Solar Programs and Incentives in Delaware

Delaware is actively working to accelerate the transition to renewable energy by making solar power more affordable, accessible, and equitable for its residents and businesses. Through a combination of state-funded programs, performance incentives, and participation in the Solar Renewable Energy Credits (SREC) market, Delaware offers a robust set of tools to support solar adoption. These efforts are further complemented by federal tax incentives and innovative community solar initiatives that ensure broader access to solar energy—even for those who cannot install solar panels on their own properties.

At the heart of Delaware’s solar incentive structure is the Green Energy Program, which provides direct financial assistance to homeowners, businesses, non-profits, and government entities that install renewable energy systems, including solar photovoltaic (PV) systems.

Key features:

• Upfront rebates and grants help reduce the initial investment costs associated with installing solar.
   
• Incentives are often performance-based, meaning they are tied to the size and expected energy output of the system.
   
• Funds are distributed on a first-come, first-served basis and administered by different utilities and local programs, such as Delmarva Power and municipal electric utilities.
   

This program plays a crucial role in removing financial barriers and making solar energy attainable for a wider range of property owners.

Beyond the Green Energy Program, Delaware offers additional solar energy performance incentives designed to further reduce the financial burden of going solar. These include:

• State-backed grants and rebates for solar PV systems.
   
• Tax incentives or exemptions at the state or municipal level, depending on location.
   
• Incentives may vary based on system size, ownership type, and income eligibility, with higher support often available for low-income households or non-profit organizations.
   

These performance-based incentives encourage higher-quality installations and greater energy output, aligning financial benefits with environmental impact.

Delaware’s SREC market provides an innovative and ongoing financial benefit to solar system owners. For every 1,000 kilowatt-hours (kWh) of electricity a solar system produces, the owner earns one SREC, which can be sold to utilities.

• Utilities use SRECs to meet their obligations under Delaware’s Renewable Portfolio Standard (RPS), specifically the solar carve-out.
   
• The market value of SRECs fluctuates based on supply and demand, offering an ongoing revenue stream for solar system owners.
   
• SRECs can significantly shorten the payback period for solar investments, making the systems more financially viable.
   

Participation in the SREC market ensures that solar energy producers are rewarded not just through savings on their own electricity bills, but through actual income from the clean energy they generate.

In addition to Delaware’s state-level programs, solar adopters can benefit from the Federal Investment Tax Credit (ITC). As of 2025, the ITC allows homeowners and businesses to claim a 26% tax credit on the total cost of their solar installation.

Highlights:

• Available to residential, commercial, and utility-scale solar projects.
   
• Can be applied to equipment, installation, and permitting costs.
   
• The tax credit reduces federal income taxes owed, making it a powerful tool to lower overall costs.
   

This federal incentive, when combined with state-level programs and SREC income, can make solar power significantly more affordable for Delaware residents.

For many Delawareans, installing solar panels isn’t feasible due to financial constraints, lack of homeownership, or unsuitable rooftops. Community solar programs offer a solution by making clean energy accessible to more people through shared solar arrays and subscription-based models.

Community solar allows participants to subscribe to a portion of a larger, centrally located solar installation—such as a solar farm or shared commercial rooftop—and receive bill credits for the energy produced.

Benefits:

• Ideal for renters, condo owners, and others without rooftop access.
   
• Subscriptions are often flexible and may allow participants to join or leave without long-term commitments.
   
• Participants enjoy monthly savings on utility bills based on the energy their share of the array produces.
   

Delaware’s community solar initiatives are particularly focused on equity and inclusion, with targeted programs to help low- and moderate-income (LMI) households access clean energy benefits.

• Projects may offer subsidized subscription rates, grant funding, or even free participation for qualifying residents.
   
• Community solar helps reduce the energy burden on lower-income families while supporting broader environmental justice goals.
   

To scale community solar programs, Delaware is investing in:

• Grid infrastructure upgrades to accommodate large solar arrays.
   
• Streamlined permitting and interconnection processes.
   
• Public-private partnerships to fund and manage community solar developments.
   

These efforts are aimed at making community solar a core pillar of the state’s clean energy strategy, enabling more residents and businesses to participate in—and benefit from—the solar economy.