Thinking about going solar incentives in Delaware? You’re in luck! Delaware offers a variety of solar incentives that can significantly reduce your costs and make your investment in renewable energy more rewarding. From federal tax credits to state-level programs and utility rebates, here’s a breakdown of the top solar incentives you should explore before installing solar panels in Delaware.
Cut your costs with the federal solar tax credit
The federal government supports solar adoption through the Solar Investment Tax Credit (ITC). This program lets you claim 30% of your total solar installation costs as a tax deduction. The credit applies to expenses like solar panels, installation, and even shipping.
For instance, if your solar system costs $10,000, you can deduct $3,000 from your federal income taxes. Claiming the ITC is straightforward: fill out the necessary forms and include them when you file your taxes. With this incentive, you can significantly lower the upfront cost of your solar investment.
Offset energy bills with net metering
Net metering is one of the most popular ways solar systems pay for themselves in Delaware. This program allows you to send any excess electricity your system generates back to the grid. In return, you earn credits that can be applied to future energy bills.
Solar Incentives in Delaware mandates that all utility providers must offer net metering programs. Here are the maximum system sizes eligible for net metering:
- 25 kW for residential customers
- 100 kW for farm customers on residential rates
- 2 MW per meter for non-residential customers of Delmarva Power and Light (DP&L)
- 500 kW per meter for non-residential customers of Delaware Electric Cooperative (DEC) and municipal utilities
Contact your utility provider to understand their specific rates and terms for net metering.
Earn up to $2,000 annually with SRECs
Solar Renewable Energy Certificates (SRECs) offer another way to benefit financially from your solar system. Unlike net metering, you don’t need to sell electricity back to the grid to earn SRECs. You receive one certificate for every 1 MWh of electricity your system generates.
A typical 5 kW solar system can produce 7-8 MWh annually, which means you could earn 5-7 SRECs per year. Delaware’s SREC market is particularly lucrative, with certificates valued at $400 each. By selling your SRECs, you can earn between $400 and $2,000 annually.
Delaware also offers bonus incentives for SRECs:
- 10% bonus if 50% or more of your solar equipment is manufactured in Delaware
- Another 10% bonus if at least 75% of the system is installed by Delaware-based workers
To get started, register your system on the PJM-EIS Generation Attributes Tracking System (GATS) platform.
Utility rebates and grants through the green energy program
Delaware’s utilities offer additional financial incentives to help offset the cost of your solar system. The Green Energy Program provides rebates and grants to customers of Delmarva Power, Delaware Electric Cooperative (DEC), and certain municipal utilities.
- Delmarva Power offers an incentive of $0.70 per watt for residential and commercial systems under 50 kW. The maximum rebate is $6,000 for residential systems and $40,000 for commercial systems.
- Delaware Electric Cooperative (DEC) provides $0.50 per watt for the first 5 kW and $0.20 per watt for capacity over 5 kW. Residential customers can receive up to $2,000, while commercial customers with higher energy demands can qualify for up to $3,500.
- Newark municipal customers can receive $1.00 per watt for the first 5 kW and $0.50 per watt thereafter, with a maximum rebate of $3,500.
These programs can significantly reduce your upfront costs. Check with your utility provider for the latest guidelines and application requirements.
Why solar incentives matter / Solar Incentives in Delaware
Investing in solar energy is not only an eco-friendly decision but also a financially smart move. With Solar Incentives in Delaware’s incentives, you can recover a substantial portion of your installation costs, lower your energy bills, and even generate additional income through programs like SRECs.
By taking advantage of these programs, you’re not just saving money—you’re also contributing to a cleaner, greener future for the state. Whether it’s through federal tax credits, net metering, or utility rebates, Delaware makes going solar an attractive and practical choice.
Take the time to research these incentives, calculate your savings, and consult with a solar provider to maximize the benefits. Solar energy is more than an investment in your home; it’s an investment in a sustainable future.