Solar Incentives and Rebates in Delaware

Peak Sun Hours (PSH): 3.4 - 4.7
Cost of Grid Power: $0.13/kWh
Number Of Installations: 6,959

What’s the Cost of Solar in Delaware?

Cost of Grid Power

Delaware's electricity prices average $0.13/kWh, just below the national average of $0.14/kWh.

Cost of a Solar Install

Cost of a typical 10kW PV install in Delaware from 2006-2018

A graph of falling prices for a typical 10kW PV install in Delaware from 2006-2018.
Figures include design costs. Data from Berkeley Lab, courtesy of DNREC.

The average cost of a 10kW (equivalent to saving almost 200 trees a year) solar power system starts around $27,000 in Delaware. Before any incentives, in the first year you’d save about $1,500, compared to if you had been paying the normal rates for the energy you used. These savings can continue for well over 25 years, improving with inflation.

Just How Much Can I Save With Solar in Delaware?

This depends on may factors such as your system size, power output, and financing. Here are the main ways you can finance your home solar power system, and the kinds of returns you may expect to see:


From our example above, the homeowner purchased a 10kW system to offset their energy bill. Overhead cost was $27,000, with a significant proportion returned in the first year through incentives, rebates, and savings, then paying itself in full over 11 years.

Most solar power systems have a warranty lifetime of 25 years. In that time, between incentives and paying lower rates you could make a profit of around $34,000 - 25% more than the up-front cost of the system.

Even with occasional maintenance or part replacement, that is a massive savings. Solar panel power output falls on average 0.8% per year, so with a little TLC and load management you can extend the life of your system well beyond the warranty’s expiration date, continuing to save indefinitely.

Solar Loan

Whether or not you can afford the up-front cost of the install, you may want to consider a Home Equity Line of Credit (HELOC). With equity in your home, or good credit, you may qualify for a 15-year solar HELOC with fixed rate of 4% or lower.

Starting with that same 10kW system costing $27,000 but with zero up-front cost, accounting for incentives, credits, rebates, and annual energy savings starting around $1,500, you could see a revenue surplus of about $7,000 at the end of the first year.

Save that money though. Your loan payments will likely exceed your power savings by about $80/month for the 15-year term. Once the loan is paid off, you can expect to save about $2,400 a year. Over 25 years you could expect to make about $24,000.

Power Purchase Agreement

With a Power-Purchase Agreement (PPA) the homeowner leases their roof to an outside party, usually a power company. Generally PPAs feature a fixed price per kWh, with either a fixed term or an annual escalator.

With a PPA, the cost of installation, repair, and maintenance to the homeowner is usually $0.00. For that 10kW system, with a PPA you could expect to save about $20/month on energy. Over 25 years, you could see over $9,000 in revenue - without accounting for inflation. That’s technically an infinite return!

PPA’s can be complicated, as you are effectively ceding at least some control of your home to the third party, but they are an excellent way to get into solar because they have no overhead.

What Incentives are Available in Delaware?

Data from DSIRE. For more info visit: https://www.dsireusa.org/

Name Implementing Sector Program Type Administrator DSIRE ID
Technology and Demonstration Grants State Grant Program Delaware Department of Natural Resources and Environmental Control 100
Research and Development Grants State Grant Program Delaware Department of Natural Resources and Environmental Control 101
Fuel Mix Disclosure State Generation Disclosure 652
Energy Conservation Standards for State Facilities State Energy Standards for Public Buildings 1704
Solar Rights Law State Solar/Wind Access Policy 3502
Wind Access and Permitting Law State Solar/Wind Permitting Standards 3503
Mandatory Utility Green Power Options State Mandatory Utility Green Power Option 3751
Delaware - Green Power Requirement For State Facilities State Green Power Purchasing 4112
Sustainable Energy Utility (SEU) - Home Performance with ENERGY STAR State Rebate Program Sustainable Energy Utility (SEU) 5449
Green Grant- Solar Hot Water and Geothermal program State Rebate Program Joint Grant Program of Delaware Sustainable Utility (DESEU) and Delaware Department of Natural Resources and Environmental Control (DNREC) 5576
Solar Renewable Energy Credits (SRECs) Spot Market Program State Solar Renewable Energy Credit Program 5690
SREC Procurement Program State Solar Renewable Energy Credit Program 5691
Sustainable Energy Utility (SEU) - Energize Delaware Farm Loan Program State Loan Program 5724
U.S. Department of Energy - Industrial Assessment Center (IAC): University of Delaware Federal Energy Analysis U.S. Department of Energy 17602
Sustainable Energy Utility (SEU) – Energize Delaware Farm Grant Program State Grant Program Delaware Sustainable Energy Utility (DESEU) 21860
Delaware State Government - Energy Tips and Assistance State Training and Information Delaware State Government 21995
Delaware Electric Cooperative - Energy Saving Programs Other Training and Information Delaware Electric Cooperative 21997
Northeast Energy Efficiency Partnerships - EM&V Forum Non-Profit Training and Information Northeast Energy Efficiency Partnerships 22028


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