Delaware Solar Incentives, Tax Credits and Rebates

Are there any solar incentives in Delaware?

Delaware has several programs that can lower the cost of going solar. What you qualify for depends mostly on your income and electric utility.

One thing to watch for: Some upfront grants require you to give up the solar renewable energy credits (SRECs) your system earns, so it’s worth comparing the immediate savings with the potential long-term value of those credits.

Low- to Moderate-Income Solar Program

Delaware’s Low- to Moderate-Income Solar Program can cover some or all of the cost of solar for qualifying homeowners.

Low-income households may qualify for a free solar installation of up to 4 kW. Moderate-income households may qualify to have 70% of the cost of a system up to 6 kW covered.

Low-income households apply through the Weatherization Assistance Program. Moderate-income homeowners apply through a participating solar contractor.

Solar renewable energy credits (SRECs)

Eligible solar systems in Delaware can also earn SRECs. You earn one SREC for every 1,000 kilowatt-hours of electricity your system generates, and you may be able to sell those credits for extra income.

One option is Delaware’s SREC Procurement Program, which offers contracts through a competitive process. Payments and contract terms vary.

Before accepting a solar grant, check whether it requires you to transfer your SRECs.

DNREC Green Energy Program

Delmarva Power customers may qualify for a solar grant through Delaware’s Green Energy Program. You’ll generally need an energy audit, an eligible system and an approved contractor. Funding is limited, so payments may be delayed.

If you accept the grant, you must transfer your SRECs for 20 years, meaning you can’t sell them separately during that time.

Solar Grant Delaware

Delaware Electric Cooperative customers who own their solar system may qualify for a grant worth $0.70 per eligible watt, up to $5,000.

You’ll need to use an approved contractor and meet program requirements. You’ll also need to transfer your SRECs in exchange for the grant.

Municipal solar incentives

Some municipal utility customers may also qualify for local solar grants.

Programs vary by municipality. For example, Newark currently offers up to $1 per watt for the first 5 kW and $0.50 per watt above that, with a maximum residential grant of $3,500.

Funding is limited, so check with your local utility before applying.

Did you know?

Solar can save Delaware homeowners $54,494 over 25 years.

What to know about net metering in Delaware

Sometimes your solar panels produce more electricity than your home uses. Net metering lets you earn bill credits for that excess electricity when it’s sent to the grid.

Excess credits roll over from month to month.

Those credits can offset electricity you use later, such as at night or on cloudy days. Residential systems up to 25 kW can qualify for net metering.

Delaware law now requires unused credits to carry over into future annual billing periods, although utilities have until Dec. 1, 2026, to update their billing systems. Delaware also removed its previous 8% cap on net-metering participation in June 2026, so utilities can no longer stop offering net metering solely because that threshold is reached.

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.

Solar panel costs by system size in Delaware

Ways to 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. 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.

Federal mortgage options for solar and energy upgrades

Some mortgage programs allow eligible borrowers to include the cost of energy-saving improvements in a home purchase or refinance loan. Solar eligibility, borrowing limits and other requirements vary by program and lender.

• FHA Energy Efficient Mortgages: Eligible borrowers may be able to finance cost-effective energy improvements as part of an FHA-insured purchase or refinance mortgage. A home energy assessment is required, and the improvements must be expected to save at least as much as they cost. FHA also has separate provisions for financing eligible solar and wind systems.
• VA Energy Efficient Mortgages: Eligible veterans, service members and certain National Guard and Reserve members may be able to add up to $6,000 in approved energy improvements to a VA-backed purchase or refinance loan. For improvements costing more than $3,000, the lender must verify that the projected monthly energy savings exceed the increase in the mortgage payment.

» SOLAR PANELS: Lease vs. buy

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