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Incentives/Policies for Renewables & Efficiency

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Net Metering   

Last DSIRE Review: 11/04/2014
Program Overview:
State: Delaware
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass, Hydroelectric, Fuel Cells, Anaerobic Digestion, Small Hydroelectric, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Agricultural, Institutional
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.
REC Ownership:Customer owns RECs
Meter Aggregation:Allowed, see below for details
Web Site:
Authority 1:
Date Enacted:
Date Effective:
26 Del. C. § 1014(d)
1999 (subsequently amended)
Authority 2:
Date Effective:
CDR § 26-3000-3001
07/01/2011 (most recent adoption)

Eligibility and Availability:

In Delaware, net metering is available to any customer that generates electricity using solar, wind or hydro resources, anaerobic digesters, or fuel cells capable of being powered by renewable fuels. Grid-interactive electric vehicles are also eligible for net metering treatment for electricity that they put on the grid, although these vehicles do not themselves generate electricity. The maximum capacity of a net-metered system is 25 kilowatts (kW) for residential customers; 100 kW for farm customers on residential rates; two megawatts (MW) per meter for non-residential customers of Delmarva Power and Light (DP&L); and 500 kW per meter for non-residential customers of Delaware Electric Co-Op, Inc.(DEC) and municipal utilities. The DEC and municipal utilities are "encouraged" by statute to offer net metering for non-residential customers with eligible systems up to 2 MW in capacity. Systems must be intended primarily to offset all or part of a customer's electricity requirements. It is important to note that while state law requires the DEC and municipal utilities to offer net metering under certain terms, the administrative rules adopted by order of the Delaware Public Service Commission (PSC) only apply to DP&L.

Utilities are authorized to disallow additional net-metered energy systems if the aggregate capacity of all net-metered systems exceeds 5% of the capacity necessary to meet the electric utility's aggregated customer monthly peak demand for a particular calendar year.

Net-excess generation:

Customers are generally credited in kilowatt-hours (kWh), valued at an amount per kWh equal to the sum of delivery service charges and supply service charges for residential customers, and equal to the sum of the volumetric energy (kWh) components of the delivery service charges and supply service charges for non-residential customers, for any net excess generation (NEG) in a billing period. NEG is carried over to subsequent billing periods to offset a customer's consumption in those billing periods until all credits are used or at least until the end of a 12-month annual period. In essence, NEG is carried over to the customer's next bill at the utility's retail rate. The default annual period begins during the month in which the system is interconnected, but the customer is permitted to change the period once in order to better utilize excess generation. An exception to retail crediting exists for certain community-owned systems (i.e., those with multiple subscribers). Subscribers to the output of a community-owned system that is located behind a customer meter or as a stand-alone facility only receive retail credit if they are located on the same distribution feeder as the facility. Those that are not on the same distribution feeder only receive credit at the wholesale energy supply rate.

Customers may request a payment for unused NEG at the end of the annualized period at the supply service rate, but it does not appear that they are required to do so, meaning that NEG can be rolled over indefinitely at the choice of the customer. Should the customer request a payment for annual NEG, the supplier is permitted to submit the payment as a bill credit if it is less than $25.00. Customers retain ownership of renewable-energy credits (RECs) associated with electricity produced and consumed by the customer.

Meter aggregation:

Delaware expanded the state's net-metering policy with S.B. 267 to allow customers to aggregate individual meters, to participate in net-metering via a subscribers "sharing a unique set of interests" to community-owned system or and aggregation of a customer's multiple accounts, to allow net-metering systems to provide up to 110% of a customers' expected aggregate electricity consumption, extending net-metering to leased and third party owned systems, and for single or aggregation of a customer's multiple accounts, and extending net-metering to fuel cells as well as renewable energy fuel cells for community-owned systems.

Net metering was expanded significantly in July 2007 by S.B. 8, which extended net metering to all customer classes, added biogas and fuel cells as eligible technologies, addressed the ownership of RECs, and increased the prior individual system limit of 25 kW, among other changes. The law was significantly amended by S.B. 85 in 2009 to extend net metering to farm service customers on residential rates; remove provisions requiring annual forfeiture of net excess generation (NEG); revise language relating to ownership of renewable energy credits produced by net metered systems; and, to expand the aggregate program capacity limit from 1% of Electric Supplier's aggregated customer monthly peak demand to 5% of Electric Supplier's aggregated customer monthly peak demand. Separately, S.B. 153 enacted in September 2009 extends net metering to the owner of a grid-integrated electric vehicle. Rules incorporating these changes were adopted by PSC Order No. 7698 in December 2009.

  John Farber
Delaware Public Service Commission
861 Silver Lake Blvd.
Cannon Bldg., Suite 100
Dover, DE 19904
Phone: (302) 736-7500
Fax: (302) 739-4849
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

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