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Incentives/Policies for Renewables & Efficiency

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Delaware Electric Cooperative - Green Energy Program Incentives   

Last DSIRE Review: 11/05/2014
Program Overview:
State: Delaware
Incentive Type: Utility Rebate Program
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, Agricultural, Institutional, (DEC member-owners only)
Amount:PV: $0.45 - $0.90/W in general; $0.52 - $1.05/W for non-profits
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: $7,500 for Class A, $10,000 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 for residential, $10,000 for non-residential
Geothermal Heat Pumps: $5,000 for residential, $10,000 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
Funding Source:DEC Renewable Resources Fund
Program Budget:$270,534 annually (based on 2014 DNREC numbers); varies by month
Start Date:2007
Web Site:
Authority 1:
Date Enacted:
26 Del. C. ยง 363
Authority 2:
Date Effective:
Renewable Resource Program Regulations
01/01/2012 (as amended)
Authority 3:
Date Enacted:
S.S. 1 for S.B. 119

NOTE: The Renewable Resource Program request for grant funding deadline for the year 2014 ended on January 17, 2014. Future announcements regarding 2015 program funding will be made available on December 2014 on the DGEP program website. For 2014, the total annual funds available will be allocated as follows: Small Wind Turbines = 2%, Geothermal Systems = 38%, PV Class A = 45%, PV Class B = 15%.

The Delaware Electric Cooperative (DEC) provides incentives for solar photovoltaic (PV), solar thermal, wind, fuel cells, and geothermal installed by DEC member-owners. 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 based upon average peak demand over a 12 month period. Class A  member-owners are defined as those with an average monthly peak electric demand of 50 kilowatts (kW) or less over the previous twelve months. Class B member-owners are those with an average monthly peak electric demand of greater than 50 kW over the previous twelve months. Maximum incentives are up to $7,500 for Class A and $10,000 for Class B and non-profit systems.

Applicants may be required to have an energy audit performed by a Building Performance Institute (BPI) certified contractor prior to grant approval. ENERGY STAR homes may be exempted from this requirement. 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. Renewable energy systems designed and utilized as a third-party ownership or independent power producer are not eligible for grant funding.

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

Solar PV

·Class A  and Class B: $.90/W for the first 5 kW of capacity (0-5 kW) and $0.45/W over 5 kW. Maximum incentive of $7,500 for Class A and $10,000 for Class B.

·Non-profits: $1.05/W for the first 5 kW of capacity (0-5 kW) and $.52/W over 5 kW (5-10 kW). Maximum incentive of $10,000 for non-profit systems.

Solar Thermal

·Domestic Hot Water: 20% of installed costs up to $3,000 for residential systems and $7,500 for non-residential systems.

·Radiant Heating: 20% of installed costs up to $5,000 for residential systems and $7,500 for non-residential systems

Wind: $1.25/W up to $2,500

Fuel Cells: 20% of installed costs, up to $7,500 for residential systems and $10,000 for non-residential systems

Geothermal Heat Pumps: $800/ton for first two tons and $700/ton for additional capacity, up to $5,000 for residential and $10,000 for non-residential 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.

Funding for the program is limited and is distributed on a first-come, first-serve basis. More information about the Renewable Resource Program for the year 2014 can be accessed here.  

Under the 2005 Delaware renewable portfolio standard (RPS) legislation, electric cooperatives 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). The Delaware Electric Cooperative (DEC), the state's lone cooperative, opted out of the RPS requirements and established its own green energy fund.

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.


  Scott Lynch
Delaware Department of Natural Resources and Environmental Control
Delaware Energy Office
1203 College Park Drive, Suite 101
Dover, DE 19904
Phone: (302) 735-3480
Fax: (302) 739-1840
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.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.