications is narrowing. Applying sooner rather than later puts you ahead of that constraint.
One thing is clear: the best time to lock in a free PPA was two years ago. The second best time is now. The economics get marginally harder for solar companies every year as SREC values decline — meaning the window for truly free installs with no conditions will eventually close. We don't know exactly when, but the direction is clear. Read more about how long free solar will be available in DC →
Free PPA vs solar loan in 2026
If you're comparing your options in 2026, the expiration of the federal tax credit and the SREC decline both make the free PPA case stronger than it was a few years ago. Here's why.
When homeowners could claim a 30% federal tax credit on a solar loan, owning your system was financially attractive. That credit is now gone — a $30,000 solar loan that would have generated $9,000 in federal tax savings in 2025 generates $0 in 2026. At the same time, DC SREC values have fallen from $500 to ~$360. The two main financial arguments for buying your own system have both weakened significantly.
Meanwhile, a free PPA is completely unaffected by the federal tax credit expiration. The solar company (as system owner) still qualifies for the commercial ITC under Section 48, which they factor into the economics of offering you a free install. You get the same deal you would have gotten before — no cost, no payment, real savings on your Pepco bill.
Here's what most DC solar salespeople won't explain. Every interest rate tells a story about dealer fees:
- 1.99%–2.99% — massive hidden dealer fee, often inflating your loan by up to 50%
- ~8.5% — smaller dealer fee, but still a fee baked in
- 9.99% — typically no dealer fee; you finance only the actual system cost
If your system costs $26,000 in cash but you're being offered a $39,000 loan, the $13,000 difference is the dealer fee — and you pay interest on it for 20-25 years.
⚠ Always ask your installer for the cash price. The gap between the cash price and the loan amount is what you're paying in hidden fees — and you'll pay interest on top of that for 20–25 years.
Common questions about free solar in DC in 2026
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