Delaware’s new commercial solar incentive program is expected to dramatically improve the potential investment returns for DE businesses considering commercial solar photovoltaic projects.
Although Delaware has an aggressive Renewable Portfolio Standard (RPS) which requires that 3.5% of all the electricity sold annually in DE come from solar generation by 2026, the value of Delaware Solar Renewable Energy Credits (SRECs) of late has not been strong enough or predictable enough to support significant new commercial solar development.
Businesses will not invest in commercial solar projects unless the achievable ROI is both attractive (relative to other capital investment alternatives) and predictable (i.e. provides a visible cash flow stream). We believe Delaware’s new solar incentive program will satisfy both of these requirements and will enable forward-thinking DE businesses to demonstrate their commitment to corporate sustainability while earning compelling economic returns.
Delaware SREC Pilot Procurement Program
The Delaware Public Service Commission (DPSC) approved the new SREC Procurement Pilot Program in late 2011. The Program provides attractive long-term SREC incentives for commercial solar system owners in the form of fixed 20-year SREC contracts. The SREC prices are determined based upon the solar system size, with smaller projects receiving predetermined SREC prices and larger projects being subject to a competitive auction process.
Bottom Line for Delaware Businesses
The combination of Delaware and Federal solar incentives currently offers DE businesses the opportunity to convert to solar power and earn superior long-term economic returns. In addition, a number of third-party solar arrangements are available which allow businesses to go solar without any capital outlay. Please contact EnterSolar to learn more.