State law mandates that Delaware’s utilities derive 40 percent of their energy from renewable sources such as wind and solar by 2035.

Delaware’s renewable energy portfolio standards (RPS) are established by the Renewable Energy Portfolio Standards Act (26 Del.C. § 351 – § 364), first adopted in 2005, and most recently amended by Senate Bill 33, which was signed into law by Governor Carney on Feb. 10, 2021.

The Act is intended to establish a market in Delaware for electricity from renewable sources and to lower the cost of renewable energy to consumers. The Act allows utilities to meet their portfolio standards by buying renewable energy credits (RECs) and solar renewable energy credits (SRECs) from wind, solar and other renewable sources.

The Act requires that Delmarva Power submit an annual report to the Public Service Commission showing compliance with the renewable energy portfolio standards. Their 2015/2016 report is posted on the Public Service Commission website.

How to Sell Renewable Energy Credits

Sales of renewable energy credits are made under the Delaware Solar Renewable Energy Credits (SREC) Program. Each spring the SREC program releases an annual procurement program to accept bids for sales of credits.

Installed renewable energy systems must be certified by the Delaware Public Service Commission (PSC) in order to sell renewable energy credits. Information on certification application, fees, and instructions for submission can be found on the PSC’s Renewable Portfolio Standard and Green Power Products page under the heading “RPS Forms.”

Once a system is certified, sellers set up accounts with the Generation Attribute Tracking System (GATS) provided by PJM Environmental Information Services, Inc. This system is an online platform to connect renewable energy credit sellers and buyers and to track their transactions to help meet government standards.

For information about the current value of renewable energy credits or questions concerning how to trade your credits, please contact your installation contractor. There are links and resources on the PSC’s Renewable Portfolio Standards and Green Power Products page. If you have questions regarding the Renewable Portfolio Standards, please contact Pamela Knotts (302.736.7500) and the Public Service Commission.

The Old Cost Cap Provision

The Renewable Energy Standards Portfolio Act included a cost cap provision (26 Del. C. § 354(i) and (j)) that was stricken by Senate Bill 33 and replaced by revisions to the system of alternate compliance payments (ACPs) and solar alternate compliance payments (SACPs), which set a maximum price for RECs and SRECs.

Regulation 2102 (7 DE Admin Code 2102) governing this process was promulgated in 2016 and repealed effective August 11, 2017. Regulation 2102 was repealed to comply with a commitment to repeal the regulation made to Superior Court Judge Abigail LeGrow in the lawsuit DPA v. DNREC.

Related Topics:  climate, energy, renewable, standards