Renewable Energy Permitting in Delaware
Delaware offers a deregulated electricity market, SREC program with 20-year contracts, and straightforward net metering through Delmarva Power. The state has seen $706 million in solar investment.
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Key Permitting Highlights in Delaware
Deregulated retail electricity market
SRECDelaware 20-year contracts (~$45/SREC)
Full retail rate net metering
Systems up to 2 MW eligible
Overview
Delaware is a small but accessible solar market with a single IOU (Delmarva Power) and straightforward policies. The state has been deregulated since 1999, allowing customers to choose electricity suppliers. The SRECDelaware program provides 20-year contracts through competitive annual procurement. With $706 million in solar investment and 847 MW of projected growth over 5 years (ranking 43rd nationally), Delaware offers stable but modest opportunities.
Permitting Guide
Common Challenges & Landmines
Local moratoria + ordinance churn (solar setbacks, BESS bans, decommissioning bonds) are usually the #1 surprise cost. Stormwater + erosion compliance (CGP/SWPPP) enforcement risk + stop-work exposure. Wetlands/401/404 + floodplain can be route/site killers—plan alternatives early. BESS fire code adoption + AHJ posture: IFC/NFPA 855/UL 9540A documentation expectations vary by locality.
Tax Considerations
Property tax is commonly local and negotiable; incentives are often deal-specific.
Data Center Considerations
Incentives vary widely and often include sales/use exemptions and sometimes property tax relief.
Net Metering & Tariffs
Delmarva Power offers full retail rate net metering for systems up to 2 MW. Residential systems can produce up to 110% of historical 12-month consumption. Non-residential systems are also capped at 2 MW with similar consumption-based sizing. Credits carry forward monthly with annual settlement options. Farm customers have a 100 kW limit with case-by-case exceptions available through the Delaware Energy Office.
SREC Market
Delaware's Tier I Alternative Compliance Payment is valued at $45/SREC. Delmarva manages the SRECDelaware program, providing 20-year contracts to SREC sellers through competitive annual procurement. The next procurement window opens in November 2024. This provides long-term revenue certainty for solar projects.
Retail Choice
Delaware Electric Choice has been active since 1999. Customers can choose from over 100 certified electric suppliers while utilities maintain distribution infrastructure. Suppliers must obtain Electric Supplier Certificates through the Public Service Commission with a $750 filing fee.
Frequently Asked Questions
What is the SRECDelaware program?
SRECDelaware offers 20-year contracts to solar generators through competitive annual procurement managed by Delmarva Power. The Tier I ACP is $45/SREC, providing a price ceiling. This program offers long-term revenue certainty compared to spot SREC markets in other states.
What are the net metering system limits?
Residential and non-residential systems are capped at 2 MW, with output limited to 110% of historical consumption. Farm customers are limited to 100 kW but can apply for exceptions through the Delaware Energy Office. Electric cooperative and municipal utility customers have a 500 kW cap.
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