Delaware’s Renewable Portfolio Standard (RPS)

The RPS requires that 25% of Delaware's electricity supply must come from renewable sources by 2025. This ambitious goal sends a clear signal to energy providers and investors alike, creating long-term certainty in the renewable energy market.

Solar energy is a central component of this target, and the increasing demand for renewable power has led to a surge in residential, commercial, and utility-scale solar installations. To meet these standards, utilities are compelled to either generate renewable energy themselves or procure it from certified renewable energy producers, making solar energy a financially attractive option throughout the state.

Unlike some states that set general renewable energy goals, Delaware’s RPS includes a specific solar carve-out—a minimum portion of the total renewable requirement that must come from solar sources. This carve-out ensures that solar development is prioritized and that the solar sector receives targeted support.

This requirement drives the deployment of distributed solar systems such as rooftop solar for homes and businesses, as well as community solar projects. It also helps stabilize demand for solar technology, ensuring consistent job growth in the clean energy sector and fostering local economic development.

To support compliance with the RPS, Delaware has established a Solar Renewable Energy Credits (SREC) market, which allows solar system owners to monetize their energy production.

Here’s how it works:

• For every 1,000 kilowatt-hours (kWh) of solar electricity produced, the system owner earns one SREC.
   
• Utilities that cannot meet their solar obligations through direct generation can purchase SRECs on the open market.
   
• This creates a market-based incentive for installing solar panels, as SRECs represent a recurring income source for solar producers in addition to savings on energy bills.
   

The SREC market has been instrumental in improving the return on investment (ROI) for solar energy projects, making it easier for homeowners and businesses to justify the upfront costs of installation. Over time, this mechanism has led to a broader adoption of solar across socio-economic demographics.

• Grid Diversification & Resilience: Increased solar deployment reduces strain on the grid and enhances energy resilience during peak demand or outages.
   
• Environmental Benefits: By displacing fossil fuel use, solar energy helps reduce greenhouse gas emissions and air pollution.
   
• Workforce Development: Growth in the solar sector supports local jobs in installation, maintenance, sales, engineering, and manufacturing.
   
• Energy Independence: A diversified and local energy mix reduces Delaware’s dependence on imported fuels.