The state of Delaware has very limited programs available for conversion to solar energy systems at this time. There are numerous programs available, however, through the federal government.
Summary of Delaware Incentive Programs
•State Tax Rebate up to 35%
•Available commercial/industrial grants
Programs which are currently available are grants for commercial and institutional applications, for 25-35% of total project costs, including those for research and development. The state tax rebate program ranges provides up to a 35% rebate depending upon application type.
Federal Incentives
Federal Investment Tax Credit (ITC)
Commercial solar energy systems installed in Delaware can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met.
Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026.
Commercial Depreciation
Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years.
The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:
- Project cost = $800,000
- 30% credit = $240,000
- Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000
A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off.
Many financing options are also available through the federal government.
Further information and programs can be found at the DSIRE:Database of State Incentives for Renewables & Efficiency.
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