FOR IMMEDIATE RELEASE
September 19, 2024

Newark, DE – Delaware's Low-Income Solar Program, which provides solar panels at no cost to low-income households, has come under scrutiny due to concerns about high charges billed to the Delaware Fund and questions surrounding vendor profits. While the program aims to reduce energy bills for vulnerable families, critics are raising concerns about whether public funds are being spent efficiently.

1. High Installation Costs and Modest Savings

The Delaware Fund is currently being charged between $12,000 and $21,000 for the installation of 4kW solar systems. These systems generate savings of approximately $40 per month, or $480 per year, for participating households. At these rates, it would take between 25 and 43 years for homeowners to recover the cost of the installation through energy savings alone.

Calculation of Payback Periods:

• For a $12,000 system, it would take 25 years to recover the cost:
• • $12,000 ÷ $480 = 25 years.
• For a $21,000 system, it would take 43.75 years to recoup the installation cost:
• • $21,000 ÷ $480 = 43.75 years.

Given that the typical lifespan of solar panels is around 25 years, most homeowners would not fully recoup the cost of the system during its lifetime, raising concerns about whether the program is truly benefiting the intended participants.

2. Vendor Participation and Transparency

The list of vendors participating in the Low-Income Solar Program can be found on the official state website at Delaware LMI Solar Pilot Program. Concerns have been raised about the high costs associated with these installations, sparking debate over whether these vendors are charging fair market prices for their services. Efforts to reach these vendors for comment were unsuccessful, prompting further questions about the transparency of the program.

3. Historical Issues with Delaware’s Energy Efficiency Programs

This is not the first time Delaware’s low-income energy programs have been scrutinized. In 2010, a federal audit of the state’s Weatherization Assistance Program revealed significant oversight issues, with many projects failing to meet quality control standards​(WHYY). More recently, the Energy Equity Fund was introduced to address some of these concerns, but challenges remain in ensuring that public funds are used effectively to benefit low-income households​(Delaware Public).

4. Calls for Reform and Price Caps

In response to the high costs and long payback periods, advocates are calling for reforms to the program, including price caps on installations to ensure that program savings can recover the cost of the system within 10 years through energy savings. Suggested price limits would range from $4,800 to $6,000 per 4kW system, ensuring the following payback periods:

• For a $4,800 system, it would take 10 years to recover the cost:
• • $4,800 ÷ $480 = 10 years.
• For a $6,000 system, it would take 12.5 years to recover the cost:
• • $6,000 ÷ $480 = 12.5 years.

By capping prices, the program could ensure that public funds are being used more efficiently and that participating low-income families are receiving a meaningful financial benefit within a reasonable timeframe.

Conclusion

Delaware’s Low-Income Solar Program is an important step in helping vulnerable communities transition to renewable energy, but without reforms to ensure cost efficiency and transparency, it risks falling short of its goals and waisting a lot of tax payer money. Advocates are urging state officials to implement stronger oversight and cost controls to ensure that public funds are used responsibly and that low-income households receive the full benefit of this important initiative.

Photo byGiorgio TrovatoonUnsplash