The short answer is: yes, solar makes sense in Delaware. Plus, the state continues to expand its solar energy capacity using incentives that you may be able to benefit from. State policies allow for compensation for any extra energy through Delaware’s net metering policy and you may be eligible for rebates against the price of your system. Some utility companies are currently offering solar rebate programs, but you better act quickly. As more residents go solar, rebate values are expected to go down.
The federal tax credit for solar
Delaware residents are eligible to claim the federal tax credit for renewable energy. To receive any money from the credit, you must owe income tax at the end of the year. If you don’t owe income tax in the year that you go solar, you have up to five years to collect the credit.
You should contact a qualified tax expert and consult with them. Neither Freedom Forever’s family of independent authorized dealers nor Freedom Forever itself can give you tax advice. A qualified tax professional will understand your situation and be able to give you the most relevant advice.
Net metering means solar makes sense in Delaware
Your solar system may produce more electricity than you need, and you can sell the surplus back to the grid in exchange for utility bill credits. As of the date of this blog, utility companies are purchasing excess energy at the retail rate! If you are at a surplus for 12 consecutive months, you may be able to receive a check instead of bill credits. Delaware wants to ensure that you reap the rewards of going solar.
Solar Renewable Energy Certificates (SRECs)
When a solar generator creates 1 MWh (1,000 kWh) of electricity, this creates one SREC. This program is not affected by net metering or electricity used. The program allows you to sell the SRECs to your utility. The value that SRECs receive is determined by supply-and-demand. Utility companies must buy SRECs to meet Delaware’s renewable-sourced energy goals. Example of how SRECs work if the rate for these credits is $25 per megawatt-hour (MWh) a 5-kilowatt (kW) system that generates 5 MWh per year could make $150 that year. That would be an extra $2,500 over the first 20 years of the system’s life from selling credits in the SREC market. Applications are currently postponed. Sign up for email updates to get notified.
Utility Solar Rebates
Delmarva Power is currently offering a Green Energy Grant for a flat $1,000 incentive for your installation. Delaware Municipal Electric Corporation (DEMEC) is offering qualified customers a cash rebate for a portion of installation costs; the value varies according to resident address. Remember to check with your local utility provider for additional programs that may be exclusive to your city. Don’t forget, as discussed above, there is a federal solar tax credit that can help you reduce your system cost by 26% in form of a federal tax credit.
Freedom Forever is here to serve Delaware
Delaware may not be the sunniest state, but it certainly gets enough sun for you to produce your own energy. We are here to serve you on your renewable energy adventure. Go solar with Freedom Forever and enjoy the peace of mind that comes with our 25-year production guarantee. Freedom Forever guarantees that the solar system will produce the electricity promised with our 25-Year Production Guarantee. We will even pay you for any shortfall from our fault.
What we do if there is a problem. If your system’s performance is falling short, let us know and we’ll send someone out to fix it. If the shortfall is caused by something that is our fault, we will compensate you for the shortfall. The amount of compensation you receive will be listed in your contract with us.