DE · Solar

Solar quotes in Newark, DE.

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7 kW
Average system size
$2.95/W
Average cost (USD)
9 yrs
Average payback
40+
Local installers

Why solar in Newark

Delaware pays you separately for the environmental attributes of your generation, and that income stream is easy to overlook because it is not on your electricity bill. The SREC Delaware programme, run through the Delaware Sustainable Energy Utility, buys Solar Renewable Energy Credits through competitive procurement. A typical residential system generates roughly 1.35 SRECs per installed kilowatt per year, and reported prices have held around $30 each for the first ten years.

What you are selling

A Solar Renewable Energy Credit represents the environmental attribute of a megawatt hour of solar generation, separate from the electricity itself. The two can be sold to different parties.

For every megawatt hour your panels generate you earn one SREC. A typical residential installation produces roughly 1.35 SRECs per kilowatt of installed capacity per year.

When you sell them, the electricity still powers your home and still offsets your bill, but the claim that your household runs on renewable energy transfers with the credits.

That is worth knowing rather than discovering. Vermont prices the same choice explicitly through a REC adjustor; Delaware structures it as a separate sale.

What the programme pays

Delaware uses competitive procurement rather than the open trading market of Pennsylvania or the administratively set rate of New Jersey. That means prices are set through the procurement process rather than by daily trading.

Reported prices have held around $30 per SREC for the first ten years of a contract, with the price determined annually by the programme, and around $10 per SREC for years eleven to twenty-five.

On a 7 kW system generating roughly 9.5 SRECs a year, that is on the order of $280 a year for the first decade and considerably less afterwards.

Because the mechanism is a procurement rather than a market, confirm the current terms with the Delaware Sustainable Energy Utility before letting a projection include them.

How it should appear in a projection

As its own line, in dollars per year, with the assumed SREC count and price stated. It is a separate income stream from your bill savings and should not be folded into them.

Ask what price the model assumed for years one to ten and for years eleven to twenty-five, since those are very different figures and using the higher one throughout would substantially overstate the result.

Ask what SREC generation rate it assumed per installed kilowatt, and check it against the roughly 1.35 per kW per year figure.

And remember Newark is a municipal utility town, so the Delmarva Green Energy Program grant does not apply here. Ask your municipal utility what its own Green Energy Fund programme offers instead.

Three pieces, and how they stack

The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, so a cash or loan purchase in Newark receives no federal tax credit.

Section 48E survives at 30 percent for third-party owners under leases and power purchase agreements, so ask what a provider claims and what reaches you in the rate.

What exists is your municipal utility Green Energy Fund programme, net metering to 25 kW credited in kilowatt hours, and SREC income through the Delaware Sustainable Energy Utility.

Ask for each as a separate line, with the SREC price and count stated for both the early and later contract years.

Incentives & rebates

Net metering: Net metering to 25 kW residential, credited in kilowatt hours

All Delaware electric utilities offer net metering, and the rules work broadly the same way across Delmarva Power, Delaware Electric Cooperative and the municipal electric companies. Residential systems are eligible up to 25 kW, which is far above what an ordinary household would install, so the cap is rarely the binding constraint. The detail worth understanding is that credits are denominated in kilowatt hours rather than in dollars. That distinction is more valuable than it sounds. A dollar credit is fixed at the rate in force when it was earned, so it loses purchasing power if electricity prices rise. A kilowatt hour credit is a claim on a unit of electricity, so it holds its value against future rate increases automatically. In a state where retail rates have generally risen, that is a quiet but real advantage over the states that credit in currency. Delaware also runs a Solar Renewable Energy Credit programme through the Delaware Sustainable Energy Utility, using competitive procurement rather than an open trading market, which produces a separate income stream from the environmental attributes of your generation, reported at around $30 per SREC for the first ten years and $10 for years eleven to twenty-five, on roughly 1.35 SRECs per installed kW per year. Because net metering, the grant programme and the SREC arrangement are three separate things, ask for each to appear as its own line in a projection rather than being combined into a single savings figure.

How payback works in Delaware

System cost
$20,650
Estimated net cost
$20,650
Estimated payback
~12.7 years
25-year net savings
~$19,850

These figures are illustrative; your actual quote reflects your roof, sun exposure, and local utility rates.

Frequently asked questions

What is an SREC worth in Delaware?
Reported prices have held around $30 per SREC for the first ten years of a contract, with the price determined annually, and around $10 for years eleven to twenty-five. Confirm current terms with the Delaware Sustainable Energy Utility.
How many SRECs will my system produce?
Roughly 1.35 per kilowatt of installed capacity per year for a typical residential installation, since one SREC is earned per megawatt hour generated. On a 7 kW system that is around 9.5 a year.
What am I giving up by selling SRECs?
The environmental attribute of your generation. The electricity still powers your home and still offsets your bill, but the claim that your household runs on renewable energy transfers with the credits.
How should SRECs appear in a projection?
As their own line in dollars per year, with the assumed count and price stated separately for years one to ten and eleven to twenty-five. Using the higher price throughout would substantially overstate the result.

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