Cost of Going Solar in Delaware

Cost of Going Solar in Delaware 2025

In 2025, Delaware homeowners are showing growing interest in solar energy as electricity rates continue to rise and renewable technologies become more affordable. The average home in Delaware requires a 7 to 8-kilowatt (kW) solar energy system to cover most or all of its electricity usage. As of 2025, the average solar cost in Delaware ranges from $20,000 to $23,000 before incentives, depending on equipment quality and installation complexity.

After applying the 30% federal Investment Tax Credit (ITC), the out-of-pocket expense typically drops to around $14,000 to $16,000. Delaware does not impose sales tax on solar energy systems, offering an additional layer of savings compared to neighboring states. Some utility programs also provide one-time rebates, which can further reduce upfront costs.

If the federal ITC is reduced or expires after December 31, 2025, the solar power cost could rise significantly, raising system prices by roughly one-third. A 7-kW system that costs about $14,500 after incentives today could cost closer to $21,000 without the credit, making 2025 a particularly favorable year for Delaware residents to go solar.

Average Solar Installation Cost in Delaware (2025)

System Size	Average Pre-Incentive Cost	Estimated Post-ITC Cost (30%)	Typical Annual Savings	Payback Period
5 kW	$14,000 – $15,500	$9,800 – $10,900	$900 – $1,000	9 – 11 years
7 kW	$19,600 – $21,700	$13,700 – $15,200	$1,200 – $1,400	8 – 10 years
8 kW	$22,000 – $24,800	$15,400 – $17,400	$1,400 – $1,600	8 – 9 years
10 kW	$26,500 – $30,000	$18,500 – $21,000	$1,700 – $2,000	7 – 9 years

(Figures are statewide averages as of 2025 and include labor, permitting, hardware, and standard grid-tie components.)

Solar Cost Basics

The total solar panel cost in Delaware is composed of both hardware and solar soft costs. Hardware represents the tangible components of the system, while soft costs include non-equipment expenses related to installation, design, and compliance. In a typical installation, hardware accounts for about 55% to 65% of the total cost, while soft costs make up 35% to 45%.

Hardware Costs

Hardware includes the physical equipment required to generate and store solar electricity:

Solar Panels: These make up roughly 30% of total system costs. Premium panels such as monocrystalline types have higher efficiency and longer warranties, while polycrystalline options are less expensive but slightly less efficient
Inverters: Accounting for about 10% of total costs, inverters convert the direct current (DC) from solar panels into alternating current (AC) for home use. Homeowners can choose between string inverters, microinverters, or hybrid systems
Racking Equipment and Wiring: Mounting structures, cables, and connectors represent around 8% to 10% of hardware costs. Proper racking ensures durability and safety under Delaware’s weather conditions
Solar Battery Bank: A solar battery or home battery storage system can increase total installation cost but adds resilience and energy independence. Lithium-ion batteries dominate the Delaware market for their long cycle life and high efficiency

Solar Soft Costs

Solar soft costs cover non-hardware expenses and are crucial to ensuring that systems comply with local regulations and safety standards.

Labor: Installation labor typically accounts for 10% to 15% of total cost. Complex roof designs or ground-mounted systems can increase labor expenses
Permitting and Inspection Fees: These can add 2% to 5%, varying by municipality. Each city or county in Delaware has its own building and electrical permit requirements
Design, Marketing, and Overhead: Administrative expenses, system design, and marketing make up 10% to 15% of total cost. These are the least visible but necessary components that keep the solar industry operational

How Much Do Solar Panels Cost in Delaware in 2025?

In 2025, the average cost of solar panels in Delaware is approximately $2.80 to $3.10 per watt. For a standard 7-kW system, this translates to around $19,600 to $21,700 before incentives. The cost of solar panels depends on multiple factors including:

Panel Type: Monocrystalline panels are the most efficient and expensive, while polycrystalline panels offer moderate efficiency at a lower price. Thin-film panels are rarely used for residential rooftops but may suit low-load structures or small off-grid systems
Installation Size: Larger systems tend to have a lower per-watt cost due to economies of scale. For instance, a 10-kW system may cost less per watt than a 5-kW system
Roof Orientation and Material: South-facing roofs with minimal shading achieve higher performance, improving long-term savings and return on investment
Local Labor Rates: Installers in areas like Wilmington or Dover may charge slightly more due to higher labor demand compared to rural areas

Delaware’s solar market is competitive, and many local installers offer price matching or seasonal discounts. The state’s small geographic size also means lower travel and logistics costs for installers, contributing to relatively stable pricing across counties.

Average Cost of Solar Batteries in Delaware

Adding a solar battery increases both energy independence and total project cost. In Delaware, solar batteries cost between $10,000 and $15,000, depending on the system’s capacity and brand. When combined with a new solar array, the cost of solar batteries may be lower due to bundled installation discounts.

Factors Affecting Solar Battery Cost

Battery Capacity: Measured in kilowatt-hours (kWh), capacity determines how long the battery can power a home. A 10-kWh unit is standard for most Delaware homes. Larger households may require 15 to 20 kWh of solar battery bank capacity
Battery Chemistry: Lithium-ion batteries, such as those in Tesla Powerwall or Enphase IQ systems, are more efficient and last longer than lead-acid alternatives but come at a higher price
Installation Type: Retrofitting a battery to an existing solar array is more expensive than integrating it during initial installation due to additional wiring and inverter adjustments
Brand and Warranty: Premium products often include longer warranties (10 to 15 years) and better performance guarantees, increasing the overall solar batteries cost

Delaware’s frequent coastal storms and power outages make home battery storage attractive. It allows homeowners to maintain power during grid failures while storing surplus solar energy for nighttime use.

How to Lower Solar Cost in Delaware

Delaware homeowners can take advantage of both federal and state incentives to reduce the upfront solar cost of going solar.

Federal Investment Tax Credit (ITC)

The most significant incentive is the 30% federal Investment Tax Credit, available through the end of 2025. This credit allows homeowners to deduct 30% of total installation costs, including panels, inverters, racking, and solar batteries, from their federal taxes.

Delaware Green Energy Program

Through the Delaware Department of Natural Resources and Environmental Control (DNREC), homeowners can apply for the Green Energy Program. This initiative offers cash rebates for qualifying residential systems installed by certified contractors. Depending on system size, rebates can range from $500 to $2,500.

Net Metering

Delaware’s net-metering policy lets solar users earn bill credits for excess energy sent back to the grid. These credits offset future electricity consumption, reducing monthly bills and improving long-term financial returns.

Property and Sales Tax Benefits

Delaware does not charge state sales tax on solar equipment, saving homeowners roughly 4% to 6% compared to nearby states. Additionally, solar installations increase home value without raising property taxes, providing lasting economic benefits.

Together, these incentives can reduce a system’s total solar power cost by 35% to 45%, helping residents achieve faster payback periods.

Paying for Solar Installation in Delaware

There are multiple payment options for homeowners investing in solar energy systems. The right choice depends on financial goals, credit profile, and long-term plans for the property.

Cash Purchase: Paying upfront eliminates financing charges and provides the highest lifetime savings. Homeowners immediately own the system and benefit from all available tax incentives and rebates. This option is best for those with sufficient savings and plans to stay in their homes for at least 10 years
Solar Loan: Solar loans spread the installation cost over 5 to 15 years, often with fixed interest rates. Monthly payments are typically lower than existing electricity bills, allowing homeowners to achieve positive cash flow immediately. Loans are ideal for those seeking ownership benefits without large upfront expenses
Solar Lease or Power Purchase Agreement (PPA): In a lease or PPA, a third-party company installs and maintains the system while the homeowner pays a fixed monthly fee or per-kWh rate. Although ownership and tax incentives remain with the installer, leases provide zero-down entry to clean energy for homeowners with limited capital

Each option reduces the solar panel cost differently. Cash buyers benefit from maximum savings, while loans and leases make solar accessible to a broader range of Delaware households.

How Much Money Can I Save by Going Solar in Delaware?

Savings from solar depend on system size, energy usage, and local utility rates. In Delaware, the average residential electricity rate is about 15 to 17 cents per kWh. A properly sized 7-kW system can offset 90% or more of a typical household’s annual consumption, leading to estimated savings of $1,200 to $1,500 per year.

Over the 25-year lifespan of a solar system, total savings can exceed $30,000, even without accounting for electricity rate increases. Adding home battery storage can enhance savings further by allowing time-of-use optimization, storing energy when rates are low and using it when rates are high.

The average payback period in Delaware ranges from 8 to 10 years, depending on equipment type, financing, and energy usage. Systems with solar batteries may take a bit longer to pay off but offer added resilience and long-term protection from power outages.

Factors affecting solar savings include:

System Efficiency: Higher-efficiency panels produce more electricity over time
Orientation and Shading: South-facing roofs in areas with minimal shading yield the highest output
Utility Policies: Delaware’s favorable net-metering rules help maximize returns by crediting surplus generation
Maintenance Costs: Minimal, since modern systems require little servicing beyond periodic cleaning and inverter checks