Energy (Renewable Energy)

This Act requires large energy use facilities to produce renewable energy within the state to power their operations to prevent a drain on the electric grid. It provides for a “ramp-up” period requiring that a large energy use facility provide a plan to the Public Service Commission to ramp up their energy production within the state each year so that by the 10th year of operations, the facility is producing 100% of its energy usage through in-state production. This Act also allows the Public Service Commission to regulate electric suppliers insofar as necessary to ensure that large energy use facilities do not negatively affect the reliability of the electric grid.

SB 239 removes an 8% cap on net metering for customer-generated electricity in Delaware. This change directly affects residential and business customers with solar panels or other renewable energy systems, allowing them to send more excess power to the grid without hitting the previous limit. Utilities will now need to accommodate higher levels of customer-generated energy under this policy. The bill was introduced in the Senate on February 19, 2026, and referred to the Environment, Energy & Transportation Committee.

This Act requires that an electric supplier’s interconnection rules, for purposes of net-metering, align with the most recent version of the Interstate Renewable Energy Council’s Model Interconnection Procedures (Procedures) within 12 months of the Procedures’ latest publishing date.

The Renewable Portfolio Standard (RPS) is the percentage of electricity that utilities must source from renewables. This is presently set at 25% and will increase annually, culminating at 40% in 2035. Delaware does not currently have enough renewable energy to meet the present mandate, let alone future RPS requirements. Renewable energy is also in short supply on the regional power grid. If it is available, consumers are paying additional distribution charges to transmit it to Delaware. If renewable energy is not obtainable, Delaware utilities are paying penalties to the state for failing to achieve the RPS mandate. In each of the last two years, Delmarva Power has spent about $13 million annually in such state mandated compliance fees. All these cost multipliers are being passed along to consumers, making power more expensive for Delaware ratepayers. This bill recognizes the current flawed public energy policy that has resulted in renewable energy demand significantly outpacing supply. This legislation seeks to provide relief to Delawareans by rolling back the Renewable Portfolio Standard to 10% and maintaining the RPS requirement for the next 10 years, providing sufficient time for renewable generation capacity to meet demand. After the 10-year period expires, the RPS percentage will resume scheduled annual increases.

The purpose of this bill is to incentivize the construction and operation of a limited number of high-efficiency Combined-Cycle Gas Turbine (CCGT) electrical generation facilities, with an output of between 100 MW and 500 MW, by creating an Electricity Production Tax Credit (EPTC) and bonus credits. These credits would offset state corporate tax liability while facilitating the increased availability of clean, cost-effective, high-efficiency, and energy production. CCGT power plants are proven technology that can provide significant dispatchable power production to meet Delaware’s growing need for dependable energy, while promoting grid stability that will enable the integration of renewable energy generation. Having the CCGT facilities built within Delaware will improve the energy security of our citizens while reducing power transmission charges and energy loss. The value of the Electricity Production Tax Credit (EPTC) can be increased via bonus credits if the CCGT power-generating facility is built on a brownfield or the current or former site of a power plant. Additional bonus credits can be earned if the plant’s operation exceeds certain high-efficiency thresholds and if it incorporates carbon-capture technology into the design. The value of the credits realized by the facility operator would result from the quantity of electricity delivered. Most CCGT plants operate at a capacity factor of 50% to 85%. A 500 MW power plant, operating within these margins, would be expected to produce somewhere between 2.2 million and 3.7 million MWh per year. At a maximum annual 65% production capacity, a 500 MW plant could serve the needs of approximately 210,000 homes. The total value of the credits for each eligible facility receiving the tax credits established under this bill is limited to $15 million annually. The number of facilities eligible for the tax credits established under this bill will be no more than three statewide.

This Act requires the permitting of an electric substation as an allowed conditional use in a heavy industrial zone under certain conditions set forth in the Act, including that the electrical substation is being constructed to support the operation of a proposed renewable energy generation project of 250 MW or greater. This Act is being given retroactive effect such that, if a county has previously denied an application for an electrical substation that would meet the requirements of this Act, then the application shall be deemed granted provided that the electrical substation meets the requirements of this Act.

Grid-enhancing technologies (GETs) offer efficient tools to increase power grid capacity without the need for new transmission lines. Studies demonstrate that these innovations can double renewable energy integration, create hundreds of thousands of jobs, and significantly expand interzonal transmission capacity. By 2035, GETs and reconductoring could help the U.S. achieve 90% emissions-free electricity. This resolution directs the DNREC State Energy Office (DNREC SEO) and the Delaware Sustainable Energy Utility (DESEU) to conduct a comprehensive cost-benefit analysis of GETs across all electric utilities in Delaware. The study shall assess ratepayer costs, technical feasibility, and implementation plans. DNREC SEO and DESEU are tasked with collaborating with the electric utilities, the Department of Natural Resources and Environmental Control, the Division of the Public Advocate, and other interested stakeholders and must submit a detailed preliminary report of its findings to the Governor and all members of the General Assembly by December 31, 2025, and a final report by July 31, 2026.