2022 Delaware Solar Incentives, Tax Credits, Rebates (And More)
Here’s a quick look at the solar incentives in Delaware:
- Federal Solar Tax Credit
- Delaware Utility Solar Rebate Programs
- Delaware Net Metering
- Additional City & Utility Rebates
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Our solar experts have sifted through hundreds of local governments’ and utility companies’ websites to find accurate information about current solar incentives in each state. We’ve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home.
How Much Can You Save With Solar Incentives in Delaware?
In this article, we’ll discuss the solar incentives and rebates available to Delaware homeowners. When you’re ready to speak with a qualified professional, follow the links below. Each of these companies can help you identify and apply for incentives available in Delaware.
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Despite the cost of solar decreasing over the past decade, homeowners in Delaware still pay an average of $24,510 to go solar. This total is based on the average cost per watt for solar equipment — $2.58 throughout the state — and the average system size required to offset the standard energy needs in Delaware — around a 9.5-kW system. This amount is below the national average, but it’s still prohibitively expensive for many Delaware residents.
Thankfully, there are a number of solar incentives available in Delaware from the state and federal governments. Some incentives help to reduce upfront installation costs of solar energy systems, while others aim to entice homeowners to convert. In this guide, we’ll discuss all of the incentives available to Delaware residents and how each one could benefit you.
Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.
Current Solar Rebates, Tax Credits and Incentive Programs in Delaware
The table below provides a quick snapshot of the most beneficial solar tax credits, incentives and rebates available in Delaware. We’ll provide additional information about each incentive below as well.
| Delaware Solar Incentive | Description |
| Federal Solar Tax Credit (ITC) | The federal tax credit is made available to all Delaware residents who go solar. It’s a credit that equals 26% of the total cost of your solar system, and it is credited to the federal taxes you owe for the tax year your system is turned on.1 In Delaware, where the average system costs $24,510, the typical credit is approximately $6,373. |
| Delaware Utility Solar Rebate Programs | While Delaware lacks a state tax credit, many utility companies that serve Delaware homeowners provide substantial rebates for going solar. The exact rebate you’re eligible for depends on your electric company, so we’ll provide more information on these rebate programs below. |
| Net Metering | Most residential solar panel systems can send and receive energy to and from the grid via interconnection through your inverter. Net metering allows you to reduce the amount you owe on your energy bills for electricity pulled from the grid by using excess power your system produces.2 We’ll discuss the net metering policy in Delaware in depth below. |
Delaware Solar Rebate
Some states have state solar tax credits similar to the federal tax credit to reduce the cost of going solar, but Delaware does not. Instead, the state plans to reach its Renewable Portfolio Standard (RPS) goal by incentivizing property owners to install home solar systems via rebates. Most of the rebates available in Delaware come from public utility companies, and the majority of Delaware residents will be able to take advantage of one of the rebate programs below.
Delmarva Power Green Energy Program
As the largest utility company in Delaware, Delmarva’s rebate program will be the most widely available throughout the state. This program covers residential solar systems and solar water heaters at a rate of $0.70/W, with a cap of $6,000. That means for every kilowatt Delmarva Power customers install, they’ll be eligible for a rebate of $700. Most Delaware homeowners require a 9.5-kilowatt system, so they’ll be able to capitalize on the full $6,000 rebate.
The rebate values offered by this program will decrease as it ages, so if you want to take advantage of it, you’ll need to act quickly and get solar installed as soon as possible.
Delaware Electric Cooperative Green Energy Program
The Delaware Electric Cooperative (DEC) provides incentives for photovoltaic equipment, solar thermal, wind, fuel cells and geothermal equipment, provided it’s installed by DEC member-owners. There are varying rebate amounts based on the clean energy source you’re installing, and the cap for PV systems is between $2,500 and $3,500 based on eligibility. In any case, this is a substantial rebate that can reduce your total costs by approximately 10% or more.
Delaware Municipal Electric Cooperative (DEMEC) Green Energy Grants
Finally, the Delaware Municipal Electric Cooperative (DEMEC) offers its Green Energy Grants program to customers. The program includes cash rebates in the amount of $1.00 per watt for the first 5 kilowatts (up to $5,000) and $0.50 per watt thereafter. That means larger solar systems will receive higher rebates, and they also benefit the homeowner by saving them more on energy bills in the long run. As such, this is one of the more appealing solar rebates available in Delaware.
The program also provides rebates for residential solar water heating installations and geothermal heat pump installations.
Other Delaware Solar Incentives
Aside from the solar incentives mentioned above, there are a few additional things to consider that can help you reduce the overall cost of going solar in Delaware.
First, you will have access to Solar Renewable Energy Credits (SRECs). As is the case in many states with Renewable Portfolio Standards (RPS), public utilities are incentivized to make solar power more alluring to their customers. In Delaware, that means offering SRECs, which are credits that homeowners can earn for energy generation. SRECs can be sold on the SREC market for a profit, which means you could ultimately get paid for energy you produce rather than paying your energy bill.
Delaware established its SREC market in 2008, which makes it one of the oldest SREC markets in the nation. However, since the RPS goals set by the state are more than likely being met, the value of SRECs in Delaware is lower than in some other states because utilities are less inclined to buy them to increase the share of renewable energy generation they can claim. It’s unclear what the future holds when it comes to the value of SRECs in Delaware, but it’s still a nice perk you may be able to take advantage of.
Delaware Solar Sales Tax Exemption
Unlike most other states, Delaware does not have sales tax and doesn’t need to offer a specific sales tax exemption like most states do for PV equipment. As such, you won’t pay sales tax on your solar equipment. This can save you more than $1,000 compared to going solar in a state that does have sales tax and doesn’t exempt solar equipment.
Unfortunately, Delaware does not offer a property tax exemption, which is usually provided by states alongside a sales tax exemption. A property tax exemption prevents your property taxes from increasing due to the addition of your solar panel system. In Delaware, your solar panels add to your property value, which increases your assessed value and causes your property taxes to increase as well.
Net Metering in Delaware
Net metering is a billing policy that helps homeowners with solar systems offset their energy bills. Any time you pull energy from the grid, like on cloudy days or at night, you’ll be billed for what you consume. However, you can reduce those charges with any excess energy you provide to the grid when your panels produce more than your home is using, like on sunny days. You only ever pay for your net energy usage.
Delaware has a great net metering program that is hugely beneficial to homeowners throughout the state. The program is available to any taxpayer that generates electricity using solar, wind or hydro systems, anaerobic digesters that produce biogas and even fuel cells capable of being powered by renewable resources.
Best of all, the policy in Delaware states that utilities must offer the full retail rate for excess energy production. That means that your bill will be reduced per kilowatt-hour by the exact cost you pay for the same amount of energy. Some other states allow utilities to reduce the bill based on a sub-retail rate, so this is a huge win for Delawareans.
Local Incentives
In addition to the great net metering policy and the electric utility rebates mentioned above, there is another semi-local incentive that is offered throughout the state but is based on your location within Delaware: the Green Grant Solar Hot Water Program.
This incentive is, unfortunately, only available to non-residential and nonprofit solar customers, but it’s worth mentioning. This program provides a rebate of $1.00 per kWh saved with solar water heating systems for non-residential customers and $1.50 per kWh saved for nonprofit customers. The rebate is capped at $200,000. There are additional rebates available for non-residential and nonprofit customers for geothermal heat pump installation as well.
Federal Solar Tax Credit
One of the most significant solar incentives available to Delaware residents is the federal solar investment tax credit (ITC). This federal government provides this incentive, and it’s available to all Delaware homeowners. The credit is applied to the federal income taxes you owe, and it’s applied for the tax year in which your solar energy system is installed and commissioned. With a credit of 26% of your total cost of going solar, that’s an average of $6,373 in Delaware, where the average cost of solar panels is $24,510. This credit can bring the effective cost of going solar from $24,510 down to a more reasonable $18,137.
The federal tax credit rate will drop to 22% in 2023, which means the value will go from $6,373 to $5,392. Currently, the credit is set to expire for residential systems in 2024, so the credit will no longer be available. That could change if Congress chooses to renew it, but it’s still in your best interest to install solar as soon as possible to take full advantage of the ITC.
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FAQ: Delaware Solar Incentives
The EcoWatch team is delighted to get questions about solar installation prices and solar incentives from Delaware homeowners on a daily basis. Below are some of the questions we see most frequently, along with our responses.
Delaware does not have a state solar tax credit. However, the federal tax credit is available to all Delaware homeowners and totals 26% of your entire solar system cost. Additionally, the State of Delaware pushes local utility companies to offer incentives for converting to solar to meet the state’s Renewable Portfolio Standard (RPS) goals. As such, many of the larger utility companies in Delaware provide substantial rebate programs to their customers. These range from $2,500 to more than $6,000, depending on your system size and your electric provider.
Yes, there are currently solar incentives available in Delaware, and they will remain available throughout 2022. There are many rebate programs provided by the more prominent electric companies, a great net metering program that helps customers increase energy savings and even eliminate their electric bills, and the federal tax credit. All of these incentives combined make solar far more accessible and increase your return on investment in the long run.
There are several rebates available in Delaware, although they aren’t all accessible for every resident. Rather, the rebates offered to you will be based on your utility company.
Delmarva Power has a Green Energy Program that can provide up to a $6,000 rebate for going solar. Delaware Electric Cooperative has rebates for between $2,500 and $3,500 based on a few qualifying factors. Delaware Municipal Electric Cooperative has some of the best rebates based on PV system size, offering $1.00 per watt for the first 5 kilowatts and $0.50 per watt thereafter.
Unfortunately, yes, solar panels will increase your property taxes in Delaware. As is the case with most home improvements, installing solar panels will bump up the value of your home and, in turn, your assessed value. A higher assessed value means higher property taxes based on how much the value increases. Many other states provide residents with a property tax exemption to prevent this spike in property taxes following solar installation, but Delaware does not have a property tax exemption.
