Delaware State Solar Power Rebates, Tax Credits, and Incentives

delaware solar Delaware State Solar Power Rebates, Tax Credits, and Incentives
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Solar Legislator Score:  Delaware State Solar Power Rebates, Tax Credits, and Incentives Delaware State Solar Power Rebates, Tax Credits, and Incentives Delaware State Solar Power Rebates, Tax Credits, and Incentives

Delaware, our very first state! With that title, you just know there’s a ton of important history to protect in Delaware. With some of the most beautiful parts of the Atlantic coast too, Delaware takes its natural environment seriously too. Using green power like nice clean solar energy will help the state take care of both its natural and cultural heritage so that we can enjoy it for many more generations. Here’s what the legislature has done to promote renewable energy in Delaware.

STATE LEGISLATION
Originally established in 1999, and most recently updated in 2007, the Delaware Green Energy Fund is one of the most progressive bills passed in the state. A small surcharge is added to your electricity bill to fund efficiency and renewable energy programs around the state. The charge is only 0.356 mills which amounts to little more than nothing on your monthly bill, but it adds up to a $3 million donation to the fund each year.

Renewable Portfolio Standard
In 2005 the Delaware legislature also passed a Renewable Energy Standard that requires 20% of the energy sold in the state to come from renewable sources by 2019. The original bill had only set that at 10%, but in 2007, the legislature realized how meager 10% was, and doubled it! Even better, the 2007 amendment states that 2% of that renewable energy must be solar power.

NET-METERING

Under the Delaware net-metering policy, residential renewable energy generation systems up to 25kW are eligible. Commercial customers are allowed to have systems as large as 500kW. There is a limit on participation set at 1% but that is up to the discretion of the utility; so if your utility wants to be intelligent and allow more net-metering customers, they can. The good part about Delaware’s net metering rule is that at the end of a billing year, you sell your excess power to the state Green Energy fund at your utility’s wholesale rate.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

Most of Delaware’s solar incentives come from the Green Energy Fund. The two grant programs, the Research and Development Grants and the Technology and Demonstration Grants allow companies, local governments, and non-profit organizations to apply for grants to develop and test out renewable power systems including solar energy generation equipment. The Research and Development Grants provide 35% of the cost (up to $250,000) for projects improving the design, adaptation, or development of renewable energy products. The Technology and Demonstration Grants provide 25% of the cost (up to $200,000) for projects developing a new renewable energy technology or implementation system.
One of the most useful incentives is the State Rebate Program though. You can get Delaware to pay for up to 50% of the cost of your solar power system (with a cap of $31,500 for residential customers). There’s no size restriction on your system either, so this can really help you cut the cost of solar power at home!!
Check out the complete information on the solar incentives in Delaware:

State Grant Program

* Research and Development Grants

* Technology and Demonstration Grants

State Rebate Program

* Green Energy Program Incentives
EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

You just found out that Delaware has a solar rating of Good, and you’ve made the decision to install your own solar electricity system at your home in Wilmington. Good choice! Your system might seem a little pricey at $58,500, but remember that you’ll be able to get a $29,250 rebate from the state, and you get to take the $2,000 federal tax credit, so you’ll only have to shell out about $27,250 all together. You’ll start saving up to $642 your first year with an average usage of 1,300kWh / month at a rate of $0.0946/kWh. What’s more, your system will pay for itself in only about 8 years. Here are some other key points to keep in mind:

  • You’ll need around 650 square feet of roof area
  • $12,840 estimated property value increase
  • $26,939 estimated savings on your utility bills over 25 years
  • Electricity rates are expected to rise to $0.099/kWh in 5 years and to $0.15kWh in 25 years, so your savings will grow by leaps and bounds
  • you’ll keep 278 tons of CO2 out of the atmosphere; that’s equal to taking 49 cars off the road or planting 815 trees!

CONSENSUS

Delaware is taking some important first steps when it comes to solar power. That rebate program alone should make Delaware residents stand up and take more interest in clean solar power! The legislature has made a good start with increasing the renewable energy standard too. Let’s keep up the good work, and soon solar energy will be a big part of life in Delaware.

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No comments yet, be the first!

charles clayton
Comment on January 30th, 2008.

Greetings,
We would like to inquire if you stock or can help us get 123watt solar panel. Please advise your unit pricing as we would be buying upto 10 or 12 units of this material from you for our upcoming project.And also let us know the credit card type you welcome for payment.
Thanks for your anticiapted business relationship and cooperation.
Sincerely,
Charles Clayton
Managing Director.
Clayton Roofing.
210 River Knoll Drive, Mayville, WI 53050
Tel:801-316-0296
Email:claytonroofers@gmail.com or claytonroof@gmail.com

Ken Huck
Comment on February 5th, 2008.

The above inquiry seems to be a scam.
kwh

Bill
Comment on April 16th, 2008.

How do you calculate “your system will pay for itself in only about 8 years” if you save $642 the first year. If you multiply $642 * 8 years you only get $5,136 in savings. Even if you figue your second number (1,300kWh / month at a rate of $0.0946/kWh) that actually comes out to $122/month * 12 = $1475.76/year for an 8 year total of $11,806.08. Please show a breakdown to justify $27,000 cost and the actual payback period. Thanks.

jim
Comment on January 26th, 2009.

Is the 30% investment tax credit computed on the cost of the equipment net of the 50% state grant? Or is the 30% investment tax credit computed on the gross cost of the system prior to subtracting the state grant?

Wayne
Comment on April 20th, 2009.

I agree with Jim

to cover $27,000 in 8 years I need to be saving $3,375 per year

also who has $27,000 in there back pocket?
because if you get a second mortgage to cove the coast the pay off is many years not 8

Mike
Comment on November 20th, 2010.

Solar is nice but it’s too expensive for mainstream america and an average sized PV system will not power an average sized american single family home. The Governemnt solar incentives are cute. Basically they take our tax money and buy solar sytems for the rich. Todays Solar cannot power todays consumer appliances that you find at mainstram stores such as Sears, Home Depot or Lowes. To find appliances that run on the limited amount of power provided by solar you have to go to specialty stores that sell outrageously expensive smaller appliances that don’t perform as well. I like the idea of Solar, it’s just too bad it can’t produce more power or power at night:-) I have a small solar set up at home but I realize its limitations. It will run my small TV and laptop if the power goes out but it certainly won’t run an electric clothes dryer, electric dishwasher, refrigerator or electric oven. We either need more powerful panels or appliances that use a lot less power.

Kimberly
Comment on February 3rd, 2011.

Mike, your system needs to be grid-tied so that it pushes power to the grid when it is generating power, and your home pulls from the grid when you need it. It should not be directly powering appliances. (Unless your major goal is a system for use when power is down.) Also, matching the optimum sizing of a grid-tied system to its energy demand (since few utilities have good excess-power programs) depends on roof or ground size and aspect, and power use. A big house facing north with lots of gables will have problems with siting panels. Each project is very site-specific.

Patrick
Comment on February 14th, 2011.

You also will receive SREC Certificates. On the 3Kwh example you would receive almost 4 certificates per year which would be sold at todays rate for $1200 anually. After 8 years you would have earned $9600 in revenue from SREC’s. This also helps offset the cost and return.

cole
Comment on February 21st, 2011.

So if all works out well, and you start saving money thats great. But since the average life span of a roof is only 25 years, what happens then? To remove the roof you have to have a professional remove the solar panels. And the reinstallion isn’t cheap either. I would assume you would be dumping another 10-20k just for the reinstall, and thats if all the panels are still in good working order.

Robert T. Hoff
Comment on April 14th, 2011.

1st, don’t believe Delmarva’s rebate lie. I installed a qualified 5.2 Kw system over 1 year ago, yet Delmarva has issued no payments. Delaware isn’t interested in rebate enforcement. 2nd, don’t believe the SREC lie. After generating over 5 SRECs so far, I’ve only been paid for 2 from Flexera, 1st $252 & 2d $170. If you’re thinking about a DE installation, don’t expect any rebates or real $ from SREC brokers. It’s a scam.

Victor
Comment on June 8th, 2011.

You also have to figure how the property added value effects your tax bill, which, your local tax bureau will be very quick to add to your already high taxes.

Tony
Comment on July 17th, 2011.

Here is some food for thought. I had a 5.2 KW solar system installed over a year ago. I was lucky enough to apply for it when DE offered 50% of the cost (DE is now 25% of the cost). I had it installed in my yard and that doubled the output compared to locasting it on the roof. My system generated approx. 10 MWH in the first year. Not bad, averaged lowering my electric by 45% (900KWHs). The RECs have greatly decreased (was approx $250, now approx $100 per REC). Unless the price comes down to have them installed it is hard to get a fast payback due to the RECs being so low. My estimate for my payback is 5 years (based on $120 RECs average)

Dave
Comment on March 1st, 2012.

We had a company put up 24 panels on our roof last year. The money we put out came from stock we had purchased many years ago and the sold at quite a considerable profit. Our home is only 1600 Sq.Ft.
The price was $20,000 before the 30% Fed write off credit.
One thing that wasn’t mentioned in this blog deals with SREC’s. We will sell 10mkwh worth of credit. at this time they are only worth about $60. dollars a M. They have been going for about $350 a M a year ago. aybe in the future they will go back up like the price of oil.

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