Delaware solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your home's location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Delaware solar incentives 2022

Delmarva Power now offers a nice solar rebate program called a Green Energy Grant if you’re looking to install solar on your home in Delaware, with a maximum value of $6,000. Even if you’re not a Delmarva customer, DEC and DEMEC offer their own similar solar rebate programs. Not too shabby!

Delaware has also carved out 3.5% of it’s ambitious state renewable energy standard to come from distributed solar generation by 2027, like panels on your rooftop. That’s a strong move.

Coupled with this requirement is an incentive which pays homeowners $32 per Solar Renewable Energy Credit (SREC) generated by home solar panels (if your installer is savvy enough to claim them on your behalf). This works out to about $250 annually over the 20 years. Solid. Read on to learn more about how all the programs for home solar work in Delaware!

On this page, you can:

  1. Learn what solar incentives are available to Delaware homeowners

  2. See what Delaware solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Delaware solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Delaware

This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.

The federal tax credit falls to 22% at the end of 2022.

Net energy metering in Delaware

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus.

Delaware’s net metering law is straightforward and pretty much perfect. Any net excess generation (i.e. any surplus electricity) you produce is applied to your next bill as a credit at the full retail rate.

If you run a surplus for a full 12-month period you may elect to have the electric company cut you a check for the surplus, again at the full retail rate. Note, however, that nothing in the net metering law requires you to request the check. If it’s easier for you, you can just keep the credit rolling over onto your bill indefinitely.

Delaware solar rebates

Delmarva Power, DEMEC and Delaware Electric Cooperative all offer solar rebate programs.

If you’re lucky enough to be a Delmarva Power customer, you can qualify for a Green Energy Grant to go solar. The grant pays out $700 per kilowatt (kW), up to a maximum amount of $6,000 for your home solar installation! For example, on an average sized 6kW system, you can expect a rebate of $3,600.

The DEMEC green energy program rebate pays out $1,000 per kW, up to a maximum of $3,500. You’d max out that incentive with a small-ish 3.5kW system.

The Delaware Electric Cooperative’s green energy rebate pays out $500 per kW, up to a maximum of $2,500. So, to get maximum credit, you’d need to install a 5kW system.

Solar SRECs in Delaware

Delaware has a strong RPS, mandating 40% renewable energy by 2035 (compliance years run from June to May). As part of that 40%, the state also has a specific target for solar electricity generation (called a "solar carve-out"), with an ultimate goal of 10% of all electricity sales coming from solar. The current minimum level of renewable energy is 22% of total retail electric sales, with 2.75% coming specifically from solar.

Those requirements will raise a little each year until 2035. Delaware’s RPS is critical to strong renewable energy policy. Utility companies aren't really all that gung-ho about you producing your own power. After all, it costs them money when you use less of their electricity. They also don’t naturally want to give you big payments for energy you're feeding back into the grid. The main reason the utilities are aiding your transition to lower electric bills and offering you incentives to put solar on your roof is because the state forces them to. If the utilities don't hit their RPS numbers, they have to pay large fees back to the state. So, instead they’re willing to pay you for your solar renewable energy certificates (SRECs) that your home solar panels generate. By owning those, they can meet their RPS goals more easily and avoid alternative compliance fees.

In Delware, distribution utilities purchase SRECs from system owners on 20-year contracts. Each year, the SRECDelaware Program opens a competetive bidding process for SRECs. In 2021, the average purchase price of a Tier 1 SREC (from systems less than 50 kW) was $26.50. With a typical-sized system in Delwarae generating around 8 SRECs per year, that price works out to a payment of $212 per year, or $4,240 over the 20-year contract term. Not bad!

To sign up to sell your SRECs begin by, getting solar quotes and talking to installers about your options.

Cost of solar panels in your part of Delaware after all applicable solar incentives

Showing data for:

Utility provider: Delmarva Power & Light Company
Utility bill: $ 157

Prices based on a 10.6kW system, after 26% federal tax credit

Solar prices near you

Cost range of local prices

$19,909-$24,333

Payback period

9.4-11.5 years

Net profit (savings less system cost)

$41,164-$50,312

Average size system installed in DE in 2022

10.6kW

Solar panel cost calculator

Best 10 solar companies in Delaware

12 solar companies in Delaware provide pricing on SolarReviews. Here are the best rated companies near you.

Useful links

Energize Delaware Solar Loan - Provides 3.9% interest loans for home solar installations with a 10 year term

Solar Energy Industries Association (SEIA)

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