If you have solar panels on your home in Washington, DC, you might generate more energy than you use, especially during sunny months. But what happens to that extra electricity? Good news: Pepco will pay you for any extra solar power left over at the end of the year. And unlike many utilities across the country, Pepco actually cuts a check — instead of just wiping away your credits.
Here’s how it works.
⚡ DC Net Metering: How Pepco Tracks Your Solar Production
When you install solar panels, you’re automatically enrolled in net energy metering with Pepco. Each month, your electric meter tracks how much power you use and how much your system sends back to the grid.
If you produce more than you use, the extra kilowatt-hours (kWh) become credits that roll over month to month.
📅 What Happens at the End of the Year?
At the end of your 12-month billing cycle (called the “true-up period”), Pepco totals up your usage and production. If you still have extra credits on your account, they won’t just disappear.
Instead, Pepco will pay you for the leftover energy at the generation rate — the cost Pepco would have paid to generate that electricity.
Generation Rate vs. Retail Rate
Pepco’s generation rate is usually around $0.10 per kWh. This amount covers only the energy portion of your bill, not delivery or taxes. While it’s not the full retail rate you pay as a customer, it’s still money back in your pocket.
Who Gets the Refund? You Do.
Even if you’re on a $0.00 no-cost solar PPA, this refund still goes to you, the Pepco account holder, not the solar company that owns the system.
That’s right: if your system overproduces, Pepco sends the check directly to the name on the electric bill. It’s a little extra cash just for having solar on your roof.
Sample Calculation: How Much Could You Get?
Let’s say your solar panels overproduced this year and you ended with 600 kWh of unused credits.
- Surplus Energy: 600 kWh
- Generation Rate: $0.06 per kWh
- Refund: 600 × $0.06 = $36
Since the refund total is over $25, Pepco will send you a check in the mail.
Why DC Solar Customers Are in a Better Spot with Extra Solar Power
In many other states — like North Carolina or Florida — utilities like Duke Energy reset your credits to zero at the end of the year. That means customers lose any extra solar power they sent to the grid.
But not in DC!
Pepco’s policy ensures that if you overproduce and your balance is greater than $25, you get paid. And of course, this doesn’t affect the other benefits you receive:
- Monthly net metering credits
- Solar Renewable Energy Credits (SRECs) — which are paid out separately and can be worth thousands annually if you own your system.
- Reduced electric bills all year long
Bottom Line
If you have solar panels in DC, you’re already saving money. But if you produce more than you use, Pepco will reward you for your clean energy contributions — even if you didn’t pay for the system.
It’s just one more reason DC is one of the best cities in the country to go solar. Want to maximize your solar savings? Contact Uprise Solar and let us help you make the most of your roof.
