DEMEC Member Utilities – Green Energy Program Incentives

Program Overview

Implementing Sector Utility
Category Financial Incentive
State Delaware
Incentive Type Rebate Program
Web Site https://www.demecinc.net/municipal-green-energy-grants/
Administrator Delaware Department of Natural Resources and Environmental Control
Funding Source DEMEC Green Energy Fund (9 individual utility funds)
Start Date 01/26/2015
Utilities Town of Clayton, City of Milford, Newark City of
Cities Smyrna
Eligible Renewable/Other Technologies Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Wind (All), Geothermal Heat Pumps, Wind (Small), Fuel Cells using Renewable Fuels
Applicable Sectors Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, Agricultural, Institutional
Incentive Amount See summary below
Eligible System Size Minimum: 500 W (for small wind only)
Maximum: No specific limit, but systems must be designed to serve only on-site energy needs
Equipment Requirements Full five-year warranty required for all systems; grid-connected electricity generating systems must generally meet applicable IEEE and UL standards; PV modules must be UL-1703 certified; solar thermal systems must be SRCC certified (OG-300 for residential and OG-100 for non-residential); geothermal heat pumps must have a minimum EER of 14.0 and COP of 3.0
Installation Requirements Systems must generally be installed by a participating contractor; grid-connected or off-grid systems are eligible; solar PV and solar thermal systems must meet orientation, shading, and aesthetics requirements; wind energy systems may be reviewed for wind resource adequacy
Ownership of Renewable Energy Credits Customer-generator

Summary

NOTE: The municipal electric utilities serving New Castle, Clayton, Dover, Lewes, Middletown, Milford, Smyrna, and Seaford do not offer any rebates for individual renewable energy systems. Incentives are only available for residents of Newark. Please see the program web site for further information on the use of green energy funds in these jurisdictions. 

Delaware’s municipal utilities provide incentives for solar photovoltaic (PV), solar thermal, wind, geothermal, and fuel cell systems installed by their electric customers. Eligibility is limited to systems that are intended to supply on-site energy needs. Incentives are available to both residential and non-residential member-owners. Both grid-connected and off-grid PV and wind energy systems are eligible for incentives, but systems must serve loads that would otherwise be served by the electric utility. Solar thermal systems used for domestic water heating or in radiant heating applications must reduce or eliminate the need for electric or gas heated water.

Incentives available in City of Newark are as follows: 

  • Solar Water Heating (Residential only): $1.00 per kWh saved, up to $3,000 for water heating, $5,000 for space heating
  • Solar PV: Residential and Non-Residential: $1.00/W for first 5 kW, $0.50/W after 5 kW. Non-profit: $1.25/W, up to $3,500
  • Small Wind: 33.33% of installed costs, up to $7,500 for residential systems, $15,000 for non-residential systems, and $10,000 for non-profit systems
  • Geothermal Heat Pumps (Residential only): $800 per ton for first two tons, $700 per ton for remaining tons., up to $4,400. 

Systems are subject to a variety of equipment, installation and warranty requirements, including limitations on system orientation and shading for solar energy systems. The Delaware Energy Office processes applications and conducts technical reviews for this program. The program rules do not specify the ownership of renewable energy credits (RECs) associated with system energy production; however, net metering customers in Delaware retain ownership of RECs unless they voluntarily relinquish such ownership. More information about the program is available in the program manual.


Background
Under the 2005 Delaware renewable portfolio standard (RPS) legislation, municipal utilities were allowed to opt out of the RPS schedule if they met certain other requirements. One such requirement was that they contribute to the existing Green Energy Fund for investor-owned utilities or create their own green energy fund supported by an equal surcharge (i.e. $0.000178/kWh). All of Delaware’s municipal utilities opted out of the RPS requirements and established their own green energy funds.

In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of electric cooperatives was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.

 

Authorities

Name Municipal Utilities' Green Energy Fund Program Regulations
Effective Date 08/10/2015
Name 26 Del. C. § 363
Date Enacted 07/21/2005
Name S.S. 1 for S.B. 119
Date Enacted 07/28/2010

Contact

Organization:
Delaware Department of Natural Resources and

 

Phone:
(302) 653-2733
E-Mail:
Organization:
Delaware Department of Natural Resources and
Address:
100 W. Water Street, Suite 5A,
Dover, DE 19904
Phone:
(302) 735-3480
E-Mail: