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Delaware Solar Incentives: Full List Of Tax Credits & Rebates
- Jeff Burton
- Mar 7, 2025
- 6 min read
Updated: Jan 6
Switching to solar energy is one of the smartest investments a homeowner or business can make. It lowers electricity bills, increases property value, and reduces reliance on fossil fuels. If you live in Delaware, we have even better news: you have financial incentives available to make it possible. With state rebates and tax credits, the cost of installing solar panels is lower than ever.
If you’re considering solar, knowing what incentives are available can help you maximize your savings. Here’s a full overview of the tax credits, rebates, and programs that make going solar in Delaware more affordable.
Delaware State Solar Rebates and Incentives
Delaware provides several programs to make solar energy more affordable. These incentives come from state-run initiatives, utility company rebates, and policies that allow homeowners to earn credits for excess energy production. Together, these programs help lower the upfront cost of solar installation while also providing ongoing financial benefits.
Delaware Green Energy Program
One of the biggest incentives is the Delaware Green Energy Program. This state-funded initiative, supported by utility providers, offers direct rebates to help homeowners offset installation costs.
The rebate amount varies based on the utility company supplying power to your home:
Delmarva Power Customers can receive $500 per kilowatt (kW), up to a maximum of $3,000 (capped at 6 kW).
Delaware Electric Cooperative Customers are eligible for $0.50 per watt, with a maximum rebate of $2,500.
Municipal Utility Customers may also qualify for rebates, but amounts differ by provider. Homeowners should check with their local municipal utility to see what’s available.
Because funding for this program is limited, applying early increases the chances of securing a rebate before available funds run out. To qualify, homeowners must work with a certified solar contractor, and the system must meet specific program requirements. These include installation by a licensed professional and compliance with efficiency and safety standards.
Delaware Net Metering Program
Net metering is a policy that allows homeowners to send excess solar energy back to the grid in exchange for energy credits, reducing their electricity bills. Delaware has one of the strongest net metering programs in the country, making solar an even more attractive investment.
Here’s how it works:
When your solar panels produce more electricity than your home uses, the excess energy is automatically sent back to the grid.
Your utility company credits your account for the extra energy at the full retail rate, meaning you earn the same amount per kilowatt-hour (kWh) as you would pay for electricity from the grid.
These credits offset future electricity use, helping to lower your monthly bill.
At the end of the year, if you have unused energy credits, your utility provider may issue a payout or apply the balance to your future bills.
Unlike some states where utilities pay homeowners a lower rate for excess energy, Delaware’s net metering policy ensures that solar customers receive full retail value for every kilowatt-hour they send to the grid. This means a well-designed solar system can significantly reduce or even eliminate electricity costs.
Delaware law requires utilities to offer net metering to all residential solar customers, but each provider may have slightly different policies. Homeowners should check with their utility company to understand how their specific program works.
Solar Renewable Energy Credits (SRECs)
Delaware’s Solar Renewable Energy Credit (SREC) program offers homeowners another way to make money from their solar system.
An SREC represents one megawatt-hour (MWh) of solar electricity that your system produces. Since utilities in Delaware are legally required to purchase a certain number of SRECs each year to meet renewable energy mandates, homeowners with solar panels can sell their credits to these utilities for extra income.
The value of SRECs fluctuates based on supply and demand. On average, homeowners can earn $50 to $100 per credit, though prices vary. Those who generate more solar energy will earn more credits, increasing their overall financial return.
SRECs can be sold through:
State-Run Auctions: Delaware periodically holds auctions where solar system owners can sell their credits to utilities.
Private Brokers and SREC Aggregators: Homeowners can work with brokers who help manage and sell SRECs. They often secure better pricing.
Selling SRECs provides an ongoing source of revenue, helping to further offset the cost of installing and maintaining a solar system. Because market rates change, it’s a good idea to monitor SREC prices and explore different selling options to maximize returns.
Local Utility Solar Incentives
In addition to state-wide programs, several utility companies in Delaware offer their own solar incentives. These rebates and financial assistance programs help homeowners lower the cost of installation and improve their return on investment. Since utility-based incentives are often funded on a first-come, first-served basis, applying early can increase your chances of securing these savings before funds run out.
Delmarva Power Solar Rebates
Delmarva Power participates in Delaware’s Green Energy Program, offering homeowners up to $3,000 in rebates for installing solar panels. The rebate amount is calculated at $500 per kilowatt (kW), up to 6 kW.
To qualify, homeowners must:
Install their solar system through a state-approved contractor.
Ensure the system meets all efficiency and safety requirements.
Submit a rebate application before program funds are depleted.
Since Delmarva Power serves a large portion of Delaware, demand for this rebate is high. Homeowners considering solar should check availability and apply as soon as possible.
Delaware Electric Cooperative (DEC) Solar Incentives
Delaware Electric Cooperative (DEC) also offers financial incentives for customers who install solar energy systems. DEC provides a rebate of $0.50 per watt, with a maximum rebate of $2,500 per home.
In addition to rebates, DEC participates in net metering, allowing customers to earn credits for excess solar energy fed back into the grid. Homeowners who generate more electricity than they use can apply these credits toward future energy bills, helping to reduce overall costs.
Because DEC is a cooperative, it operates differently from traditional utility companies. Members of the co-op have a say in its energy policies and benefit from lower energy costs. The organization actively supports renewable energy adoption and encourages customers to take advantage of solar programs to increase energy independence.
City of Newark Green Energy Grant
Newark residents may qualify for additional solar incentives through the City of Newark’s Green Energy Program. This initiative provides financial assistance for solar installations, though rebate amounts depend on available funding.
To be eligible, homeowners must:
Install an approved solar energy system.
Submit an application for funding.
Work with a qualified installer to ensure compliance with program guidelines.
Because city-based programs often have limited budgets, grant availability may change from year to year. Residents should check with Newark’s municipal energy department to confirm funding levels and application deadlines.
Utility-based rebates add another layer of savings to an already strong set of solar incentives in Delaware. By combining state rebates, net metering, and local utility programs, homeowners can reduce the cost of installing a solar energy system. These incentives not only make solar more affordable but also shorten the time it takes to see a full return on investment.
Property Tax Exemption for Solar Systems
Installing solar panels adds value to your home, but in Delaware, homeowners don’t have to worry about paying higher property taxes because of it. The state exempts solar energy systems from property tax assessments, meaning that even though your home’s market value may increase, your annual property tax bill will not.
This exemption is especially important for homeowners who plan to sell their homes in the future. Studies show that homes with solar panels tend to sell faster and at higher prices, and Delaware’s tax policy ensures that homeowners can enjoy the financial benefits of increased property value without added taxes.
Sales Tax Exemption on Solar Equipment
Unlike some states that impose sales tax on solar purchases, Delaware does not charge any sales tax on solar energy systems. This exemption applies to solar panels, inverters, battery storage, racking, and even installation costs, making solar more affordable from day one.
By eliminating sales tax, Delaware reduces the upfront cost of going solar. For example, in states with a 6% sales tax, a $20,000 solar system would come with an additional $1,200 in tax costs. In Delaware, that extra expense is completely waived, allowing homeowners to invest more in high-efficiency panels or battery storage without worrying about added taxes.
Low-Interest Solar Loans and Financing Options
For homeowners who can’t afford the full cost of solar upfront, Delaware offers financing programs to make the switch more manageable. Energize Delaware’s Solar Loan Program provides flexible, low-cost loans specifically for solar installations.
This program offers:
Fixed low-interest rates, ensuring predictable monthly payments.
No upfront costs, allowing homeowners to install solar with zero initial investment.
Flexible repayment terms, making it easier to fit solar into any budget.
By spreading out payments over time, homeowners can start saving on energy bills immediately, often with monthly loan payments lower than what they were previously paying for electricity. This allows more people to take advantage of solar energy without waiting years to save up for the full cost of installation.
Get Started with Solar Today
At Solair Green Energy Advisors, we help homeowners and businesses maximize savings by identifying the best rebates, tax credits, and financing options. If you’re ready to switch to solar, contact us today for a free quote. Our experts will guide you through the entire process - from incentive applications to installation - so you can start saving money and powering your home with clean energy.
