Delaware Solar
Incentives & Rebates

Updated March 7, 2021

Delaware Renewable Portfolio Standards

Delaware has very strong RPS (Renewable Portfolio Standards). The state mandated that by 2025-2026, 25% of all energy must come from renewable sources. Utilities must pay high fees if the standards are not met, so there is strong incentive in Delaware for utilities to offer solar incentives to homeowners.

Delaware RPS Solar Carve-Out

Solar carve-outs require a certain percentage of a state’s renewable energy to come from solar by a certain deadline. Delaware's solar carve-out is 3.5% by 2027.

Delaware State Electric Rates

Delaware's electric rates are tied for 12th highest in the country. High electric rates make an investment in solar energy more rewarding for homeowners.

Delaware Net Metering

Delaware has straightforward, uncomplicated net metering laws, which is a bonus for Delaware purchasers of renewable energy. Net metering is a system in which solar panels or other renewable energy generators are connected to the public utility, allowing customers to offset the cost of the power they draw from the utility through credits they earn on their own production. When your system produces more energy than you need, the excess power is sold to the grid, which you see as a credit on your power bill.

Delaware Interconnection Standards

Interconnection standards are requirements for connecting solar and other electrical generation systems to the grid. Delaware’s standards are quite strong, making it easier for Delaware utility companies to offer net metering.

Delaware Energy Rebates

Delaware utilities offer many excellent solar rebate programs, the details of which you would get from the installer you choose. Naturally, there will be paperwork to file. The rebates work either by giving you a lump sum payment directly, or your installer will take the amount off the final installed price. Many times installers will take care of the paperwork.

Delaware Solar Power Performance-Based Incentives (PBI)

Delaware offers PBIs, which are incentives based on the actual, metered power your system generates. Delaware calls them Power Performance Payments, and it pays you based on the number of kilowatt-hours (kWh) or BTUs generated by your renewal-energy system. The electricity produced is credited as Solar Renewable Energy Credits (SRECs), the value of which fluctuates by the rule of supply and demand.

And in Delaware the Federal Tax Credit Applies, of Course

On top of these Delaware rebates and exemptions, of course you also qualify for a huge tax credit from the Federal government. The solar Investment Tax Credit (ITC) is worth 26 percent of the system cost, and will be deducted from your Federal income tax. The credit goes to those who buy their system, by cash or loan. If you lease a system, incentives go to the third-party owner. A very good reason to buy, not lease!