If you are thinking of installing solar panels in Delaware, use programs from the state and utilities to lower your expenses. To learn more, read our article about solar incentives in Delaware.
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
Net metering is the main way in which a solar system pays for itself in the US. The idea is always the same: you sell your excess solar energy into the commercial grid, gain credits and use them to cover your next electric bill.
In Delaware, all utilities should offer net metering. Maximum sizes for net-metered systems are:
25 kilowatts for residential customers; 100 kilowatts for farm customers on residential rates; 2 Megawatts per meter for non-residential customers of Delmarva Power and Light (DP&L); 500 kilowatts per meter for non-residential customers of Delaware Electric Co-Op, Inc.(DEC) and municipal utilities.
Contact your utility for exact rates and net metering conditions.
For generating clean electricity any person can get Solar Renewable Energy Certificates (SRECs). Unlike with Net Metering, you don’t need to sell any electricity to get credits – the certificates are simply given to you. One SREC is granted for 1 Megawatt-hour of power produced. A 5kW system can generate over 7 MWh over a year, so it’s possible to get 5-7 SRECs in 12 months.
Delaware is a great place for trading SRECs. You can choose to store or sell these certificates using the PJM-EIS Generation Attributes Tracking System (GATS) platform. The price of an SREC in Delaware is fixed at $400 and its lifetime is 3 years. What is more, there are several credit multipliers that are effective in Delaware:
10% bonus if at least 50% of your solar equipment is manufactured in Delaware. Another 10% are granted if the system is installed with minimum 75% state workforce. 300% credit for PV systems installed on or before December 31, 2014. Doesn’t apply to SRECs that are used for compliance with the PV carve-out.
Overall, selling SRECs gained from a 5kW solar power system in Delaware can bring you from $400 to $2,000 annually. To participate, register your system at PJM EIS platform.
You can apply for various solar incentives from utilities to offset the cost of your solar system in Delaware. Green Energy Program is available for customers of Delmarva power, Delaware Electric Cooperative (DEC) and municipal electric customers.
Delmarva Power, for instance, provides an incentive of $0.70 per watt for residential and commercial systems under 50kW. The maximum size of incentive is $6,000 for residential installations and $40,000 for commercial systems. Find application forms and guidelines for different programs on DNREC website.
DEC, on the other hand, provides $0.50 per watt for the first 5kW of capacity (0-5 kW) and $0.20 per watt over 5kW. The maximum incentive is $2,000 for customers with an average monthly peak demand of less than 50 kW over the prior 12 months (Class A) and $3,500 for commercial systems with an average monthly peak demand of 50 kW or greater (Class B). Find guidelines on DEC website.
Concerning municipal electric customers, it appears that Green Energy grants are now available only to Newark residents. Homeowners are paid $1.00/W for the first 5kW, $0.50/W after 5kW with a maximum incentive of $3,500. The guidebook and contact information can be found on DEMEC website.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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