Delaware Solar Power Facts in 2024

delaware solar program

Delaware solar energy system prices have fallen around 75% in the past ten years. This means that solar panels in the Diamond state are now more affordable than ever. With 202 sunny days a year and an average electric rate of $0.1179, Delaware is the perfect state for you to go solar. A good solar panel system in this state is backed by significant Delaware solar incentives, a variety of solar panels to choose from, and every solar installation is done by professionals who will help you enjoy the benefits of solar energy as soon as possible. 

Over 35 solar power companies mean a lot of competition and a race to who will offer the best possible conditions at the lowest possible price. Depending on how much energy you consume, you should hire a professional to design your solar panel system. The rest is sitting back, relaxing, and enjoying while your solar panels power your AC and other appliances. Let’s dive right in to learn more about renewable energy prospects in the Diamond state. 

Delaware Solar Energy Data

Delaware currently ranks 41st in the US by the total solar energy capacity that is installed in the state. With over 8,000 small and large-scale solar projects, the solar energy potential is just being tapped into. With only 5% of Delaware’s electricity coming from solar, there is a lot of room to expand, so you would not make a mistake to jump the train early on and secure an energy-independent future and low to null electric bills. 

Solar energy in Delaware can power more than 20,000 homes. The solar energy potential is much higher and can power the majority of the country. Together with other renewable energy sources, the need to streamline the entire process of installing solar and keeping financial incentives is stronger than ever. With a relatively low investment of $12,000 to $17,000 for a 5 kWh system (enough for most households), the interest for solar energy is only likely to go up in the upcoming years. 

As the price of solar panels has dropped by three-fourths in the past decade, the interest and availability of solar panels have increased. Now, the average price per kW of installed solar capacity is only $2.40, much lower than installing new coal thermal plants, natural gas plants, or even wind turbines. Yet another reason behind the success of solar panels is the low cost of solar installation and very little maintenance. 

Local incentives and federal solar incentives (mostly in the form of tax credits) increase solar energy potential and ensure more capacity can be brought online year after year. With the current electricity price in Delaware, most residents who decide to go for solar and offset at least 75% of their energy usage can expect to save at least $34,000, depending on their electricity usage, utility company, and the solar installation initial investment. 

As it only takes around 7-10 years to pay back the solar panels, all power generated after this is clean energy that is also free. This is one of the reasons why more than 8,000 Delaware homeowners decided to go solar and use the net metering from their utility provider to avoid the high costs of a solar battery. There are also solar companies in the state which enable you to install a smart meter and join the net metering programs offered by utilities, where you send your net excess generation to the grid for later use. 

Delaware Solar Statistics

Delaware National Ranking41st
Solar Panels Installed(MW)163 MW
Can Supply Power to: (No. of Homes)+20,400
% of State's Electricity from Solar+5%
Solar Companies in the State37 companies (9 Manufacturers, 18 Installers and Developers and 10 other solar companies) 
Solar Jobs Created+450  
Total Solar Investment in the State$480 million
Out of Pocket Cost for a 5kWh system$12,000 - $17,000 
Net 20-year savings$34,000 - $47,000 
Average Payback Period7 - 10.5 years 
Electricity Bill Offset for a 5kWh system+ 75%
Number of Solar Installations+ 8,000

Notable Solar Installations in Delaware

  1. Milford Solar Farm – 12 MW of solar capacity. This is enough to power 1,300 + Delaware households, 
  2. Dover Sun Park – 10 MW of solar capacity. This solar farm can power more than 1,000 Delaware residences with renewable power. 
  3. General Growth Properties & Walgreens – 1 MW solar project, enough to power over 100+ Delaware homes with clean power, 
  4. DD Hay Road Solar 23 LLC – it also features 1MW of installed power and can supply power to more than 100 households in the Diamond State. 

Average Cost of Solar Energy Systems

As solar technology became cheaper and the prices dropped, the increasing interest drew many new companies to join the solar energy market. The Renewable Standard Portfolio introduced financial incentives (usually in the form of Tax Credit for federal taxes), and the interest in solar savings skyrocketed. 

For this reason, the average price of solar per Watt of DC installed is around $2.40. This means that a solar array of 10kWh will cost around $24,000 before any incentives or solar program rebates. As an average home only needs around 6.4 kW in solar panels, the actual price would be even lower: $15,360 for an average US home. Please bear in mind that the price is mostly determined by the size of the solar array, which is, in turn, determined by:

  • Your energy needs
  • The orientation of your roof, 
  • The slope of the roof, as well as 
  • The geography and topography of your area. 

Solar Panel Energy Production in Delaware

Solar power in Delaware had very modest beginnings. In 2006, there were only 0.8 MW of solar arrays installed. With very few financial incentives and a high solar panel and solar work price, very few people could afford them. However, as the price dropped, the interest in solar benefits increased. 

In 2016, the total solar capacity in Delaware jumped to 97 MW – over 100 times more compared to just ten years before. Furthermore, 2021 saw another such increase when the total solar capacity doubled to 163 MW. With a strong Renewable Portfolio Standard and bold goals to reduce pollution, this capacity is set to only get higher. 

Delaware Solar Incentives, Rebates, and Tax Credits

Solar incentives, rebates, and tax credits offered in Delaware follow the principles outlined in the solar policy history. These are supposed to make solar tech more affordable and enable access to solar to more people. Delaware solar incentives include: 

  • The Federal Solar Tax Credit – 26%, 
  • The Delaware solar Incentive program – $0.50 per Watt, 
  • The Newark Utilities Department Rebate, 
  • The City of Wilmington Solar Rebate, 
  • Delaware Net Metering – available to almost all homeowners – check with your local utility company, and 
  • Many more local and corporate incentives. 
DescriptionEquivalent Cost
The Cost of PV - 10kWh at an average of $2.4 per watt of DC installed$24,000
The Federal Solar Tax Credit @26% by the end of 2022$6,240 
Delaware Solar Incentive Program - Rebate @ $0.50 per Watt @10kW$5,000
The Newark Utilities Department Rebate$5,000 
Solar Renewable Energy Credit @$30 per MW$22,570 
Delaware Net Metering Programs and savings @100% energy usage offset @8,500 kWh per year$1,000 per year
TOTAL cost for a 10kWh home solar system at the end of year 1$6,505 
Years before a 10kWh system pays off if all Delaware solar incentives are taken 5.12 years (for Newark residents with net metering in place)

Delaware Solar Incentive Program (DSIP)

The Delaware Solar Incentive Program (DSIP) is one of the local incentives. In essence, the program offers a solar rebate of up to $0.50 per Watt of solar panel system max output. This means that most homeowners would be eligible for a rebate since the average residential solar panel system is only around 6.4 kW. This can add up to a significant amount of money: $2,500 for a 5 kW system and $5,000 for a 10 kW solar panel system. 

Investment Tax Credit (ITC)

The Federal Investment Tax Credit (ITC) allows residential solar panel system subsidy in the form of tax credit for any solar panel system put in place and brought online. The incentive is available for both residential and commercial solar systems, and it enables solar owners to make significant tax savings besides the free clean energy they get. 

The Investment Tax Credit can be combined with other Delaware solar incentives. It is important to note that you should check out whether you pay federal taxes and, if yes, how much, since the tax credit does not make much sense if you cannot recover the 26% of a tax break. If you cannot use up all the credits in one year, you can know that credits allocated to your federal taxes can be rolled over for up to 10 years. 

Besides the Delaware Solar Incentive Program and the Federal Solar Investment Tax Credit, there are a few more local incentives that can help you bridge the high cost of going solar: 

  • The Newark Utilities Department – a $0.50 per Watt of solar installation for all residential and commercial solar panel systems up to 15 kWh in size; 
  • The City of Wilmington – a $0.75 per Watt rebate for residential solar systems
  • Net metering program (offered by individual Delaware utility companies), 
  • Solar RECs in Delaware, as a part of the Renewable Portfolio Standard, 
  • Delaware Power and Lights also offers solar incentives for those who want to power their homes with clean energy

Solar Renewable Energy Credits (SREC)

Solar Renewable Energy Credits (SRECs) are a form of credit that you earn by generating clean energy. They work by entering your meter reading into the SREC manager platform and getting these credits (also called Solar Renewable Energy Certificates). These certificates can then be sold on the SREC market. The usual price for SRECs is around $30, although the price is expected to fall in the upcoming years. You can get 1 SREC for every MW of clean power you produce, or around 8..5 SRECs a year annually. 

Green Energy Program in Delaware

Several utility companies offer financial incentives for Delaware solar installations. With these solar incentives, you can ensure you get most of the money you’ve invested in your solar system back. The Delaware companies that enable your business or home to be powered with solar for a lower amount of money include: 

  • Delmarva Power, up to $5,000 for residential customers, 
  • DEMEC – Delaware Municipal Electric Corporation, up to $3,500 or $1 per Watt of installed power, and 
  • Delaware Electric Cooperative, up to $2,500 or $0.50 per kW of installed power. 

These incentives enable you to make significant savings even before your solar PV is brought online. WIth them, you can enjoy many benefits of solar and energy savings. Make sure to contact your municipality office, utility company, or previous homeowners for more information on Delaware financial incentives offered in your area. 

Net Metering in Delaware

The main issue with Delaware solar panels is the intermittency of solar energy generation. This means that most of the time, the sun doesn’t shine. This is particularly true for cloudy days, long winter days, as well as nights. On average, we experience 6-8 hours of direct sunlight per day. For this reason, many homeowners decide to add solar batteries to their solar system and break their connection with the power company. 

However, solar installations mostly come without such batteries. In states where net metering is enabled, you can use your utility company as a virtual battery of a kind and ensure that you save hundreds on your utility bill every year. With net metering, you need to have a solar power system, a smart meter, and a utility that enables net metering for you. 

During the day, when the sun shines, and you produce more power than you can use, excess power production goes to the grid. Your smart meter controls how much energy goes to the grid and how much energy you receive back from the grid. During the night or overcast days, when there is little to no sunshine, you draw the energy from the grid. At the end of the year, you only pay the energy use over energy production. In case you’ve generated more electricity than you’ve used, you can roll it over to the next year. 

Top Solar Companies in Delaware

When you decide to go for Delaware solar and use the Delaware solar incentives, you may find yourself in an all too familiar situation: the competition in the solar companies market is fierce, and you do not know whom to choose. For this reason, we did a bit of research for you. Here are the top 5 solar installers in Delaware: 

  1. Clean Energy USA, Rehoboth Beach, Delaware,
  2. Eco Solar Solutions LLC, multi-state, 
  3. SunnyMac, LLC, Wilmington, Delaware, 
  4. Paradise Energy Solutions, Delaware,  
  5. Solar Energy World, multi-state. 


Which states use the most fossil fuels?

Delaware, Alaska, and West Virginia are among the states that use most fossil fuels. All three states get more than 95% of their electricity from fossil fuels. As such, they pollute a lot and represent a good market for solar panels and other renewable energy technologies. As solar installations are sparse in Delaware but are likely to grow in number, the fossil-fuel dependence in these states is likely to go down. 

What states offer SREC?

RECs or Renewable Energy Certificates are available in 7 US states and the District of Columbia. The US states that offer renewable energy credits and marketplaces for them to be traded include the District of Columbia, Delaware, Illinois, Maryland, Massachusetts, New Jersey, Ohio, and Pennsylvania. The price of each renewable energy certificate differs from one state to another, ranging from $150 to $500 (in Washington D.C.)

Do solar panels get damaged by snow?

No, solar panels do not get damaged by snow. As most solar panels in the US are installed at an angle, the snow naturally falls down from them, leaving the surface clean and ready to produce more solar panels. However, it is the roof that can get damaged by the snow, so ensure you get a proper roof inspection prior to placing solar installations on it. 

What states are using solar energy the most?

Based on the total production capacity of the solar power system in each state, California, North Carolina, Arizona, Nevada, and Texas use and produce most solar energy. All five states produce more than 4 million MWh of solar energy per year and can supply anywhere between 0.9% (Texas) to 14% (California) from solar panel systems. 


With a 75% price reduction for solar arrays, a number of solar programs for all homeowners and business owners, and a number of solar incentives that take the price of solar even further down, Delaware is well on the way to meeting its RPS goals. If you would like to join thousands of other homeowners who took their energy future into their own hands and make significant savings, you too should install a solar array. Contact your utility and ask about net metering in your ZIP code area, as well as about any local incentives and assistance they can offer. 

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