If you're a Delaware resident considering solar panels, one of the first questions you might ask is, "What will it cost?". Over the years, the cost of solar panels in Delaware has been steadily decreasing, making it an increasingly attractive option. The cost of solar panels in Delaware hovers around $2.69 per watt. This means for a 5kW setup, you will be looking at spending about $13,450 but this price can drop to about $9,415 after applying the 30% federal tax credit.
Solar Adoption in Delaware
Despite its small size, Delaware is making significant strides in solar energy. With 279 MW of solar power installed, the state ranks 40th nationally, up from 44th in 2023, and generates enough electricity to power 35,425 homes. Solar accounts for 6.99% of Delaware’s electricity, supported by robust policies like the Renewable Portfolio Standard (RPS), aiming for 25% renewable energy by 2026, with 3.5% from solar. Additionally, Delaware's net metering laws and incentives, such as third-party solar financing, are driving rapid growth in solar adoption. Prices have fallen 47% over the past decade, and projections indicate a growth to 688 MW in the next five years.
Key Takeaways
The average 2024 cost for solar panel in Delaware is about $2.69 per watt.
Federal and state incentives can significantly reduce solar panel cost
Financing options include solar loans, low-interest loans, leases, and PPAs.
Delaware's solar market is growing, with prices dropping 47% over 10 years.
Solar Panel Cost in Delaware 2024
As of 2024, the average cost for a residential solar system is approximately $2.69 per watt. This means if you're considering a solar panel system, a 6kW setup in Delaware would cost around $16,140 before applying incentives like the 30% federal tax credit.
Here's a breakdown of average cost of a solar setup by size:
System Size | Average cost | Average cost (after federal tax credit) |
5kW | $13,450 | $9,415 |
7kW | $18,830 | $13,181 |
9kW | $24,210 | 16,947 |
11kW | $29,590 | $20,713 |
13kW | $34,970 | $24,479 |
How Does System Size Affect Solar Panel Costs?
One of the biggest factors influencing the cost of your solar installation is the size of the system you choose. Think of it like buying groceries: the more you buy, the higher the total cost, but sometimes you get a better deal per item.
Small vs. Large Installations: If you have a small home or lower energy needs, a smaller solar system might be sufficient. These installations generally have lower upfront costs but might not provide as much long-term savings. On the other hand, larger systems cost more initially but can generate more electricity, leading to greater savings over time.
Impact on Cost Per Watt: The cost per watt of solar panels can decrease as the system size increases. This means that while a larger system will have a higher total cost, each watt of power generated can be cheaper compared to a smaller system.
What Role Does Roof Type and Condition Play?
The type and condition of your roof can also significantly impact the cost of your solar installation.
Flat vs. Sloped Roofs: Flat roofs often require additional mounting equipment to angle the panels correctly, which can increase the cost. Sloped roofs, especially those facing south, are ideal for solar panels and typically less expensive to install on. However, the complexity of the roof’s design (e.g., multiple angles or dormers) can also affect installation costs.
Roof Material and Structural Considerations: The material your roof is made from can influence installation costs too. Asphalt shingles are the easiest and cheapest to work with, while materials like metal, tile, or slate might require specialized equipment and labor, adding to the cost. If your roof needs repairs or reinforcement to support the solar panels, these costs should be factored in before installation.
Other Factors Influencing Costs
Inverter Type: Inverters, which convert the electricity generated by your solar panels into usable power for your home, come in different types. String inverters are less expensive but might be less efficient for systems with shading issues. Microinverters, though pricier, optimize each panel’s output and are ideal for roofs with variable shading.
Installation Company: The cost can also depend on the solar installation company you choose. Experienced and certified installers might charge more, but they can ensure better quality and service, which can save you money in the long run.
Permits and Interconnection Fees: Before installing your solar panels, you’ll need to obtain permits and pay interconnection fees to connect your system to the grid. These costs can vary by location and must be factored into your overall budget.
Local Climate and Solar Irradiance: Delaware enjoys a fair amount of sunshine, but seasonal changes can impact solar energy production. Winter’s shorter days and potential snowfall reduce efficiency, while summer’s longer days boost output. These variations affect solar panel costs by influencing energy savings. Modern solar panels mitigate some of these effects, ensuring consistent returns. Considering these factors helps in properly sizing your system and managing expectations.
Incentives and Rebates in Delaware
When considering solar panels for your home in Delaware, it’s essential to take advantage of the various incentives and rebates available. These programs can significantly reduce the initial costs and make your transition to solar more affordable.
What Federal Incentives Are Available for Solar Panels?
The primary federal incentive is the Investment Tax Credit (ITC). This program allows you to deduct a significant percentage of your solar installation costs from your federal taxes. As of 2024, the ITC offers a 30% tax credit for residential solar systems.
To qualify, you must own the solar system and install it on your primary or secondary residence in the U.S. You can apply for the ITC when you file your annual federal tax return. Make sure to keep all receipts and documentation related to your solar installation.
What State Incentives Can Delaware Residents Access?
Delaware offers several programs to encourage solar adoption:
Delaware-Specific Programs and Rebates: One of the most popular is the Delaware Solar Renewable Energy Credits (SRECs) program. This program allows you to earn credits based on the amount of electricity your solar system produces. You can sell these credits to utility companies, providing a steady income stream.
Local Utility Incentives: Some local utilities in Delaware offer rebates and incentives for solar installations. For example, the Delaware Electric Cooperative provides cash rebates for residential solar systems. These rebates can cover a substantial portion of your installation costs.
Every bit of savings helps so make sure to explore all available incentives and see which ones you qualify for. To fully understand how these incentives can benefit you, reach out to us for a free solar quote.
Long-Term Savings
Installing solar panels can lead to significant long-term savings on your energy bills, offering both immediate and future financial benefits.
How Much Can You Save on Energy with Solar Panels?
Reduction in Monthly Utility Bills: By generating your own electricity, you can drastically cut down your monthly utility bills. Many Delaware homeowners see reductions of 50-70% in their electricity costs.
Net Metering Benefits: Delaware’s net metering policy allows you to sell excess electricity back to the grid. This means you can earn credits during sunny months, which can offset your utility bills during less sunny periods.
Impact on Home Resale Value: Homes with solar panels often have higher resale values. Studies show that buyers are willing to pay more for homes equipped with solar systems due to the promise of lower utility bills.
Financing Options for Your Solar Investment
When it comes to paying for solar panels, there are several financing options available to help make the investment more manageable.
Solar Loans: Many banks and credit unions offer solar loans with competitive interest rates. These loans are specifically designed to finance solar installations and often come with favorable terms. Solar loans help homeowners spread the cost over several years while enjoying the benefits of solar energy immediately.
Low-Interest Loans: Delaware offers low-interest loans through state programs and local lenders to promote renewable energy adoption. These loans can significantly lower the initial financial burden, making it easier to transition to solar power.
Leases and Power Purchase Agreements (PPAs): If upfront costs are a concern, you might consider a solar lease or a PPA. With a lease, you pay a fixed monthly fee to use the solar system installed on your property. A PPA involves paying for the electricity generated by the solar panels at a rate lower than your current utility rate. Both options can reduce your energy costs without the need for a large initial investment.
Financing options like loans, leases, and PPAs can help manage immediate expenses, but it’s important to consider the long-term savings and benefits. Owning your solar system typically provides the greatest financial return over time, as you benefit from incentives, increased property value, and reduced utility bills.
For Delaware homeowners, staying informed about the latest solar trends can help you make a well-timed investment in solar energy, ensuring you get the best value for your money. As always, it’s a good idea to consult with us to get personalized cost estimates for free.
FAQs
What is the average cost of solar panels in Delaware?
The average cost of a solar panel system in Delaware in 2024 is about $2.69 per watt. This means a typical 6kW system would cost approximately $16,140 before applying any incentives or rebates, making it a substantial but worthwhile investment.
Are there financing options available for solar panels?
How do incentives and rebates reduce the overall cost?
Comments