Delaware

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In 2011, the Delaware legislature amended the solar portion of the state Renewable Portfolio Standard (RPS) to switch the burden of acquiring SRECs away from the state power providers to the electric distribution companies. This amendment drastically reduced the number of buyer-participants, effectively making Delmarva Power, the largest electric distribution utility in Delaware, the de-facto long-term buyer for the majority of the DE SREC requirement. In response, Delmarva Power proposed the implementation of an SREC procurement program, called SRECDelaware, which provides 20-year contracts to SREC sellers on a competitive basis. A pilot version of the program was conducted in the spring of 2012, and a revised solicitation was conducted in the spring of 2013. Delmarva plans to host at least one solicitation each spring in order to fulfill its long-term SREC needs. More information about the Procurement can be found on the SRECDelaware site.

SACP

The Solar Alternative Compliance Payment (SACP) is the penalty price that electricity suppliers must pay per SREC if they fail to file the required number of SRECs by the end of each compliance period. The DE SACP is set at $400 per SREC, but increases to $450 per MWh if the electricity supplier has opted for the ACP in any previous year, and then increases to $500 for subsequent years. The Delaware Energy Office has the authority to review and adjust the ACP and SACP given certain market conditions. Even so, the DE SREC spot market is limited due to the Procurement Program.

SREC Useful Life

DE SRECs have a useful life of 3 years (i.e., SRECs generated in energy year 2016 may be used for energy year 2016, 2017, or 2018 compliance). This 3-year life is “tolled”, or suspended, during any period in which a REC is held by the Delaware Sustainable Energy Utility (SEU).

Solar Requirement

Reaching 3.5% of total electricity generated in the June 2025 - May 2026 energy year

Meter Readings

Systems must submit meter readings from a revenue grade meter in order to participate in the SRECDelaware program.

Eligibility Start Date

The Delaware PSC bases a system’s eligibility start date on the date of final SREC certification approval.

Market requirements

DE SREC market requirements as currently set by state legislation:

Energy Year % Solar Requirement Estimated SRECs Required (MWh) SACP
2010 0.018% 2,080 $400
2011 0.200% 22,997 $400
2012 0.400% 45,792 $400
2013 0.600% 68,371 $400
2014 0.800% 92,073 $400
2015 1.000% 116,242 $400
2016 1.250% 146,755 $400
2017 1.500% 177,867 $400
2018 1.750% 209,587 $400
2019 2.000% 241,923 $400
2020 2.250% 274,855 $400
2021 2.500% 308,483 $400
2022 2.750% 342,724 $400
2023 3.000% 377,620 $400
2024 3.250% 413,179 $400
2025 3.500% 449,411 $400

Source: EIA Report "Retail Sales of Electricity by State by Sector by Provider (EIA-861)" updated 3/23/15. Projected SRECs Required utilizes the most recent EIA electricity data applying an average 1.0% growth rate per forecast year. RPS Solar Requirement is multiplied by forecast total electricity sales to arrive at Projected SRECs Required. Projected Capacity Required is based on a factor of 1,200 MWh generated per MW of installed capacity per year. Projected Capacity Required assumes the amount of capacity needed to be operational all year to meet that year's RPS requirements with only current vintage SRECs.

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