Unlocking Thousands in Solar Savings for Delaware Homes

Is it actually possible to save money by installing solar panels in Delaware? With the state‘s small size and overcast skies, you might be skeptical that home solar makes financial sense here.

Well, it turns out the First State provides one of the most favorable environments for solar in the entire country! By tapping into Delaware‘s robust incentive programs, a typical household could slash their utility bills AND recoup thousands in upfront system costs.

Curious if you too could profit from the sun? Let‘s dive into exactly how much you can save.

Just How Expensive is Electricity in Delaware?

Before weighing whether solar could lower your bills, you first need to know how much you currently pay for power.

On average, Delaware residents now face an electric rate of 14.26 cents per kWh — one of the highest in the region. At that price, monthly electric costs regularly exceed $100 and can even top $200 during hot summer months or cold winters.

Based on applying the state average rate to your home‘s past 12 months of electric bills, we can estimate your current annual expenditure lays around ${1500}. Over the 20+ year lifespan of a solar array, grid electricity expenses for a household like yours would add up to more than ${30000}.

Of course, energy prices only move in one direction: up! As generation and delivery costs rise, you run the risk of potentially doubling your electricity rates over the next two decades.

Luckily, by offsetting a portion of those utility bills with solar, you can lock in substantial future savings. Let‘s examine exactly what Delaware offers.

Could Solar Eliminate My Electric Bills?

By installing solar panels paired with net metering, you can leverage Delaware‘s strongest incentives to radically cut your grid dependence.

When sized appropriately for your home‘s needs, a rooftop solar array can deliver enough free sunlight-generated electricity to cover 60-100% of your annual consumption. Any excess solar energy gets fed back to the grid and becomes a dollar-for-dollar credit that rolls month-to-month on your electricity bill.

Over the course of a year, it‘s possible to zero out your entire bill with solar in Delaware!

To give you a sense of solar‘s bill reduction potential, here is what you might expect after installing a typical 6 kW system:

• Solar generation: 8,200 kWh per year
• Annual bill offset: 60%
• Net utility costs: $570/year (down from $1500)

With smart home battery storage, you can offset even more by reserving solar energy for peak evening hours when rates are highest.

What Does a Solar Array Really Cost in Delaware?

Naturally, to slash future electric costs, you first have to invest in installing solar panels. What is the true out-of-pocket expense?

Well, for a purchased 6 kW solar system (sufficient for most single family homes), you‘ll typically pay around $15,900 before incentives. At $2.65 per Watt, Delaware falls close to the U.S. average for solar panel pricing. We used the following costs in that estimate:

• Equipment/hardware: $9,500
• Installation/labor: $4,400
• Permits, inspection: $2,000

However, that $15,900 sticker shock belies the actual long term expense of home solar in Delaware. Given the state‘s generous rebates and credits, your final net costs end up far lower.

Let‘s examine the incentives that help dramatically defray purchase and installation bills.

Federal Solar Tax Credit — Up to $4,770 Off

The biggest upfront discount comes via a 30% federal solar tax credit. By filing Form 5695 with your next tax return after an installation completed before 2033, you can recoup 30% of total gross system costs.

For a $15,900 system, that equates to $4,770 back in your pocket! The actual credit you‘ll receive depends on your final installed solar costs:

• 6 kW system before rebates: $15,900
• 30% tax credit amount: $4,770

Since the tax credit currently expires on January 1, 2034, act fast to get the maximum 30% benefit. Starting in 2033, the percentage decreases each year before phasing out completely.

Delaware Utility Rebates — Up to $5,000

While the First State lacks a personal tax rebate, power utilities administer solar incentives that confer similar savings.

Delmarva Power territory residents, constituting over 500,000 Delaware households and businesses, qualify for the largest rebate through their Green Energy Fund Grant:

• $0.70 per Watt, capped at 8.6 kW
• Total potential rebate of $6,000
• Cash grant paid in one lump sum

By reserving your spot in Delmarva‘s quarterly funding rounds, you can register to collect this rebate payment 90 days after your solar installation completes.

Depending on your utility provider, also check for additional renewable energy or co-op member solar incentives. For instance, DEMEC customers may receive up to $850 per homeowner.

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Delaware‘s solar incentives can zero out upfront costs entirely after federal and utility rebates.

Sell Your Solar Renewable Credits for Added Income

Once up and running, your solar panels will also produce a valuable environmental commodity for years to come: solar renewable energy credits (SRECs).

As Delaware mandates utility companies increase renewable share, they must purchase SRECs from solar producers like you as compliance credits. SRECs generally sell for $150-$350 each, with current market rates around $250 per 1,000 kWh solar block.

For a 6 kW system in Delaware, you could generate over 50 SRECs annually for 15-25+ years! At $250 per credit, that equates to $13,000 extra lifetime solar income through recurring SREC sales.

Batteries Completely Futureproof Savings

While not yet essential, pairing solar panels with home battery storage prepares your investment for the long run. Once power rates inevitably rise, batteries let you tap stored sunshine and avoid drawing grid energy during peak pricing.

Best of all, between federal subsidies and utility incentives in certain areas of Delaware, purchasing a battery today may require very little upfront investment.

Be sure to ask installers about available battery rebates and financing options to determine if storage pencils out for your household.

Leasing VS Buying: Which Saves More?

Given all Delaware’s solar incentives apply exclusively to purchased systems, buying your array outright rather than leasing over 20-25 years guarantees the most lifetime savings.

Since companies recoup their leased system costs through charging you 20-40% higher electricity rates, purchasing your own array and net metering ends up less expensive in the long run. Add on top the $13,000 extra from selling SRECs over two decades and the overall value gap widens substantially.

Here’s how the financials typically shake out in Delaware:

Purchasing also lets you qualify for the 30% federal tax credit which for most homes covers nearly 1/3 of total installed solar expenses.

Putting It All Together

Now that you understand Delaware’s solar incentives and have run the numbers on long term costs versus utility bill savings, let’s examine what a typical net outlay looks like for purchasing solar panels.

We’ll base estimates on adding a 6 kW solar system to save 60% off $1500 in annual utility expenses.

• Gross system cost: $15,900
• Federal tax credit (30% of $15,900): -$4,770
• Utility rebate (varies): up to -$6,000
• Out-of-pocket solar cost: $5,130 – $11,900

If factoring the extra 20-year income from selling SRECs, your net costs could effectively drop to $0 with the right combination of incentives!

And by investing that upfront amount, each year you‘ll reliably lower utility bills by $900 while protecting yourself from rate hikes. Across 25 years, solar secures over $21,760 in electric savings—all while adding value to your home.

Solar Incentives At a Glance

Start Saving Today with Solar

Thanks to Delaware‘s exceptional incentive programs, installing solar panels makes tremendous financial sense for homeowners across the state.

In addition to rewarding upfront discounts and long term savings on electric bills, embracing solar helps Delaware reach its forward-thinking renewable energy goals. It‘s a win-win for your wallet AND the planet!

Reach out to local solar installers for help capturing every possible rebate and credit when making the switch. Within a few years, you‘ll be basking in free daylight energy while utilities keep paying YOU.

Let nothing hold you back from unlocking solar savings today!