Cost of Solar Panels in Delaware: Local Solar Installation Prices (2022)
Here’s a quick look at the estimated cost of solar in Delaware:
- Average Cost Per Watt: $2.58
- Cost of Average System: $18,137*
- Cost of Energy Without Solar: $46,173
- Payback Period: 12 Years**
- Lifetime Savings of Going Solar: $21,663
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.
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Cost of Solar Panels in Delaware
The average cost of solar panels in Delaware is $2.58 per watt, which is below the national average electricity rate of $2.66 per watt. Typically, a 9.5-kilowatt solar system is a common size in Delaware to offset the average monthly utility bill of $117 per month.1 A 9.5-kilowatt system would cost $18,137 after claiming the 26% federal solar tax credit.
With that said, a 9.5-kilowatt system isn’t the best for every Delaware resident. How many solar panels you need will vary based on factors like your energy usage, your home’s natural shade and more. Regardless, system size will have a large impact on the cost of a solar project.
Solar Panel System Installation Cost in Delaware
The below chart shows the average solar panel installation cost in Delaware before and after factoring in the 26% solar tax credit. As we show below, system size (in kilowatts) correlates directly with the cost. It also determines whether you can meet 100% of your home’s power needs with clean energy and eliminate your energy bills.
For homeowners simply seeking a supplemental energy source, investing in a smaller system that can cover a portion of their energy needs makes sense. However, for those who want to rely solely on home solar power, installing a properly sized system is critical. If you want to entirely eliminate your energy bills with solar, you’ll need to have a large enough system to meet or surpass your average energy consumption.
|Size of Solar Panel System||Delaware Solar Panel Cost||Cost After Federal Tax Credit|
Interested in seeing the best solar providers in Delaware that offer affordable yet high-quality systems? Click here.
What Determines the Cost of Solar Panels in Delaware?
Besides system size, the cost you’ll pay for solar panels for your Delaware home varies based on several factors. The main areas that drive the price include the solar equipment you choose, the financing option you use, and the company that handles your solar installation.
The equipment you choose for your solar energy array plays a major role in the final cost of the system. Like almost any other product, some solar panels are more expensive and high-quality than others. For example, high-efficiency, high-wattage solar panels tend to be much more costly than less-efficient, lower-wattage counterparts — but they’ll also save you more money over time.
High-efficiency panels are often a solid choice for homeowners with limited installation space, as you may not need as many panels to meet your energy needs. In addition, high-efficiency, high-wattage panels are often a good pick for homeowners with energy-hungry appliances or electric vehicles.
Most solar energy companies offer a few financing options. While the vast majority of providers accept solar loans and cash purchases, not all companies offer solar leases or power purchase agreements (PPAs). However, many companies offer all three options to accommodate the needs of residents with varying budgets.
The solar financing option you choose can affect the final price you pay. For example, buying the system outright is generally the most cost-effective option. If you pay cash upfront, you usually get the best deal. If you opt for a solar loan, you’ll accrue interest over the repayment period. However, it isn’t feasible to pay upfront for many homeowners, so solar loans are an excellent alternative.
If you buy your system outright with a loan or cash purchase, you can take advantage of the federal tax credit and other financial incentives. On the other hand, if you choose a solar lease or PPA, you can’t claim the federal solar tax credit, as you don’t actually own the system. However, leases can be a viable last resort for some homeowners.
Solar Installation Company
The solar installation company you choose for your solar energy project can also impact your final price. As you browse through solar providers in your area, you’ll probably notice the price variation between solar installers.
It’s essential to understand that higher or lower costs don’t make a solar provider’s services more or less “worth it,” per se. Instead of going with what’s cheapest, you should always choose a reputable, trustworthy solar company you find best suited to your needs. For example, a higher-priced option may have a better warranty and would be worth the extra money to you.
Delaware Solar Incentives
Delaware homeowners who switch to solar have access to various incentives. Although solar energy systems installed in the state aren’t exempt from sales or property tax, homeowners may utilize other financial incentives to help cut back on the overall cost.
|Delaware Solar Incentive||How it Affects the Cost of Solar Panels in Delaware|
|Solar Renewable Energy Credits||Due to Delaware’s Renewable Portfolio Standards, or RPS, utility companies in the state must derive 40% of their energy from renewable sources by 2035. To help with this, homeowners can earn solar renewable energy credits, or SRECs, which can be sold to utilities for cash via the SREC marketplace.|
|Net Metering||Delaware offers a statewide net metering program that happens to be one of the best in the country. In other states, solar customers who participate in net metering programs may receive credits worth an amount lower than the retail rate of electricity, but Delaware ensures they can be exchanged 1:1 to offset energy bills.|
|Local Solar Rebates & Incentives||Several utility companies in the state offer excellent rebates to their customer base. For example, Delmarva Power and Delaware Electric Cooperative’s Green Energy Programs hand out rebates of up to $6,000 and $2,500, respectively.|
|Federal Solar Tax Credit||The solar investment tax credit (ITC) allows homeowners to claim 26% of their total solar equipment and installation costs as a tax credit. The credit is set to decrease to 22% in 2023 and disappear completely for residential systems in 2024 if it’s not extended by Congress.|
Best Solar Panel Brands and Installed Solar System Costs in 2022
Some solar brands are better than others. The table below outlines costs for some of the best, most popular solar panels on the market. The chart doesn’t give specific figures, as pricing can hinge on multiple factors. Instead, it offers a general comparison among brands.
|Solar Panel Brand||Average Cost Per Watt ($-$$$$$)|
People Also Ask
FAQ: Solar Panel Cost Delaware
At EcoWatch, we get questions every day about solar, some from Delaware homeowners. Here are the most common questions we see, along with our answers:
In Delaware, the average cost of solar panels is $2.58 per watt. The final cost of a solar energy system for your home hinges on several factors, so it’s tricky to give an accurate price.
However, to provide a general overview of how much it might cost for a solar panel system in Delaware, consider the cost of a 5-kW and 13-kW system. Most home solar systems will fall between this range The average 5-kW solar panel system in Delaware costs about $12,900 before any tax credits or rebates, while a 13-kW solar energy system will set you back about $33,540. After the federal tax credit is applied, those numbers slim down to $9,546 and $24,820, respectively.
If you’re after the most cost-effective option, buying solar panels outright for your Delaware home is always the best way to go. If paying for the entire system upfront isn’t feasible, you could opt for a solar loan. Going with a solar loan allows you to enjoy the same benefits as buying the system upfront with cash, although you will accrue interest over time.
When you buy your system outright, whether you do so with a cash purchase or a solar loan, you own the system. This offers multiple benefits, many of which don’t apply if you lease a solar system. For example, you can take advantage of the solar tax credit and local rebates and tax breaks (as available in Delaware).
In addition, solar panels boost the real estate value of your home. So, if you end up selling your home before you begin noticing a significant return on investment, you’ll make a little more on your home sale.
No, solar panels aren’t free in Delaware. Some solar providers use marketing tactics to entice new customers with “free” solar panels. But these companies are usually trying to get you to sign a lease or power purchase agreement (PPA).
Before you sign anything, it’s important to do thorough research on the company to ensure it’s a good fit for your needs. Dozens of shady, “fly-by-night” solar providers have popped up across the U.S. in recent years as the demand for solar has grown. So, for optimal results, it’s important to choose a company that is both reputable and suitable for your home’s energy needs.
Cost isn’t always the most crucial consideration when buying solar panels. Although it’s an important aspect to consider, it’s not always the defining factor for all homeowners. For example, a homeowner set on finding the best warranties available in the area will prioritize such.
Affordability is often a significant consideration for homeowners wanting to go solar, as the price of a solar energy system can be steep for some homeowners. We recommend looking for companies that offer the best solar financing options that suit your particular needs if that is the case.
The best solar power system size for your home is heavily dependent on various factors. For example, your average electricity bill, the size of your home, your roof configuration and orientation, etc., are all important considerations that go into developing the appropriate size solar power system for your home.
Given the number of factors you need to consider when determining the right solar power system size, we recommend handing the process to a professional. A solar installer can correctly account for each defining factor to select the best, most suitable solar energy system size for your home. So, the best way to figure out the correct solar energy system size for your home is to get an estimate from a reputable solar company in Delaware.