Benefits of Solar Energy
Solar energy has multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: The sun is one of the universe's most abundant clean energy sources, meaning you can lower or beat your home's dependence on "traditional" sources.
- Better energy independence: Solar panel systems can keep your home functioning through emergencies and blackouts, giving you additional security. You can use your solar energy anytime with optional battery backup.
- Smaller power bills: Generating some or all of your own energy will save you money on your electric bills long-term. Plus, some states provide net metering programs that make it possible for you to sell your unused energy back to the grid, generating extra credits toward your energy bill.
What Solar Incentives Are Available to Wilmington Homeowners?
Governments and utility companies often incentivize homeowners for going solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Rebate Program
Website: dnrec.alpha.delaware.govIncentive Amount:
Solar PV
Residential: $0.70/W
Residenital Leased/PPA systems: Not eligible
Non-Residential (systems less than 6 kW): $0.50/W
Non-Residential (systems 6 kW or larger): $0.70/W
Non-Profit: $1.40/W
Wind
Residential: $0.85/W for first 5 kW, $0.25/W up to 50 kW
Non-Residential: $0.85/W for first 5 kW, $0.25/W up to 50 kW
Non-Profit: $1.75/W for first 5 kW, $1.00/W up to 50 kW
Solar Water Heating (SWH)
Residential: $1/kWh saved
Non-Residential: $1/kWh saved
Non-Profit: $2/kWh saved
GeoThermal Heat Pumps
Residential: $800/ton (first 2 tons), $700/ton (over 2 tons)
Non-Residential: $800/ton (first 2 tons), $700/ton (over 2 tons)
Non-Profit: $1,000/ton (first 2 tons), $800/ton (over 2 tons)
Incentive Type: Solar Renewable Energy Credit Program
Website: srecdelaware.comIncentive Amount:
Market bid price for the first 10 years, $35 for the next 10 years.
Incentive Type: Solar Renewable Energy Credit Program
Website: greengrantdelaware.comIncentive Amount:
Upfront payment of $450/kW in exchange for the first 20 years of SRECs created by a solar system
Incentive Type: Solar Renewable Energy Credit Program
Website: depsc.delaware.govIncentive Amount:
Varies based on market conditions; as of October 2014 the SRECs were trading at approximately $55 per MWh in SREC marketplace.
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Wilmington
The cost and efficiency of solar panels often depend on which company installed them. Make your choice based on the following essential elements.
Licensing and Training
Delaware treats solar installation no differently from any other electrical work. Solar contractors must be licensed electricians, and the government recommends they apply for certification from the North American Board of Certified Energy Practitioners (NABCEP) on top of their license. Look for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar industry's most credible trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Wilmington
Your solar panels' style will affect how much energy you can produce. Monocrystalline panels are among the highest quality and cost the most but perform the best. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can enhance your solar system's efficiency. Not all solar contractors include these additional features, so look for a contractor that installs them if it's important for you.
Generally speaking, it costs about $15,450 for a five-kilowatt solar array in Wilmington. This table shows more specific costs for different solar panel types and system components in your area.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,146 |
| Solar Polycrystalline | $894 |
| Thin-Film | $523 |
| Solar Battery | $733 |
| Solar Home EV Charger | $2,751 |
Financing Solar Energy in Wilmington
There are many ways to pay for a solar energy system, and the right one will reduce your expenses. A few of the most common options include power purchase agreements (PPAs), leases, loans, and cash payments. Though it requires a large up-front payment, cash is the most affordable choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the next best option. As with a car or home loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases allow you to pay a monthly fee to rent your panels, while a PPA lets you pay a fluctuating rate based on only the energy you use. We generally advise against these options since you will not have ownership of your system and are disqualified from solar incentives, but they might be appropriate in certain circumstances. We advise working with a company that offers multiple financing options. Talk to each consultant about what's available, and get more than one estimate for the best odds of keeping within your financial plan.
The table below lists the average payback periods for different capacities of solar systems in Wilmington.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, utilities and local governments may have their own financing plans and rebates that could reduce your total cost even more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.7 years |
| 2 kW | 5.5 years |
| 5 kW | 13.7 years |
| 10 kW | 27.5 years |
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Frequently Asked Questions About Solar in Wilmington
How much money could I save by going solar in Wilmington?
Is solar energy common in Wilmington?
Will a solar PV system raise my Wilmington home price?
What's a Wilmington solar panel's average lifespan?
What size should my new Wilmington solar system be?
How long does it take to pay back a solar loan in Wilmington?
How are traditional solar loans and PPAs different?
You might consider a PPA if you don’t want to be responsible for maintenance and don’t want to invest in a system, but keep in mind you won’t be paying toward ownership or be able to access any solar financial incentives. Many solar experts don’t recommend PPAs. Our guide covers other payment options above.
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