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

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

Delawareans choose electric vehicles, save 830,000 pounds CO₂ per year

DOVER – The success of DNREC’s Clean Transportation Incentive Program and high public demand for participation in it led the Division of Energy & Climate to announce today that an additional 100 rebates are being offered for electric and plug-in hybrid electric vehicles purchased or leased in Delaware.

Launched in July 2015, the Clean Transportation Incentive Program has exceeded its goal of 100 vehicle rebate applications from Delaware drivers of electric and plug-in hybrid electric vehicles. In light of the program’s high demand, 100 more rebates at $2,200 each are now available.

“The vehicles that have been purchased through the rebate program so far represent a savings of 830,000 pounds of carbon dioxide per year that would have been emitted into our atmosphere if these drivers had chosen traditional gasoline cars,” said Climate Section Administrator Susan Love, Division of Energy & Climate.

Plug-in hybrid electric vehicles, which have a back-up gasoline engine, and battery electric vehicles, which run solely on electricity, have more reliable and typically lower fuel costs compared to gasoline. In addition, battery-electric vehicles produce no tailpipe pollution, leading to cleaner air and a lower carbon footprint.

“Transportation accounts for roughly a third of greenhouse gas emissions in the state. Delawareans are embracing electric, plug-in hybrid electric and alternative fuel vehicles as a cleaner, cost-effective way to get around,” Love said. “That means a lot for our public health, our natural resources and our efforts to mitigate climate change.”

Rebate-eligible electric vehicles include the Nissan Leaf, Ford Focus Electric, Ford Fusion Energi, Chevy Volt, BMW i3, Tesla Model S and other options. Battery-electric vehicles such as the BMW i3, Chevy Spark and Nissan Leaf can drive about 80 miles on one charge, making them a viable option both for frequent local travel and some commutes.

Drivers in all three counties have applied for and received Delaware clean vehicle rebates, and dealerships across the state have partnered with DNREC to help inform and engage Delawareans. Partnering dealers are: AutoTeam Delaware, Wilmington; Diver Chevrolet, Wilmington; Sheridan Ford, Wilmington; Sheridan Nissan, New Castle; Bayshore Ford, New Castle; Porter Auto Group, Newark; Willis Chevrolet Buick, Smyrna; Willis Ford, Smyrna; and I.G. Burton, Milford.

Clean Transportation Grants and Rebates
In addition to vehicle rebates, the Delaware Clean Transportation Incentive Program also includes grant and rebate opportunities for projects that reduce greenhouse gas emissions in Delaware by promoting propane, electric and natural gas vehicles – collectively known as alternative fuel vehicles – and related infrastructure. Alternative fuel vehicles can meet the needs of drivers of all types of vehicles, from everyday four-door sedans and pick-up trucks to vans, dump trucks and heavy-duty tractor trailers.

In addition to state rebates and funding opportunities for vehicles and charging/fueling equipment, manufacturer rebates and federal funding opportunities and tax incentives also may be available.

For more information about funding available through Delaware’s Clean Transportation Incentive Program, visit de.gov/cleantransportation.

Fueling the Future Conference and Ride-and-Drive Event
Interested transportation professionals and state partners can learn about and experience alternative fuel vehicles firsthand at Fueling the Future: Clean Transportation for a Greener Delaware, a one-day conference and ride-and-drive event on Tuesday, May 24 at Dover Downs Hotel and Casino. Expert panels will discuss the mechanics and benefits of alternative fuel vehicles for businesses, fleets, shipping and other transportation needs. In the afternoon ride-and-drive component, attendees will have the opportunity to drive alternative fuel vehicles, and ride in alternative fuel commercial vehicles.

To register, visit de.gov/fuelingthefuture. Registration is open through Wednesday, May 11.

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. 140

HARRINGTON – More than 100 Delaware middle school students, teachers and volunteers from across Delaware came together today for Delaware’s 22nd Annual Junior Solar Sprint, a competition in which students build and race solar-powered model cars. DNREC’s Division of Energy & Climate partnered with the Delaware Technology Student Association to organize this year’s event at the Delaware State Fairgrounds in Harrington.

Over the past few months, the student racing teams have worked with classmates and teacher advisors to build model cars powered by solar photovoltaic cells, or solar panels. Today, the sun-driven racers competed for top speed in time trials, as well as for awards in engineering and creative design.

“Solar photovoltaic technology allows us to harness the abundant energy from the sun for a clean, lasting power source,” said DNREC Deputy Secretary Kara Coats. “Students may use solar power every day without realizing it, in objects like watches and calculators. Junior Solar Sprint challenges students to think about ways solar energy can play a larger role in our lives by providing electricity for transportation and buildings. Watching young people working in teams and using technology is very rewarding but this isn’t just a fun competition, it is readying a new generation to take control of their future.”

“Solar photovoltaic capacity in Delaware has grown almost 3,000 percent since 2008, from 2.3 MW capacity to 71.8 MW capacity. Solar and other forms of clean energy allow Delawareans to achieve the quality of life they desire while reducing greenhouse gas emissions and protecting our environment,” Deputy Secretary Coats added.

The Junior Solar Sprint competition is part of a national program geared toward environmental awareness and sponsored by the U.S. Army Educational Outreach Program. It encourages students to engage in problem-solving, teamwork and creative scientific thinking to solve environmental challenges.

At this year’s Junior Solar Sprint, participating schools were: Beacon Middle School, Lewes; Milford Central Academy, Milford; Postlethwait Middle School, Camden; Holy Cross Middle School, Dover; Gauger-Cobbs Middle School, Newark; H.B. DuPont Middle School, Hockessin; Sanford School, Hockessin; and Springer Middle School, Wilmington.

Race Results

The top five teams in time-trial races were:

• First place: Sanford School, Car #16
• Second place: Sanford School, Car #17
• Third place: Holy Cross Middle School, Car #8
• Fourth place: Springer Middle School, Car #20
• Fifth place: Springer Middle School, Car #21

The top five teams in design were:

• First place: Springer Middle School, Car #21
• Second place: Springer Middle School, Car #20
• Third place: Holy Cross Middle School, Car #8
• Fourth place: H.B. DuPont Middle School, Car #5
• Fifth place: Postlethwait Middle School, Car #14

About Solar Photovoltaic Energy in Delaware
Solar technologies and other renewable energy technologies reduce our country’s reliance on foreign oil, and provide a clean and infinite source of energy to meet growing demands while minimizing risks to resources and human contributions to climate change. In addition, a growing solar industry stimulates Delaware’s economy by creating jobs in solar products manufacturing and installation.

For more information on renewable energy programs administered by the Delaware Division of Energy & Climate, visit www.energy.dnrec.delaware.gov.

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

Vol. 46, No. 126

DOVER – With spring flowers popping up and trees budding as winter’s chills subside, spring cleaning and home improvement projects are probably close to foremost on your mind. While you’re cleaning out closets, tidying storage areas and getting into those often-forgotten crevices of your home, the Delaware Division of Energy & Climate suggests some easy home improvement projects and everyday actions that will make your home more energy efficient. Making home updates while the weather is nice will help you use less energy and save more money now and in the months ahead.

Home:

• Remember that drafty window or door? Add weatherstripping or apply caulk to cracks to keep air conditioning in this summer and chills out next winter.
• Check window and door screens for needed repairs so you can enjoy the fresh spring air.
• Add insulation in attics, basements, crawl spaces and other areas to keep your home’s temperature regulated through seasonal ups and downs.
• Check to make sure your water heater and hot water pipes are well-insulated; if not, add pipe insulation or wrap-around insulation. Turn down the temperature on the water heater by 10 degrees (but no lower than 120 degrees) to avoid using excess energy by over-heating water.
• To save water and the cost of heating it, install flow-restrictors on faucets and shower heads.
• Weary from high winter energy costs? Consider replacing your old hot water heater or furnace with a more energy efficient model.
• No central AC? Replace that wheezing old window air conditioner with a more efficient energy-saving unit.
• Replace air filters and have your furnace or other primary HVAC unit cleaned and/or serviced for maximum efficiency and reliability.
• Add a programmable thermostat to your home’s HVAC system. You can set and forget it, so the thermostat will automatically adjust itself throughout the day. This way, you’re not heating/cooling an empty house when no one is home.
• Ceiling fans are a great addition to circulate air and keep cool, with or without AC.

Appliances:

• To reduce energy usage inside your home, turn off or unplug any appliances, electronic devices and chargers when they are not in use, and encourage family members to turn off lights when everyone leaves a room.
• When using the oven, plan to cook three or four items at a time for the same energy cost as one.
• Set your refrigerator at 38 to 40 degrees Fahrenheit and your freezer at 10 degrees. Keep your freezer full, and try to cut down on how frequently you open refrigerator and freezer doors (the food is the same as it was last time you checked!)
• Run the washing machine or dishwasher only with full loads, and use warm water to wash and cold to rinse.
• Use the dryer only for full loads, and separate loads into heavy and lightweight items to avoid using the machine longer than necessary to dry each type. Dry loads directly one after the other; once the dryer is warm, it requires less initial energy to start up another load.
• Use a clothesline to hang laundry outside in dry weather. Use a drying rack inside for small or delicate items, or in bad weather.
• When purchasing new or replacing older appliances (heaters, refrigerators, etc.), look for the Energy Star rating or Energy Guide label. These appliances are verified energy-savers and could yield lower electricity costs to run.

Simple tips for family comfort:

• For cool spring nights, stay comfortable by putting on a sweater or warmer socks, and keep throws or blankets on the couch and in family rooms instead of turning up the heat.
• On warm days or nights, open windows to catch a breeze instead of turning on the AC. You’ll bring a breath of fresh air into your home and save energy.
• Pull shades or curtains at night to help keep cold out and open them during the day to let sun in.

Auto:

Warmer, longer days also mean more time out and about, so don’t forget energy-saving habits for transportation!

• On warm days, open car windows to the fresh spring air instead of using the air conditioner.
• For better fuel economy, use your air conditioner only when absolutely necessary, and set the temperature higher and the blower lower for comfort.
• Save fuel through mindful driving habits: accelerate from stops slowly, drive at moderate, steady speeds, and avoid unnecessary braking by coasting to red lights and anticipating traffic speed changes.
• Avoid idling as much as possible. Idling wastes fuel and significantly contributes to air pollution.
• To save gas (and time), plan errands in a circular route starting and ending at home instead of traveling in random directions or making several trips.
• Plan for errands during the week, such as picking up grocery items along the route you take home from work or school.
• Combine car trips with family, friends or neighbors; join a carpool or use public transportation if available.
• Smaller cars with smaller engines typically get better fuel mileage, so if you have more than one vehicle, research the average fuel efficiency of each and use the most efficient one most frequently.
• Looking to purchase or lease a new vehicle? Electric and alternative fuel vehicles are cleaner, cheaper to fuel, and often require less maintenance than gasoline cars. The Division of Energy & Climate offers rebates to purchasers or leasees of these vehicles in Delaware, and other manufacturer rebates and federal tax credits may be available. For more information on clean vehicle rebates, visit de.gov/cleantransportation.

For more information on the Division of Energy & Climate and its programs, including the online Energy Savers Guide, visit dnrec.delaware.gov/energy or call 302-735-3480.

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

Vol. 46, No. 121