Delaware is a meaningful solar market, but it works differently than its neighbors. Where Pennsylvania and New Jersey have relatively uniform statewide programs, Delaware’s incentive landscape depends heavily on which utility serves your home. Delmarva Power customers have access to a different rebate structure than Delaware Electric Cooperative members or homeowners served by a DEMEC municipal utility. The state also runs its SREC market differently, using a competitive procurement program rather than the open trading market used in PA, or the fixed administratively set incentive used in NJ.
This guide walks through every solar incentive available to Delaware homeowners and businesses in 2026, including the Green Energy Program rebates, net metering rules, SRECs, federal tax credit changes, and the structural advantages Delaware offers (like no statewide sales tax). The goal is to give you a clear, current picture of what you can actually get, which programs you qualify for, and how to put it all together.
The Delaware Green Energy Program
The Green Energy Program is Delaware’s primary mechanism for reducing the upfront cost of solar. It is funded through utility ratepayer contributions and administered by participating utilities rather than the state directly. This is the most important detail to understand: there is no single “Delaware solar rebate.” There are three programs that look similar but have different rules, rebate amounts, and eligibility.
Delmarva Power Customers
Delmarva Power serves the largest share of Delaware’s population and offers the most generous Green Energy Program rebate. Residential customers can receive approximately $0.70 per watt of installed solar capacity, with a maximum rebate of $6,000. Reaching the maximum rebate typically requires a system of around 8.5 kW or larger.
The key condition: as part of accepting the Green Energy Program rebate, Delmarva Power customers must assign their Solar Renewable Energy Credits (SRECs) to the Delaware Sustainable Energy Utility (SEU). This means you do not get to sell SRECs separately on the open market or through the SREC Delaware procurement program. The rebate is the upfront benefit; the SRECs become the SEU’s compensation for funding the rebate.
Funding for the Green Energy Program comes from a public benefits charge of $0.000356 per kilowatt-hour collected from Delmarva Power customers each month. The program has historically had sufficient annual funding, but rebates are awarded on a first-come, first-served basis until annual funds are exhausted. Applying early in the calendar year is generally a safer approach than waiting.
Delaware Electric Cooperative Members
Delaware Electric Cooperative (DEC) serves much of Kent and Sussex counties. DEC members can receive a smaller per-watt rebate through a parallel Green Energy Program: approximately $0.50 per watt for the first 5 kW of installed capacity, then $0.20 per watt for any additional capacity above 5 kW. The maximum rebate is generally lower than Delmarva’s, with caps that vary by member class.
DEC members typically retain ownership of their SRECs (the SREC assignment requirement is structured differently than the Delmarva program). Specific terms can vary, so DEC members should confirm directly with the cooperative before signing a solar contract.
DEMEC Municipal Utility Customers
The Delaware Municipal Electric Corporation (DEMEC) represents several municipal utilities across the state, including those serving Newark, Milford, Lewes, Middletown, and Smyrna. Many DEMEC member utilities offer Green Energy Program rebates with rebate structures that differ from both Delmarva and DEC.
For example, the City of Newark Electric Department has historically offered approximately $1.00 per watt for the first 5 kW and $0.50 per watt for additional capacity, with a typical cap around $3,500. DEMEC member rebates vary by utility, so homeowners served by a municipal electric company should check with their specific utility for current rebate amounts and application procedures.
Why the Utility Distinction Matters
In Pennsylvania or New Jersey, every homeowner has access to roughly the same state-level incentive structure regardless of which utility serves them. In Delaware, two homeowners on opposite sides of a town line can have meaningfully different solar economics depending entirely on which company sends them their electric bill. Identifying your utility is the first step in figuring out what your incentive picture actually looks like.
Net Metering in Delaware
Delaware has one of the more straightforward net metering programs in the region. The basic rules are consistent across all electric utilities. Delmarva Power, Delaware Electric Cooperative, and the municipal electric companies all credit excess solar generation at the full retail rate.
How the Crediting Works
When your solar system produces more electricity than your home consumes, the excess flows back to the grid. Your utility credits you for that excess at the full retail rate, in kilowatt-hours rather than dollars. Those kWh credits roll over month to month and offset your future electricity consumption when your panels are not producing (overnight, on cloudy days, in winter months).
Delaware’s net metering is structured to make the grid function as your battery. You build up credits during high-production periods like long summer afternoons, then draw on them when production drops.
The 12-Month True-Up
If you have a credit balance at the end of a 12-month period, Delaware net metering rules allow you to request a payout from your utility at the full retail rate. This is unusual. Most states pay out excess credits at a much lower wholesale or avoided-cost rate, if they pay them out at all. Delaware’s full-retail-rate annual true-up is a meaningful additional benefit.
Most homeowners do not request the payout and instead let credits continue to roll over. But the option exists, and for systems that consistently overproduce, the annual cash payout can be substantial.
System Size Limits
Residential net metering in Delaware is available for systems up to 25 kW. This is generous for typical home solar installations, which usually fall well below that threshold. Larger systems for businesses, farms, or large estates may need to consider different interconnection arrangements.
Note that fixed monthly charges from your utility (meter connection fees, distribution charges) cannot be offset by kWh credits. You will continue to pay these fixed costs regardless of how much your solar system produces.
Delaware Solar Renewable Energy Credits (SRECs)
Delaware’s SREC program works very differently from Pennsylvania’s open SREC market or New Jersey’s fixed-price ADI program. It uses a competitive annual procurement administered through Delmarva Power, with bidders awarded 25-year contracts.
How the Procurement Works
Each year, the SREC Delaware program opens for bids during a two-week procurement window. Solar system owners submit bids for the price they would be willing to accept per SREC. At the end of the window, the program administrator verifies the bids and accepts the lowest valid bids in each tier until that tier is filled. Successful bidders receive 25-year contracts.
The pricing structure is split into two phases. For the first 10 years of the contract, you are paid at your bid price for each SREC your system produces. Recent procurement results have placed bid prices around $30 per SREC, though pricing fluctuates each year based on supply, demand, and the auction outcome. For years 11 through 25, you are paid an administrative price of $10 per SREC.
What This Means in Practice
A typical residential solar system in Delaware generates approximately 1.35 SRECs per installed kilowatt per year. SREC income provides a meaningful additional revenue stream on top of your electricity bill savings, but it is not as predictable or guaranteed as New Jersey’s fixed $85/MWh ADI payments.
The Catch: Participation Is Competitive
This is the most important nuance about Delaware SRECs. The procurement program has a finite number of contracts available each year, and bids are accepted lowest-first until the tier is full. If too many homeowners apply, some bids will not be accepted. There is no guarantee that you will get into the program, even if your system is fully operational and eligible.
In addition, if you accept the Delmarva Power Green Energy Program rebate, you have already assigned your SRECs to the SEU and cannot also participate in the SREC Delaware procurement. You generally choose one or the other.
For homeowners who do not take the Green Energy Program rebate, the SREC procurement is worth pursuing. For homeowners who take the rebate, the SRECs are part of what funds the rebate program in the first place.
Federal Tax Credits in 2026: What Changed
The federal tax credit landscape changed significantly at the start of 2026. Delaware homeowners need to understand both what changed and what still works.
Residential Tax Credit (Section 25D) Has Expired
The 30 percent federal residential solar tax credit, formerly available under Section 25D of the Internal Revenue Code, expired on December 31, 2025. Homeowners who purchase a solar system with cash or a loan after that date can no longer claim the credit on their personal tax return. This is a meaningful loss of value compared to 2025, when a typical residential solar purchase came with thousands of dollars in federal tax credit benefit.
Commercial Tax Credit (Section 48E) Remains
The commercial Investment Tax Credit under Section 48E remains available at 30 percent for business-owned solar systems that begin construction by July 4, 2026, and meet applicable labor requirements. This is the credit used by solar lease and power purchase agreement (PPA) providers.
When you choose a solar lease or PPA in Delaware, the leasing company owns the system as a business entity. The provider claims the Section 48E credit and factors that benefit into the pricing they offer you. You do not claim the credit yourself, but you benefit from it through lower monthly payments. This is currently the only path for residential homeowners to access any federal solar tax credit value in 2026.
Solar Financing in 2026: What Changed and What Options Remain
Delaware’s Structural Advantages
Beyond the formal incentive programs, Delaware offers a few structural advantages that quietly improve solar economics for homeowners.
No Statewide Sales Tax
Delaware is one of five U.S. states with no statewide sales tax. This is not a “solar incentive” in the formal sense (it applies to all retail purchases) but it directly reduces the upfront cost of a solar system. In Pennsylvania, solar equipment is exempt from PA sales tax through a specific carve-out. In Delaware, there is no sales tax to exempt in the first place. The result is the same: no sales tax cost on your equipment purchase.
Property Tax Treatment
Delaware does not have a statewide statutory property tax exemption for solar installations. This is a meaningful difference from New Jersey, which has an explicit state-level exemption protecting homeowners from increased assessments. In Delaware, the situation is more nuanced.
In practice, most local jurisdictions in Delaware do not increase property tax assessments to reflect the added value of a solar system. The added value from solar is typically not captured in the assessment process. This treatment is generally favorable, but it is not guaranteed by statute, and homeowners with questions about how their specific county or municipality will treat solar should check with the local tax assessor’s office.
Strong Solar Access Protection
Delaware Code Title 25, Section 318 protects your right to install solar against HOA interference. Any covenant or restriction that effectively prohibits or unreasonably restricts solar installations is void and unenforceable, regardless of when the restriction was recorded. The law also provides for attorney fees to be awarded to the prevailing party in any solar access litigation, which significantly discourages HOA boards from overstepping.
HOA and Solar Panels: Your Rights in PA, NJ, and DE
The Low- to Moderate-Income Solar Program
Delaware operates a separate Low- to Moderate-Income (LMI) Solar Pilot Program designed to make solar accessible to homeowners who would not otherwise be able to afford it. The program is administered through DNREC and provides significantly reduced or no-cost solar installations for income-eligible households.
Eligibility is based on household income relative to the area median income for your county. Homeowners who meet the Weatherization Assistance Program income guidelines may qualify for no-cost solar installations up to a certain system size. Households earning up to their county’s area median income may qualify for substantial cost coverage.
The LMI program is administered through approved contractors who can help homeowners apply and complete the eligibility process. If you think you may qualify, contacting DNREC or one of the program’s approved installers is the right first step.
Putting It All Together
For most Delaware homeowners served by Delmarva Power, the typical 2026 solar incentive picture looks like this:
Green Energy Program rebate up to $6,000 reduces upfront cost. Net metering at full retail rate reduces ongoing electricity bills. SRECs are assigned to the SEU as a condition of the rebate (so no separate SREC income). No state sales tax applies to the equipment purchase. Property is generally not reassessed to reflect added solar value.
For homeowners served by DEC or a DEMEC municipal utility, the rebate picture is smaller but the homeowner typically retains the option to participate in the SREC Delaware procurement program (subject to the competitive bid process).
For homeowners who choose a solar lease or PPA, the financial structure is different: there is no upfront cost, no rebate to claim directly, and the leasing company captures the federal Section 48E tax credit and passes the benefit through as lower monthly payments. State-level benefits like net metering still apply.
The right path depends on your utility, your financial situation, and your goals. Sunwise can model all of these scenarios with your specific home and usage to show you what each option actually looks like.
Conclusion
Delaware’s solar incentive landscape in 2026 is more fragmented than its neighbors, but it remains meaningful. The Green Energy Program rebates significantly reduce upfront costs for most homeowners. Net metering at the full retail rate is among the most generous in the region. The SREC procurement program adds optional income for homeowners who do not take the rebate. And the absence of a statewide sales tax provides a quiet but real cost advantage.
The federal residential tax credit is gone, which is a meaningful change from 2025. But for most Delaware homeowners, the combination of utility rebates, net metering, and rising electricity costs still makes solar a worthwhile investment. For homeowners who prefer no upfront cost, leases and PPAs provide a way to access the federal commercial tax credit indirectly through reduced monthly payments.
The biggest practical question for any Delaware homeowner considering solar is: what does this look like for my specific situation? That depends on your utility, your roof, your usage, and your financial goals. A personalized analysis is the only way to get a clear answer.
How Sunwise Can Help
Sunwise Energy installs solar throughout Delaware and understands the specifics of every utility’s incentive program: Delmarva Power, Delaware Electric Cooperative, and the DEMEC municipal utilities. We handle the Green Energy Program rebate paperwork, SREC application process, and net metering interconnection on your behalf.
If you are considering solar in Delaware and want a clear picture of what the actual numbers look like for your home and your utility, we can put together a personalized analysis with no pressure and no obligation.
Delaware Solar Incentive FAQs
What is the Delaware Green Energy Program?
The Green Energy Program is Delaware’s primary solar rebate program. It is administered by participating utilities, including Delmarva Power, Delaware Electric Cooperative, and DEMEC member municipal utilities, and provides cash rebates that reduce the upfront cost of installing solar. Rebate amounts and eligibility rules vary by utility. The program is funded through ratepayer contributions and is not a statewide single-tier rebate.
How much is the Delmarva Power solar rebate?
Delmarva Power offers approximately $0.70 per watt of installed solar capacity, with a maximum rebate of $6,000 for residential systems. Reaching the maximum rebate typically requires a system of around 8.5 kW or larger. As a condition of receiving the rebate, homeowners assign their Solar Renewable Energy Credits (SRECs) to the Delaware Sustainable Energy Utility.
Can I still claim the federal solar tax credit in Delaware?
The 30 percent federal residential solar tax credit (Section 25D) expired December 31, 2025, for homeowner-purchased systems. However, the commercial Investment Tax Credit (Section 48E) remains available through 2027 for business-owned systems. Solar lease and PPA providers can still claim Section 48E and pass the benefit through to homeowners as lower monthly payments.
How does net metering work in Delaware?
Delaware net metering credits excess solar generation at the full retail rate across all utilities, including Delmarva Power, Delaware Electric Cooperative, and the municipal electric companies. Credits are tracked in kilowatt-hours rather than dollars and roll over month to month. Residential systems are eligible up to 25 kW. If you have a credit balance at the end of a 12-month period, you can request a payout from your utility at the full retail rate.
Does Delaware have a property tax exemption for solar?
Delaware does not have a statewide statutory property tax exemption for solar installations. However, most local jurisdictions in Delaware do not increase property tax assessments to reflect the added value of a solar system. This treatment is generally favorable but is not guaranteed by state law. Delaware also has no statewide sales tax, which means solar equipment purchases avoid that cost entirely.
How do Delaware SRECs work?
Delaware operates an SREC procurement program through Delmarva Power, which awards 25-year contracts to solar system owners through an annual two-week bid window. For the first 10 years of the contract, owners are paid at their bid price (recent prices have averaged around $30 per SREC). For years 11 through 25, owners are paid an administrative price of $10 per SREC. SREC participation is competitive and not guaranteed.
