Delaware

Incentives/Policies for Renewables & Efficiency

DEMEC - Green Energy Fund

Last DSIRE Review: 07/09/2012

Program Overview:

State:	Delaware
Incentive Type:	Public Benefits Fund
Eligible Efficiency Technologies:	Unspecified Technologies
Eligible Renewable/Other Technologies:	Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps, Fuel Cells using Renewable Fuels
Applicable Sectors:	Commercial, Industrial, Residential, Municipal Utility
Types:	Renewables
Total Fund:	Approximately $324,000 annually (based on 2008 retail sales)
Charge:	$0.000178/kWh (0.178 mills/kWh)
Web Site:	http://www.dnrec.delaware.gov/energy/services/GreenEnergy/Pages/G...
Authority 1: Date Enacted: Date Effective:	26 Del. C. § 363 07/21/2005 06/01/2006
Authority 2: Date Effective:	DEMEC - Green Energy Program Regulations 02/16/2010 (as amended)

Summary:

Note: The Green Energy Fund regulations are currently under revision to improve program function and meet the requirements of the Delaware Energy Act. The Delaware Division of Energy and Climate webpage will provide details about relevant public meetings and workshops, proposed draft regulations, and other documents during the regulatory revision process.

Under the 2005 Delaware renewable portfolio standard (RPS) legislation, municipal utilities were allowed to opt out of the compliance schedule if they contributed to the Green Energy Fund for investor-owned utilities or created their own green energy fund with an equal surcharge (i.e. $0.000178/kWh). In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of municipal utilities was slightly revised. While these amendments changed several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.

The Delaware Municipal Electric Corporation (DEMEC), a joint action agency and wholesale electric company representing the state's nine municipal utilities, opted out of the RPS requirements on behalf of the municipal utilities, and the utilities created their own funds. The surcharge for the investor-owned utility fund was doubled in 2007 through legislation, but the surcharge for the municipal utilities was not affected.

DEMEC municipal utility members include: Newark, New Castle, Middletown, Dover, Smyrna, Seaford, Lewes, Clayton and Milford. Each municipal utility has its own distinct fund. Customers of one utility cannot access another utility's fund revenues. As a result, some of the utilities' funds are very limited. Funds held for participating members, as of December 2010, are as follows:

City of Dover: $165,939
City of Newark: $9,318
City of Milford: $9,688
City of Seaford: $33,881
City of Lewes: $30,849
Town of Middletown: $5,336
City of New Castle: $31,817
Town of Smyrna: $9,775
Town of Clayton: $10,433

At the end of 2010 the DEMEC reported that the fund held approximately $307,036 between the nine municipal utilities. The DEMEC green energy funds support the municipal Green Energy Program Incentives, which include rebates for solar electric, solar heating, geothermal heat pumps, and wind power.

Contact:

Scott Lynch
Delaware Department of Natural Resources and Environmental Control
Delaware Energy Office
1203 College Park Drive, Suite 101
Dover, DE 19904
Phone: (302) 735-3480
Fax: (302) 739-1840
E-Mail: scott.lynch@state.de.us
Web Site: http://www.dnrec.delaware.gov/energy

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