The average cost of solar panels in the state is $2.65/W. The total installation price depends on the location, type, size of your home, the type of solar panels and inverter you buy, and many other factors. However, the sum you will probably pay for a typical 6 kW system will be about $11,700, declaring the 26% federal solar tax credit.
Federal Tax Credit (ITC) – With the Federal Investment Tax Credit you will be able to save 26% of your solar system’s cost. Note that the ITC is available only to those, who buy their system explicitly with a cash purchase or solar loan.
Some local electric utilities offer their own rebate programs:
Net Metering Program – The undeniable advantage is that the Net Metering Program in Delaware allows you to sell electricity to the utility at the retail rate. Considering that your PV system will definitely produce more electricity than you need, it is significant for you to sell the surplus at a good price. It’s available to anybody who produces electricity using renewables, including solar energy, of course. Companies providing Net Metering in Delaware:
Solar Renewable Energy Certificates (SRECs) – Residents may sell the SRECs generated by their solar panels thanks to this program. Whereas the approximate rate for these credits is $25/MWh, a typical 5 kW system could make an extra $2,500 over its lifespan from selling credits in the SREC market.
Over the last 10 years the price on solar panels have fallen by more than 80%. What makes PV systems a definitely brilliant investment in 2020 is that they can be subsidized by the 26% federal tax credit and the Net Metering law in Delaware. In addition, it is a long-term investment, because in 25 years each kW you consume will cost you 5 times less than today.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.