Green Initiatives in Delaware Make Solar Panels More Attractive

While Delaware produces less energy than any other state in the US, it actually consumes quite a bit of it. Fortunately, there are potential solutions and your rooftop has the chance to play a role. 

The First State is making strides toward renewable energy. The state got 86% of its power from natural gas in 2021, but a recent law says utility companies must get 40% of their energy from renewable sources by 2035, with 10% coming from solar.

There are plenty of incentives for homeowners to go solar in Delaware. About 5% of the state's electricity generation came from solar power in 2021, but that number is steadily increasing. This is likely due to the state's renewable portfolio standards policy and incentives and rebates administered by utility companies through the state's Green Energy Program -- a grant fund backed by the state Division of Climate, Coastal and Energy. 

However, it's important to know that solar might not cover all of your electricity costs, according to Andrew Slater, executive director of Energize Delaware, a renewable energy nonprofit.

"When I was the public advocate for the state, sometimes customers would call and say that their solar was not working because it was not netting out 100% of their usage. So just understand that solar can go up to 110% of your usage, but it may not cover the entirety of your bill," Slater told CNET.

Your expected savings from solar is mainly dependent on your home's energy usage, geographic location, the condition of your roof, and other factors. 

Here's what you need to know if you're thinking about going solar in Delaware.

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Delaware solar panel costs

The cost of going solar varies widely, since there are so many different factors that play into solar pricing. The main factors affecting the price of solar panels are system size and home energy use, type of solar panels, location and the condition of your roof. If you don't plan on going solar right away, experts recommend that you invest in home efficiency measures before going solar.  

"As a homeowner looking to go solar, the first thing I'm looking at is energy efficiency in my house to see if I can make my home more efficient before I put renewables on. This is so that I can size my system appropriately and make sure I take out the right solar loan for my array," Slater said.

Currently, the only national data available for state-level solar prices in Delaware is from 2021. The nationwide average of solar is more recent, from consulting firm Wood Mackenzie in 2022. The average price before incentives for a 12.6-kilowatt system in 2021 was $32,290, according to the Lawrence Berkeley National Laboratory. However, it's important to note that a 12.6-kilowatt system is quite large, making the cost of the system higher. The price per watt is lower than the national average and homeowners will pay less than the national average with a similar-sized system.  

How to pay for solar panels in Delaware

There are various ways you can go about paying for your panels. Some are more difficult than others, but what really matters is picking the best option for your personal situation.  

Cash: If you can fit the cost of solar panels into your budget, paying for your panels in cash is your best option. There are no fees or interest rates. And you won't have to worry about your credit score. If you have solar as part of your plan for the future, consider putting money aside into a high-yield savings account to earn more money toward your panels over time.

Solar loan: Many solar installers will offer you a solar loan through themselves or another third-party financial institution. A solar loan might have higher fees and interest rates than other loan options, so weigh all your options before settling.   

Other types of loans: Other loan options to consider are personal loans, home equity loans, or home equity lines of credit. Home equity loans and HELOCs can help you finance your solar panels at lower interest rates, but it's important to know the risks involved. You could lose your home if you default on payments. 

Lease or power purchase agreement: Some solar companies allow you to lease your system or enter a power purchase agreement. If you choose to lease, you won't own the solar system, you'll just pay for the use of the equipment. Entering a power purchase agreement means you'll buy solar energy generated from the solar company to power your home. The price you'll pay is usually lower than the retail rate from your local utility company. Note that not all incentives are available with a lease or power purchase agreement.

Delaware solar panel incentives and rebates

Many of Delaware's solar incentives come from grants and rebates offered by Delaware utility companies through the government-regulated Green Energy Program. Each utility company has its own requirements and application forms for any grants or rebates offered through this program. On the federal level, homeowners can also take advantage of the residential clean energy credit, which gives you 30% of the total cost of your solar system back in tax credits.

Another incentive available (that can be a little tricky to understand) is solar renewable energy certificates. Essentially, an SREC is a credit that gets created when a solar generator produces 1 megawatt-hour (1,000 kilowatt-hours) of electricity. SRECs exist due to Delaware's renewable portfolio standard, or RPS, which requires power companies to provide a certain amount of their electricity from renewable sources. 

To meet these requirements, utility companies will purchase renewable energy from generators to earn renewable energy certificates. Power companies will use these RECs as proof that they are meeting the state RPS requirements. In simpler terms, local utility companies will buy excess solar energy from you and translate that energy into SRECs, counting your solar energy as their green energy contribution. Note that SRECs are separate from net metering (the process of selling excess solar energy to the power grid), and some homeowners can qualify for participation in both.    

Participating in the Delaware SREC program can even earn you a grant toward the upfront cost of your solar system. "There are incentives, and part of it has to do with the SREC auction process. Through that process, you get a green energy funding grant, and the grant is dependent on the size of your system. But for a residential customer, it can be an upfront grant," Slater said.

Here's a breakdown of some of the solar incentives offered in Delaware. More state solar incentives can be found on the DSIRE database.

Delaware solar panel companies

Delaware may be small, but you'll have quite a few solar installers to choose from. There are 44 solar companies in Delaware, with 23 of those companies being installers or developers, according to data from the SEIA. 

Going solar is an expensive decision, so grab quotes from several installers in your area to get the best price you can. You should also take panel warranties, maintenance fees, and customer reviews into consideration during your search. 

Here are a few solar companies to consider based on our rankings of the best national solar companies, and research on local installer options.

Green Street Solar

Green Street Solar is a local solar company operating in Delaware and Maryland. The company offers a 10-year workmanship warranty and a 25-year solar panel warranty. Their installers are certified by the North American Board of Certified Energy Practitioners, or NABCEP, and they'll do a free site inspection to see if your home is a good fit for solar. You can pay cash or finance your solar panels with Green Street Solar.

SunPower Solar

SunPower Solar is a solar company operating in all 50 states. They offer some of the most efficient solar panels on the market, with a 22.8% efficiency rating, and a 25-year complete system warranty. You can buy, finance, lease or enter a power purchase agreement for your panels. Note that SunPower Solar is more expensive than many competitors and does not do price matching. 

TerraSol Energies

TerraSol Energies is a solar installer operating in four states. The company installs SunPower solar panels and offers a 25-year system warranty. Their installers are NABCEP-certified and install solar panels and inverters. You can either pay cash or finance your solar panels with TerraSol Energies.

Trinity Solar

Trinity Solar operates in nine states along the East Coast, offering solar panels and batteries. You'll receive a 5-year workmanship warranty and a 12-year warranty with the purchase of an inverter. You can pay cash, lease or enter a power purchase agreement. Trinity Solar's lease and power purchase agreements are fully covered by warranty. 

Installation factors to keep in mind

• The condition of your roof: Your roof will need to be in good condition before installing solar panels. A reputable solar company will conduct a roof inspection before solar installation. A few things your solar installer will be looking at on your roof are damages, pitch and angle, age, and amount of tree cover. The angle of your roof plays a part in determining the efficiency of your solar system. A south-facing roof angled between 15 and 40 degrees is the ideal roof for solar panels, according to the US Department of Energy.
• Homeowners association regulations: If you live in a neighborhood with an HOA, check with them before installing solar panels. Delaware HOAs can't ban solar panels but can impose reasonable restrictions on your system not affecting cost or overall performance.
• Insurance coverage: Your homeowner's insurance company might cover solar panels. If they do, consider adding your solar panels to your insurance policy.
• Your location: The more peak sunlight hours you receive, the more efficient your solar panels will be. Delaware is one of the cloudier states in the US, receiving an average of 4.23 peak sunlight hours per day.
• Rentals: Since renters can't make permanent changes to the property they are renting, solar options for renters are limited. You can't install solar panels, but joining a community solar program could be an option. Community solar allows you to power your home using electricity generated from solar farms or companies.

Delaware solar power FAQs