Solar Panels in Delaware: Cost, Savings, and Rebates

Solar energy is on the rise in Delaware. In 2021, the state produced 4.2% of its electricity from solar power, up from just 0.1% in 2010. And there‘s ample room for growth – Delaware has set ambitious renewable energy standards targeting 40% renewable electricity by 2035. Home solar panels can play a major role in meeting these goals while allowing homeowners to take control of their energy bills.

This guide provides a comprehensive overview of the costs, savings opportunities, and financial incentives associated with installing residential solar panels in the First State. Read on to learn everything you need to know to decide if solar is right for your Delaware home.

Average Solar Panel Cost in Delaware

Delaware enjoys very favorable solar pricing compared to much of the U.S. The average cost to install solar panels in DE is about $2.65 per watt based on 2021 data from the Solar Energy Industries Association.

For a typical 6 kW solar system, that puts the total pre-incentive price tag at approximately $15,900.

To put this solar panel system cost into context, the current average residential solar installation price across the U.S. is $3.00 per watt. So Delaware‘s below-average solar pricing coupled with high electricity rates makes going solar an extremely appealing option for many homeowners.

Solar Panel System Sizing for Delaware Homes

While $15,900 is a fair ballpark estimate, every home‘s solar needs are different. The right solar panel system size for your house depends on two main factors:

Average monthly electricity usage – determined from your electric bills
Peak sun hours – how much direct sunlight hits your location on an average day

Here is how the math works:

The average peak sun hours per day in Delaware is 4.23 hours
The state‘s typical monthly household electricity consumption is 932 kWh
Dividing the average monthly usage (932 kWh) by 30 days per month gives an average daily usage of 31.1 kWh
To produce 31.1 kWh per day with 4.23 peak sun hours requires a solar panel system size of 7.3 kW.

So for the average Delaware home, a 7.3 kW solar array is needed to offset 100% of electric needs. At $2.65 per watt, the gross system cost would be $19,345 before accounting for any incentives or tax credits.

Use your latest 12 months of electric bills to estimate your average monthly and daily electricity consumption. Then plug those figures into the solar calculator below to determine the ideal system size and estimated cost for your property.

Delaware Solar Panel Cost and Savings Calculator

What Impacts Solar Panel Costs in Delaware?

While the statewide average cost per watt for solar panels in Delaware is $2.65, several location-based factors can cause pricing to vary:

1. Peak Sun Hours

Places in southern Delaware tend to receive more annual sunlight than northern parts of the state. More peak sun hours mean smaller solar systems are needed to offset the same energy usage. And with solar panels typically representing ~75% of total installation costs, more peak sunlight equals lower overall pricing.

Sussex County Rating: 4.46 avg. peak sun hours per day
New Castle County Rating: 3.94 avg. peak sun hours

2. Local Electricity Costs

Electricity rates in Delaware range from around $.125 to $.145 per kWh depending on your utility provider. Areas with higher than average electric costs offer greater savings potential from solar, shortening system payback periods.

3. Installer Choices

While Delaware has fewer local solar companies compared to some states, homeowners can expect to pay 5-15% less by using installers based in lower-cost areas like Maryland and Pennsylvania. However, be sure to verify licenses and credentials when using out-of-state contractors.

Now let‘s examine your solar panel installation options in Delaware.

Top Solar Installers in Delaware

The solar company you choose can significantly impact system pricing, quality, and long-term performance. Here are two top options for homeowners in the First State:

Solar Energy World

With headquarters in Maryland and licenses to operate throughout the mid-Atlantic region, Solar Energy World stands out as one of the most reputable installers delivering service in Delaware.

Founded 2009
A+ Better Business Bureau rating
Certified by NABCEP
Ranked #16 solar contractor nationwide by Solar Power World
Benefits: long 30-year labor/workmanship warranty covering entire system

SunnyMac Solar

For those preferring a local company, SunnyMac based in Wilmington, DE is a great choice. With 14 years of experience completing installs across Delaware, SunnyMac‘s electricians take great pride in quality workmanship and exceptional customer service.

Founded 2009
Licensed in DE, PA, NJ
Certified by NABCEP
Benefits: 25-year system warranty on equipment, labor and workmanship

No matter which installer you select, be sure to ask about their experience, licensing, warranties, safety records, customer service policies, etc. An established local company with a proven track record stands the best chance of providing a hassle-free solar experience.

Bill Savings with Solar Panels in Delaware

In addition to environmental benefits, upgrading to solar power also produces significant financial savings in the form of lower electricity bills. Delaware‘s high energy consumption coupled with increasingly affordable panel pricing makes solar a very compelling investment.

Based on current system costs and the latest average residential electric rate of $.123 per kWh charged by Delmarva Power, a properly-sized solar array in Delaware cuts utility bills by 100% and delivers a complete payback in around 11 years.

DE average annual electricity expenditure: $1,482.96
System Cost: $15,900 (6 kW)
Annual bill savings: $1,482.96
Payback period: 10.7 years

Given quality solar panels typically last 25+ years, the remaining 15 years of electricity at no cost produces substantial lifetime savings between $22,244 – $37,074. Not to mention increased home resale value, reduced carbon footprint, and mitigated exposure to rising retail electricity rates.

Try the Delaware Solar Payback Calculator

Use this tool to estimate system payback specific to your location based on actual usage history and solar panel pricing in your area:

Delaware Solar Payback Calculator

Incentives for Going Solar in Delaware

Thanks to strong public policy support for renewable energy, Delaware residents can further reduce solar power costs through a mix of generous rebates, tax credits, and other incentives.

Federal Solar Tax Credit

The federal solar tax credit allows homeowners to deduct 26% of total system costs from their federal tax bill for systems installed in 2023. This credit drops to 22% in 2024 before expiring outright in 2035 unless extended by Congress.

Potential savings: $4,134 tax credit on $15,900 system

SREC Credits

Delaware‘s solar renewable energy credits (SRECs) program pays solar panel owners for each MWh of clean energy they produce through a market-based credit trading system. Over a 10-year period, SRECs typically generate ~$300 per kW of installed solar capacity.

Potential 10-year revenue on 6 kW system: $1,800

Sales Tax Exemption

Solar equipment purchases in Delaware are 100% sales tax exempt – a 6% rate for most residents. This discount is automatically applied by solar installers at the time of sale.

Potential 6% savings: $954 on $15,900 system

Check the Database of State Incentives for Renewables and Efficiency for additional rebates, incentives, and policies related to renewable energy in Delaware.

How Does Delaware Compare to Other States?

Thanks to plentiful sunshine, strong policy support, and below-average electricity rates, many parts of the U.S. offer superior economics for solar panels vs. Delaware.

Solar power in the First State is roughly on-par with neighboring mid-Atlantic states like Pennsylvania, New Jersey, and Maryland which all share similar incentives and payback periods.

However, states farther south like North Carolina, South Carolina, Georgia, and Florida tend to receive significantly more annual peak sunlight (over 5 avg. hours per day). And states like Massachusetts, New York, and Connecticut have implemented more aggressive incentive programs allowing certain homeowners to achieve payback in fewer than 5 years.

So while solar may not provide the absolute shortest investment paybacks across the U.S., panels still represent an smart, long-term upgrade for most Delaware residents focused on lowering electric bills and minimizing environmental impact.

Additional Resources on DE Solar Energy

Ready to explore residential solar power even further? Check out the articles below covering incentives, storage options, electric vehicles, and more related to green energy in Delaware.

The renewable energy future looks extremely bright in Delaware. Contact local solar providers for quotes catered to your home and start mapping your path to energy independence today!