Solar Panels in Wilmington, DE: Delmarva Power, Delaware's Green Energy Rebate, and Solar in the First State

Wilmington is Delaware’s largest city and sits in Delmarva Power territory — a Pepco Holdings/Exelon subsidiary that serves most of northern and central Delaware. Delmarva Power customers access Delaware’s Green Energy Program rebate of $0.70 per watt up to $6,000, the strongest per-household solar rebate available to any Delaware utility customer and one of the more substantial upfront incentives in the mid-Atlantic region. Delaware provides full 1:1 retail-rate net metering for all residential customers with a homeowner-selected 12-month true-up month, no statewide sales tax on any purchases (a structural advantage reducing solar installation costs), and a property tax exclusion that prevents solar installations from increasing assessed values. Delaware’s SREC program operates through a competitive annual procurement — different from Pennsylvania’s open market or New Jersey’s fixed SREC-II — with modest but real per-credit income. The combination of Delmarva’s strong upfront rebate, Delaware’s no-sales-tax advantage, net metering, and the SREC program produces payback periods in the 9–12 year range for Wilmington cash purchases.

Delmarva Power, Delaware's Green Energy Program, and the SREC Trade-Off

Delmarva Power’s Green Energy Program provides Wilmington solar homeowners with an upfront cash rebate of $0.70 per watt of installed capacity, up to a maximum of $6,000 for residential systems. On a typical 8kW Wilmington system, this delivers $5,600 directly applied to reduce installation cost. The rebate is administered through Delaware’s Department of Natural Resources and Environmental Control (DNREC) via the Green Grant Delaware online system. Applications require an acceptable energy audit and installation by an approved contractor — confirm your installer is on DNREC’s approved list before signing a contract.

An important trade-off: Delmarva Power Green Energy Program participants must sign over their Solar Renewable Energy Credits (SRECs) to the state as part of the grant application. This means you receive the upfront rebate but forfeit the ongoing SREC income stream. For most Wilmington homeowners, the upfront $5,600–$6,000 rebate is worth more than Delaware’s modest SREC income (approximately $30/SREC for years 1–10, $10/SREC for years 11–25, in a competitive procurement program where acceptance is not guaranteed). But the trade-off should be understood before applying — you cannot receive both the Green Energy rebate and retain your SRECs independently.

Delmarva Power provides full 1:1 retail-rate net metering under Delaware’s net metering mandate. Every kilowatt-hour exported to Delmarva’s grid earns a credit at the current retail rate. Credits accumulate through a 12-month period; you select your true-up month (conventional wisdom: March or April, after winter draw-down). At the annual true-up, any remaining credits expire with no cash payout — identical to Delaware’s standard net metering structure for all utilities.

Delaware's Structural Solar Advantages: No Sales Tax, Property Tax Exclusion, and Net Metering

Delaware provides two structural financial advantages that apply to all solar installations regardless of utility. First, Delaware has no statewide sales tax — the First State’s longstanding zero-sales-tax environment means solar equipment and installation are not subject to any state or local sales tax. On a $25,000 Wilmington system, this prevents approximately $1,750–$2,500 in sales tax cost that Pennsylvania homeowners pay on equivalent installations. The absence of sales tax is a quiet but real advantage for Delaware solar economics relative to neighboring Pennsylvania and, to some extent, Maryland.

Second, Delaware’s property tax exclusion for solar prevents the added value of a solar installation from increasing annual assessed value. Wilmington homeowners who install solar do not face higher New Castle County property taxes as a result of the installation’s value. The exclusion applies across Delaware and reduces the long-term cost of ownership relative to states like Pennsylvania that have no property tax exemption.

Net metering in Delaware operates identically across all utilities under Delaware law: full 1:1 retail-rate credit for exports, 12-month billing period with homeowner-selected true-up month, and year-end credit expiration with no cash payout. Residential systems are capped at 110% of the previous 12 months’ consumption. Fixed monthly utility charges — meter connection fees, distribution charges — cannot be offset by kilowatt-hour credits and must be paid in cash regardless of solar production.

What does solar cost in Wilmington, and what is the realistic payback?

Delaware solar installations typically run $2.70–$3.10 per watt in 2026 — reflecting the mid-Atlantic market that serves Wilmington from both the Philadelphia and Baltimore installer ecosystems. A typical Wilmington system of 7kW–9kW costs approximately $18,900–$27,900 before incentives. After Delmarva’s Green Energy rebate (up to $6,000) and with Delaware’s no-sales-tax advantage (saving approximately $1,323–$1,953 versus a taxed state), effective out-of-pocket cost for a cash purchase runs approximately $10,947–$19,947. No federal residential ITC for cash or loan purchases in 2026. At Delmarva’s residential rate, Wilmington cash-purchase payback runs approximately 9–12 years — competitive with comparable mid-Atlantic markets. If homeowners retain their SRECs (by not applying for the Green Energy rebate), Delaware’s SREC income adds modest annual value — approximately $120–$300 annually in years 1–10 at $30/SREC — but the competitive procurement process means SREC acceptance is not guaranteed.

Frequently Asked Questions

For most Wilmington homeowners, taking the Delmarva Green Energy rebate (up to $6,000 upfront) is the better financial choice compared to retaining SRECs independently. Delaware’s SREC income is relatively modest: approximately $30 per SREC for years 1–10, $10 per SREC in years 11–25, through a competitive procurement where acceptance is not guaranteed. A well-sized Wilmington system generating 10–12 SRECs annually earns approximately $300–$360 in peak years, declining to $100–$120 in later years — a 25-year total SREC value of roughly $3,000–$4,500 under favorable assumptions. The upfront $5,600–$6,000 Green Energy rebate, available now with certainty, typically exceeds the present value of the uncertain future SREC income stream. If SREC prices were to increase significantly — through Delaware raising its solar carve-out or reducing SREC supply — the equation could shift, but based on current program parameters, most Wilmington homeowners should take the rebate.
Delaware law allows residential net metering customers to select their annual true-up month — the month when the 12-month credit cycle resets and any remaining credits expire. You can change your true-up month once. Conventional wisdom in Delaware and similar mid-Atlantic markets is to choose March or April as the true-up month. This timing aligns the reset with the end of winter — when the solar system has drawn down its summer credit surplus through the fall and winter months — and before the spring production ramp-up begins in April and May. A March true-up means your credit cycle runs April through March, building surplus during summer and drawing it down through fall and winter, arriving at the March reset with minimal remaining credits if well-sized. Choosing a summer true-up month (June or July) risks resetting at peak production, potentially forfeiting significant credits before the fall and winter draw-down period. Contact Delmarva Power to confirm the enrollment process for true-up month selection.
Yes — Delaware permits third-party solar ownership. Leases and PPAs are available in Wilmington through national installers and mid-Atlantic regional contractors. Under a lease or PPA, the installing company claims the commercial ITC. For Wilmington Delmarva Power customers, the Green Energy rebate (up to $6,000) requires signing over SRECs — confirm whether the rebate is available to leased systems and whether the SREC sign-over requirement applies differently for third-party owned systems. Most Wilmington homeowners who can directly benefit from the Green Energy rebate will find direct ownership more financially attractive over the system lifetime.
Wilmington, Philadelphia, and Trenton form a tight geographic cluster with meaningfully different incentive environments. Trenton has the strongest program — NJ’s $85/MWh fixed SREC-II for 15 years plus full sales and property tax exemptions. Wilmington’s Delmarva Green Energy rebate (up to $6,000) plus Delaware’s no-sales-tax advantage and property exclusion is competitive with but somewhat below Trenton’s total incentive value. Philadelphia has the weakest stack of the three — 6% sales tax on equipment, no property exemption, variable AEC market income. For homeowners near state borders, Trenton’s NJ incentive package is the clear leader; Wilmington’s Delaware incentives are stronger than Pennsylvania’s across the river.

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