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Add State and Local Incentives to the 30% Federal Tax Credit
Learn about solar incentives and solar rebates. Find out what is available to you through federal, state and local programs, as well as local utilities.
State and Local Solar Panel Rebates
Combining the Federal tax credit with state incentives you qualify for may significantly reduce the cost of your solar PV system.

Read more good news about these programs and important tips on qualifying below.
Federal Solar Tax Credit
30% of the cost of your Solar Electric System and installation can be deducted from your federal tax bill.

Read more about this credit and what qualifies.





Solar Incentives by State… Click on your state to see what is available.    
Solar States


— You may be able to afford a larger solar PV system than you originally thought!
— You may be able to add the battery backup system you were planning to buy in a year or two



The Good News About Solar System Incentives, Qualifications and Tips
Some solar incentive programs pay you back over time, based on the energy you generate. Other solar incentives are one-time payments of rebates or credits. Incentive requirements and definitions may vary between states.

Incentive types can be specifically for residential, schools, business, or industrial; or inclusive of all of them. Solar incentives are mainly for grid tied systems and are sometimes available for off grid systems.

The incentives may be only for solar photovoltaic (electric), for electricity generated by wind, or for solar thermal (hot water generation). Other types of incentives may incorporate multiple solar technologies.

Programs with yearly or periodic application dates have credits or rebate rates that may be stepped down over time.

To qualify for incentives, your solar system may have to be installed by a licensed Photovoltaic System Installer, and/or connected to the grid by a licensed Electrician. This may be particularly true for Grid-Tie (Grid-Intertied) systems.
Plan ahead and act quickly. Many incentive programs are time sensitive. First-come-first-served programs, such as lotteries, can be spoken for in minutes after the opening of their application date.

Be careful including incentives in your PV system's budget due to requirements and possible deadlines to meet before qualifying.

Always consult a tax professional in regards to your eligibility for tax incentives.





Solar Incentive Glossary
Battery Backup Systems
Battery backup systems can store electricity from the grid or a fuel-powered generator to provide emergency power when the grid goes down. It can also store energy created PV system to power appliances and lights at night after the sun goes down.

Feed in Tariffs,
a Performance Based Incentive, or PBI

(Available for Grid Tied Systems.)
Feed-in Tariffs are typically long term contracts with your local utility for performance-based compensation.

The contracts are typically a 15-25 year purchase agreement at a guaranteed rate. The rate may decrease over time as specified in the agreement. Feed-in Tariffs may ultimately pay for your PV system or even exceed your initial investment depending on the specifics in the contract.

Originally started in Germany in 1990 and restructured in 2000 to include the right to interconnect to the utility grid. It was designed as an incentive to promote cost-effective renewable energy use and advancements in technologies. Due to its success, the current German policy is the cornerstone for the creation of many feed-in tariff programs around the globe.

Green Building Programs
(May be available for Off-grid and/or Grid-tied Systems.)
Green Building Programs are generally for new construction and remodeling, or just adding a solar electric system. The most common incentives are reductions or waivers of building permit fees. Some state or local organizations offer coupons that reduce construction and/or installation costs to homeowners. The home or business owner usually gives the coupon to their program-authorized installer/contractor. Once the system is installed the installer/contractor can be reimbursed for the amount of the coupon by the program's organization.

Grid-Tied PV Systems
Grid tied systems are inter-connected to send energy back to the grid when your solar electric system creates more than you're using; and you can receive energy from the grid when you're using more electricity than your system is generating at the moment. Learn more about grid-tied solar systems.

Loans
(May be available for Off-grid and/or Grid-tied Systems.)
State or local governments may offer low or zero interest loans for renewable energy projects. Terms are typically 10 years or less. If you are going to purchase or remodel a home that you are going to add a solar system to you may also want to see the Energy Star website for information on Energy Improvement Mortgages (EIMs).

Property-Assessed Clean Energy (PACE) financing may be offered by states that have been authorized to participate in this program. The amount of the loan is determined by a special assessment of your property and is typically repaid over a period of years.

Check with your local banks and credit unions as they may offer renewable energy loans for less than the prime rate. Also consider that mortgage loans and home equity loans can offer several advantages: longer terms, lower interest rates than conventional bank loans, and tax-deductible interest.
Net Metering
(Available for Grid Tied Systems.)
As of January 2012, only four states do not have net metering policies ‐ South Dakota, Mississippi, Alabama and Tennessee. These programs are for utility customers who generate their own electricity and feed excess energy back into the grid. Net-metered customers may use grid energy when their electrical demand exceeds their solar electric system's output. Solar electric credit rates are applied to the customer's total electric use and are shown on the utility bills.

The credit rates and rules vary from state to state. Unused solar electric system credits may expire in a specified time period or they may be carried over from year to year. The credits may only be applied to the utility bill or you may be allowed to get a refund check at the end of a designated period, usually the end of the year.

Off-Grid PV Systems
Off grid systems do not feed energy back to the grid. You may be completely independent from the grid or you may be receiving grid electricity to supplement your system (Grid-Assisted). Learn more about off-grid solar systems.

Solar PV System (Photovoltaics)
A solar PV system uses photovoltaic panels (or modules) to create electricity. This powers appliances, lights, and other electric equipment.

Solar Thermal System
A solar thermal system uses panels (or modules) to heat water. The hot water is typically used instead of a water heater for everyday water use, or in a radiant heating system to warm the air.

State and Local Tax Incentives
(May be available for Off-grid and/or Grid-tied Systems.)
  • Personal tax incentives include income tax credits (dollar-for-dollar reduction on what you owe) and income tax deductions (reduces your taxable income).
  • Property tax exemptions, exclusions and credit incentives generally exclude the added value of the system from your yearly property tax. Abatements may reduce a percentage of your yearly property tax over time.
  • State sales tax incentives can be an exemption from or a credit towards the applicable sales tax.
Utility Rate Discounts & Rebates
(Available for Grid Tied Systems.)
Some utilities and state or local programs may offer temporarily reduced rates on utility bills, or one time rebates on the installation of solar systems and purchases of energy efficient appliances and/or HVAC systems.


Updated: 12/03/2016
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Delaware Solar Incentives
Updated: 12/03/2016
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INCENTIVE NAME: Net Metering
CATEGORY: Regulatory Policy
TYPE: Net Metering
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: DE02R
DETAILS:
Applicable Utilities - All utilities
System Capacity Limit - 2 MW for non-residential Delmarva customers; 500 kW for non-residential DEC and municipal utility customers; 25 kW for all residential customers; 100 kW for all farm customers on residential rates subject to an appeal and case-by-case determination by Delaware Energy Office which may grant exceptions to this limitation in accordance with Title 26, section 1014(d)(1)b
Aggregate Capacity Limit - 5% of Electric Supplier's aggregated customer monthly peak demand (utilities may increase limit)
Net Excess Generation - Credited to customer's next bill at retail rate, except for certain community-owned facilities. After 12-month cycle, customer may opt to roll over credit indefinitely or to receive payment for credit at the energy supply rate.
Ownership of Renewable Energy Credits - Customer owns RECs
Meter Aggregation - Allowed, see below for details
WEBSITE: http://depsc.delaware.gov/electric.shtml
LAST UPDATE: 01/11/2016

INCENTIVE NAME: Delmarva - Green Energy Fund
CATEGORY: Regulatory Policy
TYPE: Public Benefits Fund
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: Public Benefit Surcharge on electric bill
CODE: DE01R
DETAILS:
Types - Renewables, Energy Efficiency, RD&D, Low-income Assistance
Total Fund - $3.2 million annually on average
$0.8 million annually for low-income assistance
Charge - $0.000356 per kWh (0.356 mills per kWh) for renewables
$0.000095 per kWh (0.095 mills per kWh) for low-income assistance
BUDGET: $2.64 million (FY 2014 funding)
WEBSITE: http://www.dnrec.delaware.gov/energy/services/GreenEnergy/Pages/default.aspx
LAST UPDATE: 03/09/2016

INCENTIVE NAME: Delmarva Power - Green Energy Program Incentives
CATEGORY: Financial Incentive
TYPE: Rebate Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: Delmarva Power Green Energy Fund
CODE: DE01F
DETAILS:
Incentive Amount - Solar PV
Residential: $0.55/W for first 5 kW, $0.20/W up to 50 kW
Residenital Leased/PPA systems: Flat incentive of $1,000 per project
Non-Residential: Flat incentive of $3,000 per project
Non-Profit: $1.50/W for first 5 kW, $0.75/W up to 50 kW

Wind
Residential: $0.85/W for first 5 kW, $0.25/W up to 50 kW
Non-Residential: $0.85/W for first 5 kW, $0.25/W up to 50 kW
Non-Profit: $1.75/W for first 5 kW, $01.0/W up to 50 kW

Solar Water Heating (SWH)
Residential: $1/kWh saved
Non-Residential: $1/kWh saved
Non-Profit: $2/kWh saved

GeoThermal Heat Pumps
Residential: $800/ton (first 2 tons), $700/ton (over 2 tons)
Non-Residential: $800/ton (first 2 tons), $700/ton (over 2 tons)
Non-Profit: $1,000/ton (first 2 tons), $800/ton (over 2 tons)

Maximum Incentive - Solar PV
Residential: $3,300
Non-Residential: Flat incentive of $3,000 per project
Non-Profit: $41,250

Wind
Residential: $15,000
Non-Residential: $24,000
Non-Profit: $50,000

Solar Water Heating (SWH)
Residential:$5,000
Non-Residential: $10,000
Non-Profit: $10,000

Geothermal Heat Pumps
Residential:$5,000
Non-Residential: $30,000
Non-Profit: $30,000


Eligible System Size - Wind: 50 kW or less
Solar: 50 kW maximum
Equipment Requirements - Systems must carry a full five-year warranty and meet applicable UL, IEEE, and NEC standards;
Solar thermal systems must be SRCC certified (OG-300 for residential and OG-100 for non-residential);
Geothermal heat pumps must have a minimum EER of 18.0 and COP of 3.6
Installation Requirements - On- and off-grid systems are eligible; systems must be installed by a participating contractor; solar PV and solar thermal systems must meet orientation, shading, and aesthetics requirements; wind energy systems may be reviewed for wind resource adequacy
Ownership of Renewable Energy Credits - Customer-generator
BUDGET: ~$1.87 million annually on average (65% of available Green Energy Fund collections)
WEBSITE: http://www.dnrec.delaware.gov/energy/services/GreenEnergy/Pages/GEPDelmarva_F.aspx
UTILITIES: Delmarva Power,
LAST UPDATE: 03/09/2016

INCENTIVE NAME: Interconnection Guidelines
CATEGORY: Regulatory Policy
TYPE: Interconnection
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: DE05R
DETAILS:
Applicable Utilities - All utilities (only Delmarva is subject to PSC rules)
System Capacity Limit - 10 MW (limit of Delmarva's standard interconnection agreement)
1 MW for non-renewable cogenerators and small power producers
Standard Agreement - Yes
Insurance Requirements - Vary by system size and/or type
External Disconnect Switch - Required
Net Metering Required - No
WEBSITE: http://www.delmarva.com/my-home/service-requests/customer-generation-and-interconnection/
LAST UPDATE: 11/04/2014

INCENTIVE NAME: Renewables Portfolio Standard
CATEGORY: Regulatory Policy
TYPE: Renewables Portfolio Standard
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: Renewable Energy Surcharge
CODE: DE06R
DETAILS:
Standard - 25% by compliance year 2025-2026
Technology Minimum - PV: 3.5% by compliance year 2025-2026
Compliance Multipliers - 300% for in-state customer sited PV and fuel cells
150% for wind turbines sited in DE
350% for offshore wind
110% for solar or wind installation in DE with 50% equipment manufactured in DE
110% credit for solar or wind installation with a minimum of 75% workforce
REC Lifetime - 3 years
Credit Trading/Tracking System - Yes (PJM-GATS)
Alternative Compliance Payment - ACP: $25/MWh (1st year), $50/MWh (2nd year), $80/MWh (3rd year onwards)
SACP: $400/MWh (1st year), $450/MWh (2nd year), $500/MWh (3rd year onwards)

WEBSITE: http://depsc.delaware.gov/electric/delrps.shtml
LAST UPDATE: 02/11/2015

INCENTIVE NAME: Energy Conservation Standards for State Facilities
CATEGORY: Regulatory Policy
TYPE: Energy Standards for Public Buildings
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: DE07R
WEBSITE: http://www.dnrec.delaware.gov/energy/information/otherinfo/Pages/EO18Workgroup.aspx
LAST UPDATE: 11/04/2014

INCENTIVE NAME: Delaware Municipal Electric Corporation - Green Energy Fund
CATEGORY: Regulatory Policy
TYPE: Public Benefits Fund
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
CODE: DE11R
DETAILS:
Types - Renewables
Total Fund - City of Dover: $10,000
City of Newark: $40,000
City of Milford: $20,000

Charge - $0.178/MWh (0.178 mills/kWh)
$0.356/MWh (only for City of Newark)
WEBSITE: http://www.demecinc.net/
UTILITIES: Town of Clayton, Delaware Electric Cooperative, Dover City of, City of Lewes, Town of Middletown, City of Milford, New Castle Municipal Serv Comm, Newark City of, City of Seaford,
LAST UPDATE: 02/03/2016

INCENTIVE NAME: Delaware Electric Cooperative - Green Energy Fund
CATEGORY: Regulatory Policy
TYPE: Public Benefits Fund
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
CODE: DE12R
DETAILS:
Types - Renewables, energy efficiency
Total Fund - $206,000 annually (based on 2008 retail electricity sales)
Charge - $0.000178/kWh
WEBSITE: http://www.delaware.coop/our-co-op/grants-and-rebates
UTILITIES: Delaware Electric Cooperative,
LAST UPDATE: 11/04/2014

INCENTIVE NAME: Solar Rights Law
CATEGORY: Regulatory Policy
TYPE: Solar/Wind Access Policy
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: DE13R
LAST UPDATE: 11/05/2014

INCENTIVE NAME: Sustainable Energy Utility (SEU) - Green for Green Home Rebate
CATEGORY: Financial Incentive
TYPE: Rebate Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: Regional Greenhouse Gas Initiative
CODE: DE14F
DETAILS:
Incentive Amount - Rebate selected by the Home Builder based on their program and standard. Each standard includes rebates for sustainability , and for energy efficiency.
Incentives range from $1,000 - $4,500

Installation Requirements - Homes meet minimum certification requirements under the National Green Building System (NGBS), National Association of Home Builders Research Center, Energy Star, Residential Energy Services Network HERS or Leadership in Energy and Environmental Design (LEED) rating systems. Builders must be program approved.
WEBSITE: http://www.degreen4green.com/
LAST UPDATE: 10/14/2015

INCENTIVE NAME: Delaware Electric Cooperative - Green Energy Program Incentives
CATEGORY: Financial Incentive
TYPE: Rebate Program
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
SOURCE: DEC Renewable Resources Fund
CODE: DE20F
DETAILS:
Incentive Amount - PV:
Class A and Class B: $0.85 for first 5kW, $0.25 after 5kW
Non-Profit: $1.05 for first 5kW, $0.52 after 5kW

Solar Thermal (water and radiant space heating), 20% of installed costs

Wind: $1.25/W

Fuel Cells: 20% of installed costs

Geothermal Heat Pumps: $700 - $800 per ton (varies by size)
Maximum Incentive - PV: $5,000 for Class A, $7,500 for Class B or non-profits
Solar Thermal (domestic water): $3,000 for residential, $7,500 for non-residential
Solar Thermal (radiant space heating): $5,000 for residential, $7,500 for non-residential
Wind: $2,500
Fuel Cells: $7,500
Geothermal Heat Pumps: $5,000 for residential, $7,500 for non-residential
Eligible System Size - Minimum: 500 W
Maximum: No specific limit, but systems must be designed to serve only on-site energy needs
Equipment Requirements - Full five-year warranty required for all systems; grid-connected electricity generating systems must generally meet applicable IEEE and UL standards; PV modules must be UL-1703 certified; wind energy systems must be CEC-listed; solar thermal systems must be SRCC certified (OG-300 for residential and OG-100 for non-residential); geothermal heat pumps must have a minimum EER of 18.0 and COP of 3.6; fuel cells must meet NFPA 853, IEEE 519, ANSI Z21.83 and ANSI C37.2 specifications
Installation Requirements - Systems must generally be installed by a participating contractor, but self-installs also permitted; grid-connected or off-grid systems are eligible; solar PV and solar thermal systems must meet orientation, shading, and aesthetics requirements; wind energy systems may be reviewed for wind resource adequacy
Ownership of Renewable Energy Credits - Customer-generator
BUDGET: $279,194 annually (2015)
WEBSITE: http://www.dnrec.delaware.gov/energy/services/GreenEnergy/Pages/CoopGEP_F.aspx
UTILITIES: Delaware Electric Cooperative,
LAST UPDATE: 05/27/2015

INCENTIVE NAME: DEMEC Member Utilities - Green Energy Program Incentives
CATEGORY: Financial Incentive
TYPE: Rebate Program
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
SOURCE: DEMEC Green Energy Fund (9 individual utility funds)
CODE: DE21F
DETAILS:
Incentive Amount - See summary below
Eligible System Size - Minimum: 500 W (for small wind only)
Maximum: No specific limit, but systems must be designed to serve only on-site energy needs
Equipment Requirements - Full five-year warranty required for all systems; grid-connected electricity generating systems must generally meet applicable IEEE and UL standards; PV modules must be UL-1703 certified; solar thermal systems must be SRCC certified (OG-300 for residential and OG-100 for non-residential); geothermal heat pumps must have a minimum EER of 14.0 and COP of 3.0
Installation Requirements - Systems must generally be installed by a participating contractor; grid-connected or off-grid systems are eligible; solar PV and solar thermal systems must meet orientation, shading, and aesthetics requirements; wind energy systems may be reviewed for wind resource adequacy
Ownership of Renewable Energy Credits - Customer-generator
BUDGET: $363,000 annually across 9 municipal utilities (based on financial records); varies by month
WEBSITE: http://www.dnrec.delaware.gov/energy/services/GreenEnergy/Pages/DEMEC.aspx
UTILITIES: Town of Clayton, City of Milford, Newark City of,
LAST UPDATE: 02/03/2016

INCENTIVE NAME: Sustainable Energy Utility (SEU) - Revolving Loan Fund
CATEGORY: Financial Incentive
TYPE: Loan Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: Regional Greenhouse Gas Initiative (RGGI)
CODE: DE25F
DETAILS:
Maximum Loan - $1,000,000 maximum per borrower
Loan Term - Must demonstrate the ability to pay evidenced by credit history, financial statements, and references. Energy efficiency projects should have savings over its useful life greater than the cost of the measure.
Interest Rate - Vary based on application
WEBSITE: http://www.energizedelaware.org/Efficiency-Plus-Business-Program/
LAST UPDATE: 02/23/2015

INCENTIVE NAME: Sustainable Electric Utility (SEU)- SREC Purchase Program
CATEGORY: Financial Incentive
TYPE: Solar Renewable Energy Credit Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: DE32F
DETAILS:
Incentive Amount - Upfront payment of $450/kW in exchange for the first 20 years of SRECs created by a solar system
Eligible System Size - Up to 50 kW
Installation Requirements - System must be interconnected after August 4th, 2014
System must not have received a Green Energy Program Grant available before Aug 4, 2014
System must have a revenue grade meter installed.
Must be physically located in Delaware
Must be certified by the DE PSC to create SRECs

BUDGET: $1.5 million (FY 2014)
WEBSITE: http://www.greengrantdelaware.com/
LAST UPDATE: 02/20/2015

INCENTIVE NAME: Solar Renewable Energy Credits (SRECs) Spot Market Program
CATEGORY: Financial Incentive
TYPE: Solar Renewable Energy Credit Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: DE33F
DETAILS:
Incentive Amount - Varies based on market conditions; as of October 2014 the SRECs were trading at approximately $55 per MWh in SREC marketplace.
Maximum Incentive - CY 2009-2010 SACP: $250 - $350/MWh ($0.25 - $0.35/kWh)
Beginning CY 2010-2011 SACP: $400 - $500/MWh ($0.40 - $0.50/kWh)
Values refer to Delaware RPS SACP as a theoretical maximum; SACPs and trading prices in other states where Delaware-sourced SRECs are eligible may be different
Eligible System Size - No system size limitations
Duration - SREC is valid for a period 3 years
Equipment Requirements - Systems must have a generation meter; engineering estimates not permitted
WEBSITE: http://depsc.delaware.gov/delrps.shtml
LAST UPDATE: 05/27/2015

INCENTIVE NAME: SREC Procurement Program
CATEGORY: Financial Incentive
TYPE: Solar Renewable Energy Credit Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: DE34F
DETAILS:
Incentive Amount - Market bid price for the first 10 years, $35 for the next 10 years.
Maximum Incentive - Additional 10% bonus for parts and 10% bonus for labor that is based in Delaware.
Eligible System Size - Up to 2MW
Duration - 20 year contract term.
Installation Requirements - SRECs must be certified in Delaware
WEBSITE: http://www.srecdelaware.com/
LAST UPDATE: 04/30/2015