Delaware is not the biggest or sunniest state, but it’s rapidly adopting solar energy, thanks to effective incentives. The First State’s solar incentives are simple and work very well. They help defray the cost of installing a system and guarantee that you are paid for excess generation. They also offer you a bonus for generating clean energy.
Incentives for Homeowners Going Solar
Federal Solar Tax Credit
As in most states, the federal Investment Tax Credit (ITC) is the biggest. Currently, it covers 30% of the cost of systems installed through 2032. To offset their energy bills, the average Delaware resident needs a 9.5 kW solar energy system. That system will set them back around $29,070. That’s at the average cost of solar per watt in the area, which is $3.06 per watt. Based on this calculation, the average federal solar investment tax credit is $8,721. After installing solar the homeowner’s income tax bill is credited with that sum, making the total cost about $20,349.
Delaware Net Metering
Delawareans can benefit from net metering if they upgrade to renewable energy sources for their homes. Under the program the utility records how much electricity is produced by the solar installation and the amount it sends to the grid. It also measures how much electricity the home takes from the grid. If the system produces more energy to the grid than the home consumes it is credited toward the next electric bill.
Solar Renewable Energy Credits in Delaware
Solar Renewable Energy Credits (SRECs) are available to Delaware homeowners that install solar panels. A homeowner receives one SREC for each megawatt-hour (1,000-kilowatt hours) produced by their solar system. They can then resell it to utilities and other programs. The sale helps fulfill the requirements of the renewable portfolio standards set by the state. Prices change according to supply and demand.
Local Solar Incentives for Homeowners in Delaware
Delaware residents can also benefit from local government incentives and utilities. These are of some of the biggest local incentives currently available:
Delmarva Power Green Energy Program
All Delmarva Power customers are eligible for cash-back incentives of up to $0.70 per watt for a solar installation. The rebate per system is capped at $6,000. Since the average system size needed in Delaware is 9.5 kW, most get the full amount. Rebate values will drop over time.
Delaware Electric Cooperative Green Energy Program
Customers of Delaware Electric Cooperative (DEC) will receive a solar rebate of $0.50 back for each watt up to 5 kW and $0.20 back for each watt beyond that. The program has a cap of $2,000 per installation. Given the typical system size in Delaware most consumers should be able to claim the entire $2,000 rebate.
Incentives for Businesses Going Solar in Delaware
Delaware Green Energy Program
For businesses looking to make the switch to solar, the Delaware Green Energy Program offers a range of incentives. Through this program, commercial and industrial entities can access grants and rebates to support the installation of solar PV systems.
Commercial Property Assessed Clean Energy (C-PACE)
Delaware businesses can take advantage of the state’s Commercial Property Assessed Clean Energy (C-PACE) program. Additionally, the program facilitates low-cost, long-term financing for energy efficiency and renewable energy projects through property tax liens. This allows businesses to install solar systems with minimal upfront costs. Instead, they pay for the improvements over time through a special property tax assessment.
Delaware Division of Small Business EDGE Grants
The Delaware Division of Small Business EDGE Grant supports small businesses in the state with financial assistance for qualifying projects. Moreover, these include energy efficiency and renewable energy projects. Funds are limited and the program grants are available on a first-come, first-served basis.
A Bright Future with Solar Energy in Delaware
Whether you’re a homeowner looking to reduce your carbon footprint or a business aiming to enhance sustainability, Delaware can help. Delaware has a number of incentives and rebates to help reduce the costs of those investments. Explore the possibilities of solar with SolarSME in Delaware and join the growing movement towards a sustainable, renewable future.
