Delaware solar incentives, tax credits & rebates
Resources for going solar in 2023
After tax credits, the average system is $17,157 in Delaware. It’s a little more expensive than in some other states (the national average is $16,715). On the bright side, you can make up the difference thanks to Delaware’s rebates, net metering and credit programs.
Key insights
- The average federal tax credit value is $$7,353 in Delaware.
- You can also take advantage of Delaware’s solar renewable energy credits (SRECs), rebates and grant programs.
- Your estimated 25-year savings are $29,016 if you go solar in Delaware.
Solar incentives in Delaware
The federal solar investment tax credit (ITC) is the biggest factor in reducing the cost of going solar in Delaware. If you install a residential solar panel system by the end of 2032, you can get a tax credit of 30% of the system's total cost, including equipment, labor and permits.
ITC drops to 26% in 2033 and 22% in 2034.
For example, the average system in Delaware costs $24,510. With the ITC, you can get a $7,353 credit when you file your taxes. Remember, you must claim the tax credit when you file federal taxes in the year that your solar panel system becomes operational. To do this, you have to complete Form 5695.
Some other states have an exemption on sales tax when buying solar equipment. This isn’t relevant in Delaware since the state has no sales tax to begin with.
Average cost by system size in Delaware
| 7 kW | 8 kW | 9 kW | 10 kW | 11 kW | 12 kW | 13 kW | |
|---|---|---|---|---|---|---|---|
| Before federal tax credit | $18,060 | $20,640 | $23,220 | $25,800 | $28,380 | $30,960 | $33,540 |
| After federal tax credit | $12,642 | $14,448 | $16,254 | $18,060 | $19,866 | $21,672 | $23,478 |
Residential solar incentives in Delaware
Unlike other states, Delaware doesn’t have state tax incentives. There are some fantastic grants and rebates, though.
Delmarva Power Green Energy Rebate Program
Delmarva Power customers can get rebates of up to $8,000 for residential solar installations. Eligible technologies include solar photovoltaics (PV panels), solar water heaters and solar space heaters. However, leased and power purchase agreement (PPA) solar panels are not eligible.
Systems must have a full five-year warranty and meet certain UL, IEEE and NEC standards to qualify.
Energize Delaware Home Energy-Efficiency Loan Program
Eligible homeowners can finance energy efficiency improvements through Energize Delaware’s low-interest loan program. The program is administered by the Delaware Sustainable Energy Utility.
The loans range from $1,000 to $30,000 and have a 5.99% fixed interest rate with term lengths up to 10 years. To qualify, you have to participate in the Home Energy Energy Star program, and the work has to be performed by an Energize Delaware-approved contractor.
Delaware Electric Cooperative (DEC) Rebate Program
The Delaware Electric Cooperative (DEC) also has another program that gives customers rebates of up to $3,500 on solar systems and water heaters. To qualify, you may need an energy audit performed by a Building Performance Institute (BPI) certified contractor unless you have an Energy Star-certified home.
DEMEC Green Energy Fund
Residents of Newark can also earn a rebate of up to $3,500 for solar panels and solar water heaters. This rebate is provided through the DEMEC Green Energy Fund. A participating contractor must install your system, and it needs to have a full five-year warranty to qualify.
SREC Procurement Program
The SREC Delaware Program is closed for 2023. More information should be available when it opens again next year. Previously, it was a 20-year term, with market-bid prices for the first 10 years, then $35 for the next 10 years.
» MUST-KNOW: The tax benefits of owning a home: must-know deductions and secrets
What to know about net metering and SRECs
What do you do with excess solar energy if you don’t store it in a solar battery? A good option is net metering. With net metering, you sell your extra power to your local electric company to be used by other homes.
Homeowners with solar can also get solar renewable energy credits (SRECs). Through this program, homes with solar get one SREC per megawatt-hour (MWh), or 1,000 kilowatt-hours (kWh) of energy created. The SRECs can then be sold to electric companies. These credits can offset winter electric bills using excess energy produced in the summer.
To qualify for net metering in Delaware, your system must be 25 kilowatts (kW) or less. Homeowners are credited kWh on their energy bill as compensation. The unused credits roll over each month for a year, and at the end of the year the homeowner can request to cash out the credit and receive monetary payment.
» GREENEST STATES: Delaware ranks No. 14
Solar resources in Delaware
Below are some additional resources that can guide you through transitioning to solar in Delaware.
- Delaware renewable energy assistance
- Energize Delaware: solar renewable energy credits (SREC)
- Considerations for installing solar panels in Delaware
- SREC Delaware
- Green Grant Delaware
» GUIDE: Solar panel installation
Find solar companies in Delaware
Compare popular solar companies available in Delaware below. Read our guide to finding the best solar companies for more.
| SunPower | Sunrun | Tesla Energy | Trinity Solar | ||||
|---|---|---|---|---|---|---|---|
| Primary |  | SunPower | Read reviews | Customer Rating 4.3 | Free quote | Payment options
Cash, loan, lease
| Warranty
25 years
|
| Primary |  | Sunrun | Read reviews | Customer Rating 4.1 | Free quote | Payment options
Cash, loan, lease, PPA
| Warranty
25 years
|
| Primary |  | Tesla Energy | Read reviews | Customer Rating 2.2 | Free quote | Payment options
Cash, lease, loan
| Warranty
25 years (system)
|
| Primary |  | Trinity Solar | Read reviews | Customer Rating 1.5 | Free quote | Payment options
Cash, lease
| Warranty
25 years
|
FAQ
Can I get solar panels for free in Delaware?
There are no programs for free solar panels in Delaware. You can lease or enter a PPA with little to no upfront costs, though.
» FREE SOLAR PANELS: Are they really free?
How can I pay for solar panels?
There are various options to help you pay for solar if you can’t pay upfront with cash. Solar loans are available to finance solar panels. Or you could choose to lease solar equipment or get a PPA (power purchase agreement).
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Delaware?
In Delaware, the average savings is $29,016 over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money compared with traditional utility bills.
» MORE: Are solar panels worth it?
Are there any commercial solar incentives in Delaware?
Yes, there are commercial solar loans, rebates and energy credit programs.
» MORE: Commercial solar panels
Are there any disadvantages to going solar in Delaware?
While you can save a lot of money by going solar, Delaware doesn’t offer any state tax incentives. Also, the state only gets 3 to 3.5 average peak sun hours, so you may not be able to replace all of your power needs with solar.
» MORE: Solar energy pros and cons
How do solar farms work in Delaware?
Solar farms in Delaware harness the power of sunlight to generate electricity on a larger scale. Solar farms are gaining traction, particularly in the southern part of the state, according to the Delaware Business Times. Despite the potential benefits, there are challenges and debates surrounding the use of farmland for solar energy.
Some farmers are open to adding solar panels to their properties to offset costs or participate in community solar projects. However, others are concerned about the impact on the agricultural landscape and rising land taxes. Elected officials in some areas have imposed moratoriums on utility-scale solar facilities outside designated districts.
Is my HOA allowed to restrict solar panels in Delaware?
Homeowners associations have some authority on how you install solar in Delaware. Still, their restrictions must not “significantly increase the cost of the system or significantly decrease its efficiency or specified performance,” according to Delaware law.
Bottom line: How much are solar panels in Delaware?
Going solar in Delaware costs around $24,510 before tax credits. While that’s a significant cost, solar panels can save you an estimated $29,016 over 25 years in the First State. Those savings and the state rebates you can earn make it well worth purchasing a solar system for your home.
The ConsumerAffairs Research Team conducted an in-depth analysis to determine how much it costs to go solar in Delaware and the average solar costs in other states.
Solar costs: Delaware vs. nearby states
| Upfront cost* | ITC value (30%) | Typical system size | Average cost per watt | Payback period** | Estimated net savings | |
|---|---|---|---|---|---|---|
| Delaware | $24,510 | $7,353 | 9.5 kW | $2.58 | 12 years | $29,016 |
| New Jersey | $19,390 | $5,817 | 7 kW | $2.77 | 10 years | $23,806 |
| Maryland | $27,700 | $8,310 | 10 kW | $2.77 | 12 years | $21,395 |
| Pennsylvania | $21,676 | $6,503 | 8.5 kW | $2.55 | 10 years | $23,634 |
- 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, “Delaware Programs.” Accessed Oct. 13, 2023.
- EcoWatch, “Solar Panel Cost in Delaware.” Accessed Oct. 13, 2023.
- EnergySage, “Delaware solar panels: local pricing and installation data.” Accessed Oct. 13, 2023.
- United States Environmental Protection Agency, “Summary of Inflation Reduction Act provisions related to renewable energy.” Accessed Oct. 13, 2023.
- Solar Energy Industries Association, “Delaware Solar.” Accessed Oct. 13, 2023.
- The Delaware Code Online, “Title 25 Chapter 3.” Accessed Oct. 13, 2023.
- DSIRE, “Net Metering in Delaware.” Accessed Oct. 13, 2023.
- Office of Energy Efficiency & Renewable Energy, “Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics.” Accessed Oct. 13, 2023.
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