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Delaware Solar Incentives: Tax Credits & Rebates Guide
  • Written by Luke Daugherty
  • |
  • Edited by Jamie Cesanek
  • |
  • Last updated 08/30/2023

Estimate your home’s solar cost and savings

20-year savings
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$21,924
Incentives
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$7,292
Upfront cost
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$24,652
Payback period
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9 years
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Key Points

  • The average Delaware home solar system costs $24,720 for an 8-kilowatt array.
  • Delaware solar incentives and federal tax credits can help you reduce this cost substantially, and you’ll see long-term savings on your electricity bills.
  • SaveOnEnergy can help you compare Delaware solar companies and find the best installer for your project.

Solar power in Delaware

Delaware may be a small state, but it’s making big strides in solar energy. According to data from the Solar Energy Industries Association, it already generates nearly 4.5% of its power from solar sources — enough to power more than 30,300 homes. Over the next five years, Delaware plans to expand its solar capacity nearly threefold.

Thanks to this investment in solar energy, now is a great time for Delaware residents to add solar panels to their homes. Although solar represents a significant upfront cost, many Delaware solar incentives help make it more affordable. Plus, you can save thousands in reduced energy bills over the long haul with solar panels in Delaware.

Ready to go solar? Call 866-420-6556to be connected with a solar expert today!

Get your free solar savings estimate

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Delaware solar panel cost

The cost of solar panels in Delaware and across the country is measured in dollars per watt. Several factors influence the total cost of solar, including the type of solar panels you choose, the system size, brand, roof type and position, and soft cost like installation and permitting. Ultimately, each solar installation is customizable, so total costs can vary significantly.

According to Find Energy, the average cost of a solar system for residential use in Delaware is $3.09 per watt. For a typical 8-kilowatt (kW) system, you’d pay about $24,720 before factoring in solar incentives like rebates and tax credits.

Here’s how the cost of solar panels in Delaware compares to the U.S. average.

System SizeTotal costNumber of panels*
Delaware8 kW$24,72020–27
U.S.8.6 kW$31,55822–29

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does Delaware solar save you money?

There are ways to cut down on the upfront costs of solar in Delaware. All U.S. residents are eligible for the 30% federal tax credit toward new solar installations, which we’ll explain in depth on this page. This alone can save you more than $7,400 on the cost of a typical Delaware system. Beyond that, there are several Delaware solar incentives that can help you save even more.

In the long run, though, your biggest savings come from reduced electricity usage at home. The typical Delaware resident pays $158.18 per month in electricity bills, and the right solar panel array could eliminate or reduce this cost. That means you could earn back the cost of solar panels in Delaware in about nine years. After that, your solar panels will continue to save you money for decades.

To get an idea of what your Delaware solar panels might cost you, compare the range of system sizes in the following table. You can use these estimates and your typical electricity usage to calculate how long it would take to recoup your upfront costs. These estimates don’t include the 30% federal tax credit and other solar incentives.

System sizeTotal costNumber of solar panels*
6 kW$18,54015–20
8 kW$24,72020–27
10 kW$30,90025–33
12 kW$37,08030–40
14 kW$43,26035–47

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Delaware solar panel incentives or rebates

Solar panels in Delaware have a large upfront cost. One way to offset the price tag is by taking advantage of incentives and rebates.

On a federal level, homeowners who install solar panels between 2022 through 2032 can get a 30% federal tax credit called the Residential Clean Energy Credit. There is no maximum solar panel cost cap on the federal tax credit. The following table highlights additional solar incentives you can benefit from in Delaware.

ProgramDescription
Net meteringUtilities in Delaware offer net metering, which allows customers to earn credits on their electricity bills in exchange for sending excess solar energy to the power grid.
Delaware Solar Renewable Energy Credits Delaware’s solar renewable energy credits (SRECs) program offers homeowners with solar panels the opportunity to earn credits for every megawatt-hour of energy they produce.
Utility solar rebatesSeveral Delaware state utilities, including Delmarva Power and Light, Delaware Electric Cooperative, and Delaware Municipal Electrical Corporation, offer cash rebates based on the size of the solar system you install.
Residential Clean Energy CreditThe federal solar tax credit is good for 30% of the cost of solar installed on your primary or secondary residence. It drops to 26% in 2033 and 22% in 2034 before expiring in 2035.

Solar incentives in Wilmington

Wilmington residents may be eligible for solar rebates from their local utility, Delmarva Power and Light

  • Credits are good for up to 80 cents per watt on residential solar systems, for a maximum of $8,000.
  • Eligible systems must carry a minimum five-year warranty and meet product and electrical standards.
  • Installations must be carried out by one of the solar companies participating in the program.

Solar incentives in Dover

Depending on your electric utility in Dover, you may be eligible for a solar rebate. Delmarva Power and Light offers the same program noted above, while Delaware Electric Cooperative (DEC) offers its own solar incentive program for residents in Dover and elsewhere. 

  • Grants are good for up to 50 cents per watt for the first 5 kW, then 20 cents per watt, up to $2,000 for class A systems and $3,500 for class B systems.
  • Eligible systems must carry a minimum five-year warranty and meet all product and electrical standards.
  • Although self-installations are sometimes permitted, it’s recommended to work with a local installer.
  • To learn more about the program and apply, visit DEC’s website.

Why choose Delaware solar power?

Aside from the many Delaware solar incentives, solar energy brings many benefits to homeowners in The First State. From electricity cost savings to grid independence and eco-friendly benefits, a solar investment is worth the price.

Lower energy costs

Although solar panels in Delaware have a significant upfront cost, they can reduce how much you pay on your monthly energy bills. If you think you may sell your home in the future, installing a solar panel system can also increase your home’s value. Over time, the energy savings and property value increase will translate to true savings on the cost of your solar panel investment.

Establish energy independence

Another reason to purchase solar panels for your Delaware home is to gain energy independence. With solar panels, you can worry less about rising electricity rates and reduce the need to rely on the electricity grid to power your home. And with a solar battery, you won’t have to worry about power outages.

Go green

Another reason to consider solar panels in Delaware is to lower your household’s environmental footprint. Adding solar panels to your home can potentially lessen your impact on climate change. Solar panels are just one form of clean energy that reduces pollution. Unlike fossil fuels, solar power is also a renewable energy source. 

Should I buy or lease my solar panels?

One of the biggest debates homeowners have when deciding to install solar panels is whether to buy or lease the panels. While the lower upfront cost to lease the solar panels can be tempting, you will actually save more money over time if you buy or finance the solar system. Homeowners who lease won’t see the same amount of savings as they would when buying the panels. You also won’t be eligible for Delaware state solar incentives and rebates like the federal solar investment tax credit.

Learn more about various ways to access solar in Delaware in the following table.

Payment methodBenefitsDrawbacks
Cash purchaseHighest long-term savings, system ownership and incentive eligibility, reduced energy billsHighest upfront cost
Solar loanFull ownership eventually, incentive eligibility, energy savingsInterest fees cut into long-term savings
Solar leaseNo upfront costs, less  maintenance, reduced energy billsNo ownership or incentives, you may need to transfer  lease if you move
Power purchase agreementNo upfront costs, fewer maintenance requirements, lower energy billsNo ownership or incentives, lower long-term savings
Community solarEasy to subscribe, no maintenance, lower energy billsNo ownership or incentives, less long-term savings

Delaware solar panel companies

There are 44 solar companies in Delaware, including 23 different installers and developers. The SaveOnEnergy marketplace can connect you with a top-tier solar company in your area. Review our solar resources to understand more about the solar industry and be equipped to choose the right Delaware solar panel company. You’ll find helpful resources on the most efficient solar panels, how they work, and what to expect during installation. If you are ready to go solar, call the number on your screen or fill out our solar estimator. 

Solar installerYear foundedFinancing optionsWarranty terms
ADT Solar Company Logo2011Cash purchase or solar loan25-year manufacturer warranty and production guarantee
Primitive Solar Company Logo2018Cash purchase or solar loan30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
Sunpower solar company logo1985Cash purchase, solar loan, or lease25-year full system warranty

What to look for in a solar contractor

With so many solar companies to choose from, it’s important to research your options carefully and compare solar quotes from multiple installers. Make sure any installer you consider has a history of excellent customer service and sells top-rated equipment with good warranty coverage and financing options. They should also have industry certifications from an organization like the North American Board of Certified Energy Practitioners (NABCEP).

Beware of free solar panels in Delaware scam

If you come across any offers for free solar panels in Delaware, treat them with caution. Solar panels come with a considerable cost, and these offers are likely just scams aimed at getting your personal information. Instead, it’s better to look into Delaware solar incentives and other ways to save on the cost of solar panels. Even though you’ll have to spend upfront, solar panels can lead to lots of savings over time.

Important solar installation factors to consider

If you’re trying to decide if solar panels are right for your Delaware home, consider these factors:

  • The age, angle, and condition of your roof must be suitable for solar panels. According to the Department of Energy, homes with south-facing roofs that are sloped 15–40 degrees capture the most energy from solar panels.
  • Solar panels offer the most savings for homes that receive lots of direct sunshine. Before signing up for solar panels, consider how much sun you get on your Delaware home, especially if you have trees that shade your roof.
  • Although Delaware has solar rights laws limiting the ability of homeowners associations (HOAs) or other groups to place restrictions on solar installations, you should still check to ensure you won’t face any significant barriers.

Solar power FAQs

  • The average cost of solar panels in Delaware is $24,720. However, the cost will vary depending on the type of panels you choose, how big your system is, installation costs, and other factors. You may also be eligible for Delaware solar incentives and federal credits, which can reduce how much you pay for the system.

  • Whether solar power is a good investment in Delaware depends on several factors, but it could lead to big savings over time. Your energy usage, ZIP code, and local weather can help you decide if solar panels are right for you. You can also consider power purchase agreements and community-shared solar systems if you choose not to buy or lease solar panels directly.

  • The amount you could save by investing in solar depends on the system you install, the amount of direct sunlight your home gets, and your energy habits. Since the average Delaware resident pays $158 per month for electricity, you could potentially save more than $1,800 annually by installing solar panels in Delaware.

  • Delaware offers several options for reputable solar panel installers. Before you sign a solar contract, research your options thoroughly. Consider getting solar quotes from several different Delaware solar companies to compare system and installation costs before you make a commitment.

  • Solar power helps the environment in a few ways. Not only is solar a renewable energy source, but solar energy generation does not emit carbon dioxide. Solar panels can help reduce the amount of carbon emitted into the atmosphere, which helps address climate change and lower your household’s carbon footprint.

Solar energy by state

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