The Average Cost Of Solar Panel Installation In Delaware

Solar energy is becoming more popular in Delaware, with both homeowners and businesses taking advantage of lower energy bills, tax incentives, and environmental benefits. As electricity rates continue to rise, installing solar panels is one of the best long-term investments you can make. But before making the switch, one of the biggest questions is, “How much does solar panel installation cost?”  

The total cost of solar depends on system size, panel type, installation details, and available incentives. While every home is different, understanding the average price range, savings potential, and financing options can help you make the right decision. At Solair Green Energy Advisors, we help Delaware homeowners like you understand the costs and benefits of solar energy so that you get the best return on investment.  

How Much Does Solar Panel Installation Cost in Delaware?  

In 2024, the average cost of a residential solar panel system in Delaware ranges from $14,000 to $22,000 before incentives. This translates to an average cost of $2.35 to $3.50 per watt for a standard 5kW to 8kW system, which is typical for most homes.  

Several factors influence the final price, including:  

• System Size: Larger solar systems produce more electricity but come with a higher upfront cost. A 5kW system may cost around $13,000 to $16,000, while a 10kW system could range from $25,000 to $30,000 before incentives.  

• Panel Type and Efficiency: High-efficiency solar panels, such as monocrystalline panels, cost more but generate more power in limited roof space. Polycrystalline panels are cheaper but slightly less efficient.  

• Roof Particulars: If your roof has steep angles, multiple levels, or obstructions like chimneys, installation can be more labor-intensive, which increases costs.  

• Battery Storage: Adding a solar battery for energy storage, like a Tesla Powerwall or Enphase Encharge, can add $8,000 to $15,000 to the total cost but allows for backup power during outages.  

While the upfront cost of solar panel installation in Delaware can vary, the long-term savings and financial incentives make it a worthwhile investment. Homeowners can offset costs through federal tax credits, state incentives, and net metering programs, reducing their energy bills over time. 

Solar Incentives and Tax Credits in Delaware  

You can actually save money on your solar panel installation costs by taking advantage of federal and state incentives. These programs lower upfront costs, improve long-term return on investment, and accelerate the payback period for solar energy systems. By combining tax credits, renewable energy certificates, and utility rebates, you can maximize savings while reducing your reliance on traditional power sources.  

Federal Solar Investment Tax Credit

The Federal Solar Investment Tax Credit (ITC) is one of the biggest financial benefits available to homeowners. This program allows you to deduct 30% of your total solar installation costs from your federal taxes. For example, if your solar system costs $18,000, the 30% ITC credit reduces your tax liability by $5,400, bringing the net cost of the system down to $12,600. You can also score an additional 10% credit if your system is built with 40% or more of American components. 

There is no cap on this credit, making it one of the most valuable solar incentives in the country. However, the ITC is set to decrease in future years, so homeowners looking to maximize their savings should take advantage of it while it remains at 30%.  

Solar Renewable Energy Certificates

Delaware also offers Solar Renewable Energy Certificates (SRECs), which allow homeowners to generate additional income from their solar panels. For every 1,000 kilowatt-hours (kWh) of solar electricity produced, homeowners earn one SREC, which can be sold to utility companies to help them meet state-mandated renewable energy requirements. 

The price of SRECs varies depending on market demand, but they can provide an ongoing revenue stream that further reduces the long-term cost of solar ownership. Homeowners with larger systems that generate excess electricity can benefit the most from SREC sales, making solar an even smarter investment.  

Net Metering

Net metering is another key financial incentive in Delaware. When a solar system generates more electricity than a home consumes, that surplus power is sent back to the grid. In return, the utility company provides credits on the homeowner’s electric bill, offsetting future electricity costs. 

Unlike some states where net metering policies reduce the value of excess solar energy, Delaware maintains a one-to-one credit system, meaning homeowners are compensated at the same rate they would pay for electricity. This ensures maximum savings and can shorten the payback period of a solar investment.  

Utility Providers

In addition to these statewide programs, some Delaware utility providers offer additional rebates and incentives for solar panel installations. For example, Delmarva Power has previously offered solar rebates to help homeowners offset installation costs, though availability and funding for these programs can change from year to year. Checking with local utility providers or working with a solar expert ensures you receive the most up-to-date incentives available in your area.  

These incentives make solar power not only an environmentally friendly choice but also a wise financial investment for homeowners looking to cut their energy costs and increase the value of their homes.

How Much Can You Save with Solar in Delaware?  

Solar panels pay for themselves over time through electricity savings. The average Delaware homeowner spends around $120 to $150 per month on electricity: with a well-sized solar system, you can reduce or eliminate your electric bill, saving $1,500 or more per year.  

The typical payback period for a solar panel system in Delaware is 6 to 10 years, depending on system size, financing, and energy consumption. After this period, you enjoy free electricity for the remaining lifespan of your panels, which can last 25 to 30 years. Over the lifetime of a solar system, you can expect to save between $30,000 and $50,000 on electricity costs.  

Financing Options for Solar Installation in Delaware  

Not every homeowner wants to pay for solar upfront. Fortunately, there are several financing options that make switching to solar affordable.  

• Cash Purchase: Paying for solar in full offers the highest return on investment since there are no interest payments. Homeowners who purchase outright benefit from immediate energy savings and full tax credits.  

• Solar Loans: Many banks and solar companies offer low-interest loans, allowing homeowners to spread the cost over 5 to 20 years. In most cases, the monthly loan payment is equal to or lower than your current electricity bill, meaning you save money from day one.  

• Solar Leases & Power Purchase Agreements (PPAs): With a lease or PPA, you don’t own the panels but pay a fixed monthly fee for the electricity they produce. These options require little to no upfront cost but provide fewer long-term savings than ownership.

Is Solar Worth It in Delaware?  

With rising electricity costs, strong incentives, and favorable net metering policies, installing solar panels can lead to substantial savings and long-term financial benefits. For many Delaware homeowners, the combination of lower energy bills, government incentives, and home appreciation makes solar one of the smartest investments available.  

High Electricity Rates

One of the biggest reasons solar is worth it in Delaware is the state’s high electricity rates. The average homeowner in Delaware pays around 15 to 17 cents per kilowatt-hour (kWh), which is higher than the national average. 

Since solar panels generate free electricity from the sun, you can lock in long-term energy savings and protect yourself from future rate increases. Over the lifespan of a solar system, you can save between $30,000 and $50,000 in electricity costs, making solar a cost-effective alternative to traditional power.  

Improved Home Value

Beyond energy savings, solar panels also increase home value. Studies show that solar-powered homes sell for 3-4% more on average compared to homes without solar. Buyers are willing to pay a premium for properties with lower energy costs and long-term energy efficiency, making solar a valuable home improvement that pays off whether you stay in your home or decide to sell in the future.  

With high electricity rates, strong financial incentives, and favorable net metering policies, Delaware homeowners can reduce their utility bills, increase their home’s value, and achieve energy independence by switching to solar. The financial benefits alone make solar a great long-term investment, while the environmental impact adds another layer of value.

Why Choose Solair Green Energy Advisors?  

Choosing the right solar provider is just as important as choosing the right system. At Solair Green Energy Advisors, we help Delaware homeowners with the entire solar transition process, from cost analysis and financing options to installation and long-term savings strategies.  

Our team specializes in custom solar solutions, so you get a system designed for maximum efficiency and return on investment. With access to the best incentives, high-quality equipment, and expert installers, we make the transition to solar affordable and stress-free.  

Make the Switch to Solar with Solair Green Energy Advisors  

Solar energy is an investment that provides long-term savings, energy security, and environmental benefits. If you’re ready to reduce your energy bills and take advantage of Delaware’s solar incentives, now is the time to act. Contact Solair Green Energy Advisors today for a free solar consultation and cost estimate. Let us help you make the switch to clean, affordable energy that pays for itself.