Delaware is committed to getting 25 percent of its electricity from renewable sources by 2025-26. 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

Grade
Methodology

To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:

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

Delaware has some of the highest energy costs in the country. According to data gathered by Local Electricity Information and Resources, Delaware’s electricity prices are slightly under $.14/kWh, putting them at 13th in the nation. That makes the average residential electricity bill $128, almost 20 percent higher than the national average. Such prices make going solar panels and energy an attractive option for Delaware residents seeking to reduce household expenses.

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 Renewable Portfolio Standard (RPS) requires that 25 percent of all electricity sold in Delaware come from renewable sources by 2025-26. 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

Solar Renewable Energy Credits Spot Market

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 Program

Incentives 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 Customers

Owners of residential solar photovoltaic installations are eligible for grants up to $3,000 per project, limited to systems 50 kW and under.

Delaware Electric Cooperative – Renewable Resource Program

Solar 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.

Sustainable Energy Utility Green for Green Home Rebate

Homebuyers may be eligible for rebates between $1,000 and $4,500 for energy efficiency and sustainability features. Applications are submitted by the homebuilders on the homeowners’ behalf. The program has already allocated its 2015-2016 budget and has suspended accepting applications while new funding is sought.

Delaware SREC Program

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

Renewables Portfolio Standard

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 metering

Net 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.

Solar rights law

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.

Advanced Solar

This organization combines HVAC (Heating, Ventilation, and Air Conditioning) expertise with solar applications.

Where it operatesNewark, DE

Year of opening1992

Blue Skies Solar & Wind

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

Clean Energy USA

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

CMI Solar and Electric

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

G. Fedale General Contractors are roofing and siding contractors that also install solar panels.

Where it operatesNew Castle County, DE

Year of opening2002

KW Solar Solutions, LLC

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

Liberty Services Company

Liberty Services provides residential and commercial solar installations, offering free site assessments and assisting customers with rebates and tax credits.

Where it operatesWilmington, DE

Year of opening1980

McConnell Energy Solutions

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

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.

Solar Action Alliance

This activist group is dedicated to educating people about solar power and advocating for its use.

Solar Energy Industry Association — Delaware

Provides information about solar use and installation in Delaware, including basic energy facts and information about state policies and incentives.

U.S. Energy Information Administration – Delaware Profile

Learn about general energy use in Delaware from this federal government site, including data on the state’s energy systems, needs and usage.

The Green Energy Program – Delaware

Information and applications for rebates for consumer installation of home solar energy systems is available on this site.