Solar Incentives in Delaware
In 2026, Delaware homeowners have access to several state-level solar incentives. The state requires regulated electric distribution companies and municipal utilities to offer net metering, under which customers are billed only for their net electricity consumption; excess monthly generation earns a bill credit applied to the following month, though credit rates vary by utility based on applicable supply and distribution charges. Delmarva Power customers may also apply to the Green Energy Program, administered by DNREC, which provides per-watt cash grants toward the installed cost of customer-owned solar systems, with grant amounts set by the published incentive schedule and subject to per-project caps. The SREC Delaware Program, run by Energize Delaware on behalf of Delmarva Power, allows solar system owners to sell Solar Renewable Energy Credits through competitive procurements, with long-term purchase contracts awarded by bid. Income-qualified households may be eligible for DNREC's LMI Solar Pilot Program, which offers cost-free installations up to 4.0 kW for low-income participants and partially subsidized installations for moderate-income participants. Separately, customers of any utility may subscribe to community solar projects and receive monthly bill credits for their share of generation.
On the federal side, the residential Clean Energy Credit under §25D — commonly known as the 30% federal tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners installing solar in 2026 do not qualify for that credit, which meaningfully lengthens payback periods compared to recent years when it was available.
Delaware's residential electricity rate averaged approximately 17.64 cents per kilowatt-hour as of March 2026, up about 0.93 cents year-on-year. That rate environment influences how quickly solar generation offsets utility bills, but payback timelines depend on individual system size, utility territory, and which programs a household qualifies for.
Figures here are verified as of June 2026 against official sources; programs change with each legislative session and utility rate case, and the Delaware Public Service Commission and DNREC's Division of Climate, Coastal and Energy are the authoritative sources for current program terms.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Delaware
Net Metering
Delaware requires its regulated electric distribution companies and municipal utilities to offer net metering to customers with on-site renewable generation, including solar. Customer-generators are billed only for their net electricity use, and any monthly excess kilowatt-hours are credited to the next bill. Effective January 1, 2024, for commission-regulated utilities the monthly excess kWh credit is valued at the full volumetric (per-kWh) supply and distribution charges on the customer's rate schedule, excluding societal-benefit charges; excess credits cannot reduce fixed monthly customer charges. The customer keeps ownership of the renewable energy credits unless they assign them by contract.
| Amount | Excess monthly generation credited at the sum of the volumetric (kWh) supply service and distribution service charges on the customer's rate schedule (full retail volumetric value), excluding societal-benefit program charges, for commission-regulated utilities. System size caps: up to 25 kW for residential customers; up to 150 kW for farms on a residential tariff (DNREC may approve larger case-by-case); up to 2 MW encouraged for nonresidential customers of cooperatives and municipal utilities. |
|---|---|
| Who qualifies | Retail electric customers of Delmarva Power, Delaware Electric Cooperative, or a Delaware municipal electric company who own and operate an eligible renewable generation facility (solar, wind, hydro, fuel cell, or anaerobic digestion) sized to the customer's load within the statutory caps. |
| Administered by | Delaware Public Service Commission |
Source: 26 Del. C. ch. 10 (Net Metering), incl. § 1014; PSC Rules for Regulation of Net Metering (26 DE Admin. Code 3012) Official source →
Green Energy Program (Delmarva Power) Solar Grant
Delaware's Green Energy Program provides cash grants administered by DNREC to offset the installed cost of customer-owned renewable energy systems, including photovoltaic (solar electric) and solar water heating. The program is funded by a public benefits charge collected from Delmarva Power customers and is open to Delmarva Power ratepayers. Grant amounts are set by a published incentive schedule, and no grant may exceed 50% of the total installed project cost. Applications are filed through the Green Grant Delaware online system after an energy audit and selection of an approved contractor.
| Amount | Per-watt grant amounts set by the published Green Energy Program incentive schedule; capped so that no single grant exceeds 50% of total project cost. Program funded by a public benefits charge of $0.000356 per kWh on Delmarva Power bills. (Current per-watt residential rates are published on the DNREC incentive schedule.) |
|---|---|
| Who qualifies | Delmarva Power electric customers installing a qualifying photovoltaic, solar water heating, wind, or geothermal system using an approved contractor; energy audit required prior to application. |
| Administered by | Delaware Department of Natural Resources and Environmental Control (DNREC), Division of Climate, Coastal and Energy |
Source: DNREC Green Energy Program page; Green Energy Program incentive schedule (GEP-Incentives) Official source →
SREC Delaware Program (Solar Renewable Energy Credit Procurement)
SREC Delaware purchases Solar Renewable Energy Credits from owners of Delaware solar systems through periodic competitive procurements so that Delmarva Power can meet the state's Renewable Portfolio Standard solar requirement. One SREC is created for each megawatt-hour (1,000 kWh) of solar generation; a typical home system produces roughly 7 to 12 SRECs per year. Owners bid into the procurement and, if selected, sign a long-term contract to sell their SRECs. The program was established in 2012 and continues to run annual procurements.
| Amount | Long-term SREC purchase contracts set by competitive bid. In the 2025 procurement, Tier 1 and Tier 2 awards used 25-year contracts paying the winning bid price for the first 10 years and $10 per SREC for the remaining 15 years. Bonuses of 10% are added to the accepted bid for systems using Delaware labor or Delaware-manufactured equipment. Bid prices and tiers vary by procurement. |
|---|---|
| Who qualifies | Owners of Delaware-sited solar facilities (homeowners, farms, businesses) interconnected to Delmarva Power who register and submit a bid in an open procurement; awards are tiered by system size, interconnection date, and ownership type. |
| Administered by | Energize Delaware (Delaware Sustainable Energy Utility), on behalf of Delmarva Power |
Source: SREC Delaware program / procurement documents; 26 Del. C. ch. 1 subch. III-A (Renewable Energy Portfolio Standards Act) Official source →
Community Energy Facilities (Community Solar)
Delaware's community energy facility rules let electric customers subscribe to a share of an off-site community solar project and receive monthly bill credits for their share of the generation. A customer may subscribe to up to four community solar projects but may not subscribe to more than 110% of expected annual consumption. Subscribers receive a credit on their Delmarva Power bill valued at the volumetric supply and distribution charges for their subscribed share, and pay a subscription fee set in the enrollment contract. Consumer protections include a written contract summary and a three-day right to rescind.
| Amount | Monthly bill credit valued at the sum of the volumetric (kWh) supply service and distribution service charges on the subscriber's residential rate schedule, applied to the subscribed share of project output; subscription fees are set by the project operator's contract. Subscription cap of 110% of expected annual consumption; up to four projects per customer. |
|---|---|
| Who qualifies | Delmarva Power retail electric customers who subscribe to a registered Delaware community energy facility; no on-site installation required. |
| Administered by | Delaware Public Service Commission |
Source: Delaware PSC Community Energy Facility regulations (Regulation Docket 49); 26 Del. C. ch. 10 Official source →
Low- to Moderate-Income (LMI) Solar Pilot Program
DNREC's LMI Solar Pilot Program brings rooftop solar to income-qualified Delaware households that have historically been underserved by other incentives. Low-income households apply through the Weatherization Assistance Program and, if qualified, receive a cost-free solar installation. Moderate-income households receive a solar installation with most of the cost covered by the program and the remainder paid by the homeowner. Applications are submitted through an approved solar contractor.
| Amount | Low-income qualified homes: cost-free solar installation up to 4.0 kW. Moderate-income qualified homes: installation up to 6.0 kW with 70% of cost paid by the program and 30% paid by the homeowner. |
|---|---|
| Who qualifies | Delaware homeowners meeting program income limits; low-income applicants must first qualify through the Weatherization Assistance Program, moderate-income defined relative to area median income. |
| Administered by | Delaware Department of Natural Resources and Environmental Control (DNREC), Division of Climate, Coastal and Energy |
Source: DNREC LMI Solar Pilot Program page and fact sheet Official source →
Compare solar incentives across all states → · Check what applies to you →
Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.