Delaware Electricity Rates
Delaware is one of the 15 deregulated US states.
The majority of Delaware is serviced by the utility Delmarva Power and Light. Customers who do not shop for competitive rates pay a default rate known as the Price to Compare.
Same Bill, Lower Rate
The Price to Compare rate can be found on your Delmarva Electric Bill in the Supply portion of the invoice. When you choose another electric supplier with a lower rate, you will still get the same bill from Delmarva Power, with the lower rate replacing the Price to Compare. The electric bill from Delmarva Power will state your electric supplier underneath the “Supply Section” followed by your KWh consumption and rate.
Delaware Energy Market Data
The Delaware energy market was deregulated back in 1999. The deregulation was partial, and there are still portions of Delaware that are regulated. Around the same time, the state tried deregulating its natural gas market as well, but with very limited success, so the entire program was abolished and the natural gas market remains regulated to this day. With the average residential electricity price of $0.1316, a bit lower than the national average, the state of Delaware has very affordable electricity.
A low commercial energy rate of $0.1065 is attractive to many businesses, especially larger factories. However, considering that 92% of the state’s electricity comes from natural gas, it would be impractical to open any new businesses here, especially as the US may introduce a carbon tax, similar to what many European and Asian countries have done so far. Still, a relatively low monthly bill of $124.23 makes it an affordable state to move to.
|Average Delaware Residential Energy Rate||$0.1316 per kWh|
|Average Delaware Commercial Energy Rate||$0.1065 per kWh|
|% of Renewable Energy in Delaware||>2%|
|Delaware Deregulation Status (Yes/Partial/No)||PARTIAL|
|Main Source of State Electricity - Delaware||Natural Gas - 92%|
|Average Delaware Household Energy Use - Month||944 kWh|
|Average Delaware Household Energy Use - Year||11,328 kWh per Year|
|Average Delaware Monthly Electric Bill||$124.23 per Month|
With partial deregulation, Delaware is one of the states that are still in the transition zone to a fully deregulated energy market. However, as this is a small state, with limited residents and electricity production, Delaware may take a while longer to implement all the necessary changes to its grid regulation. With only 2% of the state’s electricity coming from renewables and over 92% being generated from natural gas, Delaware needs to further diversify their energy profile to meet the Standard Renewable Portfolio aims and goals.
Delaware Energy Market Overview
Delaware deregulated its energy market in 1999 and since then, the residents of the second-smallest state in the United States have had the choice of who supplies their power. The increased competition among the competitive electric suppliers has driven the electricity prices down – the average residential electricity rate in Delaware is now 13.27 cents per kilowatt-hour, bang on the national US average.
Unfortunately, not all Delaware residents can benefit from deregulation. Currently, only the customers served by the utilities Delmarva Power and Delaware Electric Cooperative have energy choices. And the benefit to residential and commercial customers can be substantial – as the supply charges make up approximately 65% of the average electric bill in Delaware.
If you switch to an alternative electric provider, you will still have your electricity delivered by their state utility provider. You can also call the utility company when your power goes out. However, when it comes to the electricity rate – it’s your choice.
Comparing Electricity Rates in Delaware
The Delaware state government does a great job of educating residents about their electric choices. It publishes a list of active electric suppliers in the state, including a direct link to the energy offers that customers are able to choose from. This might be easy for an experienced energy choice connoisseur, but most people are overwhelmed by the amount of information.
On our website, you can compare electric rates in your area by simply entering your zip code. We carefully review all electric suppliers to also include information about customer service contact details, bill payment options, and little extras that they offer to customers.
Utility Companies in Delaware
The customers served by two state utility companies in Delaware are able to compare electricity rates of alternative providers and switch – Delaware Electric Cooperative and Delmarva Power. Each of the utilities has to publish its residential Price to Compare – the electricity rate for the supply portion of your bill. You can then compare this rate with other competitive energy plans, offered by alternative electricity suppliers.
The company is responsible for electric delivery to customers throughout Delaware and natural gas delivery to customers in northern Delaware.
- Customer service number: 1-800-375-7117
- Current standard electricity rate: 8.65 ¢ / kWh
Delaware Electric Cooperative
The company provides electricity to rural areas in Kent and Sussex counties in Delaware, serving 94,000 households and businesses.
- Customer service number: 1-855-332-9090
Energy Plans & Products in Delaware
Energy plans are like shoes. One size does not fit all. Navigating through complex information about electricity rates can be confusing and can ultimately deter you from shopping for a better deal. Below is all you need to know about the different energy products that energy companies offer to Delaware residents:
|Plan||Description||What's Good?||What's Bad?|
|Green / Renewable Energy||On this plan, your supplier will match the energy you consume by buying an equal amount from renewable generators|| |
|Prepaid||This plan lets you pre-purchase power for your home at a set price, like a prepaid cell phone|| |
|Variable Rate||Your per-unit gas and electricity costs can vary at the discretion of your supplier||
|Fixed Rate||Your unit price for gas and electricity will remain the same for the duration of the plan||
|Renewable Energy Credits (RECs)||By purchasing 1 REC, you purchase the environmental benefits of 1MWh of renewable energy generation|| |
Alternative Energy Options in Delaware
Funded by the U.S. Department of Energy, the state of Delaware plays an active role in promoting energy efficiency and the use of renewable energy through its State Energy Program. Aside from educating the public about alternative energy sources, funds are provided to several programs that cultivate sustainable energy initiatives.
Delaware has no fossil fuel resources, but it does have renewable resources, such as solar or wind. That means, that as a resident, you have a lot of available options to green up if you are concerned about the environment.
Choose a green energy plan - The Delaware state legislature mandates that 25% of electricity providers' energy portfolios are sourced from renewable sources by 2025. This has created a market for partially or fully renewable energy plans, that are now sold at competitive prices in Delaware. Enter your zip code to compare the green energy plans available in your area.
Home Energy Loan Program - The state offers low-interest loans from $1,000 to $15,000 to homeowners, who are interested in investing in solar or other energy-efficient technologies in their homes when installed by one of the program's eligible contractors.
Renewable Energy Assistance - On top of the loans, the state government of Delaware offers grant funds, rebates, and incentives for qualifying renewable energy systems by applicants whose electricity company participates in the program.
Getting to Know your Delaware Electricity Bill
If you live in the deregulated part of Delaware, your electricity bill will generally have two types of charges that you should pay. They are paid as a joint charge and include all you need for a reliable electric supply. These charges include utility delivery charges and supply charges. The former is paid to your utility company, while the latter goes to the power provider.
Utility Delivery Charges
In the case of utility delivery charges, you are paying for the service of delivering power to your home. This price does not include an energy generation fee, but it rather ensures a reliable power delivery, because this money goes to keeping the rid operable and safe for everyone. This money also covers the repair expenses, as well as the costs of bringing the grid back online in the case of outages.
Supply charges, on the other hand, represent all the money paid for the service of securing an amount of electricity for you. This money is paid to the power provider. They, after taking away their fees, pay for the electricity you’ve consumed to the power plant they have a contract with. If you want to reduce your emissions, you can always opt to purchase power from a green energy provider.
Factors that Affect Electricity Rates
The energy rates you pay to your electric supplier in big part depend on the pricing of all the materials and services that go into providing you with electricity services. Below, you will find the complete list of factors that determine the energy price you pay to your energy suppliers. As electricity plans in Delaware are varied and you have the electric choice, always make an informed choice, but beware of how electric charges are formed.
Fuels are needed to generate electricity. This means that they make up a large portion of your energy bill. In the future, as the modernization of the electric grid goes on and we start using more renewable resources, it is expected that the energy rates will drop, as there is no fuel required to power renewable power plants. Wind, solar and hydro is all free, although intermittent. To save money in the meantime, choose lower-priced energy rates and be mindful of how you use electricity (!LINK!).
Power Plant Prices
Even with the latest technology, power plants still have to charge something for their operation, maintenance, and overall running of the business. All of these are included in your electricity plan prices. This is money well-spent since power plants are essential to a reliable electric supply for both residential and commercial customers. As they are included in the kWh price, energy savings mean saving money as well.
Local Transmission and Distribution Systems
Your local transmission and distribution system charges also make up a part of the electricity rate you pay. You can find these rated on your monthly bill, usually under the heading of ‘utility delivery charges’. If you have any questions about these charges or would like to look for additional information, your utility customer care center can offer support and instructions on how to better understand their charges.
Your local area regulations also play a role in the price of electricity you pay. As energy products are diversified and numerous, there was a need to standardize the products and protect customers. For this reason, local area regulations have been imposed to help understand the variety of energy supplier options and energy plans. They usually dictate the energy price and cap off how much you can pay for an early termination fee and per kilowatt-hour of power you use, some special conditions of your contract, and how the information will be displayed when you shop for electricity.
Local weather conditions can also increase energy price volatility. The best example is the Texas February 2021 outages, where extreme weather froze gas pipes and left many with no access to electricity. Particularly hot weather (!LINK!) can also increase energy prices, as more people turn on their AC units. The need for electricity skyrockets whenever there is weather extreme, driving the prices up and making suppliers and your local utility struggle to provide for the electric needs of all.
Energy Deregulation in Delaware
Back in 1999, Delaware introduced electricity market deregulation. With the aim of reducing energy costs and expanding offerings available to Delaware residents, the state deregulated its electric plans and allowed everyone to select the contract and the plan they preferred, be it from the local utility or an electric service provider. With this being said, any company can enter the energy market and offer plans of its own. Unlike other states, Delaware discontinued its natural gas deregulation.
Energy Providers vs Utility Companies
When you shop for electricity in a deregulated market, and as you read different offers, you have to be prepared that there is a difference between an energy provider and a local utility company. The utility company is the company that has to provide power to your home. It is also the company that installs your smart meter and ensures that your rights as a consumer are respected. On the other hand, your energy suppliers or energy providers are companies you purchase electricity from and sign contracts with.
Below are answers to some of the questions you might have about Delaware electricity rates:
Is Delaware deregulated for electricity?
Unfortunately, not all of the Delaware electricity market is currently deregulated. Currently, only the customers served by the utilities Delmarva Power and Delaware Electric Cooperative can benefit from the energy choice. The natural gas market, on the other hand, is not deregulated at all – there were attempts, but with limited success.
How much does Delmarva Power charge per kWh?
Delmarva Power’s current Price to Compare for residential customers is $0.0795 per kilowatt-hour. If they are your service provider, you can see alternative electricity rates in your area by entering your zip code on Electricrate. On the other hand, residential heating and time of use for non-demand periods of power prices are different. Always make an informed decision, before signing anything.
How much electricity does Delaware use annually?
Delaware is the smallest energy-producing state, consuming almost 100 times more energy than it produces, and the state’s total energy consumption is the third-lowest in the nation mainly because of its small population. This being said, Delaware generated over 5.2 TWh of electricity in 2020 – that is 5,205,372,000 kWh of electricity.
If you live in Delaware and would like to search for new energy plans with better terms than what you have today, Electricrate is your friend. Simply enter your ZIP code or location and check out the tools we have to help you make your energy choice. Check out the Delaware electric prices, rewards, and tips for lower energy use and choose among many power suppliers. We help you connect with power providers across the states and help you make the best decision for your budget and energy needs.