Delaware has true retail-rate net metering, an active SREC market, and no state sales tax — but a 2022 annual true-up rule limits credit banking, and Delmarva's rebate comes with a significant SREC trade-off worth understanding before you sign.
Delmarva Power customers are facing a notable supply rate increase of roughly 18–20% effective June 1, 2026, on top of other recent cost increases. As rates rise, the value of every kilowatt-hour your solar system produces and you consume directly increases proportionally — locking in solar savings now can help insulate your household budget against continued rate volatility. Confirm current supply rates directly with Delmarva Power before finalizing your savings estimate.
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act. It does not apply to systems installed in 2026 or later. Some online guides still cite this credit as available through 2032 or 2034 — that information is outdated and based on earlier law that was subsequently changed. Be cautious of any installer proposal that includes a "30% federal tax credit" for a 2026 installation. Confirm with a tax professional if federal incentives are referenced in any quote you receive.
Find out how much you can save based on your location and current energy usage.
Delaware has a genuinely favorable solar policy framework — but several specifics that generic calculators miss. Here's what actually matters for your payback estimate.
Delaware has genuine net metering — full retail-rate credit for excess generation exported to the grid. This applies statewide across Delmarva Power, Delaware Electric Cooperative, and municipal electric utilities, all under the same Delaware PSC rules. Residential systems are capped at 25kW, and system size cannot exceed 110% of your trailing 12-month usage.
However, a 2022 legislative change is worth understanding: Delaware now requires all utilities to zero out banked kWh credits annually on a 12-month true-up cycle. You choose your true-up month. Unused credits are eliminated at that point — they no longer roll forward indefinitely as they did before 2022.
Whether any leftover credit is paid out in cash at true-up varies or is unclear from public sources. Confirm the current policy with your specific utility — and right-size your system to minimize credits you can't use before your true-up date.
Delaware's SREC (Solar Renewable Energy Credit) market is a genuine differentiator most states don't offer. Solar owners earn 1 SREC per MWh of electricity produced and can sell them through the Delaware Sustainable Energy Utility (SEU) to electricity suppliers meeting the state's Renewable Portfolio Standard.
Current SREC prices run roughly $30/SREC for the first 10 years of a system's life, then drop to a flat $10/SREC for years 11–25. An average 8kW Delaware system earns roughly ~$300–$350/year in SREC income during the first decade — meaningful on top of electricity bill savings.
SREC markets fluctuate with supply and demand. These figures are estimates, not guarantees — confirm current SREC pricing through the Delaware SEU or a registered aggregator before counting on a specific number in your payback model.
The math may still favor taking the rebate depending on your system size and current SREC market conditions — but this is a real financial trade-off, not a pure bonus. Get quotes that model both scenarios (rebate with SREC assignment vs. no rebate with full SREC income) before deciding. Confirm current rebate availability and terms directly with Delmarva Power, as program funding can change. Cooperative and municipal utility customers should check with their own provider for available programs.
Delaware has no state sales tax at all — a permanent, structural fact about the state, not a solar-specific exemption that could expire. You don't need a special form or certificate to avoid sales tax on solar equipment.
Compare this to neighboring states: Maryland charges 6% state sales tax (with a solar exemption), Pennsylvania charges 6% (no solar exemption), and New Jersey charges 6.625% (with a solar exemption). On a $20,000–$25,000 solar system, avoiding a 5–7% sales tax represents $1,000–$1,750 in savings compared to most other states.
This automatically applies to all Delaware purchases — no action required by the homeowner.
Delaware does not have a statewide statutory property tax exemption for added solar value — unlike Florida, New Jersey, or Maryland, which have explicit laws guaranteeing solar property tax exemptions. Delaware has no equivalent statewide law.
Some local jurisdictions informally don't reassess for solar, or may have local policies that limit the property tax impact — but this is not guaranteed by state law and varies by county and municipality.
Do not assume a property tax exemption applies to your home. Check directly with your county assessor's office — New Castle County, Kent County, or Sussex County, depending on your location — to understand how a solar installation would affect your property assessment and annual tax bill.
The 30% federal residential solar tax credit under Section 25D expired December 31, 2025 under the One Big Beautiful Bill Act. Systems installed in 2026 or later are not eligible for this credit.
Many online guides and installer quotes still show this credit — some cite expiration dates of 2032 or 2034 based on earlier versions of the Inflation Reduction Act. That law was subsequently changed, allowing the residential credit to expire at the end of 2025. The expiration of this credit materially extends payback periods compared to pre-2026 estimates.
Be cautious of any Delaware installer whose proposal includes a "30% federal tax credit" for a 2026 installation. That credit does not exist for residential systems installed this year. Confirm with a tax professional if your installer references federal incentives.
Delaware averages roughly 4.2 peak sun hours per day — a moderate solar resource comparable to neighboring New Jersey and Maryland. Average residential electricity rates run roughly 15–19 cents/kWh depending on the month and data source, with the Delmarva Power supply rate increase in June 2026 pushing rates toward the higher end of that range.
At these rate levels, Delaware's SREC market adds meaningful additional income on top of bill savings — making overall Delaware solar economics more attractive than a simple bill-savings calculation suggests. The combination of true retail-rate net metering, no state sales tax, and an active SREC market gives Delaware a genuinely favorable policy framework, provided you understand the annual true-up credit limit and the Delmarva rebate SREC trade-off.
All Delaware utilities operate under the same statewide net metering rules set by the Delaware PSC. Check your electric bill or the Delaware PSC website to confirm which utility serves your address before contacting providers about specific incentives.
Yes, Delaware has true net metering — full retail-rate credit for excess generation sent back to the grid. This applies statewide across Delmarva Power, Delaware Electric Cooperative, and the municipal electric utilities, all under the same statewide rule set by the Delaware Public Service Commission. Residential systems are capped at 25kW, and system size must not exceed 110% of the customer's trailing 12-month usage. However, a 2022 legislative change significantly altered how credits accumulate: Delaware law now requires all utilities to zero out banked kWh credits annually on a 12-month true-up cycle. You choose your true-up month, and any unused credits are eliminated at that point. This is a real limitation — before 2022, credits could roll forward indefinitely. Now, if you consistently overproduce in summer and can't use those credits by your true-up date, you lose them. Whether any leftover credit is paid out in cash at true-up varies or is unclear from public sources — confirm the current policy with your specific utility before finalizing your system size.
Delaware has an active Solar Renewable Energy Credit (SREC) market — a genuine differentiator that most states don't offer. Solar owners earn 1 SREC per megawatt-hour (MWh) of electricity their system produces. SRECs are administered through the Delaware Sustainable Energy Utility (SEU) and can be sold to electricity suppliers who need them to meet Delaware's Renewable Portfolio Standard. Current SREC prices run roughly $30 per SREC for the first 10 years of a system's life, dropping to a flat $10 per SREC for years 11–25. An average 8kW Delaware system earns roughly $300–$350 per year in SREC income during the first decade — a meaningful ongoing revenue stream on top of your electricity bill savings. That said, SREC markets fluctuate with supply and demand, and these figures are estimates, not guarantees. Confirm current SREC pricing through the Delaware SEU or a registered aggregator before counting on a specific number in your payback model.
Delmarva Power's Green Energy Program offers an upfront rebate of roughly $0.70 per watt, capped at $6,000, for qualifying residential solar installations. On a typical 8kW system, that could be $5,600 in upfront cash — a meaningful reduction in system cost. However, there is an important trade-off that many homeowners don't fully understand before signing: accepting this rebate requires you to assign your SRECs to the SEU. You give up the ability to sell your SRECs yourself on the open market. Over a 10-year period, an 8kW system earning ~$30/SREC on ~10 SRECs/year would generate roughly $3,000 in SREC income — income you would forgo in exchange for the $6,000 upfront rebate. The math may still favor taking the rebate in some cases, but it is not a pure bonus. It is a real financial trade-off that deserves careful analysis based on current SREC market prices and your specific system size. Get a quote that models both scenarios before deciding. Confirm current rebate availability and terms directly with Delmarva Power, as program funding can change.
Delaware has no state sales tax at all — this is a permanent, structural fact about the state, not a solar-specific carve-out or exemption. Unlike most states where solar needs a special legislative exemption to avoid sales tax (and where that exemption can expire or have conditions), Delaware residents simply never pay state sales tax on any purchase, including solar equipment. On a $20,000–$25,000 solar system, avoiding a 5–7% sales tax would represent $1,000–$1,750 in savings compared to neighboring states like Maryland or Pennsylvania. No form or certification is required.
Delaware does not have a statewide statutory property tax exemption for added solar value. Unlike states such as Florida, New Jersey, or Maryland that have passed explicit laws guaranteeing a solar property tax exemption, Delaware has no equivalent statewide law. Some local jurisdictions in Delaware informally don't reassess for solar, or may have local policies that limit the property tax impact — but this is not guaranteed by state law and varies by county and municipality. Do not assume a property tax exemption applies to your home. Check directly with your county assessor's office — New Castle County, Kent County, or Sussex County, depending on your location — to understand how a solar installation would affect your property assessment and annual tax bill.
Yes. Delmarva Power customers in Delaware are facing a notable supply rate increase of roughly 18–20% taking effect June 1, 2026, on top of other cost increases in recent years. This is relevant context for solar economics: as electricity rates rise, the value of every kilowatt-hour your solar system produces and you consume yourself increases proportionally. Locking in solar savings now can help insulate your household budget against continued rate volatility. That said, rate changes don't change the fundamental math — you should still run careful numbers on system sizing, SREC vs. rebate trade-offs, and the annual true-up rule when making your decision.
Delaware's average residential electricity rate runs roughly 15–19 cents per kilowatt-hour depending on the month and data source — a moderate range compared to neighboring states. New Jersey and Maryland tend to run higher; Pennsylvania is comparable. The Delmarva Power June 2026 supply rate increase will push rates toward the higher end of this range. At 15–19 cents/kWh, each kilowatt-hour of solar production you consume directly saves you at the retail rate — which is meaningfully better than states with 10–12 cent rates. Delaware's SREC market adds an additional revenue layer on top of electricity savings, improving overall payback economics compared to a simple bill-savings calculation.
Delaware averages roughly 4.2 peak sun hours per day — a moderate solar resource similar to neighboring New Jersey and Maryland, and meaningfully less than sunnier states like Florida (~5.5) or Arizona (~6.5). This means system sizing and annual production estimates need to reflect Delaware's actual climate. Work with a local installer who uses Delaware-specific irradiance data rather than generalized national averages.
No. The 30% federal residential solar tax credit under Section 25D of the Internal Revenue Code expired December 31, 2025 under the One Big Beautiful Bill Act. Systems installed in 2026 or later are not eligible for this credit. Many online guides, installer quotes, and solar comparison tools still show this credit — some cite an expiration date of 2032 or 2034 based on earlier versions of the Inflation Reduction Act, but that law was subsequently changed, allowing the residential credit to expire at the end of 2025. Be cautious of any Delaware installer whose proposal includes a 30% federal tax credit for a 2026 installation. That credit no longer exists for residential systems. Confirm with a tax professional if your installer references federal incentives in their proposal.
Most Delaware homeowners are served by Delmarva Power (a subsidiary of Exelon), which covers the majority of the state including Wilmington, Dover, and most of the Delmarva Peninsula. Delaware Electric Cooperative serves portions of Kent and Sussex Counties, particularly in rural areas. Several small municipal electric utilities also operate in Delaware, including the City of Dover Electric Division and Milford's municipal system. All of these utilities operate under the same statewide net metering rules set by the Delaware Public Service Commission. However, only Delmarva Power customers are eligible for the Green Energy Program rebate described above — cooperative and municipal utility customers should check with their specific provider for any available incentive programs.
DISCLAIMER: All estimates are approximations based on regional averages. Actual savings vary by location, roof orientation, utility provider, and installer. This calculator does not guarantee specific savings.
Electricity rates last updated: August 2026 (source: EIA)