Delaware - Energy tax credit, solar rebates and incentives

Delaware Renewable and Solar Energy Incentives

Green Energy Program (Residential/Commercial)

Funding for the Green Energy Program comes from three different organizations: 

• The Municipal Utility Green Energy Fund
• The Delaware Electric Coop Renewable Resources Fund
• The Green Energy Fund (through Delmarva Power and Light)

Incentives are granted to those who seek the purchase and installation of renewable energy systems on their property.

Qualifying systems: Solar panel PV, wind power, solar water heaters, solar space heaters, geothermal pumps, and fuel cells utilizing clean resources.

Rebate amounts:

• Municipal Utility Green Energy Fund – up to 33.33% of installation and equipment costs with the exception of solar water heaters, which receive a 50% rebate.
• DEC – up to 33.33% of installation and equipment costs for PV and wind energy and 50% of the costs for all other technologies.
• Delmarva Power and Light – up to 25% of installation and equipment costs for all renewable energy systems.  Non-profit organizations and government-affiliated institutions receive 35% off overall costs.
• There are no system size restrictions for this program.

Net Metering (Residential/Commercial)

A net metering option is offered to subscribers of Delmarva Electric Coop and Delaware Power and Light who produce power with pertinent renewable energy systems.

• Qualifying systems: Solar panel PV, wind energy, fuel cells utilizing clean resources, anaerobic digestion, small hydroelectric, and biomass.
• Reimbursement is established on a per kilowatt-hour basis, whereby customers are given credit on their subsequent monthly electric bill.
• For homeowners, systems must not exceed 25 kW to participate in net metering.
• Eligible systems must be installed with the purpose to supplement a building’s energy requisites.

Federal Energy Tax Credit (Residential/Commercial)

Taxpayers and commercial business owners are granted an energy tax credit of 30% of the total expenses, which include installation of residential or commercial solar panel (PV) systems, solar thermal systems, fuel cells and labor expenses.  Residential wind energy installations and geothermal pumps are also subject to a tax exemption.  

• Solar electric systems and solar thermal heaters have no maximum incentive.
• If there is excess federal tax credit, it may be carried over to the subsequent taxable year.  
• This may continue on through consecutive years until 2016, under which unused credit may or may not be expunged.

Federal Energy Conservation Subsidy Exclusion (Residential)

• Public utilities provide residential purchasers with an exemption of 100% of energy conservation subsidies.  
• The overall worth of an installation or renewable utility regardless of the energy conservation capacity, will be excluded from the buyer’s gross income.  
• Customers who participate in a utility company’s energy conservation program may be given a reduced rate of electricity utilized or a nonrefundable credit of the price of electricity on the customer’s monthly electric bill.

Energy-Efficient Mortgages (Residential)

• With this federal loan program, homeowners may utilize energy-efficient mortgages (EEM) to either supplement or completely fund renewable energy systems.

Example: 4KW System – Residential Installation Cost

Average Electric Bill: $250/mo
Projected Annual Bill Escalation: 5%
Cost Per Watt: $6.50

- Estimated System Cost: $26,000
- Federal/State Tax Credit: $5,850
- State/Utility Rebate: $6,500
- Net Cost: $13,650
- Cumulative Lifetime Savings (25 Years): $32,306
- Investment Return: 9.5%

Savings of 48% on the total cost of your solar system through incentives