Does Delaware Have Community Solar Laws?

Delaware’s journey toward expanding renewable energy has increasingly included community solar as a key component of its clean-energy strategy. The state’s policies enable residents, renters, and businesses that may not have suitable rooftops for residential solar installations to benefit from shared solar generation. Delaware has formal legislation supporting community solar projects under the state’s Community Solar Act, passed in 2021 as Senate Bill 2, and administered through the Delaware Public Service Commission (PSC).

Senate Bill 2 (2021) — Delaware’s Community Solar Act

Senate Bill 2 officially opened the door for the creation and regulation of community solar projects across Delaware. Prior to this law, shared solar was limited by complex ownership and net-metering restrictions. The Act modernized these rules, defining what qualifies as a community solar project and allowing multiple subscribers to share electricity from a single installation.

Under this law, a community solar energy system must:

• Be located within the service territory of a regulated electric utility (Delmarva Power or Delaware Electric Cooperative)
• Have at least two subscribers, including residential customers
• Allow subscribers to receive bill credits proportional to their energy share

The law also capped the maximum system capacity at 4 megawatts (MW) for Delmarva Power customers and established a standardized net-metering process for community solar subscribers.

Delaware’s community solar legislation includes specific equity measures to expand access to clean energy. At least 15% of total capacity for each community solar project must be reserved for low- and moderate-income (LMI) subscribers. Project developers must submit outreach and inclusion plans that demonstrate how they intend to enroll and retain eligible customers.

In addition, Delaware’s Department of Natural Resources and Environmental Control (DNREC) supports low-income participation through grants and incentives under the Green Energy Fund and Energy Efficiency Investment Fund. These programs help reduce subscription costs and lower the barriers to participation in Delaware community solar programs.

The PSC regulates all community solar development and enforces compliance with SB 2. It issues project approvals, ensures transparent billing practices, and verifies that customer credits are applied accurately to monthly utility bills. The Commission’s rules also require clear disclosure statements for subscribers, so they fully understand the terms, pricing, and potential savings before enrolling.

What Is Community Solar?

Community solar allows multiple individuals, households, or businesses to share the output of a single solar energy system, rather than installing panels directly on their properties. The electricity generated by the shared array feeds into the grid, and participants, called subscribers, receive credits on their utility bills based on their share of the energy produced.

Community solar farms are ideal for people who:

• Rent their homes or live in multi-unit buildings
• Have shaded, small, or structurally unsuitable roofs for residential solar panels
• Want predictable energy costs without the upfront expense of installation
• Wish to support renewable energy development in their community

This model makes solar energy accessible to a wider audience by removing the barriers of property ownership, roof condition, or installation costs.

While residential solar installations offer direct ownership and long-term return on investment, community solar projects have their own distinctive benefits:

• No installation required: Participants do not need to install or maintain any equipment
• Lower entry costs: Subscriptions typically involve low or no upfront payments
• Flexible participation: Subscribers can join or leave a program without property-based restrictions
• Accessibility for renters: Community solar expands access to those who cannot install rooftop panels
• Shared environmental impact: A single community solar project can offset thousands of tons of carbon emissions annually

Why Community Solar?

Delaware’s push for community solar is driven by a combination of economic, environmental, and social benefits that align with state and federal energy goals. For both individuals and businesses, subscribing to a community solar project provides an immediate and measurable way to support renewable energy.

Environmental Benefits

Every kilowatt-hour generated from solar displaces electricity produced from fossil fuels. Delaware’s grid still depends significantly on natural gas, so community solar subscribers directly contribute to emission reductions. The cumulative impact of community solar farms also supports the state’s broader target of achieving 100% clean energy by 2050, as outlined in the state’s Climate Action Plan.

Financial Benefits for Participants

The benefits of community solar extend to tangible financial savings. Subscribers typically save 5% to 20% on their electricity bills, depending on the project’s terms. Since the credits are applied directly to their utility accounts, subscribers see consistent monthly reductions without needing to own the system.

Businesses can also lock in stable long-term energy prices by participating in community solar projects, insulating them from volatile electricity rates.

Equity and Accessibility

Community solar also promotes energy justice. Delaware’s legislation ensures participation from low- and moderate-income households through reserved capacity and simplified enrollment procedures. The combination of lower costs, accessibility, and flexible contract terms has made Delaware’s community solar programs an essential tool for achieving equitable energy access statewide.

Are There Community Solar Projects in Delaware?

Delaware currently hosts several community solar projects at different stages of operation and development. The first pilot programs began after the passage of Senate Bill 2, with the Delaware Public Service Commission approving the first full-scale projects in 2023.

Active and Upcoming Projects

As of 2025, Delaware has more than 15 active or approved community solar farms, with total combined capacity exceeding 60 MW. Below are some of the leading examples:

• Cinnamon Community Solar Farm (Middletown): A 4-MW facility developed under the new SB 2 framework, designed to serve around 600 households
• Cedar Creek Solar (Smyrna): Operated by Standard Solar, this project offers subscriptions through Delmarva Power’s community solar program
• Woodside Community Solar (Kent County): Focused on low-income participation with flexible no-credit-check enrollment
• Bear Solar Array (New Castle County): An early adopter project supporting both residential and small business subscribers
• Sussex Community Solar Cooperative (Georgetown): A community-led project formed through a local energy cooperative model

Many additional community solar projects are in the pipeline, driven by developers such as CleanChoice Energy, TurningPoint Energy, and Soltage, all working with Delaware utilities to expand capacity.

Participation and Enrollment

Any resident or small business within the same utility service area as a community solar project can participate. The process generally involves:

• Selecting an approved project through the utility or project developer’s website
• Signing a subscription agreement specifying energy allocation and credit terms
• Receiving monthly credits directly on the electricity bill

There is no requirement for property ownership, and most programs do not require equipment installation or long-term contracts. Subscribers can often transfer or cancel participation with proper notice.

How Does Community Solar Work in Delaware?

To understand how community solar works, it is helpful to look at the mechanics behind these shared energy systems. A community solar project is typically a large ground-mounted solar array connected to the local utility grid. When the project generates electricity, that power is fed into the grid, offsetting energy demand for participating subscribers.

Step-by-Step Overview

• Solar Generation: The solar farm produces electricity using photovoltaic panels, converting sunlight into DC power
• Grid Connection: The system’s inverter converts DC to AC electricity and sends it to the utility’s distribution network
• Credit Allocation: The utility measures the total energy generated and allocates credits to subscribers based on their percentage share
• Bill Reduction: Subscribers see those credits applied to their monthly electricity bills, lowering total energy charges

This process operates under Delaware’s net-metering policy, meaning subscribers are credited at the retail rate for their share of solar generation.

Community solar subscribers benefit indirectly from many of the same incentives as residential solar owners. Delaware projects can access:

• Federal Investment Tax Credit (ITC): Developers can claim the 30% ITC, which helps reduce the overall project cost and, in turn, lowers subscriber pricing
• Delaware Green Energy Fund Grants: Administered by DNREC, this program supports renewable installations, including community solar farms serving residential customers
• Renewable Energy Credits (RECs): Each megawatt-hour generated earns RECs that can be sold or used to meet state renewable portfolio requirements, providing additional revenue for project developers

Because these incentives reduce capital and operating costs, they translate into more competitive subscription rates for consumers.

Example: Delmarva Power’s Community Solar Program

Delmarva Power, Delaware’s primary investor-owned utility, currently manages multiple community solar projects under its PSC-approved tariff. The company coordinates billing, credit transfers, and enrollment, ensuring smooth integration between developers and customers. Participants typically receive one consolidated bill showing energy credits and remaining utility charges.

This transparent and automated process demonstrates how community solar works in practice, simplifying the customer experience while expanding renewable generation.

How Much Does Community Solar Cost in Delaware?

The community solar cost for Delaware residents varies based on subscription type, project size, and energy allocation. Most programs use a pay-as-you-go model, where subscribers pay a monthly rate slightly below the utility’s standard rate per kilowatt-hour (kWh).

Average Subscription Costs

As of 2025, Delaware’s average community solar cost ranges between $0.11 and $0.14 per kWh, compared to the state’s average retail electricity price of approximately $0.16 per kWh. This represents a potential savings of 10 to 25% depending on project and utility.

Alternatively, some projects offer fixed monthly subscription plans, with pricing based on estimated annual energy usage rather than actual kWh consumption. Below is an approximate cost range for common household energy profiles:

These prices can vary slightly among developers but remain competitive with retail rates. Some community solar farms may offer additional discounts for low-income subscribers under DNREC’s incentive programs.

The subscription fee covers:

• Access to a portion of a shared solar facility’s generation
• Maintenance and operation of the community solar project
• Customer service and billing administration
• Energy credits applied to your utility bill

Subscribers do not own the panels or the system but share in the financial and environmental benefits of clean energy production.

For low-income Delaware households, the benefits of community solar include simplified payment plans and the elimination of upfront costs. Programs backed by DNREC and the Green Energy Fund may provide subsidized subscriptions that guarantee savings of at least 20% on annual electricity expenses.

These low-barrier programs, combined with flexible cancellation policies, make community solar an accessible and low-risk clean-energy alternative for thousands of residents statewide.