DNREC Green Energy Program: Renewable Energy Rebates in Delaware

The Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates to encourage the use of renewable energy, such as solar and geothermal energy, throughout the state. Administered by DNREC’s Division of Climate, Coastal, and Energy, the Green Energy Program has provided funding for over 6,000 renewable energy projects since 1999.

Available Rebates

Customers of Delmarva Power can receive rebates to reduce the cost of installing solar, geothermal, solar water heating, or wind energy systems. These rebates are funded through a public benefits fund charge, and similar programs exist for customers of other Delaware utilities.

How to Apply

To apply for renewable energy rebates, you must complete an energy audit and hire an approved contractor. Applications must be submitted through the Green Grant Delaware online system. During the process, applicants must also sign over their Solar Renewable Energy Credits (SRECs) to the Delaware Sustainable Energy Utility.

Solar Renewable Energy Certificates (SRECs) and Financial Incentives for Solar Energy

Solar Renewable Energy Certificates (SRECs) are credits awarded for generating solar energy, providing an additional financial incentive for homeowners to adopt solar power. For every megawatt-hour (MWh) of electricity produced by solar panels, homeowners earn one SREC, which can be sold for cash, further enhancing the financial benefits of going solar.

Financial Incentives for Solar Installation in Delaware

Delaware offers several financial incentives that make solar energy installation more affordable:

• Residential Clean Energy Credit: This credit reduces the cost of solar panel systems by 30%, making solar energy a more viable option for homeowners.
• Green Energy Program Rebate: Homeowners can receive rebates based on the capacity of their solar system, providing direct financial support for their investment.
• Low- to Moderate-Income Solar Program: This program offers free or discounted solar installations for eligible households, ensuring that solar energy is accessible to all income levels.

Net Metering & Solar Renewable Energy Credits

Solar panels are highly effective in Delaware, often generating more energy than a household consumes during sunny days. But what happens to the excess energy? Through Net Metering programs, homeowners can sell their surplus energy back to the Delaware power grid in exchange for SRECs. These SRECs can further reduce monthly energy costs while ensuring that solar energy systems can draw power from the shared grid when needed.

At the end of each month, homeowners receive compensation for the energy supplied to the Delaware power grid, calculated as:

Net Energy = (solar power you give) – (solar power you use)

Not all states offer such programs, making Delaware a unique and attractive place for solar energy adoption.

Delaware Solar Incentive Programs

The Delaware Solar Incentive Program (DSIP) provides state-funded financial assistance for solar installations. This program offers rebates to homeowners based on the size of their solar system:

• Systems up to 15 kilowatts are eligible for a rebate of $0.50 per watt, translating into significant savings.

Although there are no statewide solar rebates in Delaware, several utility companies offer financial incentives to help reduce solar costs:

• Delmarva Power provides up to $6,000 for customers who install solar, offering $0.70 per watt based on system size.
• The Newark Utilities Department offers a rebate of $0.50 per watt for solar installations.
• The City of Wilmington provides a rebate of $0.75 per watt.
• Delaware Power and Light has several programs with benefits for solar customers.
• The Delaware Electric Cooperative supports solar energy by providing grants and rebates to residents. Customers can receive $0.50 per watt for systems up to 5 kW and an additional $0.20 per watt for systems larger than 5 kW, provided they are installed by qualified solar panel installation companies.

The Solar Landscape in Delaware

Delaware residents have effectively harnessed the sun’s energy, with solar energy accounting for 4.2% of the state’s electricity generation—outpacing the national average of 3.4%. This rise in solar adoption can be attributed to the state’s competitive solar incentives, which benefit both homeowners and businesses.

One significant advantage for Delaware residents is the absence of a state sales tax, making solar panels 4%-7% cheaper than in neighboring states. Coupled with the federal solar tax credit, SRECs, Delaware’s net metering programs, and local solar rebates, the state has become an attractive destination for solar energy utilization.

Federal Solar Tax Credit

Home and business owners in Delaware can also take advantage of the Federal Solar Tax Credit, which offers a 30% tax credit for the cost of solar systems, including installation costs. This incentive is available for both residential and commercial systems, making it an excellent option for businesses aiming to reduce their energy costs while contributing to a greener environment.