SREC market, decent sun, high electricity rates β Delaware's solar opportunity.
| ☀️ Peak Sun Hours | 4.2 hrs/day (moderate β similar to New Jersey) |
| ⚡ Avg Electricity Rate | $0.155/kWh (EIA 2025 β 10% above U.S. average) |
| 🏠 Typical 6 kW System Cost | $19,600 after 30% Federal Tax Credit (ITC) |
| 📈 Payback Period | 9β11 years (industry estimate for average DE home) |
| 🔌 Net Metering Policy | ✅ Available β DE has strong net metering law |
| 💰 25-Year Total Savings | $46,000+ (estimate based on 4% annual electricity inflation) |
Delaware has a unique solar profile β moderate sun hours, but higher-than-average electricity rates and a SREC (Solar Renewable Energy Credit) market that adds meaningful income for solar owners. Here's the full picture:
Delaware's average electricity rate ($0.155/kWh) is about 10% above the U.S. average (EIA 2025). This means each kWh of solar production saves you more money than in low-rate states like North Dakota or Washington. Higher rates = faster payback.
Delaware is part of the Regional Greenhouse Gas Initiative (RGGI) and has a SREC market. Solar system owners can earn SRECs (Solar Renewable Energy Credits) for every MWh of electricity their system produces. In Delaware's SREC market, each credit is worth $15β$35 (market price fluctuates). For a 6 kW system producing 7,000 kWh/year, that's an additional $105β$245/year in SREC income.
Delaware has a state law requiring net metering for all utilities. Key details:
The 30% Federal Investment Tax Credit (ITC) applies to Delaware solar installations through 2032. For a $28,000 system (before incentives), that's $8,400 back as a tax credit.
Delaware offers state rebates for solar installations through the Green Energy Program (administered by the Delaware Sustainable Energy Utility, or SEU). Rebates are typically $2,000β$4,000 depending on system size and available funding. Check with the SEU for current offerings.
Delaware's net metering law (26 Del. C. Β§ 1001 et seq.) requires all utilities to offer net metering. This is stronger than voluntary utility programs. Key protections:
Delaware's Sustainable Energy Utility (SEU) administers the Green Energy Program, which provides rebates for solar installations. Current rebates (subject to funding availability):
Delaware's Renewable Energy Portfolio Standard (REPS) requires utilities to source a portion of electricity from solar. This creates demand for SRECs. As a solar owner, you can sell your SRECs to utilities that need to meet their REPS requirements. Current market price: $15β$35 per SREC. A 6 kW system typically generates 6β8 SRECs per year (1 SREC = 1 MWh = 1,000 kWh).
Delaware solar customers can claim 30% of total system cost as a federal tax credit, including equipment, installation, permitting, and battery storage.
Delaware offers a property tax exemption for renewable energy systems, meaning your solar installation will not increase your property tax assessment.
Location: Wilmington, DE
System size: 6 kW (18 Γ 350W panels)
Roof direction: South-facing, 39Β° tilt
Electricity rate: $0.155/kWh (Delmarva Power)
Annual production: ~7,000 kWh (NREL PVWatts estimate for Wilmington, DE)
| Item | Amount |
|---|---|
| Annual solar production | 7,000 kWh |
| Value at retail rate ($0.155/kWh) | $1,085 |
| SREC income (7 SRECs Γ $25 average) | $175 |
| Green Energy Program rebate | $3,000 (upfront, one-time) |
| System cost after 30% ITC and rebate | $16,600 (upfront, after tax credit and rebate) |
| Simple payback period | ~10 years |
Estimated monthly savings: ~$90 | Yearly: $1,085 (plus ~$15/month from SRECs)
Note: SREC prices are market-based and can fluctuate. The $25/SREC estimate is a mid-range figure β prices can be $15β$35 depending on market conditions. Green Energy Program rebates are subject to funding availability β apply early.
Yes β modern solar panels work in all weather conditions, including Delaware's cloudy winters. Here's the data:
| Month | Production (kWh) | % of May Production |
|---|---|---|
| January | 350 | 31% |
| March | 680 | 60% |
| May | 1,130 | 100% |
| July | 1,150 | 102% |
| December | 320 | 28% |
Key takeaway: Delaware's moderate sun hours and cloudy winters mean winter production is lower (28β31% of peak). However, the SREC income and net metering make solar economics attractive despite the cloudy climate. A properly sized system can still achieve net-zero annual electricity bills.
Yes. Delaware has a state law (26 Del. C. Β§ 1001 et seq.) requiring all utilities to offer net metering. You receive full retail rate credit for excess electricity sent to the grid, which can be used to offset electricity consumed at night or during winter months.
A typical 6 kW solar system in Delaware saves about $90/month, or $1,085/year (assuming net metering at $0.155/kWh). With SREC income of ~$15/month, total monthly benefit is ~$105. Over 25 years, total savings exceed $46,000 (assuming 4% electricity inflation and 0.5% annual panel degradation).
SRECs (Solar Renewable Energy Credits) are certificates you earn for every MWh (1,000 kWh) of solar electricity your system produces. Delaware's renewable energy mandate creates demand for SRECs β utilities must buy them to meet state requirements. You can sell your SRECs through an aggregator or broker for $15β$35 per credit. A 6 kW system typically generates 6β8 SRECs per year.
Delaware's Sustainable Energy Utility (SEU) administers the Green Energy Program, which provides rebates for solar installations. Current rebates are typically $2,000β$4,000 depending on system size and funding availability. Applications must be submitted before installation β check the SEU website for current cycles.
If your utility offers net metering, battery storage is optional β you can use the grid as a "virtual battery." However, battery storage is valuable if you want backup power during outages or if you want to maximize self-consumption of your solar production.
Our solar calculator gives you a personalized estimate based on your location, electricity usage, and Delaware's solar conditions (including SREC income). Takes 30 seconds, no email required.
Calculate My Solar Savings →Electricity rates: U.S. Energy Information Administration (EIA), Delaware Electricity Profile 2025.
Solar production estimates: NREL PVWatts Calculator, using Wilmington, DE weather data.
Net metering policies: Delaware Public Service Commission (PSC) net metering guidelines.
SREC market data: Delaware Renewable Energy Portfolio Standard (REPS) compliance reports.
Federal tax credit: IRS Form 5695 instructions (2026 revision).
Disclaimer: These are estimates for planning purposes. Actual savings vary based on your specific home, utility, roof orientation, and installation costs. Consult a licensed solar installer for a precise quote. SREC prices are market-based and can fluctuate.
The average cost of a residential solar system in Delaware is $15,000-$25,000 before incentives (for a 6-10 kW system). After the 30% federal Investment Tax Credit (ITC), the net cost drops to roughly $10,500-$17,500. Actual costs vary based on roof complexity, panel brand, installer choice, and local permitting fees. Delaware homeowners should get at least 3 quotes to compare pricing.
All U.S. homeowners qualify for the 30% federal Investment Tax Credit (ITC) through 2032. This credit reduces your federal taxes by 30% of your total system cost. In addition to the federal ITC, some states offer additional rebates, property tax exemptions, or sales tax exemptions on solar equipment. Check with your local utility and the Database of State Incentives for Renewables & Efficiency (DSIRE) for Delaware-specific programs.
The typical solar payback period in Delaware ranges from 7 to 12 years, depending on your electricity rate, system size, available incentives, and financing terms. After the payback period, your solar panels essentially produce free electricity for the remaining 15+ years of their 25-30 year lifespan. Higher electricity rates and strong sun exposure lead to faster payback periods.
Yes. According to a study by Lawrence Berkeley National Laboratory (LBNL), homes with solar systems sell for an average of $15,000-$25,000 more than comparable homes without solar. The exact premium depends on your location, system size, and age. Many states including Delaware offer property tax exemptions for the added value from solar, so you won't pay higher taxes even though your home is worth more.
Solar works best on south-facing roofs with minimal shading, but east-west orientations can still produce 80-90% of optimal output. Key factors include: roof condition (should have 15+ years of life left), tilt angle (30-45 degrees ideal), and shading from trees or nearby buildings. A reputable installer will perform a free site assessment using satellite imagery to estimate your production potential before you commit to anything.