DNREC Division of Energy & Climate offers tips for homeowners considering solar lease or power purchase agreements

DOVER – Over the past three years, the number of Delaware homeowners installing solar panels through a lease or power purchase agreement (PPA) has increased significantly. These are popular financing options for homeowners who are interested in installing clean energy solar panels without paying significant upfront costs or claiming ownership of the system.

In both a solar lease and PPA agreement, the solar installer usually pays to install and maintain the system, and has ownership of the system equipment. In return, the homeowner pays for use of the system in one of two ways: a monthly lease payment, or a power purchase agreement (PPA) in which the homeowner pays a specific rate for the electricity that is generated each month.

In 2015, more than 70 percent of residential solar projects installed in Delaware used solar lease or PPA agreements. With the rapid expansion of these types of projects in Delaware, DNREC’s Division of Energy & Climate has developed the following guidance for homeowners to consider prior to signing a lease or PPA contract.

Thoroughly familiarize yourself with terms of the contract. Most contracts are for a 20-year period, so don’t sign anything until you understand and are comfortable with all of the terms and conditions. Make sure the contract is not missing something that you expected or that the solar company discussed with you – get all terms and agreements in writing. Get a second opinion on any elements of the contract with which you aren’t comfortable.

Understand the system maintenance requirements and your responsibilities during the contract period. Clarify whether maintenance costs will fall on you, or will be the responsibility of the company.

Understand the full cost of your lease or PPA over the life of the contract, including fees or price increases that may occur during the contract period and annual escalators. Lease contracts should clearly list the monthly payment that will be due each month during your contract. A PPA agreement should include the rate per kilowatt hour (kWh) for your entire contract. Many contracts include an annual escalator which increases your monthly payment or price per kWh by a set percent each year of the contract. If the annual escalator is set at a rate that increases faster than the price of electricity from your power company, the power from your solar panels could become more expensive than traditional electricity during your contract period.

Know the current price per kWh that you pay for electricity. You can gather this information by looking at your energy bill or by contacting your electricity provider.

Make sure your proposed solar contract and estimated savings are calculated using your actual cost of electricity, and not a statewide average or estimated electric rate. Electric rates vary significantly by utility company in Delaware. Be wary of high annual electric cost increase estimates that may be used in contracts to make the lease or PPA agreement seem more attractive.

Ask your prospective contractor to explain what incentives they will be claiming and how these incentives were factored into the proposed lease or PPA cost. Consider all of the tax credits, state grants and other incentives available for solar installations. Under most lease and PPA contracts, these incentives are awarded to the solar company, not the homeowner. Currently, available incentives for solar include:

  • Federal tax credit – currently 30 percent of project costs
  • State grants – vary by electric company. See de.gov/greenenergy to confirm what is available for your project.
  • Solar Renewable Energy Credits (SRECs) – These credits can be sold at SREC procurement auctions or exchanged for an upfront rebate via the Sustainable Energy Utility’s SREC Purchase Program. One SREC is generated by your system for every 1,000 kWh hours it produces. See srectrade.com or www.greengrantdelaware.com for more information about these options.

Shop around – get quotes from two or three Delaware solar installers and compare costs before committing.

Consider the pros and cons of owning a system versus leasing or entering into a PPA. While owning a system requires upfront investment, the system will likely pay for itself in a matter of years. Currently, customer-owned residential solar projects in Delaware have an average payback period of only seven years. Homeowners who own their solar system only pay for the difference of the energy they use and the energy they produce, meaning the homeowner will pay significantly less for each energy bill, and may even gather credits to cover other months if their system produces more than the home needs. Over time, the homeowner will save more money in energy costs than they spent on purchasing and installing the system. Most solar panels have a standard 20-year manufacturer’s warranty.

Evaluate whether your finances, coupled with current tax credits and incentives, could make purchasing a system a more attractive option. Low-interest loans may also be available for renewable energy projects, including solar, which could enable you to pay for a system without a lease or PPA contract.

The Delaware Green Energy Program maintains a list of solar installers that offer both customer-owned and lease/PPA systems. Visit de.gov/greenenergy for more information.

Ask the solar company about any liens or fixture filings that may be placed on your home when you sign a solar lease or PPA contract. These may create unanticipated barriers to refinancing your home, taking out a home equity loan or even selling your house. Make sure any liens or fixture filings are fully described in your contract and you understand and are comfortable with all of the implications.

Understand and be sure you’re comfortable with the contract terms that may impact your ability to sell your home during the contract period. Many contracts require the buyer of your home to agree to take over your remaining lease payments or PPA contract terms and also meet certain credit requirements. If a buyer does not agree to transfer the lease or PPA into their name or does not meet the solar company’s credit requirements, you may be required to pre-pay the remaining cost of the contract prior to selling your home.

Consider how a solar system may impact roof repairs or replacement – lease and PPA contracts usually include charges for removing and re-installing the solar panels. Additionally, most lease agreements require you to continue making regular lease payments while the roof is being repaired, even if your solar panels will not produce electricity during this time. Consider making roof repairs prior to installing solar panels.

Be wary of high pressure sales tactics and attempts to pressure you into signing a contract before you fully consider all of your options and are able to finish “doing your homework.”

Ask what companies, if any, the solar contractor will be subcontracting with during the installation of your panels. Ask for business license numbers and professional license information for the electricians who will be working on your installation. Make sure your contracting company and any subcontractors have positive ratings on the Better Business Bureau website.

A solar energy system is a great investment that will lower your carbon footprint and environmental impact, and can save you a lot of money on your monthly energy bill. Lease or power purchase agreements can be beneficial for homeowners who want to contribute to clean energy growth, but may not have the upfront capital, while purchasing a system allows a homeowner to enjoy the benefits and cost savings of solar power without a middleman. Whether you decide to lease or purchase a system, well-informed research will help you make the right decision for your situation.

Solar Energy in Delaware
Solar energy capacity in Delaware has increased by about 3,000 percent since 2008, from 2.3 MW capacity to 71.8 MW capacity. Solar farms 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.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 155


Nanticoke Musselwatchers program set to launch Saturday, May 7 as part of Reclaim Our River series sponsored by DNREC Division of Watershed Stewardship

DOVER – With DNREC sponsorship through the Division of Watershed Stewardship, the Nanticoke Watershed Alliance (NWA) will launch a new citizen science and water quality improvement program, Nanticoke Musselwatchers, with an organizational meeting from 10 a.m. – 2 p.m. Saturday, May 7 at the Seaford District Library, 600 N. Market Street Ext., Seaford, DE 19973.

The goal of the Musselwatchers program is assessing the status of freshwater mussels in the Nanticoke River watershed. Freshwater mussels serve as filter feeders and are capable of filtering a liter of water in about 45 minutes, thus providing a crucial ecosystem service. However, mussels are highly sensitive to pollution, especially excessive sediment.

Volunteers will learn about freshwater mussels and species found most often in the Nanticoke watershed, and how to conduct mussel surveys in the watershed. They also will receive survey kits and adopt segments of Delaware’s portion of the watershed. Volunteers must commit to conducting at least four surveys during the May-September pilot season and to providing feedback about the program.

The Nanticoke Musselwatchers Program is a part of the 2016 Reclaim Our River (ROR) series, a partnership including the Nanticoke Watershed Alliance, DNREC’s Division of Watershed Stewardship and the Delaware Nature Society. The ROR partnership is devoted to bringing monthly events, workshops, and recreational activities to the Nanticoke River Watershed. The series offers participants fun opportunities to connect with Delaware’s waterways and provides important information on water quality that can help in protecting aquatic resources. More information at delawarewatersheds.org

Participation in this program is limited to 25 Musselwatchers and, for safety reasons, volunteers must work in teams of no fewer than two people. Prospective volunteers must pre-register at nanticokemusselwatchers.eventbrite.com or may contact Volunteer and Outreach Coordinator Beth Wasden at bethwasden@nanticokeriver.org or at 443-944-1175 for more information about the program.

The Nanticoke Watershed Alliance is a consensus-building organization that supports partnerships to conserve the natural, cultural and recreational resources of the Nanticoke River watershed. Partnership representation includes local citizens, academia, industry, agriculture, development professionals, conservation groups and government.

Media Contact: Phil Miller, DNREC Watershed Assessment and Management Section: 302-739-9939 or philip.miller@delaware.gov

Vol. 46, No. 158


Fish & Wildlife Natural Resources Police investigating commercial crab boat accident

Captain, crew members rescued from Delaware Bay without injuries

PORT MAHON – DNREC Division of Fish & Wildlife Natural Resources Police are investigating an accident in which a commercial crabbing vessel capsized Thursday afternoon after it was swamped by high waves in rough waters off Port Mahon east of Dover in the Delaware Bay.

The vessel’s 34-year-old captain from Townsend and two crew members – a 38-year-old Townsend man and a 50-year-old man from Dover – were located clinging to the overturned crab boat after spending several hours in the water. All three were rescued by Little Creek Volunteer Fire Company with no injuries reported. The vessel was righted and towed to dock by the Leipsic Volunteer Fire Company.

In addition to Fish & Wildlife Natural Resources Police officers and marine units from the Little Creek and Leipsic fire companies, responders included the Bowers Beach Fire Company marine unit and the Delaware State Police Aviation Unit.

DNREC’s Division of Fish & Wildlife recognizes and thanks the majority of anglers, hunters and boaters who comply with and support Delaware’s fishing, hunting and boating laws and regulations. Citizens are encouraged to report fish, wildlife and boating violations to the Delaware Fish & Wildlife Natural Resources Police by calling 302-739-4580. Wildlife violations may also be reported anonymously to Operation Game Theft by calling 800-292-3030 or online at http://de.gov/ogt.

Media Contacts: Sgt. John McDerby, Division of Fish & Wildlife Enforcement Natural Resources Police, 302-739-9913 or 302-354-1386, or Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 159


Fish & Wildlife Natural Resources Police Blotter: April 18-24

Reminder for the week: Recreational crabbers should review rules before crabbing

DE F&W Natural Resources Police logoDOVER – To achieve public compliance through education and enforcement actions that help conserve Delaware’s fish and wildlife resources and ensure safe boating and public safety, DNREC Division of Fish & Wildlife Natural Resources Police officers between April 18-24 made 1,392 contacts with anglers, boaters, hunters and the general public, including 115 vessel boardings for boating safety and fishing regulation compliance checks. Officers responded to 32 complaints and issued 22 citations, six of which were related to the C&D Canal Conservation Area and associated recreational trail, where there is an increased Fish & Wildlife Natural Resources Police presence.

Incidents of note:

  • On April 21, Fish & Wildlife Natural Resources Police cited Shawn Lee, 45, of Franklinsville, N.J., for one count of possession of undersized striped bass near Delaware City. Lee was issued a $165 fine, including court costs. The seized striped bass was donated to the Ministry of Caring Food Kitchen in Wilmington.
  • On April 19, following an investigation, Fish & Wildlife Natural Resources Police arrested Willis C. Hand, 61, of Dover, and charged him with failure to maintain a proper lookout while operating a commercial vessel in connection with a March 10 boating accident on the Murderkill River near Bowers Beach. Hand was arraigned in Justice of the Peace Court 7 in Dover and released on $100 unsecured bond pending a court appearance at a later date.
  • On April 18, Fish & Wildlife Natural Resources Police cited James K. Evans, 51, of Millsboro, for illegal sale of blue crabs without a commercial license near Harbeson. Evans was issued a $107 fine, including court costs.

Citations issued by category, with the number of charges in parentheses, included:

Fisheries Conservation: Unlicensed fishing (13), possession of undersized white perch (1)*, possession of undersized striped bass (1), illegal use of cast net in tidal water within 300 feet of a dam or spillway (1), possession of undersized blue crabs (1), and illegal sale of blue crabs without a commercial license (1).

Boating and Boating Safety: Failure to maintain a proper lookout while operating a vessel (1), operating an unregistered vessel (1), no boating safety certificate (1), and no tidal/non-tidal boat ramp certificate (1).

* Citation issued at the C&D Canal Conservation Area, plus five citations for unlicensed fishing.

Are you AWARE?
DNREC’s Division of Fish & Wildlife Natural Resources Police remind recreational crabbers to review state regulations governing blue crabs, including the required use of a turtle by-catch reduction device in recreational crab pots.

A turtle by-catch reduction device is attached in the funnel entrance of a recreational crab pot to reduce the possibility of diamondback terrapins entering the pots and drowning. The device is a rigid metal or plastic rectangular frame that measures 1.75 inches by 4.75 inches. By-catch devices are available at local tackle shops or may be handmade of heavy wire. Directions to install a by-catch reduction device are available online at Turtle Excluder.

Other Delaware crabbing regulations include:

  • A Delaware recreational fishing license is required for crabbing.
  • The recreational daily limit on blue crabs is one bushel per person.
  • Minimum “keeper” size for male blue crabs and immature female crabs with the V-shaped apron is 5 inches, measured across the shell from point to point.
  • Mature female crabs, identified by the U-shaped apron, are exempt from the minimum size of 5 inches because many females reach maturity at a smaller size.
  • Mature female blue crabs bearing eggs, known as sponge crabs and recognizable by the orange eggs visible under the apron, may not be taken and must be returned to the water immediately.
  • Recreational crabbers may use any number of single, baited hand lines, trot lines (a longer weighted line with a series of baited points) or pull traps. Standard size and possession limits as noted above apply.
  • Recreational crabbers may not use, place, set or tend more than two crab pots.
  • Recreational crab pots must be tended by the owner at least once every 72 hours and must be marked with white buoys with the owner’s name and permanent mailing address.
  • Recreational crabbers are prohibited from selling blue crabs; only commercially-licensed crabbers are permitted to offer blue crabs for sale in Delaware.
  • Fishing or crabbing off courtesy docks at state-owned boat ramps is prohibited.
  • To avoid being cited for littering, gather up leftover bait, bait containers, crab lines and other trash for proper disposal. Fish & Wildlife fishing areas and wildlife areas are “carry in, carry out” for trash.

For more information on individual wildlife areas, including the rules and regulations specific to each, visitors are encouraged to check out Delaware wildlife area maps, which are available in hard copy at DNREC’s Dover licensing desk and online at Delaware Wildlife Area Maps.

Delaware fishing licenses are sold online, at the licensing desk in DNREC’s Richardson & Robbins Building, 89 Kings Highway, Dover, DE 19901, and by license agents statewide. To find a participating agent, or to purchase a license online, visit Delaware Licenses. For additional information on Delaware fishing licenses, call 302-739-9918.

For more information on crabbing in Delaware, click on 2016 Delaware Fishing Guide. The guide also is available in printed form at DNREC’s Dover licensing desk, and from license agents throughout the state.

DNREC’s Division of Fish & Wildlife recognizes and thanks the majority of anglers, hunters and boaters who comply with and support Delaware’s fishing, hunting and boating laws and regulations. Citizens are encouraged to report fish, wildlife and boating violations to the Delaware Fish & Wildlife Natural Resources Police by calling 302-739-4580. Wildlife violations may also be reported anonymously to Operation Game Theft by calling 800-292-3030 or online at http://de.gov/ogt.

Media Contacts: Sgt. John McDerby, DNREC Division of Fish & Wildlife Natural Resources Police, 302-739-9913 or 302-354-1386, or Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 156


DNREC to hold public workshop on energy efficiency evaluation, measurement and verification (EM&V) regulations

DOVER – DNREC, in conjunction with Delaware’s Energy Efficiency Advisory Council, invites stakeholders to attend an upcoming workshop to give comments on proposed new regulations for the evaluation, measurement and verification (EM&V) of energy efficiency projects. Two workshop dates are scheduled:

  • 6 p.m., Tuesday, May 3, DNREC Auditorium, Richardson & Robbins Building, 89 Kings Highway, Dover, DE 19901
  • 6 p.m., Tuesday, May 10, DNREC Division of Waste & Hazardous Substances New Castle office, Conference Room A, 391 Lukens Drive, New Castle, DE 19720

The Energy Efficiency Advisory Council (EEAC) was established to create and implement programs for consumers that encourage energy efficiency and wise energy use practices across the state. As utilities make their plans for providing energy-efficiency solutions, DNREC is developing a set of regulations that will outline methods for evaluating projects and measuring their effectiveness, known as EM&V regulations.

The Council has set an ambitious goal for energy-use reduction in the state, aiming for a 2.1 percent reduction of Delaware’s total energy use over three years.

The public is encouraged to attend the workshops to learn more about the regulations, ask questions and provide input.

Interested parties may obtain a copy of the draft regulations online at EM&V Regulations or by emailing Emily.StClair@delaware.gov. To submit written comments regarding the proposed regulations, email Emily St. Clair or send comments to:

ATTN: Emily St. Clair
Division of Energy & Climate
100 West Water Street, Suite 5A
Dover, DE 19904

Questions also may be directed to Emily St. Clair by email or phone at 302-735- 3366.

About the Energy Efficiency Advisory Council
The Energy Efficiency Advisory Council is comprised of representatives from DNREC, energy providers, large and small businesses, manufacturers, low-income and residential populations, the Sustainable Energy Utility and other interested parties affected by energy efficiency standards, including environmentalists and agriculturalists. The Council also collaborates with the Public Service Commission and the Public Advocate. Together, the council members work to reach Delaware’s energy efficiency goals while ensuring that all energy efficiency and reduction programs are cost-effective.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 152