Delaware Solar Incentive Programs

8 yr
Avg. payback
$1,200/yr
Avg. annual savings
None
State tax credit
retail
Net metering rate
Federal tax credit update: The 30% residential solar tax credit (Section 25D) ended for systems whose installation was completed after December 31, 2025, under Public Law 119-21. Systems whose installation was completed in 2025 can still claim it on a 2025 return. New 2026 installations do not qualify for homeowners who buy. What changed

2026 Incentive Scorecard

Every major Delaware solar benefit rated, active, limited, or expired.

Net Metering

Near-Retail

Export credit = volumetric supply + distribution (~17 to 18¢/kWh). 25 kW residential cap. Credits roll monthly; surplus reverts to utility at annual true-up, no cash payout.

Green Energy Rebate

Up to $10,000

Delmarva Power customers: $0.80/watt, max $10,000 (effective July 1, 2026). Delaware Electric Cooperative customers: varies. Delmarva grant requires signing SRECs over to the Delaware Sustainable Energy Utility.

SREC Income

~$30/SREC

1 SREC per MWh generated. Years 1 to 10: ~$30/SREC. Years 11 to 25: ~$10/SREC. Requires DPSC certification and PJM GATS account. Not available if Delmarva rebate taken.

No Sales Tax

$0 Tax

Delaware levies no general sales tax, so solar panels, inverters, racking, and installation are all purchased tax-free. Savings of ~$1,400 to $2,000 on a typical system.

Property Tax

No Law

Delaware has no statewide statutory property tax exemption for solar. In practice, most county assessors have not increased assessments for solar additions, but this is not guaranteed by law.

Federal ITC (§ 25D)

Expired

The 30% federal Residential Clean Energy Credit expired December 31, 2025. Systems whose installation is completed on or after January 1, 2026 do not qualify. Confirm with your tax advisor.

Net Metering in Delaware

Governed by 26 Del. Admin. C. § 3012, most recently amended March 2025.

How Delaware NEM Credits Work

When your panels produce more than you consume, the surplus kilowatt-hours flow to the grid and generate a credit valued at the sum of the volumetric supply charge plus the volumetric distribution charge. Fixed monthly charges, societal benefits program surcharges (green energy fund, low-income programs, RPS compliance, fuel cell programs, efficiency programs) are excluded from the credit calculation. This makes Delaware NEM credits approximately 90 to 95% of the full retail rate.

RuleDetail
Governing regulation26 Del. Admin. C. § 3012 (DPSC), last amended Mar 2025
Residential system cap25 kW per Delmarva Power meter
Sizing requirementCannot exceed 110% of expected consumption, based on the average of the prior two 12-month periods of usage
Export credit rateVolumetric supply + volumetric distribution (~17 to 18¢/kWh est.)
Excluded from creditFixed customer charges, green energy fund, low-income programs, RPS, fuel cell, efficiency riders
Monthly credit rolloverYes, unused monthly credits carry forward
Annual true-upAnnual surplus credits revert to utility, no cash payment (eff. May 31, 2023)
Program capNone. SB 239 (signed June 10, 2026) removed the 8% net metering cap
Policy watchSenate Joint Resolution No. 1 (2025) commissioned a NEM cost-benefit study, rules may evolve

No cash buyback: Since May 31, 2023, annual surplus NEM credits revert to Delmarva Power with no compensation. Right-size your system to consume most of what you generate and minimize year-end surplus.

Delmarva Power Electric Rates (2026)

Delmarva Power & Light (a Pepco Holdings/Exelon company) serves most of Delaware. Delaware has a deregulated electric supply market, customers can choose their electricity supplier, but Delmarva handles delivery.

Rate ComponentApprox. Rate
Standard Offer Service (SOS), Summer 2026~11.1¢/kWh
Standard Offer Service (SOS), Winter 2026~11.4¢/kWh
Delivery / Distribution (volumetric)~6 to 7¢/kWh
Typical all-in residential rate~18 to 19¢/kWh
Average monthly usage (DE typical)~826 kWh
Rate case statusDocket 25-1555: 18.2% distribution increase pending DPSC review

Rate case pending: Delmarva Power filed for an ~18.2% distribution rate increase in 2025 (Docket 25-1555). If approved, a typical household using 826 kWh/month would pay ~$9.31/month more. Higher utility rates improve solar economics.

Estimated NEM Export Credit

Full retail rate
~18 to 19¢
18 to 19¢
NEM export credit
~17 to 18¢
~17 to 18¢
Excluded (fixed + riders)
~1 to 2¢

NEM export credit estimated from: SOS supply + distribution volumetric components. Societal benefits charges (green energy fund, RPS, low-income, efficiency) are excluded per DPSC regulation. Exact credit depends on rate schedule and season.

Delaware Electric Cooperative (DEC), Kent & Sussex Counties

DEC serves rural Kent and Sussex counties. DEC also has a Green Energy Program rebate (~$0.35 to $0.50/W, up to ~$2,000). DEC customers retain their SREC rights. Contact DEC directly for current rate and rebate information, as amounts vary from Delmarva Power programs.

Green Energy Program Rebates

Utility-funded cash rebates administered through DNREC and Energize Delaware. Amounts and availability vary by utility.

UtilityRebate RateMaximumSREC Trade-Off
Delmarva Power & Light $0.80/watt $10,000 Must assign SRECs to utility (no separate SREC income)
Newark Municipal Utility $1.00/W (first 5 kW) / $0.50/W (5+ kW) Varies Customer retains SREC rights
Delaware Electric Cooperative ~$0.35 to $0.50/W (first 5 kW) ~$2,000 Customer retains SREC rights
DEMEC utilities Varies by municipality Varies Contact your utility

Delmarva rebate vs. SREC trade-off: Delmarva's grant (up to $10,000) requires signing your system's SRECs over to the Delaware Sustainable Energy Utility. Over 25 years a typical 8 kW system generates ~8 SRECs/year = 200 SRECs. At $30 each for years 1 to 10 and $10 for years 11 to 25: the SRECs' open-market value is ~$4,000. The Delmarva grant ($6,400 on an 8 kW system) is generally the better deal, but confirm current SREC prices and system output with your installer.

SREC Income (For Non-Delmarva Rebate Customers)

Delaware's Renewable Portfolio Standard (26 Del.C. § 351 to 364) creates ongoing demand for solar energy certificates.

How SRECs Work in Delaware

  1. Get certified: Apply to the Delaware Public Service Commission (DPSC) for your system to be certified as a qualifying renewable energy resource.

  2. Open a GATS account: Register with PJM Environmental Information Services' Generation Attribute Tracking System (GATS) to have your SRECs issued digitally.

  3. Generate SRECs: Your system earns 1 SREC per 1,000 kWh (1 MWh) produced. An 8 kW system in Delaware produces ~9,600 kWh/year = ~9 to 10 SRECs.

  4. Sell your SRECs: Participate in DNREC's annual SREC Procurement Program (opens each spring) or sell through a broker or aggregator.

SREC DetailValue / Info
SREC value, years 1 to 10~$30 per SREC (estimated)
SREC value, years 11 to 25~$10 per SREC (estimated)
SRECs from 8 kW system~9 to 10 SRECs/year
Est. SREC income yr 1 to 10~$270 to $300/year
Est. total SREC income (25 yr)~$4,500 to $6,000
Governing statute26 Del.C. § 351 to 364
Tracking systemPJM GATS
Annual procurementDNREC program opens each spring

SREC prices are not guaranteed, they fluctuate based on RPS compliance demand. Enrollment in the annual procurement program is competitive. Verify current prices with DNREC or your installer before committing.

Tax Benefits

Delaware's tax profile for solar is mixed, a major sales tax win, no statewide property tax protection, and a now-expired federal credit.

No State Sales Tax

Delaware has no general state sales tax. Solar panels, inverters, racking hardware, batteries, and installation labor are all purchased without sales tax. For a typical 8 kW residential system priced at ~$20,000 to $25,000, this saves $1,400 to $1,750 compared to neighboring states with 5 to 7% tax rates.

This is automatic, no application required. Simply purchase solar equipment from a licensed Delaware contractor.

Property Tax, No Statewide Law

Delaware does not have a statewide statutory property tax exemption for solar installations. There is no Delaware Code provision that automatically protects homeowners from assessment increases due to solar.

In practice: Most Delaware county assessors have not historically increased property tax assessments to reflect added solar value. However, this informal treatment is not guaranteed and could change.

Action: Contact your county tax assessor's office before and after installation to understand how solar will affect your assessment.

Federal ITC Section 25D, Expired December 31, 2025

The 30% Residential Clean Energy Credit (IRC § 25D) that residential solar customers used for years is no longer available for systems whose installation is completed in 2026 or later. If you installed before December 31, 2025, you may still be able to claim the credit on your 2025 return. Consult a qualified tax professional. No replacement federal residential credit has been enacted.

Example Savings Estimate

8 kW system, Delmarva Power territory, southern Delaware. Illustrative only, actual results vary by location, usage, and rate changes.

Delmarva Power Customer, With GEP Rebate

Gross system cost
~$22,000
$22,000
Sales tax savings
$0
GEP rebate (Delmarva)
$6,400 (8kW×$0.80)
-$6,400
Net cost
~$15,600
$15,600

Annual NEM bill savings (~9,600 kWh × 18¢): ~$1,728/yr. No SREC income (Delmarva rebate requires SREC assignment). Estimated payback: ~9.0 years. Note: sales tax savings auto-applied (no state tax).

DEC or Newark Customer, With SREC Income

Gross system cost
~$22,000
$22,000
Utility rebate (DEC)
$2k
-$2,000
Net cost (yr 0)
~$20,000
$20,000
Annual NEM savings
~$1,728
Annual SREC income
~$270

Combined annual benefit: ~$1,998/yr (NEM + SREC). Estimated payback: ~10 years. SREC income based on ~$30/SREC, 9 SRECs/yr, verify current procurement prices with DNREC.

How to Go Solar in Delaware

Delmarva Power territory process, confirm steps with your utility if you are a DEC or DEMEC customer.

  1. Get installer quotes: Obtain 3+ bids from NABCEP-certified Delaware installers. Confirm your utility territory (Delmarva vs. DEC vs. DEMEC) as this determines which rebate programs and interconnection rules apply.

  2. Apply for GEP rebate (before installation): Submit the Green Energy Program application to DNREC through your utility or installer. The rebate is funded in advance, funds can be depleted, so apply early. Contact [email protected] or call 877-453-2327. An energy audit and an approved contractor are required before applying.

  3. Pull permits and install: Your contractor pulls local building and electrical permits. Solar permits in Delaware typically take 1 to 3 weeks from application to approval.

  4. Interconnection application: Your installer submits a Net Energy Metering interconnection application to Delmarva Power or your utility. A bidirectional meter is installed at no charge.

  5. DPSC SREC certification (if not taking Delmarva rebate): File a certification application with the Delaware Public Service Commission and register with PJM GATS. Systems must be certified before earning SRECs.

  6. Monitor your annual true-up: Choose your preferred true-up month. Maximize self-consumption to avoid losing surplus credits to the utility at year-end.

Low- and Moderate-Income Solar Program

Delaware offers enhanced solar access for qualifying households, funded through the Green Energy Fund.

Delaware LMI Solar Pilot Program

Qualified low-income households may receive a fully funded 4 kW solar system at no cost. Moderate-income households may qualify for a 70% discount on a system up to 6 kW. Eligibility is based on household income relative to the area median income (AMI). Contact DNREC's Energy & Climate office or Energize Delaware for current program status, income limits, and application availability: energizedelaware.org

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Disclaimer: This page is for informational purposes only and is not legal, tax, or financial advice. Net metering credits, rebate amounts, SREC prices, and utility rates are subject to change. The Delmarva Power GEP grant amount ($0.80/W, max $10,000) is from DNREC's incentive schedule effective July 1, 2026; verify current amounts with DNREC before installation. SREC prices (~$30/SREC) are estimates and are not guaranteed. Property tax treatment for solar in Delaware is not protected by statewide statute, verify with your county assessor. The federal § 25D ITC expired December 31, 2025; consult a licensed tax professional regarding any remaining 2025 credit eligibility. SolarPrograms.com is not affiliated with Delmarva Power, DNREC, DPSC, or any state agency.

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