Grants, Incentives & Financing

There is financing and various grants and incentives available to Delawareans who choose to go solar. The information below details how to determine if you qualify and how to apply for each incentive.

Energize Delaware Solar for School Districts Grant Program: The NEW Energize Delaware Solar for School Districts Grant Program  offers  school districts in the state the opportunity  to go solar!   Find out more

Energize Delaware Solar for Public Libraries Grant Program: Another great NEW program to encourage libraries across Delaware to to solar!

Find out more

To incentivize the installation of solar in the United States, the Solar Investment Tax Credit, more commonly known by its acronym ITC, has resulted in tremendous growth in the solar industry. In August 2022, Congress extended the ITC through 2034 with the passage of the Inflation Reduction Act.

A tax credit is a dollar-for-dollar reduction in the amount of federal taxes owed. The ITC lets you reduce your federal taxes by an amount equal to a certain percentage of your cost to purchase a solar system. Homeowners and businesses are eligible for the ITC only if they own the solar system. Owners of solar projects that are completed from 2022 through 2032 are eligible to deduct from their federal taxes 30% of the cost of their solar project. That percentage drops to 26% in 2033, then 22% in 2034, and disappears in 2035. So if you purchased a solar project that cost $25,000 and was installed on your house or business in 2022, you can deduct 30% of that, or $7,500, from your 2022 federal taxes. If your total federal tax owed is less than $7,500, your federal taxes would be $0 and the rest would carry forward to a later tax year.

The following solar costs are covered by the ITC:

• Solar panel cost
• Labor cost including installation, permitting fees, inspection fees, and developer fees
• All other solar equipment costs (including batteries charged by solar)
• Sales taxes on eligible equipment

The above information is not professional tax advice or guidance. For information on how to claim the ITC and how it applies to your specific situation we recommend contacting a tax professional.

Learn how the Inflation Reduction Act can help homeowners, businesses or manufacturers in the U.S. Department of Energy (DOE) Solar Energy Technologies Office resources.

Homeowners Guide to Federal Tax Credit for Solar Photovoltaics 

Federal Solar Tax Credit for Businesses

Federal Solar Tax Credit for Manufacturers

Financing for solar systems is available through Energize Delaware’s programs for residents, businesses and nonprofits.

• Energize Delaware Residential Solar Loan Program: The Energize Delaware Solar Loan program, administered by the Delaware Sustainable Energy Utility, offers a low interest solar loan designed to encourage the purchase of customer sited and owned solar systems. The loan amount for the program ranges from $5,000-$30,000, with the total loan amount not exceeding 70% of the total project cost. The term of the loan is 10 years, and the interest rate is 3.9%. For more information about the loan and the eligibility requirements, please visit the program homepage.

• Energize Delaware Low-Interest Commercial Loan Program: Energize Delaware has a special low interest loan program for small to mid-sized businesses. Program financing is available to all credit-qualified businesses located in existing facilities, whether owned or leased, in the State of Delaware. Loan amounts can range between $30,000 and $2,000,000 per project for businesses and are based on availability of funds. No more than $2,000,000 shall be outstanding to any one borrower. For additional information and eligibility requirements visit the program page.
• Energize Delaware Performance Contracting Program: The Performance Contracting Program is for schools, universities, municipalities, hospitals, privately held institutions and nonprofit organizations. It uses long term utility cost savings derived from implemented projects to fund the improvements and is delivered through a group of prequalified Energy Services Companies (ESCO’s). For more information on this program, please visit the program’s website.
• C-PACE: Commercial property assessed clean energy, or C-PACE, is an energy efficiency financing program that has been adopted by more than 30 states, including Delaware. The program allows commercial entities to secure financing to make sustainable improvements to their properties, including the installation of a solar system. The financing is provided by capital providers in an open market, which provides property owners with competitive, private financing. Because the long-term financing can cover up to 100 percent of a building’s modernization project cost and often requires no money down, C-PACE enables property owners to make substantial upgrades to their buildings. For more information on the C-PACE program, please visit the program’s website.

• Green Energy Program: Delmarva Power customers can apply for a solar grant through the Green Energy Program, administered by the Delaware Department of Natural Resources and Environmental Control, or DNREC. The Green Energy Program has provided grant funding to more than 4,300 Delaware renewable energy projects since 1999. Grant applications must be submitted through the Green Grant Delaware online application system.
  To qualify for the Green Energy Program grant, the solar system must be installed by an approved renewable energy contractor. DNREC has published instructions for applying to the Green Energy Program as well as the current incentive rates.

• Low- to Moderate-Income Solar Pilot Program (LMI): The two-year LMI Solar Pilot Program, administered by DNREC, utilizes Delmarva Power funds to promote the use of renewable energy in low- and moderate-income households in Delmarva Power territory. There are two different pathways to qualify for receiving a cost-free or reduced-cost solar installation on your home. For low-income households, applications and approvals are obtained through the Weatherization Assistance Program, which serves low-income households with cost-free weatherization. For moderate-income households, applications and approvals are obtained through the Green Energy Program (explained above), with applicants specifically requesting the reduced-cost solar installation as a moderate-income household. For more information on the LMI Solar Pilot Program and to see whether your household qualifies, please visit DNREC’s website and review the program fact sheet.

• The Delaware Electric Cooperative offers grants to offset the installed cost of solar systems installed in their service territory. In order to be eligible for a grant the solar system must be installed by a participating contractor. Applications for their grant program can be submitted on their website.

• Municipal Green Energy Grant Program: The Delaware Municipal Electric Corporation (DEMEC) offers grants through the Municipal Green Energy Program for customers of the municipal utilities that contribute to the fund. For more information on the program, please review the program regulations and the grant application checklist.

• Corporate Renewable Energy Block Program: This program is designed to offer commercial/industrial customers the opportunity to select renewable energy options that meet their corporate sustainability goals/targets based upon their organization’s typical and projected energy consumption. Through this program, commercial customers can purchase Solar Renewable Energy Credits (SRECs) and Renewable Energy Credits (RECs) to meet their sustainability goals. More information on this program can be found on DEMEC’s website. Interested participants should contact DEMEC directly to apply.

• The Delaware Sustainable Energy Utility is a 501 (c) (3) nonprofit corporation that does business as Energize Delaware. The organization has over 20 programs to help Delawareans have easier access to renewable and energy efficiency measures through grants, low-interest loans and incentives. For more information about the programs offered through Energize Delaware, please visit their website.