Delaware's Low-Income Solar Program Under Scrutiny

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Newark, DE – Delaware’s Low-Income Solar Pilot Program, launched in 2022 to provide solar energy access to disadvantaged households, is facing increasing scrutiny. The initiative, overseen by the Delaware Sustainable Energy Utility (SEU) and the Department of Natural Resources and Environmental Control (DNREC), aims to reduce energy costs for low-income families. However, concerns have emerged about high installation expenses, lack of transparency, and potential conflicts of interest, leading many to question if the program is truly serving its intended purpose.

High Installation Costs and Minimal Savings

The program, which provides 4kW and 6kW solar systems at little to no cost to participating households, has come under fire for cost inefficiency. Delaware’s public fund is being charged between $12,000 and $21,000 per installation. Given that the average household saves only about $40 per month, or $480 annually, it would take participants between 25 to 43 years to break even on the cost of the system—far longer than the 25-year lifespan of the solar panels themselves. This raises significant concerns about whether the financial benefit is sufficient for the families the program is meant to help.

Vendor Selection and Profits Raise Concerns

Questions about the selection process of vendors have also led to increased scrutiny. Three companies—KW Solar Solutions, Clean Energy USA of Rehoboth Beach, and CMI Solar & Electric—were selected to participate in the program. However, there is growing criticism about the lack of transparency behind their selection, with some questioning whether a competitive process was followed. Concerns have also been raised about the president of CMI Solar & Electric, who simultaneously serves as the president of the Delaware Solar Coalition. This dual role has prompted allegations of a potential conflict of interest, raising questions about the fairness of the program’s implementation.

"When someone who stands to benefit from state funds is also shaping state solar policy, it’s reasonable to question the motives behind the program," said one local watchdog. Observers are concerned that insider relationships may be influencing the selection process, leaving the public in the dark.

Lack of Transparency and Accountability

Delaware residents are still waiting for clear reports on the program’s performance. More than a year after the program’s launch, there has been no public disclosure of how many households have benefited or if the program has led to meaningful energy savings. This lack of transparency has fueled public frustration. "We were promised lower energy bills for low-income families, but without any reporting, how can we know if the program is even working?" said one concerned resident.

The SEU, which manages the program, has previously been criticized for its lack of transparency. In its 2023 Delaware Governance Report Card, the Caesar Rodney Institute gave Delaware’s energy management an “F,” citing poor oversight and unclear benefits for residents (Caesar Rodney Institute).

Comparison with New Jersey’s Model

Delaware’s choice to fund individual solar installations has also been questioned. Neighboring New Jersey is managing a similar low-income solar program but has opted to build large-scale solar farms, benefiting more people at a lower cost per family. With a $156 million budget, New Jersey’s approach has been lauded as more efficient. "New Jersey is doing it right," said a clean energy advocate. "They’re helping more people for less money, while Delaware is spending more to help fewer households, and we still don’t know if it’s working."

Historical Oversight Issues

This isn’t the first time Delaware’s low-income energy programs have faced criticism. A federal audit in 2010 of the state’s Weatherization Assistance Program revealed significant oversight failures, with many projects failing to meet quality standards (WHYY). Despite efforts to address these concerns, challenges remain in ensuring that public funds are used effectively. Recent criticisms of the Energy Equity Fund further highlight the need for better oversight (Delaware Public).

Advocates Call for Reforms and Price Caps

In response to these issues, energy advocates are calling for reforms to the program, including price caps on installations. Suggested price limits range from $4,800 to $6,000 per 4kW system, ensuring that energy savings can recover the cost within 10 to 12.5 years. By capping prices, the program could ensure that public funds are being used more efficiently and that participating families receive a meaningful financial benefit in a reasonable timeframe.

A Need for Reform

As skepticism grows, Delawareans are calling for stronger oversight, greater transparency, and cost controls to ensure that the program fulfills its original mission. "This program was meant to help the families who need it most," said one local resident. "But right now, it seems like the ones benefiting are the vendors, not the families."

The SEU and DNREC have yet to release detailed data on the program’s outcomes. Until they do, Delaware’s Low-Income Solar Pilot Program risks being seen as a missed opportunity to help those in need.