Washington DC Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:

DC SOLAR LEGISLATION

The District of Columbia implemented a Renewable Portfolio Standard in 2005, with an objective of 11% of electrical power requirements to be met by “Tier 1” clean energy sources by 2022. A further condition is that .386% be achieved by solar power.

On December 5, 2006, the D.C. City Council passed Bill #16-515 which established green building standards for structures of 50,000 square feet or more. Uniquely, this bill applied to privately-owned commercial buildings as well as public buildings. Earlier that year, the D.C. Energy Office announced the creation of the District of Columbia Renewable Energy Demonstration Project (REDP) to increase the awareness and use of clean technologies. By December of 2006, $450,000 had been received from a public benefits fund, and applications were being received for demonstration projects. Both programs have solar components and are briefly described below.

These are important steps, but direct incentives to encourage widespread use of solar power by residences and commercial enterprises, are far from adequate. D.C. earns a solar legislator score of “Not bad, but…”
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, and UTILITY INCENTIVES

D.C.’s Green Building Requirement under Bill 16-515 applies to commercial, schools, and state government sectors. Applicable technologies include passive solar space heat, solar water heat, solar thermal electric, photovoltaics, wind, and daylighting. Certification requirements and other provisions of the bill can be found at the above link.

The Renewable Energy Demonstration Project (REDP) promotes the use of photovoltaics, wind, biomass, geothermal electric, chp/cogeneration, small hydroelectric, fuel cells using renewable fuels, and other distributed generation technologies. Qualified applicants are eligible for up to 50 percent of the costs associated with installing a clean energy resource, but funds are limited. Applicable sectors include commercial, residential, nonprofit, schools, local government, and institutional.
Net Metering Rules for commercial, industrial, and residential customers apply to solar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, fuel cells, chp/cogeneration, anaerobic digestion, tidal energy, and microturbine systems up to 100 kW in size. Net excess generation is credited the following month at the utility’s full retail rate. Further information here.

The Reliable Energy Trust Fund supports energy efficiency and renewable energy programs in the commercial, industrial, residential, general public/consumer, utility, and institutional sectors. Applicable technologies are solar water heat, solar space heat, solar thermal electric, photovoltaics, wind, biomass, hydroelectric, anaerobic digestion, and tidal energy. A surcharge paid by utility customers funds the program, which currently covers 15 approved projects.

EXAMPLE RESIDENTIAL SOLAR INSTALLATION

Washington, D.C. is a peculiar place, geopolitically speaking. The 60+ square miles of land it occupies, now owned by the federal government as a permanent home for the nation’s capital, was once a part of neighboring Maryland and Virginia. Since it is not a state but is also a city, the District of Columbia functions under a different political structure – a single municipal government that in most respects regards the City and the District as the same entity. There are nearly 600,000 residents in the City/District, but add in the multitudes from nearby communities, and the metro population is 5.3 million.

With all those people and a generous supply of sunshine (solar rating is “good”), Metro Washington is a great place for rooftop solar collectors to do their job. A 50% reduction in conventional electrical usage requires a photovoltaic system with a roof area of about 400 square feet and a system installation costing about $36,000 (mid-range estimate). Only a $2,000 federal tax credit offsets the front end investment, unfortunately; the system net cost is $34,000. Benefits:

• Estimated increase in property value: $7,020
• Estimated 25-year utility savings: $14,729
• Greenhouse gas (CO2) saved over 25-year system life: 97.0 tons

CONSENSUS

Although the District of Columbia has initiated several pro-solar pieces of legislation, it is evident from the previous example that incentives are lacking to provide a real cash-in-the-pocket kind of motivation to go solar. Initiatives like the Renewable Portfolio Standard are extremely important, but there are other weapons in the arsenal that are still not being used by the District leadership.

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