Delaware Solar Incentive Programs
2026 Incentive Scorecard
Every major Delaware solar benefit rated, active, limited, or expired.
Net Metering
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
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
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
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
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)
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.
| Rule | Detail |
|---|---|
| Governing regulation | 26 Del. Admin. C. § 3012 (DPSC), last amended Mar 2025 |
| Residential system cap | 25 kW per Delmarva Power meter |
| Sizing requirement | Cannot exceed 110% of expected consumption, based on the average of the prior two 12-month periods of usage |
| Export credit rate | Volumetric supply + volumetric distribution (~17 to 18¢/kWh est.) |
| Excluded from credit | Fixed customer charges, green energy fund, low-income programs, RPS, fuel cell, efficiency riders |
| Monthly credit rollover | Yes, unused monthly credits carry forward |
| Annual true-up | Annual surplus credits revert to utility, no cash payment (eff. May 31, 2023) |
| Program cap | None. SB 239 (signed June 10, 2026) removed the 8% net metering cap |
| Policy watch | Senate 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 Component | Approx. 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 status | Docket 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
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.
| Utility | Rebate Rate | Maximum | SREC 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
Get certified: Apply to the Delaware Public Service Commission (DPSC) for your system to be certified as a qualifying renewable energy resource.
Open a GATS account: Register with PJM Environmental Information Services' Generation Attribute Tracking System (GATS) to have your SRECs issued digitally.
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.
Sell your SRECs: Participate in DNREC's annual SREC Procurement Program (opens each spring) or sell through a broker or aggregator.
| SREC Detail | Value / 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 statute | 26 Del.C. § 351 to 364 |
| Tracking system | PJM GATS |
| Annual procurement | DNREC 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.
How to Go Solar in Delaware
Delmarva Power territory process, confirm steps with your utility if you are a DEC or DEMEC customer.
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.
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.
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.
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.
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.
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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