By Gerald Sharp, PRA Treasurer.
Beginning in 2024, the Parkwood Residents Association (PRA) began helping residents install solar panels. I partnered with Lumina Solar—the company that installed panels on my home in 2023 and serves Maryland, DC, Pennsylvania, Delaware, and Virginia—to support this effort.
I’ve previously written several articles about solar power that are available on the PRA Website (May 2024, May 2025, Oct. 2025), covering both my personal experience and the PRA’s referral program. Through that program, Lumina Solar paid the PRA $500–$1,000 per referral if people signed with Lumina; the PRA retained $100 and returned the rest to participating residents. In total, I referred 25 households, and 9 moved forward with installations. Those who installed panels in 2025 also benefited from the 30% federal residential tax credit—which has since been eliminated.
A New Solar Model Without the Residential Tax Credit
Although the residential tax credit has ended, the commercial solar tax credit remains available through December 31, 2027. Solar companies are now partnering with banks and investors who can still claim this credit. These investors fund the installation and lease the solar systems back to homeowners.
Here’s how it works:
- Homeowners pay nothing upfront for installation
- The investor claims the 30% tax credit
- Homeowners pay for the electricity generated by the panels—at a rate lower than PEPCO charges
Updated PRA Incentives
Because I referred so many people last year who signed up, Lumina Solar has expanded its referral incentive which is normally $500:
- $2,000 referral fee paid to the PRA
- PRA returns $1,900 to the homeowner
- Lumina adds a $500 homeowner rebate
Total homeowner benefit: $2,400, with no installation cost.
In effect, homeowners “rent” their roofs for up to 25 years, receiving:
- Immediate cash incentives
- Lower electricity costs
- Reduced reliance on fossil fuels
Lease Terms and Options
Most agreements require a minimum 5-year commitment, after which homeowners can:
- Continue leasing, or
- Purchase the system at a reduced price
Electricity pricing in the lease depends on solar production (i.e., roof orientation and sun exposure). Also estimated savings from solar assumes that your panels can supply all your electricity. This may not be true in winter when days are shorter.
Lumina offers two options:
Option 1: Fixed Rate
- Slightly higher starting rate (still below PEPCO)
- Locked in for 25 years
Example (excellent sun exposure, ~12,000 kWh/year):
- Year 1: $230/month (PEPCO) vs. $150/month (solar)
- Year 25: $742/month (PEPCO) vs $150/month (solar)
- Annual savings: $960 (Year 1) to $7,101 (Year 25)
- 25-year savings: ~$86,700
Option 2: Escalating Rate
- Lower starting rate
- Increases 2.9% annually
Example:
- Year 1: $230/month (PEPCO) vs. $110/month (solar)
- Year 25: $742/month (PEPCO) vs. $218/month (solar)
- Annual savings: $1,440 (Year 1) to $6,280 (Year 25)
- 25-year savings: ~$84,200
Key difference:
- Option 1 maximizes long-term savings
- Option 2 maximizes early savings
Buying the System
After 5 years, homeowners can purchase the system at a discounted price. But make sure the contract you sign specifies required lease time and estimated buyout cost.
Example:
- If purchased after 15 years
- Remaining payments under fixed rate contract (10 years × ~$1,800/year) minus 5% discount
- Remaining payments under escalated rate contract (10 years x from $2,027-$2,621) Minus 5% discount
- Estimated cost: ~$17,100–$22,000 (depending on plan)
- Or you can keep leasing, pay nothing and own the system at the end of the 25 years
Important Considerations
- Savings depend on future PEPCO rates (historically rising ~5–6% annually)
- If you sell your home, the new owner must assume the lease
- If not, you may need to buy out the contract
- Roof renovations may require panel relocation
Getting Started
If you’re interested, Lumina Solar offers:
- A free 5-10-minute call to assess your roof and sun exposure and see if you qualify for the program
- A free 30-45 minute consultation to estimate the savings, system design, and process (requires a recent PEPCO bill)
If you proceed through a PRA referral and sign with Lumina Solar:
- You receive the $2,400 total incentive
- PRA continues supporting community sustainability efforts
Final Thoughts
The commercial tax credit expires at the end of 2027, so this model may not be available indefinitely. Future policy changes could bring back residential incentives, but there’s no guarantee.
If you’re considering solar, this program offers a way to:
- Avoid upfront costs
- Reduce long-term energy expenses
- Contribute to cleaner energy use
If you’d like a referral or more information, feel free to reach out to me (gbs2001@yahoo.com).
Parkwood Residents Association 