Are there any solar incentives in Delaware?
As a homeowner, the important part is that you may qualify for grants, rebates or extra income (like SRECs) depending on your setup. You’ll also need your system approved and connected properly to your utility (that’s the “interconnection” part).
Low- to Moderate-Income Solar Pilot Program
This program helps Delaware homeowners with lower or moderate incomes get solar panels at little to no cost. If your income is low, you could qualify for a free solar system through a state assistance program. If your income is moderate, the state may cover about 70% of the cost, and you pay the rest.
You’ll need to apply through specific programs or approved solar companies, depending on your income level. The goal is to make solar affordable so you can lower your electric bills long-term.
Solar renewable energy credits (SRECs)
If you have solar panels, you can earn extra money by selling the solar renewable energy credits your system earns. In Delaware, most homeowners sell these through the SREC Delaware auction program, where you can lock in a long-term contract (around $30 per credit for the first 10 years, then less after that).
You can also sell SRECs on the open market, but payments are typically lower (closer to about 3 cents per kWh, not 5 cents as sometimes claimed). At roughly $30 per SREC, that works out to about 3 cents per kWh of solar generation.
Some programs affect whether you keep this income. For example, if you take certain state rebates, you may have to give up your SRECs. But in places like Newark, you might get a grant and still keep your SRECs, which can be more valuable over time.
DNREC Green Energy Program
This Department of Natural Resources and Environmental Control program helps Delaware homeowners lower the upfront cost of solar and other energy upgrades through rebates. If you’re a Delmarva Power customer, you may qualify for money back when you install solar, geothermal, or similar systems.
To get the rebate, you’ll need an energy audit, use an approved contractor, and apply through the state system. In exchange, you give up your SRECs, so you won’t earn that extra solar income later.
Because funding is limited, payments can take time. But, overall, this program is one of the main ways to reduce your initial solar installation cost in Delaware.
DEMEC Green Energy Programs
These Delaware Municipal Electric Corporation programs mostly apply to businesses and certain local utility customers — not the average homeowner. The first program is for large companies that want to lower their carbon footprint by buying clean energy credits, not installing solar themselves.
But the second program could matter more to you: if you get electricity from a participating Delaware municipal utility, you might qualify for grants to help pay for solar or other energy upgrades. But funding is limited, and not everyone is eligible.
What to know about net metering in Delaware
Sometimes, your solar panels generate more electricity than your home uses. Net metering lets you earn bill credits for that excess electricity when it’s sent to the grid.
These credits offset the cost of electricity you pull from the grid when your system isn’t producing enough power, like at night or on cloudy days. In Delaware, eligible net-metering customers are typically credited at the full retail electricity rate, which is more favorable than what many other states offer.
Credits roll over month to month and can continue to offset future bills. State rules have changed in recent years, so excess credits are no longer simply forfeited at the end of the year in the way they once were.
Solar panel costs in Delaware
Average solar panel costs in Delaware generally range from $11,612 to $23,224.
System size is a big cost factor of going solar. A typical Delaware household needs about a 7.7 kW system, which costs $17,864 on average. Depending on your energy needs, you might need a smaller or larger system.
Your total price also depends on whether you add battery storage to your system. Solar batteries cost $7,000 to $18,000, which can nearly double the total system price.
Average solar panel costs by system size in Delaware
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide average | $11,612 | $13,934 | $16,257 | $18,579 | $20,902 | $23,224 |
Federal mortgage financing options
Energy Efficient Mortgages allow homeowners to finance energy-saving upgrades, including solar systems, as part of their mortgage, often with support from federal programs like FHA or VA.
Types of Energy Efficient Mortgages
- FHA Energy Efficient Mortgages are available to many homebuyers. This lets you add money to your mortgage for energy upgrades. The upgrade cost must be less than the expected energy savings, and a home energy assessment is required first.
- VA Energy Efficient Mortgages are available to military members, veterans and reservists. This lets you add up to $6,000 if energy savings justify the cost.
- Conventional Energy Efficient Mortgages are offered by private lenders (not government-backed). You can borrow up to 15% of a home’s value for energy upgrades. This may help borrowers qualify by adjusting debt-to-income rules.
Compare solar companies in Delaware
Working with a local solar company in Delaware makes it easier to understand local incentives.
| Company | Customer rating | Pro install | Max. panel efficiency | Panel warranty | Payment options | Year founded | |
|---|---|---|---|---|---|---|---|
 Project Solar | Learn More | 4.3 |  | 20.9% | 25 years | Cash, loan | 2016 |
 Star Enrg | Learn More | 5.0 | | Varies | 25 years | Unclear | 2008 |
 ShopSolar | Learn More | 4.7 |  | Varies | Varies | Cash, loan | 2018 |
FAQ
What happened to the federal solar tax credit?
The federal solar investment tax credit (ITC) previously let homeowners claim 30% of installation costs from their federal taxes. The ITC is not available for property placed in service after Dec. 31, 2025. It was phased out with the “One Big Beautiful Bill Act” (OBBBA) last year.
Homeowners with eligible property placed in service by Dec. 31, 2025, may still claim it on the appropriate tax return.
Are there any solar incentives for nonprofits?
Yes, Energize Delaware offers funding programs that help schools, public libraries and nonprofits invest in solar panels.
» EXPLORE: Solar incentives by state
Will my property taxes go up if I get solar panels?
Delaware tax law does not have a provision to exempt solar systems from a property's value. So, if solar panels increase a home's value, it’s possible that your property taxes will go up.
Are solar panels worth it in Delaware?
Going solar is often worth it in Delaware for the long-term savings on utility bills. Over 25 years, residents with solar panels avoid $54,494 in utility costs on average.
Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy. Your average energy consumption tells you what size solar system you need. Once you know this, you can figure out potential savings and how long it should take for your solar installation to pay for itself.
» COMPARE: Best solar companies
Is my HOA allowed to restrict solar panels?
In Delaware, HOAs generally can’t prohibit solar panels, but they may impose reasonable restrictions (for example, on placement or appearance).
How can I pay for solar panels?
Going solar is like buying a car. You could pay cash, but a lot of people finance or lease with minimal upfront costs.
- Solar loans work like any other home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.
- Leasing solar panels lets you set up a system without high upfront costs. A solar company installs and maintains the panels on your property, and you pay a monthly fee to use them.
» SOLAR PANELS: Lease vs. buy
Is my house a good candidate for solar?
Solar panels work best on large, unshaded roofs that face south or west. We suggest using NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year at your house. Project Sunroof is a reliable online solar savings estimator.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, “Programs.” Accessed April 20, 2026.
- Delaware.gov, “Low- to Moderate-Income Solar Pilot Program.” Accessed April 20, 2026.
- Energize Delaware, “SREC Delaware.” Accessed April 20, 2026.
- Delaware Public Service Commission, “Renewable Energy.” Accessed April 20, 2026.
- Energize Delaware, “Grants & Rebates.” Accessed April 20, 2026.
- Solar Delaware, “Delaware Solar Policy.” Accessed April 20, 2026.
- Delaware Department of Natural Resources and Environmental Control, “Considerations for installing solar panels in Delaware.” Accessed April 20, 2026.
