Solar Incentives in Delaware: Your Guide to Savings
Delaware may be small in size, but when it comes to solar incentives, it’s a powerhouse! Homeowners in the state have access to several excellent programs that can significantly reduce the upfront costs of going solar and accelerate the return on investment. From grants and tax credits to renewable energy credits, there are plenty of opportunities to save while making your home more energy-efficient and sustainable.
On average, Delaware residents can save an estimated $10,820 on solar panel installations through one-time grants and tax credits. Additionally, they can earn around $4,600 in renewable energy credit payments just for generating clean solar electricity. And that’s not even counting the long-term savings on electric bills that come with installing solar panels. Let’s break down the available incentives.
Federal Solar Tax Credit
Quick Facts:
- Value: 30% of solar installation costs after grants; average savings of $5,220 for an 8-kW system.
- Frequency: One-time tax credit with a five-year rollover period.
- How to Apply: File IRS Form 5695 with your annual tax return.
The federal solar tax credit, also known as the Clean Energy Credit, is available to all U.S. residents who own a home and install solar panels. This credit equals 30% of your total installation costs and is applied directly to your federal income taxes.
For Delaware homeowners, the average tax credit value is around $5,220, though the exact amount depends on your system size. Here’s a quick breakdown:
| System Size | Estimated Cost After Grant* | Tax Credit |
|---|---|---|
| 6 kW | $13,800 | $4,140 |
| 8 kW (Avg.) | $17,400 | $5,220 |
| 10 kW | $21,500 | $6,450 |
| 15 kW | $33,750 | $10,125 |
*Calculations assume the homeowner is a Delmarva Power and Light (DPL) customer eligible for the Delaware Green Energy Program Grant.
Delaware Solar Incentives and Rebates
Delaware Green Energy Program Grants
- Savings: $2,000 to $6,000 depending on the utility.
- Eligibility: Homeowners who are customers of Delmarva, DEC, or DEMEC (Newark).
- Details: Grant amounts vary based on the utility company and the system size. This program reduces the upfront cost of installation and makes solar more accessible for Delaware residents.
Solar Renewable Energy Credit (SREC) Sales
- Savings: Approximately $4,600 over 25 years.
- Eligibility: Any owner of a photovoltaic solar installation.
- Details: Homeowners earn one credit per megawatt-hour of energy produced. Credits are valued at around $30 each for the first 10 years and $10 per credit for years 11 through 25. This incentive provides ongoing financial benefits for generating clean energy.
Low-to-Moderate Income Solar Pilot Program
- Savings: Covers 70% to 100% of system installation costs.
- Eligibility: Homeowners at or below the area median income for their county.
- Details: Administered by the Delaware Department of Natural Resources and Environmental Control (DNREC), this program is designed to make solar more accessible for low- to moderate-income families.
Why Go Solar in Delaware?
While Delaware does not offer a specific state-level solar tax credit, the combination of federal incentives, state grants, and renewable energy credits makes solar installation a cost-effective choice for homeowners. These programs are designed to not only reduce the initial costs but also provide long-term financial and environmental benefits.
Taxpayers can claim the federal solar tax credit in the year following their solar installation. The credit applies to all solar equipment and home battery storage costs but does not include unrelated structural improvements.
Start Saving Today
Delaware’s solar incentives are a fantastic opportunity to reduce your energy costs, lower your carbon footprint, and increase the value of your home.
Ready to go solar? Contact us today to learn how we can help you take advantage of Delaware’s solar incentives and design the perfect system for your home!