Sen. Stephanie Hansen (D-Middletown), chair of the Environment, Energy & Transportation committee, proposes the state remove its cap on how much energy solar users can send back to the grid.
The process is called net metering and state law currently caps it at 8% – meaning that’s where utilities can draw the line on energy they receive into their systems from solar.
The committee heard Hansen's SB 239 and voted to release it for consideration on the floor for the state's 21 senate members.
The state raised its cap from 5 to 8% in 2022, as use of solar expanded. When an area hits the cap for net metering, Hansen said it discourages people from investing in a solar energy system.
"A lot of times when people go to make the decision as to whether they're going to put solar on their home, they're adding into that decision making process, 'how long is it going to take me to pay this back?'" she said. "Then also: 'how much money might I receive from the utility to help pay off this system?'"
According to DNREC, there are about 5,000 renewable energy systems in Delaware, primarily solar-powered.
While there are concerns with cost shifts for rate payers related to net metering, Hansen said her proposed change is based on a 2025 Sustainable Energy Utility study for Delaware.
According to the study, power generated by individual homes and businesses are an overall benefit to rate payers who don’t use solar.
The study noted for every dollar spent on net-metering, solar generates $1.28 in direct benefits–saving money for rate payers and grid operators on maintenance and transmission.
A Delaware Electric Cooperative representative told the Environment, Energy & Transportation committee that it does not oppose the bill.
But the not-for-profit's primary challenge is that some areas in Kent and Sussex county have more solar energy that the system can accept. A battery storage project is underway at the Georgetown area center to help solve this issue.
Hansen said grid operators may still have to operate with limits, and the bill doesn't force them to accept more energy than it's able.
"What this does is it removes a kind of artificial state cap," she said.
Like Delaware, a large majority of states have a net metering policy in place.
Some states, like New Jersey and Maine, already do not have caps on net metering.
