Delaware State Solar Power Rebates, Tax Credits, and Incentives
Delaware, our very first state! With that title, you just know there’s a ton of important history to protect in Delaware. With some of the most beautiful parts of the Atlantic coast too, Delaware takes its natural environment seriously too. Using green power like nice clean solar energy will help the state take care of both its natural and cultural heritage so that we can enjoy it for many more generations. Here’s what the legislature has done to promote renewable energy in Delaware.
STATE LEGISLATION
Originally established in 1999, and most recently updated in 2007, the Delaware Green Energy Fund is one of the most progressive bills passed in the state. A small surcharge is added to your electricity bill to fund efficiency and renewable energy programs around the state. The charge is only 0.356 mills which amounts to little more than nothing on your monthly bill, but it adds up to a $3 million donation to the fund each year.
Renewable Portfolio Standard
In 2005 the Delaware legislature also passed a Renewable Energy Standard that requires 20% of the energy sold in the state to come from renewable sources by 2019. The original bill had only set that at 10%, but in 2007, the legislature realized how meager 10% was, and doubled it! Even better, the 2007 amendment states that 2% of that renewable energy must be solar power.
NET-METERING
Under the Delaware net-metering policy, residential renewable energy generation systems up to 25kW are eligible. Commercial customers are allowed to have systems as large as 500kW. There is a limit on participation set at 1% but that is up to the discretion of the utility; so if your utility wants to be intelligent and allow more net-metering customers, they can. The good part about Delaware’s net metering rule is that at the end of a billing year, you sell your excess power to the state Green Energy fund at your utility’s wholesale rate.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
Most of Delaware’s solar incentives come from the Green Energy Fund. The two grant programs, the Research and Development Grants and the Technology and Demonstration Grants allow companies, local governments, and non-profit organizations to apply for grants to develop and test out renewable power systems including solar energy generation equipment. The Research and Development Grants provide 35% of the cost (up to $250,000) for projects improving the design, adaptation, or development of renewable energy products. The Technology and Demonstration Grants provide 25% of the cost (up to $200,000) for projects developing a new renewable energy technology or implementation system.
One of the most useful incentives is the State Rebate Program though. You can get Delaware to pay for up to 50% of the cost of your solar power system (with a cap of $31,500 for residential customers). There’s no size restriction on your system either, so this can really help you cut the cost of solar power at home!!
Check out the complete information on the solar incentives in Delaware:
State Grant Program
* Research and Development Grants
* Technology and Demonstration Grants
State Rebate Program
* Green Energy Program Incentives
EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST
You just found out that Delaware has a solar rating of Good, and you’ve made the decision to install your own solar electricity system at your home in Wilmington. Good choice! Your system might seem a little pricey at $58,500, but remember that you’ll be able to get a $29,250 rebate from the state, and you get to take the $2,000 federal tax credit, so you’ll only have to shell out about $27,250 all together. You’ll start saving up to $642 your first year with an average usage of 1,300kWh / month at a rate of $0.0946/kWh. What’s more, your system will pay for itself in only about 8 years. Here are some other key points to keep in mind:
- You’ll need around 650 square feet of roof area
- $12,840 estimated property value increase
- $26,939 estimated savings on your utility bills over 25 years
- Electricity rates are expected to rise to $0.099/kWh in 5 years and to $0.15kWh in 25 years, so your savings will grow by leaps and bounds
- you’ll keep 278 tons of CO2 out of the atmosphere; that’s equal to taking 49 cars off the road or planting 815 trees!
CONSENSUS
Delaware is taking some important first steps when it comes to solar power. That rebate program alone should make Delaware residents stand up and take more interest in clean solar power! The legislature has made a good start with increasing the renewable energy standard too. Let’s keep up the good work, and soon solar energy will be a big part of life in Delaware.
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