Clean Transportation Incentive Program relaunch features updated rebates for clean fuel vehicles and electric vehicle charging stations

DOVER – DNREC’s revamped Delaware Clean Transportation Incentive Program takes effect this week, offering higher rebates for drivers of battery electric vehicles – vehicles which run solely on batteries, using no other fuels – and adjusted rebates for other clean fuel vehicles and electric vehicle charging stations. Updated rebate amounts will apply only to vehicles and equipment purchased on or after Nov. 1, 2016. DNREC’s Division of Energy & Climate has extended the program following its resounding success throughout the state.

More than 250 Delawareans across all three counties have received rebates for battery electric and plug-in hybrid electric cars since the program was launched in July 2015. The program’s initial goal of 100 electric vehicle rebates over a year and a half was surpassed in just six months.

The new program offers $3,500 rebates for most battery electric vehicles, and $1500 for plug-in hybrid electric, propane and natural gas vehicles. Rebates are also available for home, public and workplace electric vehicle charging stations. Individuals, businesses and workplaces are encouraged to participate.

“Businesses and residents throughout Delaware are seeing the benefits of electric and clean fuel vehicles, from economic savings to cleaner air,” said DNREC Secretary David Small. “When businesses transition to electric and clean fuel vehicles, they reduce operating and maintenance costs. When residents can drive from place to place with fewer polluting emissions, Delaware has a healthier and safer environment. We all win.”

The updated program also places a stronger emphasis on commercial and workplace electric vehicle charging stations by covering up to 75 percent of the equipment cost (price caps apply).

“Adding an electric vehicle charging station to a business or workplace can attract positive attention and customers, while supporting employees who drive electric vehicles,” said Susan Love, Climate Section administrator, Division of Energy & Climate. “Drivers need to feel comfortable that they’ll always have somewhere to charge up. Your business can be a part of that solution – and customers can shop, eat or stop in while their car charges. This is also a great option for towns and downtown districts looking to spur economic activity.”

The Division of Energy & Climate is working with partners throughout the state on projects that will add at least 10 new electric car charging stations, three propane fueling stations for clean fuel school buses and a public access compressed natural gas refilling station. These new projects bolster the alternative fuel network within Delaware, which currently has about 50 public electric vehicle charging stations, eight propane stations and one compressed natural gas station. Delaware is also working with neighboring states to build a comprehensive alternative fuel network within the region.

For more information about the Delaware Clean Transportation Incentive Program, or to download an application, visit de.gov/cleantransportation.

About the Clean Transportation Incentive Program
Delaware’s Clean Transportation Incentive Program was launched in July 2015 to encourage Delaware drivers and businesses to purchase and lease alternative fuel vehicles, including vehicles that run on propane, natural gas and electricity. Alternative fuel vehicles produce fewer or no tailpipe emissions, reducing both pollution and the greenhouse gas emissions that drive climate change. The program is made possible through Delaware’s participation in the Regional Greenhouse Gas Initiative (RGGI), a regional market-based emissions cap and trade program. Delaware’s proceeds from RGGI are invested in energy efficiency, renewable energy, emissions reductions programs and programs that benefit energy consumers. In addition to providing funds, RGGI encourages innovation, growing a clean energy economy and creating green jobs.

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

Vol. 46, No. 370

Rebates encourage Delaware drivers and businesses toward environmentally-friendly, money-saving vehicles

DOVER – DNREC’s Division of Energy & Climate today announced an extension of its popular Clean Transportation Incentive Program in response to Delawareans’ rising demand for cleaner fuel and electric vehicles. The current program will expire Oct. 31. Changes to the program – including updated rebate amounts and modified requirements – will apply to cars and equipment purchased on or after Nov. 1, 2016.

Encouraging drivers to choose clean, cost-effective cars
The Clean Transportation Incentive Program was launched in July 2015 to encourage Delaware drivers and businesses to purchase and lease alternative fuel vehicles, including vehicles that run on propane, natural gas and electricity. Alternative fuel vehicles produce less or no tailpipe emissions, reducing both unhealthy pollution and the greenhouse gas emissions that drive climate change.

The Clean Transportation Incentive Program offers rebates for the purchase or lease of alternative fuel vehicles and the charging stations needed to support electric vehicles. Highlights from the updated program include the following rebates:

• $3,500 for battery electric vehicles
• $1,500 for plug-in hybrid electric vehicles and electric vehicles with gasoline range extenders
• $1,500 for dedicated propane or natural gas vehicles
• $20,000 for heavy-duty dedicated natural gas trucks

“Drivers of electric, propane and natural gas vehicles save money on fuel and maintenance costs while knowing that they’re making an environmentally-responsible choice. The Clean Transportation Incentive Program was designed to make that choice easier,” said Greenhouse Gas Mitigation Planner Morgan Ellis, Division of Energy & Climate.

“Electric cars in particular are cheaper to power and don’t require the high maintenance of gas cars,” Ellis added. “Many people worry that electric cars are too expensive, but with their reduced operating costs and the rebates available through the Division of Energy & Climate, many electric vehicle drivers actually pay less over time than those who drive gasoline-powered cars.”

Rebate amounts vary based on the type and cost of the vehicle and/or equipment. In addition to state rebates, manufacturer rebates and federal funding opportunities and tax incentives also may be available.

Rebates are also available for electric vehicle charging stations. The program will provide a rebate for 50 percent of the cost of a residential charging station, and up to 75 percent of the cost of a charging station installed in a commercial area or workplace; price caps apply.

For more information, visit de.gov/cleantransportation, where full details on the updated program are posted.

Clean Transportation Incentive Program successful statewide
The Clean Transportation Incentive Program has been well-received across Delaware during its first 14 months. More than 225 Delawareans across all three counties have received rebates for electric vehicles – more than twice the program’s original target. In addition, seven businesses and organizations have received rebates for the addition of clean fuel vehicles to their fleets.

“The electric cars alone that have come through this program decrease the carbon dioxide emissions in our state by 900 tons each year,” said Climate Section Administrator Susan Love, Division of Energy & Climate. “In order to protect ourselves from the effects of climate change – including dangerous high temperatures and flooding – we need to reduce our greenhouse gas emissions. This program is an example of the tangible actions the state is taking to do that.”

The Division of Energy & Climate also awarded more than $1 million in grants to projects that will add at least 10 new electric car charging stations, three propane fueling stations for clean fuel school buses and a public compressed natural gas refilling station. These new projects add to the alternative fuel network within Delaware, which currently has about 50 public charging stations. Delaware is also working with neighboring states to build a comprehensive alternative fuel network within the region, so drivers can feel confident that they’ll always have somewhere to charge or fill up.

Delaware’s Clean Transportation Incentive Program is made possible through Delaware’s participation in the Regional Greenhouse Gas Initiative (RGGI). RGGI is a market-based emissions trading program designed to reduce emissions from the electricity generation sector. Delaware’s proceeds from RGGI are invested in energy efficiency, renewable energy, emissions reductions programs and programs that benefit energy consumers. In addition to providing funds, RGGI encourages innovation, growing a clean energy economy and creating green jobs.

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

Vol. 46, No. 340

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DOVER – DNREC’s Division of Air Quality will hold three public workshops later this month to share information with Delawareans on climate change, the EPA’s Clean Power Plan (CPP) and how Delaware plans to comply with it, as well as how to take advantage of grants and other programs offered by DNREC’s Division of Energy & Climate.

Workshops will be held as follows, with one in each county:
• Sussex County: 4:30-7:30 p.m., Tuesday, Sept. 27, Millsboro Senior Center, 214 Irons Avenue, Millsboro, DE 19966
• Kent County: 4:30-7:30 p.m., Wednesday, Sept. 28, City of Dover Public Library, 35 East Loockerman Street, Dover, DE 19901
• New Castle County: 4:30-7:30 p.m., Thursday, Sept. 29, Bellevue Community Center, 500 Duncan Road, Wilmington, DE 19809

“Through these workshops, we are inviting Delawareans to participate in the decision-making process and development of Delaware’s state Clean Power Plan,” said Valerie Gray, Division of Air Quality planning supervisor. “We want to involve our communities on how they could be impacted by this plan, and work together to develop strategies to further reduce emissions.”
“We’ll also share information on the state’s free weatherization assistance program, which has helped hundreds of Delawareans cut energy use in their home and lower their monthly bills,” said Rob Underwood, Division of Energy & Climate energy administrator. “We invite community members to come learn about the programs DNREC has dedicated to cleaner energy use for healthier communities.”

The workshops will be held in an open format, with DNREC staff available for individual discussions. Attendees are encouraged to ask questions, discuss the issues and share their concerns.

For more information on the workshops, or to request accommodations for hearing impairment or language translation, please contact Valerie Gray, DNREC Division of Air Quality, at 302-739-9402 or email valerie.gray@delaware.gov.

For information on Delaware’s Weatherization Assistance Program, visit de.gov/wap  or call the Division of Energy & Climate at 302-735-3480.

The Clean Power Plan (CPP) was developed by the EPA to reduce greenhouse gas emissions from power plants. States are required to develop and submit their own Clean Power Plans for reducing these emissions to the EPA. EPA’s CPP is modeled after the Regional Greenhouse Gas initiative (RGGI), a program that Delaware and nine New England and Mid-Atlantic states developed and implemented beginning in 2009. RGGI reduces CO2 emissions by establishing a regional cap on the amount of CO2 that power plants can emit through the issuance of a limited number of tradable CO2 allowances. Since 2008, power plant emissions have decreased by over 50 percent. Delaware plans to comply with the federal requirements through continued participation in the Regional Greenhouse Gas Initiative (RGGI). More information on the federal Clean Power Plan is available at https://www.epa.gov/cleanpowerplan, and on the RGGI program website at http://rggi.org/.

CONTACT: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 332

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DOVER – DNREC’s Division of Energy & Climate today announced the relaunch of Delaware’s Energy Efficiency Investment Fund – a grant program that supports energy efficiency upgrades in commercial, industrial, non-profit and local government buildings.

The program has been revamped to incentivize building systems upgrades exceed energy efficiency standards currently required by Delaware’s building energy code. Additionally, the program has been improved for quicker turnaround time between submission and review of applications. Lighting incentives also have been redesigned to better reflect market trends in light of low-cost LED technology.

“The Energy Efficiency Investment Fund has supported hundreds of projects that reduce Delawareans’ energy use and help lower operating costs,” said Energy Administrator Rob Underwood, Division of Energy & Climate. “Through these program improvements, we hope to encourage a deeper dive into energy efficiency with creative projects.”

“We still encourage basic changes like switching to energy-efficient lightbulbs, but there are also opportunities for larger, innovative projects like daylighting, or lower watts-per-square foot adjustments that can accomplish the same lighting goals with even less energy. The same is true for other building systems,” Underwood added.

For example, energy efficiency improvements can be implemented in HVAC systems, building automation, building envelope, plug load controls and even more complex projects like cogeneration (combined heat and power).

Energy Efficiency and Net Zero Capability
Energy efficient buildings help facility owners reduce operating costs while promoting a positive public image of environmental sustainability and corporate social responsibility – a move that also can be economically advantageous for businesses and organizations over their competitors.

Energy efficiency technology is also important in making buildings net zero capable, meaning the building has low energy needs that could potentially be met with onsite renewable energy, such as solar panels. In other words, the facility produces as much energy as it uses.

By supporting more extensive energy efficiency upgrades now, the Division of Energy & Climate aims to grow Delaware’s capacity for reaching this standard in the near future.

About the Energy Efficiency Investment Fund
The Energy Efficiency Investment Fund (EEIF) was initially created in 2011 to help Delaware businesses make equipment and facility upgrades that would reduce their energy use, resulting in lower operating costs and reduced environmental impacts. Due to lack of funding, the program was temporarily suspended in February 2016. The Division of Energy & Climate is now reopening the program using funding from the Regional Greenhouse Gas Initiative (RGGI) – a multi-state cap-and-trade program that reduces greenhouse gas pollution. With the support of the Delaware Sustainability Energy Utility (SEU) the program also has additional RGGI funding for non-profit recipients, and expanded grant eligibility to include funding for local governments.

For more information, contact Rachel Yocum by email at Rachel.Yocum@delaware.gov, or by phone at 302-735-3480, or click Energy Efficiency Investment Fund.

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

Vol. 46, No. 292

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