Solar panels are expensive, even when considering that they pay for themselves after around a decade. The upfront investment, however, is significant. That’s where solar incentives come on. Sure, there’s the usual federal solar tax credit, which is great, but Delaware has some unique offerings available for those curious about switching to solar energy. These include state-wide credits mandated by the Delaware Renewable Portfolio Standard.
Federal Solar Tax Credit
The federal solar tax credit is the primary way to offset some of those installation and purchase costs. This legislation ensures that purchasers receive a tax credit that equals 30 percent of the total cost of both the panels and the installation. For example, if the total project cost was $21,000, you are eligible for a $6,300 tax credit during the tax season that follows the year the installation was completed.
Net Metering
Net metering in Delaware is fairly straightforward. Basically, you get a credit for the amount of electricity you send back into the grid, which is also known as excess energy. The law mandates that this excess energy is applied to the next utility bill as a credit at the full retail rate. If you’d prefer a cash payout in lieu of a credit, talk to your electric company. The state’s net metering law requires these companies to cut a check so long as you have run an energy surplus for a full year.
Other State-Specific Incentives
There are several state-specific incentives available to consumers throughout Delaware. These include the net metering mandate, as outlined above, but also grants that can provide up to $700 per kilowatt. This breaks down to a rebate of $3,600 for an average-sized 6 kW system. Additionally, many local energy companies offer their own incentives to entice consumers to make the switch to solar. In the vast majority of cases, these incentives take the form of a cash payout of some kind.
- Green Energy Grant: Delmarva Power customers can qualify for this grant, which offers a rebate of up to $700 per kW. The maximum payout is $6,000.
- DEMEC Green Energy Rebate: There’s a similar program in place for DEMEC customers. This one pays out $1,000 per kW, but with a maximum amount of $3,500.
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