You are here

DEMEC Member Utilities - Green Energy Program Incentives (8 utilities)

Eligibility 
Commercial
Industrial
Local Government
Nonprofit
Residential
Schools
Agricultural
Institutional
Savings Category 
Solar Water Heat
Solar Space Heat
Solar Photovoltaics
Wind (All)
Geothermal Heat Pumps
Wind (Small)
Fuel Cells using Renewable Fuels
Maximum Rebate 

General limits below
PV: $15,000 for residential, $30,000 for non-residential
Solar Thermal (domestic water): $3,000 for residential, $10,000 for non-residential
Solar Thermal (radiant heating): $5,000 for residential, $10,000 for non-residential
Wind: $15,000 for residential, $30,000 for non-residential
Fuel Cells: $15,000 for residential, $30,000 for non-residential
Geothermal Heat Pumps: $2,500 - $3,000 for residential (varies by efficiency), $20,000 for non-residential

Program Info
Sector Name 
Utility
Administrator 
Delaware Department of Natural Resources and Environmental Control
Funding Source 

DEMEC Green Energy Fund (9 individual utility funds)

State 
Delaware
Program Type 
Rebate Program
Rebate Amount 

General amounts below
PV: 33.3% of installed costs
Solar Thermal: 50% of installed costs
Wind: 33.3% of installed costs
Fuel Cells: 50% of installed costs
Geothermal Heat Pumps: lesser of $500 - $600/ton (varies by efficiency) or 50% of installed costs

Summary 
Note: The municipal electric utilities serving New Castle, Clayton, Lewes, Middletown, Smyrna, and Seaford do not offer any rebates for individual renewable energy systems. Incentives are only available for residents of Dover, Milford, and Newark. Please see the program web site for further information on the use of green energy funds in these jurisdictions. Please also note that the renewable energy incentives offered by the city of Dover are summarized in a separate entry because they are structured differently than those offered by Delaware's other municipal utilities (view the Dover Green Energy Incentive Program). 

Delaware's municipal utilities provide incentives for solar photovoltaic (PV), solar thermal, wind, geothermal, and fuel cell systems installed by their electric customers. Eligibility is limited to systems that are intended to supply on-site energy needs. Incentives are available to both residential and non-residential member-owners, generally up to $15,000 for residential systems and $30,000 for non-residential systems. Both grid-connected and off-grid PV and wind energy systems are eligible for incentives, but systems must serve loads that would otherwise be served by the electric utility. Solar thermal systems used for domestic water heating or in radiant heating applications must reduce or eliminate the need for electric or gas heated water.

Incentive levels and limits vary by technology, system size and sector as follows:

· Solar Water Heating: 50% of installed costs, up to $3,000 for residential systems that pre-heat water for hot water systems, $5,000 for residential systems used in radiant heating applications, and $10,000 for all non-residential systems.

· PV: 33.3% of installed costs, up to $15,000 for residential systems and $30,000 for non-residential systems

· Wind: 33.3% of installed costs, up to $15,000 for residential systems and $30,000 for non-residential systems

· Fuel Cells: 33.3% of installed costs, up to $15,000 for residential systems and $30,000 for non-residential systems.

· Geothermal Heat Pumps: $500 or $600 per ton (based on efficiency), up to $2,500 or $3,000 for residential systems (based on efficiency) and $20,000 for non-residential systems

It is important to note that several exceptions to the amounts above exist for certain municipal utilities. The cities of New Castle, Clayton, Lewes, Middletown, Smyrna, and Seaford do not offer any rebates for individual renewable energy systems.

Systems are subject to a variety of equipment, installation and warranty requirements, including limitations on system orientation and shading for solar energy systems. The Delaware Energy Office processes applications and conducts technical reviews for this program. The program rules do not specify the ownership of renewable energy credits (RECs) associated with system energy production; however, net metering customers in Delaware retain ownership of RECs unless they voluntarily relinquish such ownership. More information about the program is available in the program manual.

Background
Under the 2005 Delaware renewable portfolio standard (RPS) legislation, municipal utilities were allowed to opt out of the RPS schedule if they met certain other requirements. One such requirement was that they contribute to the existing Green Energy Fund for investor-owned utilities or create their own green energy fund supported by an equal surcharge (i.e. $0.000178/kWh). All of Delaware's municipal utilities opted out of the RPS requirements and established their own green energy funds.

In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of electric cooperatives was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.