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DNREC’s Division of Energy & Climate announces changes to the Green Energy Fund

Department of Natural Resources and Environmental Control | Division of Energy and Climate | Date Posted: Tuesday, November 29, 2016


DNREC Logo

DOVER – DNREC’s Division of Energy & Climate today announced changes to the Green Energy Fund grant program for Delmarva Power residential customers. Projects with contracts signed on or after Dec. 1 will see slightly reduced grants for customer-owned solar energy systems. Another change to the program is that grants will no longer be offered for systems installed using a lease/power purchase agreement (PPA) financing model.

In addition to the incentive changes, the program requirements are being streamlined based on comments received during stakeholder workshops. In response to stakeholder feedback, the energy audit requirement for existing non-residential construction has been removed from the program.

Projects will not be affected if the Green Energy Fund application was received by the Division of Energy & Climate before Dec. 1, or if the system contract was signed prior to that date.

“We review the grant levels for the Delmarva Power Green Energy Fund program periodically in response to changing market conditions to ensure that the program continues to be cost effective,” said Energy Program Administrator Robert Underwood, Division of Energy & Climate. “Because the economics of solar energy continue to get stronger, we have seen the market for solar energy in Delaware grow even as we have reduced incentives in recent years.”

Past and new incentives are shown in the table below.

New Green Energy Fund Incentives

Start Date End Date Market Incentive per Watt Maximum Incentive
0-5kW 5-50kW
9/21/2015 11/30/2016 residential $0.55 $0.20 $3,300
9/21/2015 11/30/2016 lease/PPA Flat incentive: $1,000/project $1,000
9/21/2015 TBD* non-residential Flat incentive: $3,000/project $3,000
9/21/2015 TBD* non-profit $1.50 $0.75 $41,250
12/01/2016 TBD residential $0.50/watt up to 50 kW $3,000
12/01/2016 TBD lease/PPA No Incentive $0
* No changes have been made to incentives for non-residential or non-profit solar projects

The Green Energy Fund grant program is being updated following an analysis of the program, public comment, stakeholder workshops, consultation with the Delaware Sustainable Energy Utility Oversight Board and a presentation before the Renewable Energy Taskforce. The Fund received a record-breaking number of applications in 2016. High program participation was factored into program changes, which are necessary for the Fund’s continued operation and sustainability. The Green Energy Fund supported more than 1,000 solar energy projects in Delaware in fiscal year 2016 alone.

Underwood added that the alterations will have a minimum impact on the solar market in Delaware. The analysis conducted by the Division of Energy & Climate considered the fiscal impact of the changes for both customer-owned and lease or PPA systems in terms of internal rate of return, net present value and payback period.

For more information, visit Green Energy Fund, or email Jessica Quinn with additional questions at Jessica.Quinn@state.de.us, or call the Division of Energy & Climate at 302-735-3480.

Solar Energy in Delaware
Solar energy capacity in Delaware has increased more than 3,000 percent since 2008, from 2.3 MW to more than 77 MW of capacity. Solar energy installations across the state power homes, schools and businesses without producing the pollutants generated from fossil fuels that threaten our public health, air quality and vibrant natural resources. Renewable energy systems including solar energy allow Delawareans to achieve the quality of life they desire while reducing greenhouse gas emissions and protecting our environment. For more information on renewable energy in Delaware, visit de.gov/greenenergy.

Vol. 46, No. 412

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DNREC’s Division of Energy & Climate announces changes to the Green Energy Fund

Department of Natural Resources and Environmental Control | Division of Energy and Climate | Date Posted: Tuesday, November 29, 2016


DNREC Logo

DOVER – DNREC’s Division of Energy & Climate today announced changes to the Green Energy Fund grant program for Delmarva Power residential customers. Projects with contracts signed on or after Dec. 1 will see slightly reduced grants for customer-owned solar energy systems. Another change to the program is that grants will no longer be offered for systems installed using a lease/power purchase agreement (PPA) financing model.

In addition to the incentive changes, the program requirements are being streamlined based on comments received during stakeholder workshops. In response to stakeholder feedback, the energy audit requirement for existing non-residential construction has been removed from the program.

Projects will not be affected if the Green Energy Fund application was received by the Division of Energy & Climate before Dec. 1, or if the system contract was signed prior to that date.

“We review the grant levels for the Delmarva Power Green Energy Fund program periodically in response to changing market conditions to ensure that the program continues to be cost effective,” said Energy Program Administrator Robert Underwood, Division of Energy & Climate. “Because the economics of solar energy continue to get stronger, we have seen the market for solar energy in Delaware grow even as we have reduced incentives in recent years.”

Past and new incentives are shown in the table below.

New Green Energy Fund Incentives

Start Date End Date Market Incentive per Watt Maximum Incentive
0-5kW 5-50kW
9/21/2015 11/30/2016 residential $0.55 $0.20 $3,300
9/21/2015 11/30/2016 lease/PPA Flat incentive: $1,000/project $1,000
9/21/2015 TBD* non-residential Flat incentive: $3,000/project $3,000
9/21/2015 TBD* non-profit $1.50 $0.75 $41,250
12/01/2016 TBD residential $0.50/watt up to 50 kW $3,000
12/01/2016 TBD lease/PPA No Incentive $0
* No changes have been made to incentives for non-residential or non-profit solar projects

The Green Energy Fund grant program is being updated following an analysis of the program, public comment, stakeholder workshops, consultation with the Delaware Sustainable Energy Utility Oversight Board and a presentation before the Renewable Energy Taskforce. The Fund received a record-breaking number of applications in 2016. High program participation was factored into program changes, which are necessary for the Fund’s continued operation and sustainability. The Green Energy Fund supported more than 1,000 solar energy projects in Delaware in fiscal year 2016 alone.

Underwood added that the alterations will have a minimum impact on the solar market in Delaware. The analysis conducted by the Division of Energy & Climate considered the fiscal impact of the changes for both customer-owned and lease or PPA systems in terms of internal rate of return, net present value and payback period.

For more information, visit Green Energy Fund, or email Jessica Quinn with additional questions at Jessica.Quinn@state.de.us, or call the Division of Energy & Climate at 302-735-3480.

Solar Energy in Delaware
Solar energy capacity in Delaware has increased more than 3,000 percent since 2008, from 2.3 MW to more than 77 MW of capacity. Solar energy installations across the state power homes, schools and businesses without producing the pollutants generated from fossil fuels that threaten our public health, air quality and vibrant natural resources. Renewable energy systems including solar energy allow Delawareans to achieve the quality of life they desire while reducing greenhouse gas emissions and protecting our environment. For more information on renewable energy in Delaware, visit de.gov/greenenergy.

Vol. 46, No. 412

-30-

print

Recent Stories


Related Topics:  , ,