State solar incentives

Solar incentives in Delaware to research before going solar

Edited by: Andrei Gorichenskii

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.

Key takeaways

  • Thinking about an electric vehicle or just want to make your home more energy efficient? Delaware is a great state for installing a solar panel system. And several solar incentives and rebates coming in many forms make this plan even better, reducing the amount you need to pay for your business or residential system. This is especially helpful for low-moderate-income families and small companies. 
  • Federal Tax Credit (ITC) is a 30% tax credit on the total cost of solar system installation.
  • All utilities in Delaware should offer net metering. Maximum system sizes vary by customer type and utility. Contact your utility office for specific rates and conditions.
  • Solar Renewable Energy Certificates (SRECs): Earned for every 1 MWh of solar electricity generated. Traded on the PJM-EIS GATS platform. Fixed price of $400 per SREC. 3-year SREC lifetime.
  • Electric Utility Rebates and Grants: Delmarva Power: $0.70/watt for residential and commercial systems under 50kW (max $6,000 residential, $40,000 commercial). Delaware Electric Cooperative (DEC): $0.50/watt for the first 5kW, $0.20/watt over 5kW (max $2,000 Class A, $3,500 Class B). Municipal Electric Customers (Newark): $1.00/watt for the first 5kW, $0.50/watt after 5kW (max $3,500). Application forms and guidelines available on utility and DNREC/DEMEC websites.

Save 30% of your PV system cost with Federal Solar Tax Credit

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.

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Join net metering program to cover your electric bills

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.

Save up to $2,000 a year trading SRECs

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.

Electric utilities offer rebates and grants for solar projects

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.

Incentive/
Program
DescriptionBenefitsEligibility/
Requirements
Notes
Federal ITC (30%)
30% tax credit on the total cost of solar system installation.
Reduces overall system cost, accelerates payback period.
Must own the system, meet IRS guidelines.
Applies to installation, equipment, and other associated costs.
Net Metering
Allows homeowners to sell excess solar energy back to the grid for credits.
Reduces or eliminates electricity bills.
All utility customers.
Maximum system sizes vary. Contact your utility for rates and conditions.
SRECs
Tradable certificates for solar energy generation.
Provides additional income.
Registered solar systems on PJM-EIS GATS.
Fixed price, 3-year lifetime, credit multipliers available.
Delmarva Power Rebates
Rebates for solar installations.
Reduces upfront costs.
Delmarva Power customers, systems < 50kW.
Residential and commercial incentives with maximums.
DEC Rebates
Rebates for solar installations.
Reduces upfront costs.
DEC customers.
Incentives vary based on system size and customer class.
Newark Rebates
Rebates for solar installations.
Reduces upfront costs.
Newark residents.
Incentives vary based on system size.


Top 10 myths about solar
Let's clear up some of the common wrong ideas about solar panels. Knowing the real facts will help you decide if solar power is a good choice for your house.

1. Myth: Solar panels only work when the sun is super bright all the time

That's not quite right. Solar panels do work best when the sun is shining strongly. But they don't need the sun to be super strong all day long. They make electricity from daylight, not just direct sunshine. So, even when it's cloudy, they can still make some power. Plus, the newest solar panels can even work a little better when it's cool outside. So, no matter if you live where it's sunny all the time or where it's often cloudy, solar power can still be helpful.

2. Myth: Putting in solar panels costs way too much money

It can seem like a lot of money to put in solar panels at first. But you need to think about how much money you'll save over many years. The price of solar panels has come down a lot lately, so they cost less now. Also, there are ways to get help paying for them. The government might give you money back or let you pay less in taxes. And, solar panels can make your electric bill much smaller, or even go away completely. Over the many years that solar panels last, usually 25 years or more, the money you save can be much more than what you paid to put them in. Also, if your system is connected to the power lines, you can sometimes sell extra power back to the electric company and save even more money.

3. Myth: You have to fix solar panels all the time

Solar panels don't need a lot of fixing. They don't have parts that move, so they don't break down very often. Usually, all you need to do is clean them now and then to get rid of dirt or dust that might block the sunlight. Often, the rain will clean them for you. And, the newest solar panels are made to handle bad weather, like hail, snow, and strong winds, so you don't have to worry about them breaking easily.

4. Myth: Solar panels will mess up my roof

If someone who knows how to do it puts the solar panels on your roof correctly, they won't damage it. Good workers use special ways to put the panels on safely and make sure no water can get in. Sometimes, solar panels can even help protect your roof from the weather.

5. Myth: Solar panels don't make enough power to be worth it

Solar panels are much better at making electricity now than they used to be. It's true they can't turn all the sunlight into electricity, but they can turn a lot of it. And scientists are always working to make them even better. This means solar power is becoming more and more useful for homes.

6. Myth: If I get solar panels, I won't need the electric company anymore

For most people, putting in solar panels means connecting them to the regular power lines. This lets you use electricity from the power company when your solar panels aren't making enough, like at night or when it's cloudy. And when your solar panels make extra power, you can often sell it back to the electric company. You would need very big and expensive batteries to store enough power to completely go off the regular power lines.

7. Myth: Putting in solar panels takes forever and is super hard

Putting in solar panels is usually not too hard, especially if you have people who know what they're doing to help you. From getting the papers you need to putting the panels on your roof and hooking them up to your house's electricity, it usually only takes a few days. Professional workers take care of all the complicated stuff.

8. Myth: Solar panels look ugly

Older solar panels might have looked big and not very nice, but the newest ones look much better. Many companies make solar panels that blend in well with different kinds of houses. You can also put solar panels on the ground if you don't want them on your roof.

9. Myth: If you rent your house, you can't use solar power

While people who rent usually can't put solar panels on their own roofs, they can still use solar power through programs where lots of people share a big solar farm. These programs let you pay to use some of the power from the big farm, and you get money off your own electric bill.

10. Myth: It's hard to sell your house if you have solar panels

Studies have shown that houses with solar panels often sell for more money and faster than houses without them. Solar panels are seen as a good thing to have, and they can make your house more attractive to people who want to buy it.

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Looking to build a home solar system? Check out solar panels that we have for sale in Delaware

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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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