Delaware Solar Incentives, Cost & Payback (2026)
Written by Aditya Patil · Last updated 2026-09-24
Delaware is a prime location for home solar. With robust full-retail net metering and aggressive rebate programs for Delmarva Power customers, residential solar offers strong returns for homeowners in the First State.
$171
Avg. monthly bill
19.29¢/kWh
Avg. rate
$4.1/W
Real installed cost
LBNL Tracking the Sun
13 yrs
Est. payback
typical household
Cost of solar in Delaware
Based on public data from LBNL's Tracking the Sun report, the real median installed residential cost in Delaware is $4.1/watt. A typical home installation comes in at about 9.02 kW with a gross cost around $33,840 before factoring in any incentives or rebates.
If your home uses the state average of 10,667 kWh per year, you'd need a roughly 7.42 kW system to offset your usage. At Delaware's median price, that setup would cost approximately $30,426 gross (7.42 kW × $4.1/W). Assuming a 2026 installation where the residential clean energy credit (§25D) is no longer available, the cash price remains $30,426 before local state rebates.
Solar only, no battery
Benefiting from full retail net metering, exporting excess energy to the grid earns 1-to-1 credits for evening use.
$2,058 / yr
13-year payback · $70,148 over 25 years
Solar + battery
Adds backup power during outages. Financial returns are similar due to the state's generous net metering policy.
$2,058 / yr
13-year payback · $70,148 over 25 years
Battery hardware cost isn't included in the estimates above. If you're considering storage, explore our solar battery guide to understand the added expense.
Delaware Solar Incentives & Rebates
Delaware boasts excellent financial incentives, especially if you are in Delmarva Power territory. The Green Energy Program provides substantial upfront grants for both solar and storage. Homeowners also benefit from an active SREC market to generate ongoing income.
| Program | Amount | Status |
|---|---|---|
| Green Energy Program -- Photovoltaic Grants | Effective July 1, 2026: $0.80/watt for residential systems up to 50,000 W (max grant $10,000); $0.75/watt for non-residential (max $40,000); $0.85/watt for certified diverse businesses (max $45,000); $0.90/watt for non-profits (max $50,000). Residential PPA/lease systems are not eligible for this grant. No grant may exceed 50% of total project cost, and total project cost must be $6.00/watt or less to qualify. | open |
| Green Energy Program -- Solar Canopy and Solar-on-Brownfields Grants | $1.00/watt for solar canopy installations and $1.00/watt for solar sited on a certified brownfield, each with a maximum grant of $100,000. Cannot be combined with the program's standard non-residential photovoltaic grant. | open |
| Green Energy Program -- Solar + Storage Pilot Program | Effective August 11, 2026: $250/kWh for residential battery storage (max grant $6,000); $200/kWh for commercial (max $30,000); $225/kWh for certified diverse businesses (max $35,000); $250/kWh for non-profits (max $40,000). No hardware size cap, but no grant may exceed 50% of total eligible storage cost. | open |
| Low- to Moderate-Income Solar Pilot Program | Low-income qualified households receive a cost-free solar installation up to 4.0 kW (100% of cost covered). Moderate-income qualified households receive a system up to 6.0 kW with 70% of cost covered by the program and 30% paid by the homeowner. | open |
| Delaware SREC Market (Renewable Energy Portfolio Standards Act) | Not a fixed rebate: Delaware's Renewable Energy Portfolio Standards Act (26 Del. Code Sections 351-364) requires retail electricity suppliers to source a rising percentage of sales from solar (3.5% for the June 2025-May 2026 compliance year), creating ongoing demand for Solar Renewable Energy Credits (SRECs), one of which is created per 1,000 kWh of solar output. Owners can sell SRECs on the open market (SRECs are traded on the PJM-EIS GATS registry) or through the state-affiliated SREC Delaware program (srecdelaware.com, operated by InClime Inc., with SRECs purchased by Delmarva Power), which awards fixed-price, multi-year contracts through a competitive annual procurement window rather than a single published statewide price. Homeowners who accept a Green Energy Program rebate assign their SRECs to the Delaware Sustainable Energy Utility and generally cannot also sell into SREC Delaware's separate procurement. The exact current SREC Delaware procurement price and the statutory Solar Alternative Compliance Payment ceiling under 26 Del. Code Section 358(d)-(e) were not confirmed against a primary document during this research -- see report notes. | open |
Net metering rules in Delaware
Delaware is one of the states still offering robust full retail net metering. Enforced by the Public Service Commission, this policy requires utilities (like Delmarva Power and Delaware Electric Cooperative) to credit you 1-to-1 for every kilowatt-hour of solar energy you export to the grid.
In June 2026, Governor Meyer signed Senate Bill 239, an important update that removed the 8% aggregate program cap, ensuring net metering remains accessible for new installations moving forward.
| Policy | Full Retail Net Metering |
| System size cap | 25 kW for residential systems |
| Export valued by | Full retail rate (kWh for kWh credit) |
| Annual true-up | Credits expire at end of 12-month cycle, no cash-out |
| Statewide cap | Removed in June 2026 (SB 239) |
Excess generation is credited in kilowatt-hours at the full retail rate, not paid out in cash, and applied against the customer's own future usage. Customers pick their own 12-month true-up/reconciliation month; any kWh credit balance remaining at the end of that 12-month cycle expires with no rollover to the next cycle and no cash-out. Fixed monthly utility charges (e.g., meter/connection fees) must still be paid in cash and are not offset by kWh credits.
Top utilities in Delaware
| Utility | Residential rate | Customers |
|---|---|---|
| Delmarva Power | 17.23¢/kWh | 275,018 |
| Delaware Electric Cooperative | 14.22¢/kWh | 104,839 |
| City of Dover - (DE) | 15.52¢/kWh | 21,601 |
Batteries & Virtual Power Plants
While net metering lessens the financial necessity of a home battery, resilience during outages remains a key reason homeowners opt for storage. Delaware recently introduced strong support for home batteries.
Green Energy Program -- Solar + Storage Pilot Program
Delmarva Power customers who buy and own a behind-the-meter battery (paired with new or existing GEP-approved solar) can receive a grant of $250/kWh (residential, max $6,000), $200/kWh (commercial, max $30,000), $225/kWh (certified diverse business, max $35,000), or $250/kWh (non-profit, max $40,000), effective August 11, 2026. The battery must be capable of islanding during outages and, once available, must enroll in DPL's Active Dispatch program for 10 years -- see the de-solar-storage-pilot-program incentive record for full eligibility.
Currently, there are no active Virtual Power Plant (VPP) programs listed for Delaware.
Leasing vs. Buying in Delaware
If you want to claim Delaware's Green Energy Program grants directly, you typically need to purchase your system (cash or loan). PPA and leased residential systems are often excluded from direct homeowner grants. Additionally, the federal clean energy credit (§25D) only applies if you own the system yourself (though it expires for systems completed after 2025). Learn more in our lease vs. buy guide.
Estimate your own numbers
The projections on this page use Delaware's statewide averages. To see personalized estimates based on your exact usage and electric bill, try our solar calculator.
FAQ
Is solar a good investment in Delaware?
Yes, Delaware offers excellent solar savings potential thanks to its full retail net metering policy. You earn a 1-to-1 credit for electricity you send to the grid, meaning you are compensated at the same 19.29¢/kWh average rate you pay for power. Combined with the Green Energy Program grants and the ability to sell SRECs, the state provides a strong financial case for going solar.
What solar incentives can I get in Delaware?
If you are a Delmarva Power customer, you can access the Green Energy Program, which offers up to $10,000 in upfront grants for residential solar ($0.80/watt) and up to $6,000 for battery storage ($250/kWh). Delaware also has an active SREC (Solar Renewable Energy Credit) market, allowing you to earn ongoing income for the clean energy your system produces. There is also a Low- to Moderate-Income pilot program offering fully or partially funded systems for qualifying households.
Do I need a battery with my solar panels in Delaware?
Unlike some states that have reduced export rates, Delaware's full retail net metering means a battery isn't strictly necessary for financial payback. The grid essentially acts as your battery, storing your excess midday production as full-value credits to use at night. However, a battery provides backup power during outages, and the new Solar + Storage Pilot Program provides up to a $6,000 rebate to Delmarva Power customers who install one.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil