Demystifying Solar Incentives: Your Guide to SRECs in Delaware

Thinking about going solar in Delaware? You’re making a smart choice! Solar panels reduce your reliance on fossil fuels and come with financial benefits. One such program is the Solar Renewable Energy Credits (SRECs). This blog dives deep into SRECs in Delaware, answering all your burning questions:

Key Takeaways

How do SRECs in Delaware work?

Imagine a “green certificate” for every 1,000 kWh of electricity your solar system generates. That’s an SREC! Delaware’s Renewable Portfolio Standard (RPS) requires electricity suppliers like Delmarva Power to source some of their energy from renewables. They achieve this by buying SRECs from solar system owners. So, you get rewarded for your solar production, and the state gets closer to its clean energy goals.

SRECs, or Solar Renewable Energy Certificates, are a great way for solar system owners to offset their energy costs and contribute to the state’s renewable energy targets. By generating renewable energy from solar panels, you can sell the SRECs to utilities like Delmarva Power, which needs them to meet their RPS requirements.

This incentivizes more homeowners and businesses to invest in solar energy, knowing they can earn a financial reward for their clean energy production. It’s a win-win situation for the environment and the economy, as it helps reduce carbon emissions and creates jobs in the renewable energy sector.

So, if you have a solar system on your property in Delaware, take advantage of the SREC program and earn rewards for your green energy production. It’s a simple way to positively impact and benefit from the shift towards clean, sustainable energy sources.

How do you qualify for SRECs in Delaware?

Here’s the good news: Most solar systems in Delaware are eligible for SRECs! To participate, you’ll need to meet a few requirements:

1. Grid-Connected System: Your solar panels must be connected to the electrical grid to qualify for SRECs. This allows you to export the excess solar energy you produce and earn SRECs.
2. Delaware State Certification: Obtain a certification number from the Delaware Public Service Commission (PSC) for your solar system. This verifies that your system meets safety and performance standards.
3. PJM-GATS Registration: Register your system in PJM-GATS, a regional organization that tracks the environmental attributes of renewable energy sources. This ensures your SRECs are properly documented and accounted for.

How much can you save with SRECs in Delaware?

The value of SRECs fluctuates based on market demand. However, Delaware’s program offers some stability. Delmarva Power must pay a fixed-price “Solar Alternative Compliance Payment” (SACP) if it falls short of its RPS requirement. This SACP price acts as a floor for SREC value, offering predictability in what you can earn.  Delaware’s SREC program also offers a 20-year contract for SRECs, providing long-term certainty for solar energy producers. This allows solar energy system owners to lock in a guaranteed revenue stream for a significant period, which can help offset the upfront costs of installing a solar energy system.

Overall, Delaware’s SREC program provides a stable and predictable market for solar energy producers, making it a favorable environment for investing in solar energy and helping to drive the growth of renewable energy in the state.

What other solar incentives are in Delaware?

Delaware offers a suite of incentives to make solar power even more attractive:

1. Net Metering: You can sell excess solar energy to the grid and receive credits on your electricity bill. This reduces your dependence on utility-generated power and lowers your electricity costs.
2. Federal Solar Investment Tax Credit (ITC): The federal government offers a tax credit covering 30% of your solar system installation costs. This significantly reduces the upfront investment required to go solar.

Green Energy Program Grants and Rebates:

Delmarva Power and Light customers can receive a cash rebate of up to $6,000 for installing a solar panel system. Delaware Electric Cooperative customers are also eligible for rebates, with rates varying based on the system’s size: $0.50 per watt for systems up to 5 kW (maximum $2,500 rebate) and $0.20 per watt for larger systems. Local rebates are also available for municipal customers who install solar systems.

Low- to Moderate-Income Solar Pilot Program

Delaware provides a program to assist low- to moderate-income families in acquiring solar energy. Participants in this program can receive a discounted or even free solar panel installation for their homes.

How are SRECs in Delaware different from the SMART Program?

SRECs are specific to Delaware and are administered by the state government. In Delaware, you can earn tradable certificates representing the clean electricity your system produces. Utilities must purchase several SRECs each year to comply with their renewable energy requirements. In contrast, the SMART Program is currently in operation in Massachusetts. This program provides performance-based payments for solar energy generation over a longer contract period, usually 10 years. Payments are determined by the amount of electricity your system generates, not by tradable certificates. There is also a 32-megawatt limit on the credits you can receive from the three utility companies: Unitil, Eversource, and Massachusetts Electric. Delaware has a program similar to the SMART program regarding how fixed the rates are. If Delmarva Power fails to meet its RPS requirement, it must pay a set Solar Alternative Compliance Payment (SACP).

Conclusion

SRECs can provide a significant financial boost to your solar investment in Delaware. Combining SRECs with net metering and the federal tax credit allows you to maximize your savings and make solar an even more attractive option. Contact a local solar installer to learn more about SRECs and how they can benefit your solar journey! Remember, this blog is just a starting point. Conduct further research and consult with professionals for the most up-to-date information on Delaware’s SRECs and other solar incentives.

Illuminate Your Life

Thinking about going solar in Delaware? Don’t miss out on the financial benefits of SRECs! Get A Quote from us to know more!

Frequently Asked Questions (FAQ)

1. What is an SREC?

An SREC stands for Solar Renewable Energy Credit. It represents the renewable attributes of a specific amount of solar energy production.

2. How does the SREC Delaware Program work?

The SREC Delaware Program is a state initiative that helps promote solar energy generation by rewarding producers with tradable SRECs for every megawatt-hour of solar power they generate.

3. What is the Renewable Portfolio Standard (RPS)?

The Renewable Portfolio Standard is a regulatory mandate that requires utilities to procure a certain percentage of their energy from renewable sources such as solar energy.

4. What is the role of the Delaware Public Service Commission in solar energy?

The Delaware Public Service Commission oversees and regulates various aspects of the energy market in Delaware, including programs related to renewable energy goals and SREC procurement.

5. How can I participate in the SREC Procurement Program in Delaware?

To participate in the SREC Procurement Program, solar system owners can sell their SRECs to entities looking to meet their SREC requirement through a bidding process.

6. What is Delmarva Power’s role in sustainable energy in Delaware?

Delmarva Power is a utility company that plays a significant role in supporting sustainable energy initiatives in Delaware through programs like per SREC procurement and SREC portfolio management.

7. How are SRECs priced in the market?

SRECs are priced based on market demand and supply dynamics, with factors such as the number of SRECs generated and the energy year influencing their value.

8. What is the significance of the SRECTrade platform in Delaware’s SREC market?

SRECTrade is a platform that facilitates the buying and selling of SRECs in Delaware, providing a marketplace for solar system owners to sell their SRECs to entities seeking to meet their SREC procurement requirements.