Rising Solar Credit Costs Prompt Calls to Reform State Energy Policies

Mayor Muriel Bowser warned that Washington, D.C.'s solar renewable credits are inflating electric bills, sparking a broader debate on state-run RPS rules.

Washington, D.C. Mayor Muriel Bowser highlighted that the city’s solar renewable energy credits are the nation’s costliest, adding about $20 to every electric bill and potentially doubling by 2029. The issue reflects a larger problem where state-level renewable portfolio standards (RPS) restrict where utilities can source compliance credits, creating artificial scarcity and higher prices. In Pennsylvania, the 2020 Act 114 limited Tier II credit eligibility to in-state facilities, causing the average credit price to jump from $1.92 to $26.92 and compliance spending to surge from $3.6 million to over $367 million.

PJM’s independent monitor recorded $14.6 billion in regional RPS costs from 2014-2023, with D.C. solar credits trading at $410.72 per megawatt-hour in early 2026—about fifteen times the broader market rate. Federal Energy Regulatory Commission Chair Laura Swett has urged states to improve bill transparency, and the PJM monitor recommends opening markets and itemizing RPS costs on consumer statements. The analysis concludes that without policy adjustments, affordability challenges will erode public support for renewable mandates.