{"id":1059,"date":"2026-07-13T10:42:23","date_gmt":"2026-07-13T10:42:23","guid":{"rendered":"https:\/\/modernhomejournals.com\/?p=1059"},"modified":"2026-07-13T10:42:23","modified_gmt":"2026-07-13T10:42:23","slug":"are-your-solar-panels-to-blame-for-d-c-s-high-electricity-bills","status":"publish","type":"post","link":"https:\/\/modernhomejournals.com\/?p=1059","title":{"rendered":"Are Your Solar Panels to Blame for D.C.\u2019s High Electricity Bills?"},"content":{"rendered":"
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Consider two not-so-hypothetical D.C. homes right next to each other.<\/p>\n

One has solar panels on the roof. With 15 hours of sunlight on some summer days, the homeowners could be paying next to nothing every month for electricity \u2014 even as they run their air-conditioner frequently because of the heat.<\/p>\n

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Their neighbors, though, don\u2019t have solar panels. Their monthly Pepco bill bites hard, especially since electricity prices have jumped 23%<\/u><\/span> in D.C. over the last year \u2014 more than anywhere else in the country.<\/p>\n

These two homes \u2014 and their respective electricity bills \u2014 are more closely connected than one might initially think. In fact, some in D.C. \u2014 including Mayor Muriel Bowser and Emile Thompson, chair of the D.C. Public Service Commission, which regulates utilities like Pepco \u2014 now say that residential solar panels are in part to blame for the rising electricity bills hitting everyone in the city.<\/p>\n

The reasons they cite include D.C.\u2019s ambitious goals to move toward renewable energy along with solar incentives that are vastly more lucrative than almost anywhere else in the country \u2014 creating rising costs that Pepco passes right back to ratepayers in the city.<\/p>\n

\u201cWhat D.C. has done is create a system that is a huge privilege to a small percentage of people in the city that have their own [solar] rooftop system,\u201d says Greg Jaczko, a former federal nuclear regulator who now runs his own clean energy consultancy.<\/p>\n

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Bowser has been considering changes to how D.C. rewards homeowners who install solar panels, potentially taking a whack at the generous credits that solar adopters get. \u201cThis is a way we can deliver relief to residents almost immediately,\u201d Jenny Reed, Bowser\u2019s budget director, told the D.C. Council earlier this month.<\/p>\n

But proponents of solar power say any such move is merely distracting from broader issues with how Pepco operates in D.C., essentially scapegoating a renewable source of electricity that helps much more than it hurts. They also say that changes like the ones Bowser and Thompson have hinted at could decimate the homegrown industry that sells and installs solar systems to thousands of D.C. homeowners \u2014 hiring residents and paying taxes in the process.<\/p>\n

\u201cOne of the concerns is you\u2019re going to disincentivize a solar industry that has been very successful in getting more and more homes on solar and doing it in a way that\u2019s fairly equitable,\u201d says Ward 6 Council member Charles Allen, who chairs the transportation and environment committee. \u201cThat\u2019s a risk you run.\u201d<\/p>\n

Prices and politics<\/b><\/p>\n

D.C.\u2019s rising electricity bills have become a potent political issue.<\/p>\n

They factored heavily into Ward 4 Council member Janeese Lewis George\u2019s successful campaign for the Democratic nomination for mayor, and have spurred lawmakers to introduce a number of bills to address the situation.<\/p>\n

\n<\/div>\n

But the reasons for the city\u2019s growing electricity bills \u2014 from 2022 to 2025, they have jumped 56% \u2014 and the possible ways to bring them down are complex.<\/p>\n

City officials say regional data center<\/u><\/span> electricity demand is partly to blame, but so are the decreasing number of power plants that provide the electricity; the regional grid operator that sells it to Pepco; the infrastructure to get that electricity into and around the city; the rate increases that the PSC has granted Pepco; and local taxes and initiatives that are added to every monthly bill.<\/p>\n

Although Bowser recently unveiled an \u201c\u201d with seven possible solutions, since earlier this year she has focused more heavily on what she says the city could address most quickly: local initiatives around renewable energy sources, primarily solar.<\/p>\n

\u201cI\u2019m not saying [solar\u2019s] not a laudable goal, but it has a cost. And we can\u2019t ignore the cost,\u201d she said during a news conference in April<\/u><\/span>.<\/p>\n

Her main focus has been on D.C.\u2019s Renewable Portfolio Standard<\/u><\/span> \u2014 which is, essentially, the target for the city\u2019s sourcing of renewable energy. Under current law, 100% of the city\u2019s electricity will have to come from renewable energy sources by 2032. On top of that, a bill the Council passed in 2022 requires that 15% of the electricity must come from local solar by 2041. (This is known as the solar carveout; before that bill passed, it was set at 10%.) Currently, roughly 4% of D.C.\u2019s electricity is served by solar panels in the city.<\/p>\n

To achieve these goals, Pepco and third-party electricity suppliers have to purchase renewable energy from the regional grid or within D.C. They often do this by buying Renewable Energy Credits. In the case of solar power, they purchase Solar Renewable Energy Credits<\/u><\/span> (SRECs) \u2014 each representing 1,000 kilowatt hours of electricity generated \u2014 from homeowners and businesses that have solar panels.<\/p>\n

Within D.C., many homeowners who have their own solar panels can sell their SRECs to Pepco \u2014 and what they can earn for those credits is higher than anywhere else in the Mid-Atlantic region. Currently, each SREC in D.C. sells for $375<\/u><\/span>; in Maryland those same credits would get less than $50, while in Virginia it\u2019s just over $20.<\/p>\n

According to a published by the Public Service Commission, the cumulative cost of buying renewable energy credits in D.C. has jumped in recent years, from $65 million in 2020 to $272.5 million last year. And since Pepco is often the buyer, it passes those costs back to ratepayers across the city \u2014 costs that show up on monthly electricity bills. Bowser\u2019s office says that while RPS compliance costs amounted to 10% of a ratepayer\u2019s bill in 2022, it was 15% last year \u2014 and will rise to 17% by 2035.<\/p>\n

\u201cIt\u2019s a massive cash giveaway to people who can afford these systems,\u201d says Jaczko, who notes that homeowners with solar panels can often make $3,000 to $4,000 a year selling their SRECs to Pepco.<\/p>\n

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The possibility of SREC prices pushing up electricity bills for all ratepayers was a concern raised even by environmentalists and solar advocates in 2022, when the Council passed the bill increasing the solar carveout. (Lewis George was the only vote against it.) And the impacts of those higher bills would be felt more by D.C.\u2019s Black and low-income residents, according to an analysis conducted by the Council\u2019s Office of Racial Equity<\/u><\/span>.<\/p>\n

\u201cBlack, Indigenous, and Latinx households are more likely to be renters and are overrepresented in low and moderate income groups,\u201d it said, \u201cso they proportionally pay the most for D.C.\u2019s solar policies \u2014 yet benefit the least from them.\u201d<\/p>\n

Solar panels and scapegoating<\/b><\/p>\n

Advocates of solar power, though, say the arguments around SRECs and rising electricity bills only considers the costs to residents, and not the broader benefits to the city.<\/p>\n

\u201cThe solar program in D.C. is lucrative, but in exchange we have to and have delivered on a number of benefits to the city,\u201d said Zach Axelrod, CEO of Redball Energy, which was founded in D.C. and installs residential solar systems across the city. \u201cThere\u2019s job creation, and there\u2019s social equity. By virtue of SRECs being rather lucrative, the D.C. solar industry has built up in a much more equitable way than anywhere else in America.\u201d<\/p>\n

Axelrod says that D.C.\u2019s high SREC values allow companies like his to install residential solar systems at no cost to a homeowner, taking as payment the right to then sell the solar credits those systems produce.<\/p>\n

The numbers and locations of the solar systems in D.C. seem to bear out the success of the model. Of the roughly 20,000 systems across D.C., data from the PSC shows that the highest penetration has been in wards 4, 5, 7 and 8 \u2014 traditionally the areas of the city with the highest proportion of Black and low-income residents.<\/p>\n

\u201cWe\u2019re creating a much more equitable system where lower-income households are getting solar when they otherwise wouldn\u2019t, and they\u2019re lowering their utility bills down to zero in many cases,\u201d says Allen, the Ward 6 Council member.<\/p>\n

Matthias Paustian with the D.C. chapter of the Sierra Club says that more homes on solar additionally minimizes local demand for electricity at peak times \u2014 like during a heatwave \u2014 and thus puts less strain on Pepco\u2019s electricity distribution infrastructure in the city.<\/p>\n

\u201cIf you don\u2019t have solar, in many areas you\u2019re going to run into insufficient local distribution infrastructure, and Pepco would say, \u2018With all this demand we have to upgrade this substation,\u2019\u201d he says. \u201cWe\u2019re talking about a lot of money. Solar produces exactly at the time that these substations hit peak demand.\u201d<\/p>\n

Solar advocates also say that because D.C. is a fully urbanized jurisdiction, incentives for solar simply have to be more generous than in places where solar developers can cheaply build out an entire solar farm on otherwise empty land. And Allen adds that D.C. decreasing its own incentives could harm the industry and lead to fewer people opting to install systems on their homes.<\/p>\n

A path forward?<\/b><\/p>\n

Speaking to D.C. lawmakers earlier this month, Thompson, the embattled chair of the Public Service Commission, acknowledged that the rising electricity bills had become a \u201cpolitical firestorm.\u201d But he also argued that politics alone wouldn\u2019t help bring them down.<\/p>\n

\u201cUtility ratemaking is not simply a political matter. It is a complex matter of economics, engineering and accounting,\u201d he said.<\/p>\n

In an interview with NOTUS, Thompson said he hasn\u2019t yet settled on a way to balance the city\u2019s solar goals with the downstream effects on electricity bills. But he notes that New Jersey and Maryland had both tackled their own SREC-related challenges in recent years.<\/p>\n

\u201cI don\u2019t think this is a blame game or a deflecting game,\u201d he says. \u201cThis is, \u2018Costs are high across the board and we need to be looking at everything.\u2019\u201d<\/p>\n

Bowser hasn\u2019t yet formally proposed any possible changes to the Council, but senior aides told lawmakers last week that bringing down SREC prices is under consideration. City Administrator Kevin Donahue emphasized that it wouldn\u2019t mean D.C. was walking away from solar, and that the city actually wants to make it faster to connect solar systems to the grid.<\/p>\n

But Allen cautions that bringing down the value of credits would have to be done thoughtfully.<\/p>\n

\u201cWe have a lot of people who made economic decisions based on a certain set of assumptions in law,\u201d he said. \u201cIs it fair to say, \u2018I\u2019m going to pull the rug out from underneath you?\u2019\u201d<\/p>\n

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D.C. officials might cut back on the city\u2019s solar goals to help bring down prices, but advocates say that\u2019s counterproductive.<\/p>\n","protected":false},"author":1,"featured_media":1058,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-1059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-metro"],"yoast_head":"\nAre Your Solar Panels to Blame for D.C.\u2019s High Electricity Bills? - Modern Home Journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/modernhomejournals.com\/?p=1059\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Your Solar Panels to Blame for D.C.\u2019s High Electricity Bills? - Modern Home Journals\" \/>\n<meta property=\"og:description\" content=\"D.C. officials might cut back on the city\u2019s solar goals to help bring down prices, but advocates say that\u2019s counterproductive.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/modernhomejournals.com\/?p=1059\" \/>\n<meta property=\"og:site_name\" content=\"Modern Home Journals\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-13T10:42:23+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"headline\":\"Are Your Solar Panels to Blame for D.C.\u2019s High Electricity Bills?\",\"datePublished\":\"2026-07-13T10:42:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059\"},\"wordCount\":1799,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/4742e2139fa7659e42956683c54cc4f7-scaled.jpg\",\"articleSection\":[\"Metro\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059\",\"name\":\"Are Your Solar Panels to Blame for D.C.\u2019s High Electricity Bills? - Modern Home Journals\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/4742e2139fa7659e42956683c54cc4f7-scaled.jpg\",\"datePublished\":\"2026-07-13T10:42:23+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=1059#primaryimage\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/4742e2139fa7659e42956683c54cc4f7-scaled.jpg\",\"contentUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/4742e2139fa7659e42956683c54cc4f7-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"FILE - Nicholas Hartnett, owner of Pure Power Solar, carries a panel as he and Brian Hoeppner, right, install a solar array on the roof of a home in Frankfort, Ky., July 17, 2023. 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