Although Delaware is one of the smallest states in the country, its recent solar policies are a big deal.  In July 2010, the Delaware legislature and Governor Jack Markell championed a clean energy package that set the stage for rapid solar development.

Senate Substitute 1 for Senate Bill 119 increased the state’s renewables target to 25% by 2026, with an impressive 3.5% required to come from solar photovoltaics (PV).  With the state’s investor-owned utilities required to meet annual benchmarks toward these goals, SS 1 also modified the solar schedule to increase annual requirements in the early years.  Previously exempt from the RPS, municipal utilities and rural electric cooperatives are now beholden to the same targets, although they can opt out of the mandate and maintain autonomy by developing and implementing comparable RPSs of their own by 2013.

In the same month, the legislature passed SB 267 which enhanced Delaware’s net metering law with a host of new policies that support innovative ownership models including PPAs, meter aggregation, and community solar.

All of that new RPS & net metering activity in the legislature means plenty of work ahead for implementation through the Delaware Public Service Commission. Vote Solar is busy ensuring that the state adopts strong, effective rules for achieving its ambitious, but realistic, solar targets.

Background

Originally enacted in 2005, Delaware’s RPS has twice been amended to increase the goals for renewables and most notably, solar.  Delaware currently employs solar renewable energy credits (SRECs) to drive progress toward its 3.5% PV requirement under the 25% by 2026 RPS (enacted in 2010).  An SREC is equivalent to one megawatt-hour (MWh) of retail electricity from a qualifying PV resource.  The state’s electricity suppliers purchase these SRECs in order to meet their RPS obligations, providing an important financial incentive to PV owners.

In addition to SREC revenue streams, residential and non-residential customers are eligible for financial support through Delaware’s Green Energy Program.  As a highly subscribed program with a long list of customers seeking grants for the installation of PV systems, the state has recently revamped its administration of this fund to ensure that the application backlog is not an impediment for Delawareans wanting to invest in solar.

Along with its policies centered upon jumpstarting solar deployment throughout the state, Delaware has been at the forefront of establishing important support mechanisms including their robust net energy metering program and an innovative approach to making solar accessible to a diverse range of energy consumers.  The state mandated non-profit organization  Sustainable Energy Utility serves as a one-stop resources for residents and businesses looking to save energy and invest in solar technologies.

Policy Needs

With major policy changes having occurred during the 2010 legislative session, Vote Solar will remain closely involved in implementation to ensure that Delaware’s aggressive solar policies are adopted to capture the greatest amount of sun for the First State.

Vote Solar lead for Delaware is Peter Olmsted.