Dover Public Utilities - Green Energy Program Incentives

Summary

NOTE: Starting Nov 25, 2013 City of Dover PV grants programs have been suspended for revision.

Delaware's municipal utilities provide incentives for solar photovoltaic (PV), solar thermal, wind, geothermal, and fuel cell systems installed by their electric customers. Eligibility is limited to systems that are intended to supply on-site energy needs. The green energy programs offered by the state's municipal utilities occasionally vary from city to city. The Dover Green Energy Incentives program is unique in that the incentive levels and limits are distinctly different from those offered by the other municipal utilities, as well as those offered by Delmarva Power and the Delaware Electric Cooperative. For information on the incentives offered by other utilities, please visit the DSIRE Delaware page. The incentives offered in Dover are detailed below.

Solar Thermal (Domestic Hot Water, Radiant Heat): $1.00 per annual kWh saved, up to $2,500 for residential systems and $7,500 for non-residential systems

Wind: The incentive is $1.25/watt (W) for the first 5 kilwatts (kW) of capacity (0-5 kW), $0.75/W for the next 5 kW (5-10 kW), and $0.35/W for the next 40 kW (10-50 kW) with a maximum incentive for all sectors set at $2,500

Geothermal Heat Pumps:$800/ton for the first two tons of and $700/ton for additional capacity, up to $3,000 for residential systems and $10,000 for non-residential and non-profit systems.

Fuel Cells: 20% of installed costs, up to $7,500 for residential systems and $10,000 for non-residential and non-profit systems.

Systems are subject to a variety of equipment, installation and warranty requirements, including limitations on system orientation and shading for solar energy systems. In addition, to encourage energy conservation, an energy audit requirement has been instituted for both residential and non-residential customers as a condition of eligibility. The Delaware Energy Office processes applications and conducts technical reviews for this program. The program rules do not specify the ownership of renewable energy credits (RECs) associated with system energy production; however, net metering customers in Delaware retain ownership of RECs unless they voluntarily relinquish such ownership. More information about the program is included in the program manual.

Background
Under the 2005 Delaware renewable portfolio standard (RPS) legislation, municipal utilities were allowed to opt out of the RPS schedule if they met certain other requirements. One such requirement was that they contribute to the existing Green Energy Fund for investor-owned utilities or create their own green energy fund supported by an equal surcharge (i.e. $0.000178/kWh). All of Delaware's municipal utilities opted out of the RPS requirements and established their own green energy funds.

In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of electric cooperatives was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.