Delaware Electricity Rates: What to Know

Delaware's electricity rates have historically tracked close to the national average — neither cheap nor expensive. That is changing. As of early 2026, the average residential rate sits around 16.5 to 18.4 cents per kWh, roughly in line with the national average of about 18 cents. But multiple cost increases are converging at once: PJM capacity auction prices spiked 833%, Delmarva Power is filing its third base rate increase in five years, and a supply rate jump of 18-20% is taking effect June 1, 2026. For a state that imports most of its electricity and generates 87% of what it does produce from natural gas, Delaware is unusually exposed to forces outside its borders.

The average monthly electric bill in Delaware runs about $152 to $155 — close to the national average but headed higher. If the pending rate increases are approved, the typical Delmarva Power customer could see bills climb to $162 or more per month by mid-2026. Understanding where those costs come from — and which ones you can actually influence — matters more now than it has in years.

How Delaware's Electricity Market Works

Delaware is a deregulated electricity market. The state separated electricity supply from distribution in 1999, giving customers the ability to choose their electricity supplier. However, this choice comes with caveats that make Delaware's deregulation less straightforward than it sounds.

The Delaware Public Service Commission (PSC) regulates utilities, licenses competitive electricity suppliers, resolves consumer disputes, and sets Standard Offer Service (SOS) rates through competitive bidding. The PSC also reviews and approves rate cases for the distribution portion of your bill.

Delaware is part of the PJM Interconnection, the regional transmission organization that coordinates the wholesale electricity market across 13 states and Washington, D.C. PJM operates the capacity market, energy market, and transmission planning that directly affect what Delawareans pay. This matters because PJM's capacity auction results have become the single largest driver of recent rate increases in the state.

Here is the key distinction in how bills work:

Component	What It Covers	Who Controls It
Supply (~65% of bill)	Cost of generating electricity	Competitive market or SOS default rate
Distribution (~35% of bill)	Delivering electricity to your home	Your local utility, regulated by PSC

Who Has Retail Choice?

This is where Delaware's deregulation gets complicated. Only Delmarva Power customers can choose a competitive electricity supplier. If you are served by the Delaware Electric Cooperative or a municipal utility through DEMEC, you do not have supplier choice — your utility handles both supply and delivery.

Most Delmarva Power customers who do have the option stay on the default Standard Offer Service (SOS) rate anyway. The SOS rate is set through competitive bidding overseen by the PSC, and Delmarva does not earn a profit on supply. Whether deregulation has delivered meaningful value to Delaware consumers — when the majority of eligible customers stay on the default rate — is an open question.

What Delawareans Actually Pay

Current Rates

Delaware's average residential electricity rate of roughly 16.5 to 18.4 cents per kWh puts it near the middle of the national pack. But rates vary by utility:

• Delmarva Power: The dominant utility, serving the majority of the state. Bills for a customer using 810 kWh per month average about $155 per month as of early 2026.
• Delaware Electric Cooperative: Average residential rate of approximately 13.95 cents per kWh — about 14% below the national average. Average bill around $154 per month.
• DEMEC municipal utilities: Rates vary by municipality (Newark, Middletown, Smyrna, Milford, Seaford, Lewes, and others).

What Is Coming in 2026

Multiple increases are converging:

1. Supply rate increase (June 1, 2026): SOS supply rates jumping 18-20%, translating to roughly a 9% increase on the total bill for Delmarva Power customers
2. Distribution rate case (filed January 2026): Delmarva Power requesting $67.8 million in additional revenue — their third base rate case in five years, collectively seeking $160 million since 2020. This would add an estimated $6.42 per month (4.13%) to the typical residential bill
3. PJM capacity costs: Already baked into rates, with continued upward pressure from record-high capacity auction clearing prices

If both the supply increase and distribution rate case are approved, Delmarva Power customers can expect bills to climb from roughly $155 to $162 or more per month.

Rate Trends

The trend line is clearly upward:

• Delmarva Power delivery rates increased from 2.9 cents per kWh in 2015 to 4.6 cents per kWh in 2025 — growing more than twice as fast as inflation
• Delivery rates are up 22% since 2020 alone
• PJM capacity cost spikes added roughly $10 per month in 2025
• National average residential rates climbed 21% between 2022 and 2026

For context on the pieces of your bill, our guide on how to read your electric bill and spot overcharges breaks down each line item.

Major Utilities

Delmarva Power (Exelon)

Delmarva Power, a subsidiary of Exelon Corporation, is Delaware's dominant electric utility. It serves approximately 561,500 electric customers across Delaware and eastern Maryland, covering a 5,000-square-mile territory on the Delmarva Peninsula. It also provides natural gas service to about 140,000 customers in northern Delaware.

Delmarva Power is the only Delaware utility that participates in the deregulated electricity market. Customers can choose a competitive supplier for the supply portion of their bill or stay on the default Standard Offer Service.

The utility's recent rate case history tells a story of escalating costs:

Filing	Amount Requested	Status
2020-2025 (two rate cases)	~$92 million combined	Approved at reduced levels
January 2026	$67.8 million ($44.6M new + $23.2M already collected via DSIC)	Pending; hearing likely late 2026

The January 2026 filing seeks to increase the monthly customer charge from $13.50 to $15.94 and would add an estimated $6.42 per month to the typical residential bill. Interim rates could take effect as early as July 9, 2026, even before the case is fully decided.

Delaware Electric Cooperative (DEC)

The Delaware Electric Cooperative is a member-owned, not-for-profit utility serving 119,292 customers (about 106,000 residential) in the rural areas of Kent and Sussex Counties. DEC members do not have retail supplier choice.

DEC's average residential rate of 13.95 cents per kWh is significantly lower than Delmarva Power's and roughly 14% below the national average. In 2024, the cooperative's board approved a rate restructuring that lowered the power cost adjustment to zero while increasing the monthly service charge from $16 to $28, resulting in a net 3-5% decrease in costs for the average member.

DEC also offers an optional time-of-use rate — one of the more aggressive TOU structures in the state:

• Off-peak: 7.51 cents/kWh
• On-peak (May-September): 46.10 cents/kWh

If you can shift most of your usage to off-peak hours — running your dishwasher, laundry, and EV charger at night — the TOU rate can yield significant savings. But the on-peak penalty is steep, so it is not for everyone.

Delaware Municipal Electric Corporation (DEMEC)

DEMEC is a joint action agency that serves as the wholesale electric supplier for nine municipal electric departments: New Castle, Newark, Middletown, Smyrna, Clayton, Milford, Seaford, and Lewes, with the City of Dover as an associate member. Together, these municipalities serve nearly 100,000 residents and businesses.

Municipal utility customers do not have retail supplier choice. Rates and programs vary by municipality. Many DEMEC members participate in the Green Energy Program and offer solar rebates to their customers.

Why Delaware's Rates Are Rising

1. PJM Capacity Auction Prices — The Biggest Driver

The single largest factor behind Delaware's rate increases is the PJM capacity market. Capacity prices — which ensure enough generation exists to meet future peak demand — have spiked dramatically:

Auction (Delivery Year)	Cleared Price	Impact
2024/2025	~$35/MW-day	Baseline
2025/2026	$269.92/MW-day	833% increase
2026/2027	$329.17/MW-day	Record high
2027/2028	$333.44/MW-day	Hit price cap; 6,623 MW supply shortfall

The 2027/2028 auction was especially alarming: PJM secured only 134,478 MW against a 141,101 MW reliability requirement. This was the second consecutive auction with a supply shortfall. If the 2028/2029 auction (June 2026) also falls short, PJM may trigger an emergency "Reliability Backstop Auction."

Since June 2025, utility supply rates across the PJM region have increased 5-44% reflecting these capacity costs. Delaware — a small state that imports most of its power — absorbs the full impact with minimal in-state generation to buffer it.

In response, Delaware's governor joined eight other states in forming the PJM Governors Collaborative in July 2025, pushing for reform, lower costs, and improved reliability. Their joint letter noted PJM's "multi-year inability to efficiently connect new resources to its grid" has "deprived our states of thousands of jobs and billions of dollars in investment."

2. Data Center Demand

Data centers are driving most of PJM's projected load growth — roughly 5,100 MW of the 5,250 MW increase in PJM's 2027/2028 peak load forecast comes from data center demand alone. For Delaware specifically, proposed data centers could add approximately 2 GW of new demand — close to the state's entire current peak load.

Starwood Digital Ventures is building a data center in New Castle County, with construction expected to begin in summer 2026 and operations by early 2028. The concern is that infrastructure costs — new substations, transmission upgrades — could be shifted to residential ratepayers.

Delaware legislators have introduced two bills to address this:

• SB 205: Would require a "Certificate to Operate" for businesses using 100+ MW of electricity
• HB 233: Would create a distinct rate class for large energy-use facilities so infrastructure costs are not shifted to residential and small-business customers

As of early 2026, SB 205 does not yet have enough votes to leave the energy committee. This is an evolving fight worth watching — Delaware is small enough that a single large data center could materially impact rates for every household in the state.

3. Natural Gas Concentration Risk

Delaware generates 87.3% of its in-state electricity from natural gas — up from 51% in 2010. Coal has fallen from 46% to just 3% over the same period. This extreme concentration means Delaware ratepayers are highly sensitive to natural gas price volatility. The winter 2025 cold snap drove gas prices up and directly increased Delaware electric bills.

As more U.S. natural gas is exported as LNG — exports are projected to double by 2030 — domestic prices face structural upward pressure. Delaware's near-total dependence on gas for generation makes this a long-term cost risk.

4. Distribution Infrastructure Costs

Delmarva Power is spending heavily on grid hardening, storm resilience, and infrastructure modernization. The company cites these investments to justify its third rate case in five years. The cumulative requested amount — $160 million in additional annual revenue since 2020 — represents a significant and sustained increase in what customers are asked to pay for the distribution system. The PSC has historically approved less than Delmarva requests, but approved amounts have still driven meaningful bill increases.

Understanding Your Delaware Electricity Bill

For Delmarva Power Customers

Your bill has two main components:

Supply charges (~65% of bill): The cost of the electricity itself. If you have not chosen a competitive supplier, you pay the Standard Offer Service (SOS) rate, set through competitive bidding overseen by the PSC. Delmarva does not profit on supply. You can compare the SOS rate to competitive supplier offers using Delmarva's "Price to Compare" tool.

Distribution charges (~35% of bill): The cost of delivering electricity to your home. This is regulated by the PSC and includes infrastructure maintenance, meter reading, billing, and a monthly customer charge (currently $13.50, proposed increase to $15.94). These charges stay the same regardless of your supply choice.

Standard Offer Service vs. Competitive Suppliers

If you are a Delmarva Power customer, you have the option to shop for a competitive electricity supplier. Here is what to know:

• SOS is the default. If you do nothing, you get SOS at the rate set through PSC-administered bidding.
• Competitive suppliers offer various pricing models: fixed-rate (price locked for a contract term), variable-rate (changes monthly), and green energy options.
• Switching is free. There is no penalty for switching suppliers or returning to SOS.
• Compare carefully. Use Delmarva's "Price to Compare" to see whether a competitive offer actually beats the SOS rate. Some suppliers offer teaser rates that increase after an introductory period.
• Only supply changes. Your delivery utility remains Delmarva regardless of which supplier you choose.

For DEC and Municipal Utility Customers

Your bill is simpler — a single rate from your utility covering both supply and delivery. DEC members see a monthly service charge ($28) plus a per-kWh energy charge. Municipal utility bills vary by town.

Solar and Renewable Energy in Delaware

Net Metering

Delaware offers net metering at full retail rate for residential solar systems up to 25 kW. Excess generation is credited in kWh (not dollars) and carries forward monthly. Unused credits reset at the end of a 12-month period with no cash payout or rollover — so system sizing matters.

Two pieces of 2026 legislation are expanding solar access:

• SB 239: Passed the state Senate — removes Delaware's cap on when utilities can stop accepting new net metering customers
• HB 269: Passed the House — requires utilities to modernize the interconnection process for large-scale solar projects to clear the application backlog

SREC Program

Solar system owners in Delaware earn one Solar Renewable Energy Credit (SREC) per MWh of solar electricity generated. The current SREC value is approximately $30 per MWh for the first 10 years of a contract, dropping to $10 per MWh for years 11-25. SRECs provide meaningful long-term income on top of net metering bill savings — a feature that helps offset the loss of the federal tax credit.

Green Energy Program (State Rebate)

Delaware's Green Energy Program, administered by DNREC, provides rebates for solar PV, geothermal, solar water heating, and wind installations:

• Delmarva Power customers: ~$0.70 per watt, up to $6,000 for residential solar
• DEC members: ~$0.35-$0.50 per watt, up to ~$2,500-$3,000
• DEMEC members: Varies by municipality

The program is funded through a small public benefits charge ($0.000356 per kWh) on customer bills. With the federal tax credit gone, this state rebate is more important than ever.

Federal Tax Credit — Expired

The 30% federal Residential Clean Energy Credit was eliminated by the One Big Beautiful Bill Act, signed July 4, 2025. As of January 1, 2026, no federal tax credit exists for new homeowner-owned residential solar installations. Third-party owned systems (leases and PPAs) may still qualify under the commercial ITC with savings passed through to homeowners.

Does Solar Still Make Sense in Delaware?

Without the federal credit, the upfront cost of solar is higher. But Delaware's combination of remaining incentives makes it one of the better post-ITC states for solar:

• Full retail net metering (1:1 credit)
• Green Energy Program rebates up to $6,000
• SREC income of ~$30/MWh for 10 years, then $10/MWh for years 11-25
• Rising electricity rates that improve the payback calculation over time

Payback periods are longer than they were with the 30% credit, but for homeowners planning to stay in their homes long-term, solar remains a strong investment. Our guide on choosing the best solar panels for your home covers the key decisions.

Community Solar

Delaware has 15+ active or approved community solar farms with 60+ MW of combined capacity. At least 15% of each project's capacity is reserved for low- and moderate-income subscribers. Community solar is a good option for renters, condo owners, or anyone with a shaded or unsuitable roof — you subscribe to a share of a local solar farm and receive credits on your electric bill with no rooftop installation needed. For more on how this works, see our guide on community solar.

Generation Mix

Delaware's in-state generation is overwhelmingly natural gas:

Source	Share (2024)
Natural gas	87.3%
Solar	~9%
Coal	3%
Wind	Minimal (one 2 MW turbine)

The solar share is growing — distributed rooftop solar alone delivered about 205 GWh in 2024, actually exceeding utility-scale solar output by 20%. But the natural gas concentration remains a defining vulnerability of Delaware's generation mix.

Strategies to Lower Your Delaware Electricity Bill

1. Compare Supplier Rates (Delmarva Power Customers)

If you are on Standard Offer Service, check whether a competitive supplier offers a better deal. Delmarva publishes a "Price to Compare" so you can see the current SOS rate against supplier offers. Look for fixed-rate plans that lock in a price below the SOS rate. Be cautious of variable-rate offers and read the fine print on contract terms. Switching is free, and you can return to SOS at any time.

2. Shift Usage to Off-Peak Hours

If you are a Delaware Electric Cooperative member, the optional TOU rate offers dramatic savings for customers who can shift usage. At 7.51 cents per kWh off-peak versus 46.10 cents on-peak (May-September), the incentive to run heavy appliances at night is substantial. Even Delmarva Power customers without formal TOU rates can benefit from reducing usage during afternoon and early evening peaks when wholesale costs are highest.

3. Install Solar With State Incentives

Even without the federal tax credit, Delaware's Green Energy Program rebates (up to $6,000), SREC income (~$30/MWh), and full retail net metering make solar a viable investment. Get multiple quotes and size your system to match your annual usage — remember that excess credits expire at the end of the 12-month billing cycle.

4. Subscribe to Community Solar

If rooftop solar is not an option, community solar lets you benefit from solar savings without installing panels. Delaware's program reserves 15% of capacity for low- and moderate-income subscribers.

5. Weatherize Your Home

DNREC offers free weatherization services for income-eligible homeowners and renters, including insulation, air sealing, and HVAC improvements. Even if you do not qualify for the free program, basic air sealing and insulation upgrades typically pay back within a few years given Delaware's rates. Our home insulation and weatherization guide covers the highest-impact projects.

6. Upgrade to High-Efficiency Equipment

Replace aging appliances with Energy Star models. The biggest wins are typically:

• Heat pump water heaters — cut water heating energy by 60-70%
• Smart thermostats — 10-15% savings on heating and cooling
• Heat pumps for heating and cooling — dramatically more efficient than resistance heat or older AC units

Delmarva Power and DEC both offer energy efficiency rebates for qualifying equipment upgrades.

7. Monitor Your Usage

A home energy monitor identifies which circuits and appliances are driving your bill. Many Delaware homeowners discover that an old dehumidifier, a second refrigerator, or pool pump equipment accounts for a surprising share of their monthly usage.

Low-Income Assistance Programs

LIHEAP — Delaware Energy Assistance Program (DEAP)

Delaware's federal LIHEAP program is administered locally by Catholic Charities through the Division of State Service Centers.

FY 2026 funding: $12,533,243

Benefit	Amount	Season
Heating assistance	$100 - $2,464	October 1 - April 30
Cooling assistance	$1 - $1,000	May 1 - August 31
Crisis assistance	Up to $10,000	Year-round

Income eligibility: 60% of Delaware State Median Income (after taxes)

How to apply: Online at any time, or contact Catholic Charities:

• Kent County: 302-674-1782
• New Castle County: 302-654-9295
• Sussex County: 302-856-6310

Weatherization Assistance Program

Administered by DNREC, this program provides free weatherization for income-eligible homeowners and renters — insulation, air sealing, HVAC improvements, and other efficiency upgrades. Available year-round and one of the best ways to permanently reduce your energy costs.

DESEU (Delaware Sustainable Energy Utility)

DESEU provides loans and financial incentives for energy efficiency and renewable energy projects, including solar hot water and geothermal systems. Programs target both residential and commercial customers.

Division of the Public Advocate (DPA)

The DPA represents residential customers in utility proceedings and provides consumer education. If you believe your bill is incorrect or your utility is acting unreasonably, the DPA can help. Visit publicadvocate.delaware.gov or call for assistance.

Utility Programs

• Delmarva Power: Energy efficiency rebates for insulation, HVAC, smart thermostats, and appliances
• Delaware Electric Cooperative: Member rebate programs for energy-efficient equipment
• DEMEC members: Programs vary by municipality — check with your local utility

Frequently Asked Questions

What is the average electricity rate in Delaware?

As of early 2026, Delaware's average residential electricity rate is approximately 16.5 to 18.4 cents per kWh, roughly in line with the national average of about 18 cents. The average monthly bill for a Delaware household is approximately $152-$155. However, rates are climbing — a supply rate increase of 18-20% takes effect June 1, 2026, and Delmarva Power has filed for an additional $67.8 million distribution rate increase.

Can I choose my electricity supplier in Delaware?

Only if you are a Delmarva Power customer. Delaware deregulated electricity supply in 1999, but retail choice applies only to Delmarva's territory. Delaware Electric Cooperative and municipal utility customers cannot choose a competitive supplier. If you are a Delmarva customer and do not choose a supplier, you remain on the Standard Offer Service (SOS) at the default rate set through PSC-administered competitive bidding.

Why are Delaware electricity bills going up in 2026?

Multiple factors are converging: PJM capacity auction prices hit record highs (833% increase for 2025/2026), driving an 18-20% supply rate increase effective June 1, 2026. Delmarva Power filed a $67.8 million base rate increase in January 2026 — their third in five years. Natural gas prices have been volatile, and Delaware generates 87% of its electricity from gas. Data center demand growth across the PJM region is straining supply and infrastructure.

How will data centers affect my electricity bill?

Data centers are driving most of PJM's projected load growth, and proposed Delaware data centers could add roughly 2 GW of demand — close to the state's entire peak load. Infrastructure costs for new substations and transmission upgrades risk being shifted to residential ratepayers. Legislators have introduced SB 205 and HB 233 to create operating requirements for large users and prevent cost-shifting. This is an active and evolving issue.

Is solar worth it in Delaware without the federal tax credit?

The 30% federal residential solar tax credit expired January 1, 2026. Delaware still offers several strong incentives: Green Energy Program rebates up to $6,000 for Delmarva Power customers, SREC income of approximately $30 per MWh for 10 years (then $10/MWh for years 11-25), and net metering at full retail rate for systems up to 25 kW. Payback periods are longer without the federal credit, but with rates projected to keep climbing, solar remains a solid long-term investment for homeowners who plan to stay in their homes.

What is community solar and can I join in Delaware?

Community solar lets you subscribe to a share of a local solar farm and receive credits on your electric bill — no rooftop installation needed. Delaware has 15+ active or approved community solar farms with 60+ MW of total capacity. At least 15% of each project's capacity is reserved for low- and moderate-income subscribers. It is a good option for renters, condo owners, or anyone whose roof is not suitable for solar panels.

What happens if I cannot pay my Delaware electric bill?

Apply for the Delaware Energy Assistance Program (DEAP) through Catholic Charities — crisis assistance of up to $10,000 is available year-round. Contact the Weatherization Assistance Program through DNREC for free efficiency upgrades that permanently lower bills. Check DESEU for energy efficiency loans and incentives. Call the Division of the Public Advocate if you need help understanding your bill or believe charges are incorrect. Contact your utility directly about payment arrangements.

Your Delaware Electricity Action Plan

This week:

1. Pull up your most recent bill and identify your per-kWh supply rate, distribution charges, and total monthly usage. If you are a Delmarva Power customer, note whether you are on Standard Offer Service or a competitive supplier. Our guide on how to read your electric bill and spot overcharges explains each component.
2. If you are on Delmarva Power SOS, check the "Price to Compare" against current competitive supplier offers. Switching is free and you can return to SOS at any time.
3. Look at your 12-month usage history and note seasonal peaks — they point to where efficiency improvements will have the most impact.

This month:

4. If your income qualifies, apply for DEAP through Catholic Charities. Crisis assistance is available year-round.
5. Contact DNREC about free weatherization services if you are income-eligible.
6. Check your home for air leaks — around windows, doors, electrical outlets, and attic access points. Basic air sealing is one of the cheapest, highest-return efficiency projects.
7. If you are a DEC member, evaluate whether the TOU rate would save you money based on when you use the most electricity.

This year:

8. Get solar quotes from multiple installers. Even without the federal tax credit, Delaware's Green Energy Program rebate (up to $6,000), SRECs, and full retail net metering make solar a strong long-term investment. Size your system to match your annual usage.
9. If rooftop solar is not an option, look into community solar subscriptions in your area.
10. Upgrade your water heater to a heat pump water heater — typically the single highest-impact appliance upgrade for reducing electricity costs.
11. Install a smart thermostat and use setback scheduling to reduce heating and cooling costs by 10-15%.

If you are struggling right now:

12. Contact Catholic Charities for DEAP crisis assistance — up to $10,000 available year-round.
13. Call your utility directly about payment arrangements. Do not wait for a disconnection notice.
14. Contact the Division of the Public Advocate (publicadvocate.delaware.gov) if you need help understanding your bill.
15. Check DNREC weatherization eligibility to permanently lower your bills.

For the long term:

16. Watch the data center legislation (SB 205, HB 233). If these bills fail, residential ratepayers could bear infrastructure costs for facilities that add massive demand to Delaware's grid.
17. Follow PJM capacity auction results. The June 2026 auction (2028/2029 delivery year) will be the third consecutive test — if it falls short again, PJM may trigger emergency procurement that could further increase costs.
18. Budget for continued rate pressure. Delaware's import dependence, natural gas concentration, and PJM capacity trends all point upward. Every efficiency improvement and solar kWh you generate today compounds in value as rates rise.

Delaware's electricity story is defined by forces largely outside the state's borders. PJM capacity markets, data center demand in neighboring states, natural gas prices set by global markets, and regional transmission costs all flow through to Delaware's bills. What you can control is your own usage, your choice of supplier (if you are a Delmarva Power customer), your access to assistance programs, and your investment in efficiency and solar generation. In a state this exposed to external cost pressures, taking action now — before the mid-2026 rate increases hit — is worth the effort.