Solar SME Delaware
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Delaware is not a big state, but solar adoption is increasing rapidly, with over 219 MW of installed capacity and more than 9,000 active solar systems powering thousands of homes and businesses. People are switching to solar in Delaware to cut rising utility bills, gain energy independence, and help reduce carbon emissions. The state offers some best solar incentives and local rebates to offset the initial cost of solar installation in Delaware. Solar SME is among the top solar companies helping homeowners and businesses with customized solar energy and backup solutions to mitigate the energy crisis. We are certified local solar installers having our presence in 11 states around the U.S. Our quality solar installation services and leading warranties make us different from other solar companies in the market.
How much can you save on electric bills with solar in Delaware?
The average electric rate in Delaware is 16 cents per kilowatt-hour (kWh). Delaware citizens spend approximately $217 per month on electricity. That means the average Delaware power consumer uses 1,339.22 kWh per month. In the state, an 11.5-kilowatt (kW) solar panel installation is required to offset 100% of yearly electricity use. If you install a solar panel system at home, your solar payback period will be approximately 8.95 years in Delaware. However, the cost of solar in Delaware will vary according to your system preferences and energy needs. Furthermore, adding a backup battery solution will lead you to save more with maximum grid independence and solar programs like SRECs in Delaware.
25-year Savings
$62,880
Payback Period
10 Years
10 Years
Electricity Offset
84%
84%
Solar Financing Options in Delaware by Solar SME
Solar installation is a worthy investment; however, it may cost you higher to own your solar panel system. If you are unable to own due to any reason, like you are a renter or do not have enough cash in hand, some flexible solar financing options are available for you:
The best option for maximizing the benefits of a solar energy system is ownership. When you own, you are eligible for all the local and federal solar incentives to offset your solar installation cost. Not only this, you can also earn energy credits through net metering or SREC programs in DE state. Also, there is no loan paperwork, no interest calculations, no increasing lease payments, and no monthly payments after installation. Additionally, your home value will also go up by 7%-14%.
Solar loans are the best option for you if you want to take full advantage of a solar PV system but do not have enough investment to buy one. With a solar loan program, you will make fixed monthly payments for 5-25 years while benefiting from instant energy savings. It provides cost predictability, unlike utility bills or lease escalators, which rise over time. The best part is that the lending rate is down to 4.0% - 4.25%. Furthermore, you can avail all solar incentives and solar tax credit in Delaware with loan financing. A local solar installation company, like Solar SME, can help you to go solar with 0% APR option.
As the 30% tax credit is expiring, solar leases are emerging as the best alternative to take advantage of solar power. Third-party financing requires you to pay a fixed monthly lease payment or per-kWh rate (PPA) for the solar energy produced by the system. According to the U.S. Department of Energy, this rate is 10% to 30% lower than your electric bills. As you are not the owner, the federal tax credit and other solar incentives' expiry will not impact your savings. However, it is vital to choose your solar leasing plans wisely. Solar SME, the top solar provider in Virginia, offers the best solar lease options for making your solar journey affordable.
Best Residential Solar Incentives and Rebates in Delaware
Delaware offers some of the best solar and battery incentives and local rebates in the country. As electric rates surge daily, going solar can result in substantial savings. However, the federal solar tax credit will expire in 2025. Let’s have a look at the top solar energy programs in Delaware:
01- Residential Clean Energy Tax Credit
The Residential Clean Energy Credit, or federal investment tax credit (ITC), can reduce the cost of a solar panel installation by 30%. This incentive covers the complete system, including equipment, labour, permits, and sales tax. However, on July 4, 2025, President Trump signed legislation that totally eliminated the residential solar tax credit, effective January 1, 2026, nearly a decade before its original expiration date. When you file your taxes, you can claim this incentive as a credit towards your federal tax bill. Just keep in mind that to qualify for the ITC, you need to purchase your system either with cash or a solar loan–if you lease your system, you won’t be eligible.
02- Delaware Green Energy Program Rebates
Under the Delaware Green Energy Program, the majority of the state’s electric utilities provide direct payments to homeowners who install solar panels. The specifics vary depending on your utility company, but they are all related to the size of your solar energy system. Customers of Delmarva can apply for a rebate of $0.70 per watt of installed solar capacity, with a maximum rebate of $6,000 (approximately equivalent to an 8.5 kW solar array). As part of the agreement, you will have to sign over your SRECs. The rebate for Newark municipal electrical company customers is $1 per watt up to 5 kW, then $0.50 per watt after that. However, recipients can keep their SRECs. Also, Delaware Electric Cooperative consumers may receive $0.35 per watt for the first 5 kW, then $0.20 per watt after that. You are not guaranteed to get these rebates; there is a limit on the program’s annual financing. Some utilities also advise that you could wait up to two years to obtain the payment. Customers of municipal utilities in Dover, New Castle, Clayton, Lewes, Middletown, Milford, Smyrna, and Seaford are not eligible.
03- Delaware Solar Renewable Energy Credits (SRECs)
SRECs are an excellent way to earn with your solar installation. You get one for every megawatt-hour (MWh) of energy your solar panels generate, which you can sell to the utility provider. SRECs are valuable because they serve as “proof” of clean energy generation, and utilities want this proof to comply with state Renewable Portfolio Standards (RPS), which require them to acquire a specific percentage of energy from solar. To sell your SRECs, register with Energise Delaware and take part in the state’s annual procurement process. The procurement process includes an auction to decide the amount you will pay for the first ten years of SRECs. Currently, each SREC is worth $10-$30.
04- Low- to Moderate-Income Solar Pilot Program
Delaware’s low-to-moderate income solar pilot program marks the state’s first initiative to assist traditionally underserved groups in obtaining solar energy for their homes. The program offers free or significantly reduced-cost solar installations to households that meet the eligibility requirements. People who match the Weatherization Assistance scheme’s eligibility requirements can receive a free solar installation of up to 4 kW through this low-income solar scheme. Homeowners earning up to their county’s area median income can receive 70% off the cost of a solar system (up to 6 kW).
05- Incentives for Battery Storage in Delaware
Delaware does not provide any state-specific battery incentives. However, any solar batteries bigger than 3 kWh are qualified for the 30% federal tax credit. In Virginia, you can also use your battery to increase your energy independence and offer backup power during outages.
Is net metering available in Delaware?
Delaware requires net metering from all utility companies, and residents must be credited for surplus energy output at the full retail rate. However, net metering policies vary amongst power companies, so verify with yours before signing anything. For example, some utility companies will compensate you for any excess electricity that you do not use during the year, whilst others will just apply the excess to future energy bills. Keep in mind that Delaware is actively evaluating its net metering policies. Per Senate Joint Resolution No. 1, passed in January 2025, all electric utility companies offering net metering have to participate in a cost-benefit study.
Commercial Solar Installation in Delaware
Commercial solar installation in Delaware is an effective way for businesses to combat all of the power challenges. Businesses can generate power using free and unlimited sunlight via commercial solar panels. Furthermore, using solar electricity combined with a reliable battery backup system like Tesla Powerwall 3 eliminates power disruptions. Hence, enabling smooth workflow and increased operational resiliency. Like residential solar installation, you are also eligible for a 30% federal tax credit for commercial solar systems. Additionally, High Performance Building Program, MACRS Depreciation, and PACE Financing options are available for business solar installation.
Why is it worth it to switch to solar in Delaware ?
The U.S. Energy Information Administration (EIA) expects U.S. residential electricity prices to average 16.8 cents per kilowatt-hour (kWh) in 2025, up 2% from last year. With reduced solar panel costs, rising bad weather conditions, and long power outages, solar continues to deliver major financial benefits in Delaware. Top reasons to switch to solar in DE include:
Low Electric
Bills
Maximum Grid Independence
Flexible Financing Options
Increased Home Value
Earn Energy Credits/SREC Programs
The best way to determine how to maximize your solar savings in Delaware is to consult with a local solar installer. Solar companies near you can guide you with the best solar solutions and incentives in your area and can help you to get the most out of your solar investment.
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Our Customers are Getting Up to 90% Lower Electric Bills with
Solar SME Tailored
Solar Solutions
Solar SME provides its valuable clients with an exceptional solar experience by designing solutions according to its customers’ unique needs. Also, we hold a positive image in solar marketplaces like Energysage. Moreover, we are accredited with BBB, and our happy customers share their solar experience and highly recommend Solar SME for the best solar services in Delaware.
City: Wilmington, DE
System Size: 5 kW
Annual Savings: ~$850–$1,000 per year
City: Dover, DE
System Size: 6.5 kW
Annual Savings: ~$1,100–$1,300 per year
City: Newark, DE
System Size: 7.2 kW
Annual Savings: ~$1,250–$1,450 per year
City: Middletown, DE
System Size: 8 kW
Annual Savings: ~$1,500–$1,700 per year
City: Milford, DE
System Size: 9.5 kW
Annual Savings: ~$1,800–$2,000 per year
City: Rehoboth Beach, DE
System Size: 10 kW
Annual Savings: ~$2,100–$2,400 per year
Frequently Asked Questions
Yes! Delaware offers great solar value with abundant sunlight, no state sales tax on solar systems, and incentives like the Green Energy Program rebate. Homeowners save significantly on electricity bills and boost property value while reducing carbon footprint.
Delaware homeowners can access the Federal Solar Tax Credit (ITC), state rebates through the Green Energy Program, and net metering benefits. These incentives reduce upfront costs and allow you to earn credits for excess solar energy sent to the grid.
Delaware homeowners usually see a solar payback period of 7–10 years. With strong incentives and moderate electricity rates, solar systems quickly offset installation costs and continue producing free, clean energy for decades afterward.
Yes! Homes with solar systems in Delaware typically sell faster and for higher prices. Buyers appreciate the energy savings, low maintenance, and environmental benefits, making solar-equipped properties more attractive in today’s housing market.
Select a licensed, NABCEP-certified solar installer like Solar SME with strong local experience, transparent pricing, and solid warranties. Check reviews, verify credentials, and compare quotes from multiple Delaware solar companies to ensure quality installation and long-term support.