Guide to Delaware Solar Incentives for Homeowners (2026)

Delaware Solar Incentives for Homeowners 

• Property tax treatment: Solar systems are typically excluded from increasing property tax assessments
  
  

• Sales tax advantage: Delaware has no state sales tax, lowering upfront solar costs
  
  

• State energy policy: Solar qualifies under Delaware’s Renewable Portfolio Standard and Green Energy Program
  
  

Delaware’s lack of a statewide sales tax means equipment and installation costs aren’t subject to that added levy, immediately reducing upfront investment. Most local jurisdictions also exempt solar from raising property tax assessments, so adding solar usually doesn’t increase annual property taxes. These baseline incentives, combined with utility programs, help make solar economics more favorable for homeowners.

What is Delaware's Green Energy Program

Delaware’s Green Energy Program is a statewide initiative designed to reduce the upfront cost of renewable energy projects, including residential solar, by offering direct cash rebates funded through utility ratepayer contributions. The program is administered by the state in partnership with participating utilities — including Delmarva Power, Delaware Electric Cooperative, and many municipal utilities represented by DEMEC — and provides per-watt incentives that lower installation costs before long-term savings begin.

Rebates are typically applied at the time of installation, with funding levels and caps set by each participating utility. In many cases, homeowners receiving Green Energy Program rebates assign their Solar Renewable Energy Credits (SRECs) to the state as part of the incentive, while still benefiting from net metering and reduced electricity bills.

Utility-Specific Solar Incentives in Delaware

Delaware’s Green Energy Program — administered through the state’s energy office and utilities — provides direct rebates, net metering credits, and ongoing production incentives tied to specific utilities. Participating utilities include investor-owned, cooperative, and municipal providers.

Delmarva Power

Delmarva Power serves most of Delaware’s population and participates in the Green Energy Program, offering solar rebates of around $0.70 per watt installed, with typical residential rebates up to $6,000. These grants help offset installation costs for photovoltaic systems. Homeowners must apply through the state rebate portal and often assign their SRECs to the state as part of the program.

Delaware Electric Cooperative (DEC)

DEC serves Kent and Sussex counties and participates in Green Energy Program solar rebates. Members may receive approximately $0.35–$0.50 per watt for the first several kilowatts of a system, with rebates that can reach roughly $2,500–$3,000, depending on size. Grants must be applied for through Energize Delaware, with participation through approved installers.

Delaware Municipal Electric Corporation (DEMEC) & Member Utilities

DEMEC represents several municipal utilities across Delaware (such as Newark, Milford, Lewes, Middletown, Smyrna, and others). Many DEMEC members offer solar rebates through Green Energy Program funding, often based on per-watt amounts tied to system size (e.g., $1.00 per watt for smaller arrays with caps) and subject to local fund availability.

Municipal Utilities (City of Dover & Newark Electric)

Smaller municipal utilities like the City of Dover Electric Department and City of Newark Electric Department participate in net metering and interconnection for residential solar. While not all municipal providers offer large cash rebates, they support net metering and often allow exported solar generation to earn bill credits that reduce future charges.

Net Metering for Residential Solar in Delaware

• Supported by: Delmarva Power, Delaware Electric Cooperative, DEMEC member utilities, municipal utilities
  
  

• Credit method: Full retail net metering credits for excess solar generation
  
  

• Rollover: Credits roll forward and reconcile annually
  
  

• System limits: Sized relative to household usage
  
  

Delaware’s net metering policy allows homeowners to receive full retail bill credits for excess solar power sent back to the grid, helping offset energy purchased from the utility. 

Net metering credits typically roll forward throughout the year and reconcile annually, making solar economics more effective when systems are sized to match typical household load patterns.

Delaware’s net metering rules apply to the major utilities — Delmarva Power, Delaware Electric Cooperative (DEC), municipal utilities, and DEMEC municipal members — and are mandated under state law for systems sized to match household usage (typically up to a set percentage of annual historical load). 

This framework means most homeowners design their systems to cover a large share of annual consumption without oversizing excessively, maximizing bill credits while ensuring compliance.

SREC & Production Incentives in Delaware

• Program framework: Delaware Solar Renewable Energy Credit (SREC) market
  
  

• Credit structure: 1 SREC per megawatt-hour (MWh) of solar production
  
  

• Market type: Tradable production credit market
  
  

• Eligibility: Grid-tied, net-metered residential systems
  
  

Delaware’s SREC system provides a production-based incentive — homeowners earn one Solar Renewable Energy Credit (SREC) for every megawatt-hour (MWh) of solar electricity their system generates. 

These credits can be sold to utilities and energy suppliers needing them to comply with the state’s Renewable Portfolio Standard, creating a revenue stream on top of net metering bill savings. SREC market participation typically involves registration through a state portal and often works with brokers or aggregators for ongoing credit sales.

Low- and Moderate-Income (LMI) Solar Pilot Program

Delaware sponsors a Low- to Moderate-Income Solar Pilot Program offering free or significantly reduced-cost solar installations for qualifying households through the Weatherization Assistance Program and Green Energy Program pathways. This helps expand solar access to historically underserved residents regardless of utility territory.

Why Use Energy Storage in Delaware

• Storm resilience: Batteries provide backup during coastal storms and grid outages
  
  

• Peak load shifting: Storage shifts excess solar into high-demand evening hours
  
  

• Self-consumption optimization: Batteries increase value of solar generation
  
  

• Rate flexibility: Storage helps manage DPL and co-op billing cycles
  
  

Battery storage enhances Delaware solar by capturing excess daytime production for evening use and offering resiliency during outages from storms and extreme weather. Storage helps homeowners make the most of net metering and reduces reliance on exporting solar to the grid at times when credit values may vary.

Need Help Navigating Incentives? Reach Out to US Solar Supplier

Delaware homeowners benefit from no state sales tax, full retail net metering, production-based SREC income, and utility rebates through the Green Energy Program. Maximizing these incentives depends on understanding utility-specific rebate structures, system sizing, and SREC strategies.

US Solar Supplier helps homeowners with materials selection, residential system design, SREC aggregation support, storage planning, and utility interconnection compliance. Whether you’re planning rooftop solar, adding battery backup, or joining a low-income solar pilot, our team can help design an incentive-ready system tailored to Delaware conditions.

👉 Contact US Solar Supplier for personalized guidance on solar equipment, design services, and homeowner-focused solar planning in Delaware.