By Phil Berkaw,When you hear the word “sustainability”, what comes to mind? Bold government policies? Large corporations greening their supply chains? Taking fewer flights? Each of these plays an important role in moving toward a more sustainable future. However, one community that is frequently overlooked in the conversation is small businesses.
Small and medium-sized enterprises (SMEs) account for nearly 44% of business sector greenhouse gas emissions globally. Not because they’re wasteful or emit more, but simply because there are so many of them. SMEs represent 99% of all US businesses, which makes them one of the biggest levers for climate progress we have.
They’re also at the forefront of climate innovation. Locally, Cambium Carbon is using cutting-edge tech to upcycle lumber throughout the United States. Eightfold Farms, a business based in Wards 7 and 8, relies on recycled food waste and coffee grounds to grow high-value, low-carbon-emitting crops in underutilized urban spaces.
While the federal Inflation Reduction Act created sweeping national incentives across sectors, DC independently stitched together a localized framework of rebates, performance standards, solar credits, and technical assistance. Today, the District houses a deep ecosystem of local supports and incentives that small businesses can combine, positioning sustainability as an economic opportunity, not just a compliance exercise.
This week is National Clean Energy Week, and we hope that the DC small business community will join us in greening our city by taking advantage of some of the District’s sustainable offerings.
Though federal tax credits might be rolled back, DC’s local financing infrastructure is strong and continues to rely on stable sources of funding. The DC Sustainable Energy Utility’s (DCSEU) efficiency program can rebate up to $100,000 per business location per year to transform lighting, HVAC, refrigeration, and more without major upfront capital.
See full list of rebates here.
Meanwhile, the DC PACE (Property Assessed Clean Energy) program offers 100% long-term financing for energy and water efficiency improvements, repaid through property taxes. PACE is a low-cost, widely available option, even for major retrofits or new construction projects.
Find more information about PACE here.
DC was the first city in the country to implement Building Energy Performance Standards (BEPS), a framework that requires buildings to meet minimum efficiency thresholds or pursue defined improvement pathways.
Small business tenants are likely to feel the effects, either through energy improvements or pass-through costs from their landlords. Smart businesses should talk to their landlord and ask how BEPS may affect their lease.
DC solar can be lucrative for residents and small businesses. Our Solar Renewable Energy Credit (SREC) market is highly favorable compared to other jurisdictions in the region.
For every megawatt-hour of solar electricity generated by a rooftop system, DC-based solar owners earn one SREC, which can be sold into a highly favorable market:
| Jurisdiction | Solar Credit (SREC) Price (per MWh) |
| DC | ~$350-$440 |
| VA | ~$20-$50 |
| MD | ~$48-$57 |
In effect, this means that a solar system on a small business rooftop in DC can pay for itself in 3-5 years, and then generate free electricity and passive income for another 15-20. Business owners can also combine this with a property tax exemption for solar value, and suddenly, electricity becomes a minor source of revenue instead of a cost.
Find more information about local solar incentives here.
Accessing these incentives and financing tools isn’t always intuitive or straightforward. To help, the city has multiple layers of hands-on support available from the public and nonprofit sectors:
These programs help business owners with financing paperwork, connections to relevant government agencies, BEPS compliance, and more. Administrative friction is one of the primary barriers time-strapped small business owners face, so these programs are essential.
DC is unique in that our local ecosystem offers stackable, comprehensive resources for small businesses to defray costs through rebates, unlock financing for green projects, establish performance standards and source technical assistance to ensure that every storefront, contractor, or creative can take action on climate.
With continued outreach, support, and streamlined pathways, DC’s small businesses can continue to do their part in creating a resilient and inclusive climate future for not only Washingtonians, but for us all.
and join the fight for a District where all residents can live in thriving communities that are economically just!
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