Are Solar Panels Worth It in Delaware?

7 factors to consider before getting solar panels in Delaware

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process. It’s generally worth it if you like the idea of lowering your monthly utility bills, helping the environment and gaining more energy independence. But it doesn’t work out for everyone. Here’s what to consider before you make the switch.

1. Where you live in Delaware

2. Solar panel installation costs

3. Your energy consumption

4. How you pay

5. Delaware solar incentives

6. How long you stay in your house

7. The solar company you hire

1. Where you live in Delaware

Delaware Electric Cooperative currently limits new solar installations in some parts of its service area. DEC says some local power lines already have more solar than the system can safely handle.

If your home is in a red area on this DEC map, you may not be able to send extra solar power back to the grid. In yellow areas, you may still be able to install solar, but your system may need to be set up so it doesn’t export excess electricity.

That can affect how much you save. If you can’t send extra power to the grid, you may miss out on bill credits for electricity your panels produce but you don’t use right away. Adding battery storage lets you store that power for later, but batteries typically cost $7,000 to $18,000 or more.

2. Solar panel installation costs

Average solar panel costs in Delaware are relatively high compared with other states. A 7-kW system costs about $18,480 in Delaware, although the average household may need a larger system to offset all of its electricity use.

Most installers charge according to the system’s wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Delaware, the average cost per watt is only $2.64.

Delaware's solar panel costs by system size

3. Your current energy consumption

A typical Delaware household needs a system with a capacity of 13.12 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption and anticipated future energy needs. For instance, a new heated pool would require additional power, meaning you need a bigger system with more panels to keep everything running.

Look at your most recent utility bills — how much electricity does your house use each month? Once you know this, you can calculate your potential savings and how long it should take for your solar panels to pay for themselves.

By one estimate, a Delaware homeowner with solar panels can avoid $61,442 in total utility costs over 25 years.

4. How you pay

It can be financially strategic to pay for the whole thing upfront. You own the system from day one and you don’t have to pay interest on a loan. Of course, paying cash is not always an option. That’s when loans, leases and other agreements come into play.

• Solar loans work like any other type of 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 the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreements are similar to solar leases. Instead of buying the panels, you agree to buy the electricity they produce at a set rate. The solar company owns and maintains the system, and contracts typically last 10 to 25 years.

» SOLAR PANELS: Lease vs. buy

5. Delaware solar incentives

The 30% federal solar tax credit is gone, but Delaware still has several programs that can make solar more affordable. What you qualify for depends on your income and utility. Some lower-income homeowners may get solar at little or no cost, while others can qualify for utility grants or earn money from SRECs.

Just keep in mind that some grants require you to give up those SREC payments. SRECs can be sold in various markets, such as municipal utilities and rural electric cooperatives. However, their value can fluctuate significantly based on market demand.

What to know about net metering in Delaware

If your panels produce more electricity than you need, net metering lets you send the excess to your local power grid. In exchange, you get a credit toward your electricity consumption in the future.

In Delaware, those credits can roll over, which can improve your overall solar savings. Residential systems up to 25 kW can qualify.

» MORE: Solar incentives in Delaware

6. How long you plan to stay in your house

Solar installations are expensive, and it takes years for electric bill savings to make up for the initial cost. Solar panels typically pay for themselves within 8.8 years in Delaware. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

It’s true that solar panels can increase the value of your home. But they can also complicate a sale. This is especially true if you lease your system, since the buyer may need to take over the contract.

If you think you’ll move in the next couple of years, you may want to consider a home improvement project with a better return on investment, like a kitchen or bathroom remodel.

7. The solar company you hire

People have had mixed experiences with solar companies. In the best-case scenario, it’s easy to make the switch and you’re happy with the system’s performance. In the worst-case scenario, you end up paying thousands for overpriced solar equipment from a company with poor customer service and no follow-up or support.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. For instance, Fuji in Middletown told us that the contract looked “great on paper” but advised others to beware of hidden fees and poor installations. Fuji’s system only generates about half of their energy needs, and now they are paying more than before going solar.

That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Use NLR’s PVWatts Calculator to estimate how much electricity a solar panel system can produce over a year on your house.

Is my house a good candidate for solar panels?

Going solar is at least worth considering if your house is a good candidate to support a solar panel installation. Here’s what to think about before you commit:

• How much sunlight do you get? Solar panels need regular exposure to sunlight to produce the most energy possible. Delaware averages 3 to 3.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.

• What is the size and angle of your roof? Solar panels perform best on south-facing roofs. North-facing roofs generally produce less electricity, especially with a steep pitch, so you may need more panels to meet your energy needs.

• What is the condition of your roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels again.

• How old are your appliances? The first step is to ensure that your electrical loads are as small as possible. For instance, if you have an older refrigerator or air conditioning unit, it’s smart to upgrade those before investing in solar panels.

Pros and cons of solar panels in Delaware

It’s a common misconception that solar panels always completely eliminate your monthly power bill. This is not always the case. Still, you’ll likely be paying less than you would for traditional utility bills.

Benefits of solar panels in Delaware

Solar panels generate electricity without directly producing greenhouse gas emissions or air pollution. They also require little maintenance and can increase the property value of homes.

• Cheaper energy bills: The average homeowner in Delaware uses a lot of power, which adds up to a lot of savings when you switch to solar. With electric rates throughout Delaware increasing, especially in the City of Milford, going solar now means that your monthly energy expenses will be more predictable (and often lower). Solar also reduces your exposure to future utility rate increases

• Higher home resale value: Installing solar panels can significantly increase a home's value. According to Zillow, houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.

Drawbacks of solar panels in Delaware

The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. At night, you’ll usually draw electricity from the grid unless you have battery storage.

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery lets you store energy at home instead of tapping into the local grid when you need to.

• Energy production varies: Solar panels are dependent on weather conditions and available sunlight, meaning their performance can fluctuate with cloud cover or shading from trees and buildings. Solar panels still work on cloudy days, but less available sunlight means they produce less energy.

• Some solar companies are sketchy: Like in any booming industry, some salespeople want to make a quick buck and might say anything to close a sale. It’s important to read your contract carefully, especially if you finance or lease a system.

» MORE: Solar energy pros and cons

Find solar companies in Delaware

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for the top solar companies in Delaware to learn more.

Delaware solar FAQ

Bottom line: Is going solar in Delaware worth it for you?

For many Delaware homeowners, solar can be worth it if the long-term electric bill savings outweigh what you spend on the system. The upfront cost can be steep (especially with a battery!) so your electricity use, roof, financing and how long you plan to stay in the home all matter.

The ConsumerAffairs Research Team conducted an in-depth analysis to determine how much it is to go solar in Delaware and the average costs in other states.

Solar costs and saving: Delaware vs. nearby states

» EXPLORE: Solar energy statistics