Does Delaware have an SREC Market?

 Delaware has established a robust market for Solar Renewable Energy Certificates (SRECs), which plays a vital role in the state's renewable energy landscape. This blog delves into the structure of Delaware SREC price, its operational mechanisms, and the incentives available for solar energy adoption.

Overview of Delaware's SREC Market

The SREC market in Delaware is one of the oldest in the United States, having been created in 2005 and modified in 2011 to enhance its efficiency. The market operates under the state’s Renewable Portfolio Standard (RPS), which mandates that electricity suppliers procure a certain percentage of their power from renewable sources, primarily solar. Delmarva Power, as the largest electric distribution utility in Delaware, serves as the primary buyer of SRECs, making it essential for solar producers to understand how this market functions.

How the SREC Market Works

Delaware's SREC market utilizes a bid-based system. Solar system owners can submit bids during designated procurement windows, typically held annually. Here’s how it operates:

  • Bidding Process: Each year, there is a two-week window for participants to submit bids indicating the price they are willing to accept per SREC. The lowest bids are prioritized until the available capacity for that procurement tier is filled.

  • Contract Duration: Successful bidders receive long-term contracts, typically lasting 20 years, ensuring a stable revenue stream from their generated SRECs124.

  • Market Dynamics: The price of SRECs is influenced by various factors including supply and demand, as well as the Alternative Compliance Payment (ACP), which utilities must pay if they fail to meet their RPS obligations. Currently, the ACP is set at $400 per SREC but can increase if utilities opt for penalties in subsequent years23.

Current SREC Prices and Market Trends

The price of SRECs in Delaware fluctuates based on market conditions. As of recent reports, prices have shown stability but can vary depending on procurement outcomes and overall solar adoption rates in the state. The annual procurement process allows for adjustments based on current market conditions, ensuring that prices reflect real-time demand and supply dynamics.

Solar Incentives in Delaware

Delaware offers several incentives aimed at encouraging solar energy adoption:

  • Federal Solar Tax Credit: Homeowners can deduct 30% of their solar installation costs from their federal taxes.

  • Net Metering: This policy allows homeowners to receive credits for excess energy produced by their solar systems.

  • State Programs: Various local programs provide cash-back incentives and rebates for solar installations4.

Additionally, programs like Energize Delaware HVAC rebates promote energy efficiency alongside solar initiatives, making it easier for residents to reduce overall energy consumption.

Conclusion: A Bright Future for Solar Energy in Delaware

Delaware SREC market is a dynamic component of its renewable energy strategy, providing critical financial support to solar energy producers. As more residents and businesses engage with solar technologies, understanding the intricacies of this market becomes increasingly important. With ongoing state support through various incentives and programs, including those aimed at enhancing energy efficiency like HVAC rebates Delaware is well-positioned to expand its solar footprint.


For those considering solar power solutions or looking to navigate the SREC market effectively, resources such as SolarSME offer tailored support and insights into maximizing benefits from Delaware’s evolving solar landscape. Whether you're interested in residential or commercial installations, staying informed about current trends will empower you to make sustainable energy choices that align with your financial goals.
Location: United States

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