State solar guide
Delaware has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (verify at your assessment) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Delaware offers full 1-to-1 retail net metering for residential systems up to 25 kW through all Delaware utilities, including Delmarva Power, Delaware Electric Cooperative, and municipal utilities such as the City of Dover Electric and City of Milford Electric. Credits are tracked in kilowatt-hours and reset annually after a 12-month settlement cycle; unused credits at year-end expire and do not carry forward, which is a drawback compared to Maryland's indefinite rollover. Senate Joint Resolution No. 1 (January 2025) mandated a cost-benefit study of net metering with results published in April 2025, and policy changes for new applicants are possible based on that study.
Delmarva Power (serving most of Delaware): full retail 1-to-1 net metering with annual credit reset; also offers the Green Energy Program solar rebate of approximately $0.70 per watt installed (capped at approximately $6,000). Delaware Electric Cooperative (serving rural Kent and Sussex counties): full retail net metering under state mandate; verify current terms with the co-op. City of Dover Electric: full retail net metering; verify current terms. City of Milford Electric: full retail net metering; verify current terms. All utilities subject to potential policy review under SJR No. 1 study outcomes.
Program: NM1_full_retail. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Delaware utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Delaware homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Delaware Solar Incentives State and local programs Incentive amounts and availability change frequently. Verify at dsireusa.org before relying on any program. | See description Delmarva Power Green Energy Program: solar rebate of approximately $0.70 per watt installed, with typical residential caps around $6,000. This is one of the more attractive utility rebates available in the Southeast and Mid-Atlantic region. Delaware Sustainable Energy Utility (DESEU): offers various financing programs and efficiency incentives. Delaware Electric Cooperative: verify current programs with the cooperative directly. | Delaware homeowners. Verify current programs at dsireusa.org. | Limited | DSIRE (opens in new tab) |
| Delaware Solar Property Tax Exemption Property tax exemption Confirm exemption filing requirements with your county assessor. | Exemption on solar-added home value (amount varies by local tax rate and system size) Most local jurisdictions in Delaware do not assess added value from solar installations for property tax purposes. No single statewide statute governs this; individual jurisdictions administer the exemption. Most major Delaware jurisdictions have effectively treated solar as non-assessable. | Delaware residential property owners with qualifying solar installations. | Active | DSIRE (opens in new tab) |
| Delaware Solar Sales Tax Exemption Sales tax exemption Verify that your specific installation and municipality qualify for the Delaware sales tax exemption. | State sales tax savings on system equipment and installation Delaware has no statewide sales tax (one of five states with no general sales tax). Solar equipment purchases, like all purchases in Delaware, are inherently sales-tax-free. No specific solar exemption is needed because there is no sales tax to exempt. | Delaware homeowners purchasing qualifying solar energy systems. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Savings example
This example uses real Delaware market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
An 8 kW system at the EnergySage May 2026 Delaware average of $2.31 per watt costs approximately $18,480 before incentives. The federal residential credit is zero (Section 25D expired December 31, 2025). The Delmarva Power Green Energy Program rebate of approximately $0.70 per watt reduces net cost by approximately $5,600, bringing the estimated net cost to approximately $12,880 for Delmarva Power customers. Delaware SREC income adds approximately $240 to $300 per year. Delaware has no state sales tax, so there is no sales tax on the purchase. At 4.80 peak sun hours per day and full retail net metering at 16.27 cents per kWh, combined annual electricity bill savings plus SREC income are estimated at $1,600 to $2,000, producing an illustrative payback of approximately 11 years for Delmarva Power customers who qualify for the utility rebate. Customers of Delaware Electric Cooperative or municipal utilities without the Delmarva rebate would see a longer payback without that offset. Figures are illustrative. Your in-home assessment will use your actual utility bill, utility territory, and current program availability.
Delaware homeowner savings example (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Permit requirements in Delaware vary by municipality. Verify permit timelines and fees with your installer and local Authority Having Jurisdiction (AHJ).
Commercial solar in Delaware
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Delaware business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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Frequently asked
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