What is a solar PPA in DC — and is it really free?

A solar PPA in DC can be completely free — $0 per kWh for 20 years. But that only happens when everything lines up perfectly. Here's what actually determines your rate, and why even a 6–9¢ PPA is a deal most homeowners should seriously consider.

What is a solar PPA?

PPA stands for Power Purchase Agreement. It's a contract between you and a solar company where they install panels on your roof at no upfront cost to you. No down payment, no loan, no monthly payment for the system itself.

In return, you agree to buy the electricity those panels produce at a set rate per kilowatt-hour — your PPA rate — for the length of the contract, typically 20 years. The solar company owns the panels, handles all maintenance, and earns income from DC's SREC program. You get cheaper electricity. Both sides benefit.

One thing that surprises many DC homeowners: you still receive a Pepco bill every month even with solar. Your panels cover most or all of your electricity usage, but Pepco charges a mandatory customer fee of approximately $22/month just to stay connected to the grid. No solar company can eliminate that charge — it's Pepco's base fee for every connected customer. Anyone who tells you your Pepco bill will be completely $0 is not being straight with you.

Is a 0¢ PPA really possible in DC?

Yes — but it requires everything to be in good shape. A $0/kWh PPA is available to DC homeowners when two conditions are met:

• Your roof is in good condition — no major repairs needed, sufficient life remaining, structurally sound enough to hold panels for 20 years
• Your electrical system is up to standard — your panel and wiring can support the solar system without upgrades

When both are true, the solar company can install at $0/kWh because their SREC income covers the cost of the system. DC's SREC program — which pays solar owners for every megawatt-hour their system generates — is one of the strongest in the country, currently around $370 per certificate. That's what makes $0 PPAs possible here when they aren't available in most other states.

What if my roof or electrical needs work?

A bad roof or outdated electrical doesn't automatically disqualify you — it changes your rate. This is something most solar companies don't explain clearly, and it's worth understanding before you assume solar isn't an option for you.

If your roof needs repairs or replacement before solar can be installed, we can connect you with roofing contractors to get the work done. Once your roof is in good shape, you qualify for solar — just at a higher PPA rate than $0. The same applies to electrical upgrades: if your panel needs work, once that's completed you're back in the running.

The resulting rate depends on the scope of work, your roof size, and your system size — but typically lands in the range of 6–9¢ per kWh. Sometimes the solar savings over 20 years can help offset the cost of the repair work. It depends on your specific situation, which is exactly why a free consultation that actually looks at your home is worth doing before you write solar off entirely.

How DC PPA rates compare to Maryland

This comparison puts everything in perspective. Maryland homeowners can also get solar PPAs — but the economics are different. Without DC's combination of high Pepco rates and strong SREC income, Maryland PPA rates typically run 11–14¢ per kWh for qualifying homes with no issues.

The table makes the point plainly: a DC homeowner who needs a new roof and ends up at 9¢/kWh is still getting a better deal than a Maryland homeowner with a perfect roof at 11¢/kWh. And both are dramatically better than staying on Pepco at 24¢ — a rate that has gone up three consecutive years and shows no sign of reversing.

What you're actually agreeing to with a PPA

Before signing anything, here's what a DC solar PPA actually means for your home and your life:

• 20-year contract — you commit to buying solar electricity at your agreed rate for 20 years
• Panels stay on your roof — you cannot remove them during the contract term without negotiating a buyout
• You don't own the system — the solar company does; they handle all repairs and maintenance
• Contract transfers when you sell — the new homeowner assumes the PPA; most DC buyers accept this because they inherit the savings
• ~$22/month Pepco customer charge remains — this is Pepco's mandatory grid connection fee, not reducible by solar
• SREC income goes to the solar company — not to you; that's part of how they offer low or zero rates

Is a DC solar PPA worth it?

For most DC homeowners, yes — at any of the rates in the table above. The math is straightforward: you lock in your electricity rate today, and Pepco's rate keeps rising around you. Every year that passes, the gap between what you pay and what your neighbors pay gets wider.

The more important question isn't whether it's worth it in general — it's whether the specific deal you're being offered is fair, and whether a PPA is the right structure for your situation versus a solar loan or buying outright. Those questions deserve a real conversation about your home, your roof, your electrical, and your 20-year plans.

That's exactly what a free consultation is for — not a sales pitch, but an honest look at your address and what makes sense for you.

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