State creates hybrid Green Energy Fund

State officials have created a hybrid Green Energy Fund, saying it should encourage more small-scale solar panel installations and increase incentives for larger geothermal and solar hot water system investments.

The Joint Green Energy Program, to begin Aug. 4, will blend Department of Natural Resources and Environmental Control and Sustainable Energy Utility efforts. The SEU will earmark $1.5 million annually for two years to finance stable renewable energy credit payments for new installations regardless of an applicant's regular electric provider.

Under the new setup, system owners will receive 45 cents a watt for the first 20 years of solar renewable energy credits earned by new systems of 50 kilowatts or less. The up-front credit rate, DNREC said, will reduce uncertainty and fluctuations in credit price payments for photovoltaic system owners, and cut the time needed for savings on electricity to cover installation costs.

The SEU also agreed to set aside $1 million a year over the next two years for grants of up to $200,000 for commercial and nonprofit geothermal and solar water heating projects in Delaware.

Since 1999, the original Green Energy Fund has assisted more than 1,500 renewable energy projects in Delaware, supported by a surcharge on Delmarva Power utility bills.

The SEU funds will be drawn from the group's allocation from the Regional Greenhouse Gas Initiative, a program operated by Northeast states requiring large electricity producers to buy credits for each ton of carbon dioxide released during generation.

Contact Jeff Montgomery at 463-3344 or jmontgomery@delawareonline.com