The cost of solar has dropped significantly over the past decade, but upfront expenses remain a barrier for many homeowners and small businesses. To address this issue, the state of Delaware, through its nonprofit energy organization Energize Delaware, offers a Solar Loan Program designed to make renewable energy systems more accessible and affordable.

This program provides structured, low-interest loans that reduce financial pressure for property owners looking to invest in solar panels. If you are a Delaware resident, business owner, or nonprofit interested in clean energy, the Energize Delaware Solar Loan Program can serve as a practical funding solution. At Solair Green Energy Advisors, our solar technicians can help you apply for funding, design your grid, and get it installed. In this article, we explain how the program works, who qualifies, what it covers, and how to apply.

What Is Energize Delaware?

Energize Delaware is a nonprofit organization created to promote energy efficiency and renewable energy adoption across the state. It operates independently but partners with public agencies, private contractors, and lenders to run programs for homes, businesses, and public facilities.

The organization’s Solar Loan Program is one of several energy financing initiatives it administers. Its goal is to reduce energy consumption and greenhouse gas emissions by removing cost barriers and supporting long-term clean energy investments.

What Is the Solar Loan Program?

The Solar Loan Program is a financing initiative that offers low-interest loans to property owners who want to install photovoltaic (PV) systems on their properties. It is intended to:

Help residents and businesses overcome the high upfront cost of solar installations
Increase the number of solar installations across Delaware
Reduce the financial risk of going solar by offering below-market interest rates
Provide loan terms that align with expected energy savings

This is not a grant or rebate: it is a loan with fixed repayment terms. However, because the interest rates are lower than what most banks offer for similar products, the program makes solar a more attainable option for many people.

Who Is Eligible?

The Energize Delaware Solar Loan Program is open to residential homeowners as well as commercial, agricultural, and nonprofit property owners. Each applicant must meet specific criteria to qualify.

Residential Eligibility

To apply as a homeowner, you must own and occupy a residential property in Delaware. This can include a single-family home or a residential building with up to four units. The property must be located within the state and be your primary residence. Other requirements include:

You must have a credit score that meets the program’s minimum threshold. While the exact score may vary depending on current program terms, a credit score of 640 or higher is generally required.
You must also choose a contractor from the program’s list of approved installers. This requirement ensures that the system is designed and installed to meet safety, performance, and efficiency standards.
Before your loan can be approved, your home must be evaluated for energy efficiency. If the evaluation shows that your home is losing energy due to poor insulation, outdated systems, or other issues, you may be required to complete specific upgrades before installation. In some cases, the cost of these upgrades can be included in the loan.
You must be current on your mortgage, property taxes, and any existing loans tied to the property. If you have a history of missed payments or defaults, your application may be denied.

Commercial, Agricultural, and Nonprofit Eligibility

Businesses, farms, and nonprofit organizations can also apply. To qualify, the entity must own the property where the solar system will be installed. Leased properties are not eligible unless the applicant holds a long-term lease that meets program requirements.

In addition:

The organization must be registered and legally operating in the state of Delaware. Proof of registration, such as a certificate of incorporation or business license, is required.
Applicants must submit recent financial documentation. This can include income statements, tax returns, or other records that demonstrate the ability to repay the loan. These documents are reviewed to assess financial risk and determine eligibility for loan terms.
Like residential applicants, commercial and nonprofit applicants must use a solar contractor that meets all program guidelines. The contractor must submit a full project proposal including system specifications, site plans, and projected energy output.
The solar system must be designed to offset energy used on the property. Systems intended solely for resale or unrelated commercial purposes are not eligible. The energy generated should serve the applicant’s own operations, reducing utility costs and supporting energy independence.
All applicants must be current on mortgage payments, property taxes, and any other financial obligations connected to the property. Past-due accounts or unresolved liens may disqualify the application.

Eligibility is subject to final review by program administrators. Meeting the minimum qualifications does not guarantee approval, but failure to meet any requirement will result in denial.

Loan Terms and Conditions

The Energize Delaware Solar Loan Program offers several advantages that make it appealing compared to traditional financing. They include:

Loan Amounts: The maximum loan amount depends on the size of the solar system and whether you are applying as a residential or commercial customer. While limits may change over time, residential loans typically range from $5,000 to $30,000. Commercial borrowers may be eligible for higher amounts, depending on the scope of the project.
Interest Rates: Interest rates are fixed and lower than average market rates for unsecured loans. Rates often fall between 3 and 6 percent, depending on creditworthiness and the program’s current terms. Because the loan is specifically intended for energy projects, these rates are subsidized to promote adoption.
Loan Terms: Terms range from 5 to 20 years. Most residential loans are set at 10 or 15 years, which aligns with the payback period for a typical solar system. Commercial applicants may qualify for longer terms, especially if the system size justifies a greater financial commitment.
No Prepayment Penalty: Borrowers may pay off the loan early without penalty. This is a critical feature for homeowners who may plan to refinance, sell the home, or apply additional savings toward loan payoff.

Covered Costs

The Solar Loan Program covers a wide range of costs directly related to the design, purchase, and installation of solar PV systems. They may include:

Solar panels and inverters
Racking and mounting hardware
Permits and inspection fees
Electrical work and wiring
Installation labor
Monitoring systems
Energy storage (in some cases)
Structural improvements required for installation

All systems must be grid-connected: off-grid systems are generally not eligible. Battery storage may be financed as part of the loan if paired with a grid-tied solar system and approved in advance.

Approved Contractors

To qualify for financing, applicants must use contractors approved by Energize Delaware. This requirement ensures that systems are installed by licensed professionals who meet program standards for design, safety, and energy performance. Using a contractor not on the approved list can result in the application being denied.

Homeowners and business owners can view the list of eligible contractors on the Energize Delaware website. Some contractors are also trained to help applicants complete loan paperwork and submit required documents.

Energy Efficiency Requirements

Before approving a loan, the program may require that you assess your property’s current energy efficiency. This often involves a home energy audit or commercial energy assessment conducted by a certified technician.

If the audit reveals areas where significant energy is being lost, such as poor insulation or outdated appliances, the program may require you to complete specific upgrades before approving the solar loan. These measures improve system performance and ensure that you maximize your return on investment. In some cases, the cost of these upgrades can also be included in the loan.

How to Apply for Energize Delaware’s Solar Loan Program

Applying for the Solar Loan Program involves several steps. The process is structured but straightforward.

Step 1: Prequalification

Visit the Energize Delaware website and complete the online prequalification form. You will need to provide basic information about your property, planned solar project, and income or business revenue.

Step 2: Contractor Selection

Choose an approved contractor to design and estimate your system. The contractor will visit your property, assess the site, and provide a quote. They will also help you determine the appropriate system size and energy output.

Step 3: Energy Assessment

Schedule an energy audit if required. This may be a full audit or a simplified inspection depending on the age and condition of your property.

Step 4: Submit Full Application

After you receive the system proposal and complete any required assessments, submit your loan application. You will need to provide:

Income verification (such as tax returns or pay stubs)
Credit information
Contractor’s installation plan and quote
Audit results or waiver documentation
Identification and property records

Step 5: Loan Review and Approval

The program administrator reviews your application and checks your credit, contractor selection, and project details. Approval can take several business days to a few weeks.

Step 6: Loan Agreement and Installation

Once approved, you sign the loan agreement and work with your contractor to schedule installation. Funds are released directly to the contractor after installation is verified.

Energize Delaware’s Solar Loan Program Benefits

The Solar Loan Program offers more than just low-interest financing. It also:

Encourages investment in clean, renewable energy
Reduces long-term electricity bills
Increases property value
Decreases carbon emissions
Meets state-level energy goals
Makes solar accessible to more income brackets

By working with vetted contractors and requiring efficiency upgrades, the program ensures that each system delivers strong performance and long-term savings.

Federal Tax Incentives and Other Savings

Borrowers who use the Energize Delaware Solar Loan Program can also take advantage of other financial incentives that reduce the total cost of a solar installation.

Investment Tax Credit

One is the federal solar Investment Tax Credit (ITC), which is available for both residential and commercial systems. It allows you to deduct a percentage of the total system cost from your federal income taxes.

To qualify, the solar system must be installed and operational during the tax year in which you claim the credit. The credit applies to costs such as panels, inverters, labor, permitting, and certain electrical upgrades. The IRS requires proper documentation, including receipts and proof of payment. You must also own the system; leased systems do not qualify for the credit.

Net Metering

Net metering lets you send unused solar power back to the utility grid. In return, you receive a credit on your utility bill for each kilowatt-hour exported. These credits offset the cost of power you use when your system is not generating electricity, such as at night or during cloudy conditions. Credits roll over each month, reducing your future utility charges.

By using both the federal tax credit and net metering in combination with a low-interest loan from Energize Delaware, you can lower your total project cost and speed up your return on investment. These programs work together to make solar financially viable for a wider range of property owners.

Considerations Before Applying

Before submitting your application, take the following steps:

Evaluate your current utility bills to determine potential savings.
Ensure your roof is structurally sound and receives adequate sunlight.
Compare multiple quotes from approved contractors.
Review the full loan terms, including total repayment amounts.
Confirm that all project components meet program requirements.

The Energize Delaware Solar Loan Program is one of the most accessible and cost-effective solar financing tools in the state. It offers Delaware homeowners, businesses, farms, and nonprofits a viable path to solar ownership with fixed terms, fair rates, and technical support. If you are ready to reduce your energy costs and invest in solar, this program can help you take the next step.

Solair Can Help You Apply for the Solar Loan Program

At Solair Green Energy Advisors, we can help you get one step closer to energy independence by applying for the Energize Delaware Solar Loan Program. We evaluate your property, coordinate with approved contractors, and prepare the required documents. We understand the program’s terms and make sure your application is submitted correctly and on time.To get started, contact us today for a free consultation.

Energize Delaware’s Solar Loan Program: Everything You Need To Know