Is free solar in DC real? Everything Pepco customers need to know

Short answer: yes, free solar in Washington DC is completely real. But the way it works — and the catch most companies skip over — is something every homeowner should understand before signing anything.

If you've been approached by a solar company in DC, you've probably heard something like "you can go solar for free" or "no money down, no monthly payment." For many DC homeowners, that sounds too good to be true. It isn't — but understanding exactly what "free" means makes all the difference.

What does "free solar" actually mean?

Free solar in DC refers to a Power Purchase Agreement, or PPA. Under a PPA, a solar company installs panels on your roof at no cost to you. You pay nothing upfront and nothing per month. The solar company owns the system, handles all maintenance, and earns income from selling Solar Renewable Energy Certificates — known as SRECs — that your panels generate.

In return, you get free electricity from the sun. Your Pepco bill drops dramatically because your panels are offsetting most or all of your energy usage. A typical 10kW system in DC produces around 11,000 kWh per year — enough to cover the majority of an average household's electricity needs. And since you're not paying for the solar system itself, every dollar you save on Pepco is money back in your pocket from day one.

If a panel stops working, the solar company fixes it — not you. There are no interest charges, no loan to repay, and no monthly bill for your solar system. The simplicity is one of the biggest reasons free PPAs have become the most popular solar option for DC homeowners who want real savings without financial complexity.

It is also worth noting that DC's high Pepco rates make free solar especially valuable here compared to most other states. At 23.9¢/kWh, every kilowatt-hour your panels produce is worth nearly twice the national average in savings. That means the financial benefit of a free PPA in DC is significantly larger than the same system would deliver in a lower-rate state.

And those Pepco rates are only going to keep climbing. A significant driver of future rate increases is DC's aging electrical grid — Pepco is spending hundreds of millions of dollars on infrastructure upgrades across the District, and those costs get passed directly to ratepayers through higher bills. Every DC homeowner is paying for grid upgrades whether they benefit from them or not. Going solar with a free PPA is one of the few ways to lock in $0 electricity costs before those increases hit. Learn more about how DC's grid problems are affecting solar installs →

What's the catch?

There are two things most solar companies don't fully explain about free PPAs in DC.

First, you don't own the system. That means you don't collect SREC income — the solar company does. SRECs in DC currently pay around $370 per credit, and a 10kW system generates roughly 11 SRECs per year. That's around $4,000 per year in SREC income that goes to the solar company, not you. This is how they make money on a "free" install.

Second, not every home qualifies. Pepco must approve your interconnection before any solar system can be installed in DC. In some neighborhoods, the electrical infrastructure is aging and needs upgrades before solar can connect to the grid. Those upgrades can be costly and can delay or cancel your installation entirely. A reputable solar company will check this before making you any promises.

Free PPA vs solar loan — which is better for DC homeowners?

Many solar companies in DC push loans instead of free PPAs because they make significantly more money on a financed sale. A solar loan lets you own the system and collect SREC income — which sounds attractive. But there are two things loan salespeople rarely mention.

One: SREC prices in DC are declining. Today's rate of ~$370 per SREC is projected to fall to ~$200 by 2035 as the SACP cap decreases each year. Your loan payment stays fixed. Your SREC income doesn't.

Two: solar loans often carry hidden dealer fees that inflate your loan balance significantly. The lower the interest rate a company offers, the higher the dealer fee they've baked into your system price. Read our full guide on solar loan hidden fees in DC →

For most DC homeowners planning to stay in their home long term and wanting the simplest, lowest-risk option, a free PPA is the stronger financial choice. You save on Pepco from day one with zero complexity and zero debt.

Common questions about free solar in DC