What You Need to Know Situated on the cusp of the Atlantic, Delaware is a beautiful state awash in natural beauty and plenty of American history, especially considering that it’s the first state.
Delaware is leader in solar energy throughout the United States. Solar energy is a fantastic way to save yourself some serious cash on your utility bills and take advantage of the sun to help protect the natural beauty of Delaware.
Solar in Delaware Simply Makes Sense
Adopting solar power in Delaware simply makes sense. Think of how much money you spend every year on your utilities alone.
Wouldn’t you like to finally see your utility bills go down?
In some cases, you may even be able to make a small profit off of the energy a solar panel system can potentially produce in Delaware. Solar power is a great way to not only benefit the environment but benefit your pocket book too.
Delaware has an amazing renewable portfolio standard, which calls for a certain percentage of energy to be produced by renewable sources.
Delaware also plans on increasing renewable output by about 1% every year, giving you plenty of incentive to jump on board.
Delaware RPS Carve-Outs
Delaware’s RPS also calls for a specific solar carve-out. This specifies that a certain percentage of Delaware’s renewable output come from solar energy.
By 2027, Delaware is looking to draw 3.5% of their energy from solar power alone. Compared to other states, Delaware’s solar-carve out is fantastic and a great example for other states.
You Can Save Money by Going Solar in Delaware
You can save a pretty decent amount of money, depending on your situation, when you go solar in Delaware. You may already be paying as much as $.14/kilowatt-hour of energy in Delaware, which is slightly above the national average.
By using a solar panel system, you may be able to save an average of up to $300 annually on your electricity bills. Estimates indicate that your system (assumed to be about 5kW) may pay for itself within five to eight years.
Delaware Case Study
Let's take a closer look at a 5KW PV system, which is a normal size system for costs and savings.
So, a system like that will cost you roughly 25,000 dollars in Delaware. But that figure is going down. Hard. How?
- To the initial high cost of the system we apply all the tax breaks, incentives, rebates available through the federal and local government in Delaware.
That will bring your total investment now to around the 14,000 dollars. All of a sudden, solar in Delaware looks really good. But wait... -
- What about year 1 savings? Add in another $800 or so in additional savings in DE. -
- So considering all of the above, you should see your return on investment in about 8-9 years. -
- Furthermore, your home value will rise with solar panel system installed in your Delaware home. (For a typical increase you're looking at around 20,000 dollars). -
- And the bonus? Producing clean, sustainable energy. Now that's a win win situation. -
*The above figures are just an estimate.
Here is another interesting Case Study in Delaware:
Residents aren’t the only ones enjoying the benefits of solar energy. As reported by Altenergymag.com, students at the University of Delaware pushed for the development of a 850kW solar electricity system.
The panels, installed at the UD Field House, are expected to help cut down on at least 906 of carbon emissions annually.
As this case demonstrates, a solar installation is a fantastic way to help reduce our dependence on deadly carbon emissions.
Solar Panels Installation in Delaware: Don’t Wait to Purchase Yours
Don’t wait to purchase and install your solar energy system. Considering how much you may be able to save on your electricity bills, purchasing a solar system is a fantastic investment both for your wallet and for the environment.
Delaware Homeowner Solar Incentives, Rebates and Tax Breaks
Lowering Your Utility Costs
You can expect to save big by investing in solar energy in Delaware. Considering that energy already costs Delaware residents about $.14 per month, solar energy is a great way to combat high utility costs no matter the season.
Whether you lease or buy a solar panel system, you can help lower your utilities. Again, what you can save in Delaware depends on your unique situation so get in touch with our trusted solar panel installers today.
Delaware Solar Rebates
In Delaware, the rebates you receive depend on the company you draw your electricity from.
Delmarva Power customers can expect to get up to $850 per kW and $250 for the next 40. This rebate maxes out at $15,000 for most residential solar installations.
Delaware Electric Cooperative customers can enjoy $900/kW for the first 5kW, $450 for additional kW and a maximum cap of $7,500.
Keep in mind that not all utilities offer rebates so do your homework before installing your system.
Utilities in New Castle, Middletown, Smyrna, Clayton, Lewes, and Seaford don’t offer rebates, for instance.
Delaware Tax Credits
While Delaware lacks a state tax credit, you can still enjoy the Federal solar tax credit until the end of the 2022 tax year.
Property Tax Exemptions
Unfortunately, Delaware does not offer a property tax exemption, which is very unfortunate when you consider the added value of the solar panel system on your home.
On average, solar panel systems can add up to $20,000 to the value of your home.
This unfortunately means that your property taxes will go up after installing a solar panel system but nonetheless it’s still no less worthy of an option to consider when you take into account all the other benefits you can gain from installing a solar panel system.
There’s actually no need for a sales tax exemption in Delaware since there is no sales tax in the first place. This is great news for you, considering that in many other states there’s a sales tax and no tax exemptions on solar panel systems at all.
Delaware Financing Options and Getting Solar for Zero Down
Solar energy is a great investment. But sometimes, not everyone is equipped to sink in large amount of money into the purchase of a solar panel system.
There are plenty of other options to consider when looking into a system installation. You may personally want to look into leasing a solar panel system, a great option when you consider the fact that you’ll be able to obtain a system for zero money down.
Is It Worth Investing In Residential Solar Energy in Delaware?
Yes, solar energy is a great investment in Delaware.
From extensive savings on your utility bills to environmental gains, investing in solar energy in Delaware is a worthy cause.
Buying a system may allow you to benefit from rebates and tax credits. But leasing a system isn’t without its advantages:
you can obtain a system for zero money down and enjoy the energy savings almost immediately when you install a leased solar system. Over the long run, you can expect to save up to $17 thousand dollars over the lifetime of the system.
In some cases, you may even expect to turn a profit, although cases may vary based on a number of factors.
How It All Works
Leasing a solar system is simple. By leasing a system in Delaware, you can obtain a solar PV system for zero money down.
Afterwards, you’ll simply be responsible for any utilities that you do draw off the grid and your monthly lease payment. With all that considered, you can still save an incredible amount of money per month.
Most solar leases last for about twenty years. Depending on the terms of the lease, you may have the option of purchasing the system after the lease expires.
With potential rebates and tax credits to consider, incentives can help cut back on the initial cost of purchasing a system. Depending on what utility company you purchase your electricity from, you may have up to $15,000 of the system’s cost covered by a potential rebate. Keep in mind that you will not be able to personally benefit from tax credits or potential rebates if you lease a system since, until the lease expires, you don’t technically own the system.
Should I Lease or Buy A Solar Panel System in Delaware?
Whether you lease or buy a solar panel system depends entirely on your individual situation. Leasing a system allows you to obtain a system for zero money down.
But while buying a system does involve a hefty investment, keep in mind that rebates and tax credits in Delaware can help you out. Depending on the output of the system and your own unique situation, you may be able to produce enough of your own electricity to help pay off the system within as few as five years.
What About Delaware Net Metering?
Net metering is available to residents in Delaware. Here’s how it works.
Net metering is a process that requires you hook up your solar panel system to the energy grid. This allows your system’s energy output to be monitored.
Even better? The energy you don’t use can be later applied to your utility bill at a later time, reducing whatever bills you may have. These credits can roll over for a period of up to twelve months. After that, your utility company will have to cut you a check for the surplus energy you’ve produced, all at retail energy rates.
If you produce more energy than you need, this can be a fantastic way to profit off of your panels.
How does this work? Well, utility companies can purchase the surplus energy you produce directly from you without having to produce it themselves. This can be a win-win situation for you as a solar panel system owner.
For every megawatt-hour of energy you produce, you can receive one SREC. For now, prices vary (especially throughout the year) but the average can be anywhere from $150/SREC to $500/SREC depending on when you sell your SRECs.
Solar energy is a fantastic way to produce renewable energy in Delaware. Along with doing your part to help keep this beautiful, solar energy can help save your wallet as well.
From net metering to SRECs, solar energy may actually become a profitable endeavor depending on your unique situation.
Rebates may vary based on where you live but if they’re available to you, based on your utility company, taking advantage of them can allow you to offset the hefty initial investment that you may plunk into your solar panel system.
Depending on the output of your system, you may even see your system paying for itself within eight – nine years. If you don’t have the means to make that initial investment, you can also consider a lease.
A solar lease is a great option for many people, allowing you to obtain a system for zero money down. Keep in mind that you won’t be able to obtain rebates or tax credits if you lease a system but you will be able to own the system for yourself at the end of your lease.
Solar energy is the wave of the future and Delaware is a leader in solar energy development. Thanks to Delaware’s aggressive RPS, Delaware is right on track to be one of the best states to own a system in.
Owning a solar panel system can be a great investment for you.