Trystan Casey
The District of Columbia, commonly known as Washington, DC, has some of the lowest electricity rates in the United States. DC's electricity rates are 17 ¢/kWh, which is 23% lower than the national average electric bill. The city consumed less electricity in 2024 than most states, and about 98% of its electricity is imported from power plants in surrounding states. DC also has a high number of public electric vehicle charging stations and a large number of solar energy users, which may contribute to its low electricity costs.
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What You'll Learn
Solar power and community solar farms
Solar power is a great way to save money on electricity bills while helping the environment. In Washington, D.C., about 98% of the electricity consumed is generated in other states, with solar energy accounting for 65% of the electricity generated within the District in 2024. Small-scale solar generation, such as residential rooftop solar panels, exceeded utility-scale generation from all other energy sources combined.
Community solar programs in D.C. typically help residents save 5-15% on their annual electricity costs. For example, the community solar farm at Oxon Run, which came online in December 2020, delivers free electricity to approximately 750 households in the surrounding community. This project is an innovative use of a degraded 15-acre brownfield site, producing renewable electricity safely, cleanly, and silently.
D.C.'s community solar program does not limit the quantity or variety of community solar projects. There are no restrictions on the types of buildings that can host community solar projects, but they must be located within the grid supplying the city. This includes D.C. and parts of Maryland. Community solar projects can be structured in various ways, such as a company selling or leasing subscriptions to community members, or an organization sharing its solar production with the community.
The District's Solar for All program, administered by DCSEU, aims to bring the benefits of solar to 100,000 income-qualified D.C. residents by 2032. Since 2019, DCSEU has worked with developers and contractors to build over 200 community solar systems in the District. These systems are helping to reduce energy bills for residents, with some projects cutting electricity bills in half for income-qualified households.
D.C. gained Energy Choice in 2001 after deregulation of its electricity markets, allowing residents to switch electricity providers to take advantage of lower rates and renewable energy plans. Residents can compare electricity rates and plans on websites like ElectricityRates.com and WattBuy.
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Low electricity consumption
In Washington, DC, the average monthly electric bill for residential customers is $166–$175 per month, which is calculated by multiplying the average monthly consumption by the average electric rate: 995.00 kWh * 17 ¢/kWh. This is lower than the national average electric bill of $2,602.
There are several ways to reduce electricity consumption and lower electricity bills. Firstly, it is important to be mindful of electricity usage and try to reduce overall consumption. This can be achieved by being thoughtful about when certain appliances are used and taking advantage of off-peak times when cheaper electricity rates are available. For example, running appliances during the night instead of the afternoon on a hot summer day can result in significant savings.
Another effective way to lower electricity consumption and bills is to invest in solar energy systems. Solar energy is a renewable and cost-effective option that can help reduce monthly electric bills. In Washington, DC, solar energy accounted for 65% of total electricity net generation within the district in 2024, with small-scale solar generation exceeding utility-scale generation from other energy sources. Installing solar panels can be a great way to decrease electricity costs and promote the use of clean energy.
Community solar programs are also available in Washington, DC, offering residents the opportunity to save 5-15% on their annual electricity costs. These programs allow multiple people to share the benefits of solar energy, even if they cannot install onsite solar panels. By subscribing to a community solar farm, individuals can support the clean energy transition and lower their electric bills.
Additionally, residents can consider switching electricity providers to take advantage of lower rates and better plans. Washington, DC, has Energy Choice, which allows residents to choose their electricity provider and benefit from competitive rates and renewable energy options. Comparing electricity rates and plans can help residents find the most cost-effective and environmentally friendly options.
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Renewable energy plans
Washington, D.C. is taking steps to increase its use of renewable energy sources. The city's Clean Energy DC plan aims to achieve ambitious climate change goals by increasing clean energy usage and reducing energy consumption. The plan outlines the steps the D.C. government will take to help businesses, residents, and city operations improve energy efficiency and expand access to renewable energy sources.
D.C. has made significant progress in adopting renewable energy sources, particularly solar energy. In 2024, solar energy accounted for 65% of the city's total net electricity generation, with small-scale solar installations, such as residential rooftop solar panels, contributing more than utility-scale generation from other sources combined. The city also has a high number of public electric vehicle charging stations, with nearly four times more than motor gasoline stations, and a higher share of electric vehicles than any state except California.
To further promote renewable energy, D.C. offers various federal and local incentives for residents to adopt solar power. For example, programs like net metering allow residents with solar panels to sell excess electricity back to the grid, earning credits that offset their electricity costs. Additionally, community solar programs in D.C. can save residents up to 15% on their annual electricity costs.
The city also has renewable electricity plans available for residents who want to use renewable energy sources. These plans are labelled as being sourced from 100% renewable sources. By switching electricity providers, residents can take advantage of lower rates and better plans, reducing their electricity costs.
D.C.'s Clean Energy DC Omnibus Amendment Act of 2018 was a pivotal moment in the city's journey towards clean energy. This legislation increased the city's Renewable Energy Portfolio Standard and set a target for 100% of the city's energy to be derived from renewable sources by 2032. The Act also aims for 10% of electricity to be generated from solar energy within the District by 2041.
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Fixed-rate plans
When you sign up for a fixed-rate plan in D.C., you're securing a guaranteed rate per kilowatt-hour (kWh) for the entire duration of your contract. This means that regardless of whether market prices for electricity soar or dip, your rate remains unchanged. This stability is particularly advantageous when market prices surge, as you're shielded from those increases and protected from unpredictable spikes in your energy bills.
Another benefit of fixed-rate plans is the potential for cost savings. Electricity prices tend to fluctuate, and there may be times when market prices dip lower than your locked-in rate. In such cases, you still pay the lower fixed rate, effectively saving money compared to variable rates. Additionally, some retailers may offer discounts or promotions for signing up for a fixed-rate plan, further enhancing the cost-effectiveness of these plans.
It's important to remember that while your electricity supply rate remains constant with a fixed-rate plan, your overall bill may still vary. Factors such as changes in your electricity usage, seasonal adjustments, and additional fees or taxes levied by the local government or utility company can all impact your total bill. Nevertheless, the stability and predictability of your supply rate make budgeting and financial planning more manageable and straightforward.
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Energy choice and switching providers
Washington DC gained Energy Choice back in 2001 after it deregulated its electricity markets. Energy Choice in Washington DC allows residents and businesses that pay directly for their electricity (ratepayers) to switch electricity providers to take advantage of lower rates and better electricity plans.
EnergyChoiceDC helps ratepayers connect with a broker who will collect necessary information from them and use that information to seek competitive pricing on electricity, including options for conventional electricity and electricity generated from renewable sources. The broker then presents the negotiated rate to ratepayers, who sign a contract with the selected third-party supplier, for a term of one to three years, and pay a monthly electricity bill based on a consistent rate during that period.
If you’re curious about your energy options, or you’re ready to switch your retail energy supplier, DC Power Connect is the official retail choice site for the District of Columbia and is brought to you by the Public Service Commission of the District of Columbia. District energy customers have a choice when it comes to their energy supply. Whether your concern is a fixed price over time, reducing your carbon footprint or finding additional services, it’s about selecting the best energy option for your household.
You can also use WattBuy, an energy marketplace that allows you to compare electricity plans from PUC-licensed companies. If you live in Washington D.C., you could save up to 40% on your electric bills by switching with WattBuy. Similarly, ElectricityRates.com helps you compare the best Washington DC electricity rates in seconds.
If you're looking to save money on your electricity bill, you can also consider installing solar panels. In 2022, the average solar payback period in DC is about 4.77 years – this is the point in time at which your solar investment will start to earn you money. Community solar programs in Washington D.C. typically save you 5-15% in electricity costs over the course of the year.
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Frequently asked questions
Electricity in DC is cheap due to the abundance of solar energy, with solar accounting for 65% of the District's net generation of electricity in 2024.
Solar energy reduces electricity costs by offsetting electricity consumption. Installing solar panels can help you save up to $51,800 over 20 years.
DC residents can save up to 40% on their electricity bills by switching to WattBuy, an energy marketplace that allows you to compare electricity plans from different companies.
The average monthly electric bill for residential customers in DC is $166-$175, which is 23% lower than the national average electric bill of $2,602.
