Delaware is committed to getting 25 percent of its electricity from renewable sources by 2025. Despite struggling with funding issues in recent years, the state continues to promote solar by offering a variety of incentives, including purchase, lease, and loan options to convert their homes to solar. Learn more about solar energy in Delaware, including details on electricity costs, the state’s solar panel installers and companies, and rebates and incentives.
Delaware’s Solar
Report Card
To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:
- Rebates, Tax Credits, and Tax Exemptions from Database of State Incentives for Renewables & Efficiency;
- Electricity Rates from the U.S. Energy Information Administration;
- Renewable Energy Policy from NC Clean Energy Technology Center;
- Interconnection Ease from Freeing The Grid;
- Photovoltaic Potential from the Energy Department
We determined a rank from 1 to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of the potential in their areas and discover the best opportunities for clean energy available.
Incentives & Rebates, 40%
Electricity Rate, 15%
Renewable Energy Policy, 30%
Interconnection Ease, 5%
Photovoltaic Potential, 10%
Electricity in Delaware: Cost Trends Through the Years
According to the U.S. Energy Information Administration, Delaware’s residential electricity prices are slightly under $0.13 per kWh, putting them at about eight percent less than the national average. For the commercial sector, the cost of electricity is 18 percent less than average. Price may not be a driving factor to going solar, but in a state that consumes more than 100 times the energy it produces, generating energy in-state helps decrease reliance on outside sources and meet the state’s RPS.
Cost of Residential Electricity
Data from U.S. Energy Information Administration
*as of Q3 2015
Delaware Solar Library:
Incentives, Policies, Credits
Delaware Solar Policies & Incentives
Delaware is striving to make solar an easy and financially viable choice for its residents. Enacted in 2005, the state’s Renewable Portfolio Standard (RPS) requires that 25 percent of all electricity sold in Delaware come from renewable sources by 2025, with 3.5 percent from solar. The state supports a variety of programs and policies that make the switch to solar energy attractive for both suppliers and consumers. There are lease, purchase and loan options available for solar panels, and Delaware charges no sales tax on solar equipment, further benefiting customers.
REBATES/INCENTIVES
Customers with net metering own the renewable energy credits, or RECs, produced by their systems. Electricity suppliers must purchase the surplus credits to comply with the state’s Renewable Policy Standard.
DEMEC Member Utilities Green Energy ProgramIncentives are available for customers in Newark for 33.3 percent of installed costs, up to $7,500 for residential installations and $15,000 for non-residential customers. Systems must supply on-site energy.
Green Energy Grant Program – Delmarva Power CustomersOwners of residential solar photovoltaic installations are eligible for grants up to $3,000 per project, limited to systems 50 kW and under. As of 2019, there is a three-year delay in payments due to the popularity of this program.
Delaware Electric Cooperative – Renewable Resource ProgramSolar system owners are eligible for grants to offset the costs of installation. Systems must supply on-site energy with an average monthly peak electric demand of less than 50 kW for residential and small commercial owners; the maximum incentive is $5,000. There is a three-year wait for payment after approval.
Renewable system owners sell Solar Renewable Energy Credits (SRECs) at market price for 10 years, then at a fixed price of $35 for the next 10 years.
None for commercial specifically
POLICIES
Delaware established a renewables portfolio standard in 2005 that requires utilities and electric cooperatives to purchase 25 percent of their electricity from renewable sources by 2025, with a solar technology goal of 3.5 percent.
Net meteringNet metering is allowed for residential systems statewide with capacity up to 25 kW. Non-residential customers of Delmarva Power and Light are allowed 2 MW per meter, and Delaware Electric Co-Op allows 500 kW per meter. Systems must be intended primarily to fulfill a customer’s electricity needs. Credits can be rolled over indefinitely or customers can request a payout.
Homeowners associations are prohibited from restricting the use of solar photovoltaic systems on residential rooftops in single-family residential structures, including townhouses with at least two unattached sides and for which roof maintenance is the responsibility of the owner and not the association.
None for commercial specifically
TAX CREDITS
None
None for residential specifically
None for commercial specifically
EXEMPTIONS
None
None for residential specifically
None for commercial specifically
Delaware Companies, Contractors & Installers
Contractors, suppliers, and power companies are great resources for the consumer. Click on one of the contractors below for more information.
This organization combines HVAC (Heating, Ventilation, and Air Conditioning) expertise with solar applications.
Where it operatesNewark, DE
Year of opening1992
A division of Wanex Electrical Services, Blue Skies provides turnkey services to design and install all sizes of solar systems.
Where it operatesNew Castle, DE
Year of opening1989
A division of local homebuilders The Schell Brothers, Clean Energy USA specializes in new construction and commercial solar installations.
Where it operatesRehoboth Beach, DE
Year of opening2009
Begun as an electrical firm, CMI Solar now also installs and maintains solar power systems.
Where it operatesNewark, DE
Year of opening1998
G. Fedale General Contractors are roofing and siding contractors that also install solar panels.
Where it operatesNew Castle County, DE
Year of opening2002
This family-owned business designs and installed residential and commercial solar PV systems in Delaware, Maryland and Pennsylvania.
Where it operatesBear, DE
Year of opening2004
McConnell Energy Solutions specializes in installing its SolarDock system for flat roofs.
Where it operatesWilmington, DE
Solar Research Resources
Here are additional resources for converting to solar in Delaware.
Delaware Solar Power Rocks – This site educates consumers about the advantages, costs and return on investment of solar energy home systems in Delaware. The sponsoring organization advises state legislatures around the country on solar energy usage.
This activist group is dedicated to educating people about solar power and advocating for its use.
Provides information about solar use and installation in Delaware, including basic energy facts and information about state policies and incentives.
Learn about general energy use in Delaware from this federal government site, including data on the state’s energy systems, needs, and usage.
Information and applications for rebates for consumer installation of home solar energy systems is available on this site.