Delaware Solar Rebates: High Costs, Low Transparency

Delaware still offers robust solar rebates through its local utility companies, while many other states have phased out similar programs. Delaware's Green Energy Program, administered by the Delaware Sustainable Energy Utility (SEU), provides rebates depending on the utility provider, with Delmarva Power offering up to $6,000 in rebates based on system size, and other utilities like Delaware Electric Cooperative offering $0.50 per watt for the first 5 kW of solar capacity, then $0.20 per watt beyond that​ (Sunsoaked Solar, Solar Energy World).

However, as with many government-funded rebate programs, some solar vendors participating in the Delaware program have been accused of inflating their prices for in-state projects. On average, solar installations in Delaware can cost up to $6,000 more than similar projects in neighboring states like Maryland and New Jersey. For example, the average price of a solar installation in Delaware is around $3.06 per watt, whereas in Maryland, it averages closer to $2.75 per watt​ (EnergySage, SaveOnEnergy.com). A 15,000-watt installation in Delaware can cost $45,900, which is $4,650 more than a comparable installation in Maryland at $41,250, and $3,150 more than in New Jersey, where the cost is around $42,750.

What makes this price difference even more perplexing is the fact that Maryland’s permitting process for solar installations is notably more complex and time-consuming than Delaware’s. Maryland requires extensive documentation, multiple layers of approval, and longer wait times for permits compared to Delaware. Despite this, solar installations in Maryland still cost thousands less than in Delaware. This discrepancy suggests that Delaware’s participating vendors may be inflating their costs, taking advantage of the state’s rebate programs to justify higher prices while offering fewer bureaucratic hurdles.

In addition to managing the state’s solar rebate program, the Delaware SEU is also responsible for overseeing millions of dollars allocated to the Delaware Low-Income Solar Program, which aims to provide free solar installations for low-income households. This program has come under scrutiny for its management and transparency, with critics questioning whether the funds are being used effectively to benefit those most in need. The Caesar Rodney Institute, a Delaware-based public policy think tank, recently gave the SEU an "F" rating, citing concerns over the inefficiency and lack of transparency in both the rebate and low-income programs (Caesar Rodney Institute).

This price inflation, combined with questions surrounding the management of the Delaware SEU, means that while Delaware residents can benefit from generous rebates, they may still pay more upfront compared to out-of-state consumers, even in states like Maryland, where the permitting process is more arduous but the overall cost is significantly lower.

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