Delaware Electric Cooperative - Green Energy Program Incentives

Summary

The Delaware Electric Cooperative (DEC) provides incentives for solar photovoltaic (PV), solar thermal, wind, fuel cells, and geothermal installed by DEC member-owners. 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 based upon average peak demand over a 12 month period. Class A  member-owners are defined as those with an average monthly peak electric demand of 50 kilowatts (kW) or less over the previous twelve months. Class B member-owners are those with an average monthly peak electric demand of greater than 50 kW over the previous twelve months. 

Applicants may be required to have an energy audit performed by a Building Performance Institute (BPI) certified contractor prior to grant approval. ENERGY STAR homes may be exempted from this requirement. 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. Renewable energy systems designed and utilized as a third-party ownership or independent power producer are not eligible for grant funding.


Solar PV

·Class A and Class B: $0.35/W for the first 5 kW of capacity and $0.20/W over 5 kW. Non-profit: $1.05/W for the first 5 kW of capacity and $0.52/W over 5 kW.

Maximum incentive of $2,000 for Class A and $3,500 for Class B and Non-Profit.

Solar Thermal

·Domestic Hot Water: 20% of installed costs up to $2,000 for Class A systems and $3,500 for Class B systems.

·Radiant Heating: 20% of installed costs up to $2,500 for Class A systems and $3,500 for Class B systems

Wind: $0.85/W up to $2,500

Geothermal Heat Pumps: $800/ton for first two tons and $700/ton for additional capacity, up to $3,000 for Class A systems and $4,000 for Class B systems.

Fuel Cells: Up to 20% of the installed cost up to $3,500 for Class A systems and $5,000 for Class B systems. 

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.

Funding for the program is limited and is distributed on a first-come, first-serve basis. More information about the Renewable Resource Program for the year 2022 can be accessed here.  

Background
Under the 2005 Delaware renewable portfolio standard (RPS) legislation, electric cooperatives 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). The Delaware Electric Cooperative (DEC), the state's lone cooperative, opted out of the RPS requirements and established its own green energy fund.

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.