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Business owners can harness solar energy by installing solar panels on their roof or property grounds. These panels convert sunlight into electricity, helping reduce your utility costs.
Before moving forward, confirm that your electric utility allows solar interconnection.
To install solar, you must either own the building or have a long-term lease that permits property improvements. If you lease, consult your landlord before proceeding.
While solar offers many benefits, it’s important to consider all factors before deciding.
A key reason to install solar is to lower your monthly electric bill. By generating your own electricity, your business draws less power from the grid, reducing your utility costs. Be sure to factor in the cost of the solar system itself—see our Cost of Solar and Solar Financing section for more details.
Many businesses that install solar are eligible for net metering, which allows you to receive credit for excess energy sent back to the grid. Contact your utility provider to confirm net metering availability.
Additional benefits include reducing your environmental impact and showcasing your business’s commitment to sustainability, which can enhance your brand image.
Before deciding to go solar, assess whether your property is suitable. Key factors to consider include:
The cost of a solar system depends on factors like your building size, annual energy usage, equipment quality, and your chosen installer.
There are three main options for non-residential solar installation:
This grant program supports Delaware public school districts in adopting solar energy. Funds may be used for feasibility studies, system installation, array components, and utility upgrades.
Eligibility & Requirements:
Program Details:
Senate Substitute 1 for Senate Bill 270 identified $1.1 billion in minor capital improvement needs across Delaware schools. This program helps address those needs while promoting a healthier, safer, and more sustainable environment for students, staff, and visitors.
Additional Information:
This program offers public libraries and nonprofit organizations across Delaware the opportunity to install solar energy systems for new projects. Grants may be used for feasibility studies, system installation, array components, and utility upgrades.
Eligibility & Requirements:
Program Details:
View Application and Apply
The Solar Investment Tax Credit (ITC) has fueled significant growth in the U.S. solar industry. Extended through 2034 by the Inflation Reduction Act in August 2022, the ITC allows homeowners and businesses to reduce their federal tax liability by a percentage of their solar system costs.
For solar projects completed between 2022 and 2032, owners can deduct 30% of the project cost from their federal taxes. In 2033, the percentage drops to 26%, and in 2034 it will be 22%. The ITC expires in 2035.
For example, if you install a $25,000 solar system in 2022, you can deduct 30% ($7,500) from your federal taxes. If your tax liability is less than $7,500, the remainder can be carried forward to future years.
Eligible Costs for ITC:
Note: This is not professional tax advice. Please consult a tax professional for specific guidance on how to claim the ITC.
Learn how the Inflation Reduction Act can help homeowners, businesses or manufacturers in the U.S. Department of Energy (DOE) Solar Energy Technologies Office resources.
Energize Delaware offers a low-interest loan program for small to mid-sized businesses in Delaware. The program is available to credit-qualified businesses in existing facilities, whether owned or leased. Loan amounts range from $30,000 to $2,000,000 per project, depending on fund availability, with a maximum of $2,000,000 outstanding to any borrower.
For additional information about the Energize Delaware Low-Interest Commercial Loan Program, contact Drew Slater at email drew.slater@deseu.org.
For application assistance, call Stephanie Maves at 800-361-5663 extension 6953 or email smaves@slipstreaminc.org.
The Performance Contracting Program supports schools, universities, municipalities, hospitals, private institutions, and nonprofits. It funds improvements using long-term utility cost savings from implemented projects, delivered through prequalified Energy Services Companies (ESCOs).
C-PACE is a financing program available in over 30 states, including Delaware, that helps commercial property owners secure funding for sustainable improvements, including solar system installations. The program offers competitive, private financing through capital providers in an open market. C-PACE can cover up to 100% of a building’s modernization project cost, often with no upfront payment, allowing significant upgrades.
You can install solar panels on your roof or property. Be sure your utility allows interconnection before proceeding.
Delmarva Power offers net metering to ensure safe and reliable solar system integration with the grid. Customers interested in installing solar can apply for interconnection through Delmarva Power’s Green Power Connection team, typically via their solar installer. Applications should be submitted before installation to ensure proper permitting and interconnection. All applications must be submitted through their online portal.
Several tools are available to help you determine if a solar system’s interconnection is feasible in your location.
City of Dover customers can apply for solar system interconnection. Guidelines are outlined in the Electric Service Handbook, Section 3, with solar net metering details in Section 4. The Electric Engineering Division reviews applications and may conduct a pre-interconnection study.
Contact information is available on the Utility Contact Information page.
The Delaware Municipal Electric Corporation (DEMEC) represents eight municipal electric utilities in Delaware: Newark, New Castle, Middletown, Clayton, Smyrna, Milford, Lewes, and Seaford. Solar system interconnection is allowed in many DEMEC territories. For details, contact the respective municipal electric departments. Contact info is on the Utility Contact Information page.
The Residential Municipal Green Energy Program offers grants to support renewable energy, available to customers of participating Delaware municipalities contributing to the Municipal Green Energy Fund.
Check the DEMEC website for eligible municipalities.
Delaware Electric Cooperative (DEC) members who install solar systems can apply to interconnect with the grid, provided their systems meet DEC’s technical requirements. DEC has separate applications for systems under 100 kW and systems 100 kW or larger. After installation and approval, DEC will install a net meter to track excess energy production and credit the member.
In some areas, DEC no longer allows new solar interconnections due to grid capacity concerns. A map showing eligible (green), restricted (red), and conditional (yellow) areas is available. Members with questions should contact DEC directly.
You can install solar panels on your roof or property. Be sure your utility allows interconnection before proceeding.
Green Energy Program: Delmarva Power customers can apply for a solar grant through the Green Energy Program, administered by the Delaware Department of Natural Resources and Environmental Control (DNREC). Since 1999, the program has funded over 4,300 renewable energy projects in Delaware.
To qualify, the solar system must be installed by an approved renewable energy contractor. Grant applications must be submitted through the Green Grant Delaware online system. DNREC provides instructions and current incentive rates on its website.
Low- to Moderate-Income Solar Pilot Program (LMI): The two-year LMI Solar Pilot Program, administered by DNREC, uses Delmarva Power funds to promote renewable energy in low- and moderate-income households within Delmarva Power’s service area.
Low-income households: Apply through the Weatherization Assistance Program for cost-free solar installation.
Moderate-income households: Apply through the Green Energy Program for a reduced-cost solar installation.
For more details and to check eligibility, visit DNREC’s website and review the program fact sheet.
Delaware Electric Cooperative offers grants to offset the cost of solar systems within their service territory. To qualify, the system must be installed by a participating contractor. Grant applications can be submitted through their website.
Municipal Green Energy Grant Program
DEMEC offers grants to customers of municipal utilities that contribute to the fund. For more details, review the grant application checklist.
Corporate Renewable Energy Block Program
This program allows commercial/industrial customers to meet sustainability goals by purchasing Solar Renewable Energy Credits (SRECs) and Renewable Energy Credits (RECs) based on their typical and projected energy consumption. For more information, visit DEMEC’s website. Interested participants should contact DEMEC directly to apply.
As solar has become more popular and accessible, so has solar advertising and sales activity. Solar can be a great investment, but it’s more important than ever to be an informed consumer. These tips will help you navigate solar offers and avoid common pitfalls.
Tip #1: Always Compare Multiple Quotes
Get at least three quotes before choosing a solar provider. This gives you a chance to compare equipment, financing options, and contract terms—and positions you to negotiate better deals.
Tip #2: Understand Your Financing Options
Whether you purchase, finance, lease, or sign a Power Purchase Agreement (PPA), your choice impacts which incentives you can access and how your system affects your long-term finances. If you own your system, you may qualify for federal tax credits and can sell SRECs. Leased systems typically exclude you from those benefits.
Tip #3: Know the Length and Terms of Your Contract
Before signing, ask:
Tip #4: Pick a Reputable Company
Tip #5: Watch for Common Misinformation
Be cautious of:
Verify all claims with your electric provider, tax advisor, or official solar resources.
Tip #6: Confirm Your Incentives
Estimates for incentives (like tax credits) are just that—estimates. Make sure you:
Tip #7: Understand the Cost Per Watt
Comparing quotes? Use this formula:
Contact the Delaware Division of the Public Advocate
Advocating for fair utility rates and services:
Always do your homework. A little time upfront can save you thousands—and ensure your solar experience is smooth and worthwhile.
Purchasing a solar system is an investment that can lead to long-term savings. You can pay upfront or finance through a loan. A key factor is the payback period—the time it takes for savings and earnings from your system to equal the initial cost. Savings come from reduced electricity bills, selling SRECs, and available grants and incentives. The average payback period is 7-10 years, and with a solar system lifespan of 25 years, you’ll continue saving long after the payback period.
Leasing solar panels lets you switch to solar without a large upfront investment. In this arrangement, you (the Lessee) sign a contract with the company that installs the system (the Lessor), who retains ownership of the equipment. You make monthly payments to use the system and its electricity, similar to leasing a car. When considering a lease, it’s important to understand the contract length and any annual payment increases.
The main difference between purchasing and leasing solar systems is ownership of the equipment and environmental attributes. If you buy the system, you own the equipment and SRECs, and you can apply for government or utility incentives. With a lease, the third-party company owns the system and SRECs, and you’re ineligible for these incentives.
Maintenance is another factor: if you buy, you’re typically responsible for upkeep, though some installers offer maintenance packages. With a lease, the company handles maintenance.
Leasing can also complicate selling your home, as the buyer must decide whether to assume the lease.
Owning
Leasing
Ultimately, whether to lease or buy depends on your financial situation. A solar installer can help you decide.
Once you’ve decided to go solar, your first step is selecting a qualified installer. Check out the list of Delaware Installers for local options below.
Most businesses aim to install a system that offsets their annual electricity usage. After receiving quotes, use our Solar Calculator to ensure the proposed systems meet your energy needs.
To understand the full installation process, review our Delaware Solar Installation Timeline.
This list is informational only and does not imply endorsement. Always check references, gather multiple proposals, and confirm with your utility that solar is permitted before signing a contract.
Arise Solar, LLC
American Sentry Solar
Castle Energy, LLC
Clean Energy USA
CMI Solar & Electric
CNC Solar
Eco-Solar Solutions
Green Street Solar
KW Solar Solutions
Paradise Energy Solutions
Solair, LLC
TerraSol Energies, Inc.
Trinity Solar
Not Listed? If you’re an installer and want to be listed here, please complete this form (PDF) and email it to pr@deseu.org.