Federal Tax Credit Plus District Rebate
The federal tax credit, from the stimulus bill, and the rebates offered by the District of Columbia will contribute over one third of your investment in solar energy.
- As of February of 2009, the District of Columbia began offering rebates through the Renewable Energy Incentive Program (REIP) to help pay for the installation of solar electric and other renewable energy systems. The rebate is part of the District of Columbia’s Green Energy DC program and the Sustainable Energy Utility (SEU).
- The Residential Renewable Energy Tax Credit earns homeowners/building owners a credit (not a deduction) equal to 30% of the full installed solar electric system cost. Combined with the REIP rebate, DC homeowners can recoup more than half the cost of a new solar electric system. These two incentives comprise one of the most generous solar incentive packages in the nation.
How the Incentives Are Structured
Here is how the incentive is structured for electricity generated by solar panels: A solar, or photovoltaic (PV), panel or module is rated by the amount of direct-current electricity it can generate. Since most roofs are flat and cannot hold the weight of a crystalline panel (see flat roof analysis), most installations will be through the use of thin-film laminates, unless you have your roof structure upgraded to hold the additional weight of the panels. The approximately 18 feet by 1.25 foot laminates generate 144 watts. The more panels installed, the higher the wattage achieved, the more electricity generated.
Photovoltaic incentives are based on the combined system rating in kilowatts of Direct Current (DC) output: $0.50/watt for photovoltaic systems, with a cap of $10,000 (equivalent to a 20kW)
Rebates for photovoltaic systems are capped at a maximum of $10,000 (at 20 kilowatts capacity or greater) for each unique installation address, per program year.
The maximum the program can pay back to a District resident is $16,000, for a 20,000 watt (or 20 kilowatt) system. Add this grant money to 30% Residential Renewable Energy Tax Credit and below is the estimated total incentive amount three example systems above would earn. Below is the estimated total incentive amount three example systems would earn:
|System Size||Approx. Costs for Illustrative Purposes Only*||Renewable Energy Incentive Program Rebate||Residential Renewable Energy Tax Credit||Combined Incentive $ /
% Paid Back
|3.35 kilowatts||$28,475||$1,675||$8,542.50||$10,217.50 / 36%|
|5.00 kilowatts||$42,500||$2,500||$12,750||$15,250 / 36%|
|7.50 kilowatts||$63,750||$3,750||$19,125||$22,875 / 36%|
* Certain installations may require additional charges due to roof conditions. Structural work not included.
** The amount available using the Federal credit may be reduced by the amount of the DC incentive. Consult a tax advisor to determine the course to follow.
Steps for Purchasing Your Solar Electric System and Securing Your Renewable Energy Incentive Program Rebate
- Receive a free solar evaluation from Maggio Roofing.
- Visit www.greenenergy.dc.gov for the latest program information.
- Complete the online prequalification application and secure your Renewable Energy Incentive Program (REIP) reservation number.
- Submit a full application, including:
- Incentive Application Form
- Cost estimate and purchase order from Maggio Roofing
- Itemized list of system components (e.g. thin-film or panels, inverter, cabling, monitoring system)
- System schematic or line drawing
- Site plan
- Shading analysis
- Roof dimensions
- Location of solar panels on the roof, along with orientation and any tilt of the panel array.
The incentive payment should be made 45 days after the District Department of Environment (DDOE) receives a completed application.
Renewable Energy Incentive Program for Residents – Low-Income Option
For low-income residents of the District of Columbia, there is an alternate program option with different qualifications. For more information on the Renewable Energy Incentive Program for Residents – Low-Income Option click here.