Delaware Laws and Incentives

Listed below are the summaries of all current Delaware laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (9)
• Utility / Private Incentives (8)
• Laws and Regulations (13)

State Incentives

Medium- and Heavy-Duty (MHD) Emissions Reductions Funding

The Delaware Department of Natural Resources and Environmental Control (DNREC) provides funding for MHD on-road and limited off-road emission reduction projects. This grant program is funded by Delaware’s portion of the Volkswagen (VW) Environmental Mitigation Trust. For more information, including program guidance, application deadlines, and funding availability, see the DNREC VW Mitigation Plan website.

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Rebates

As part of the Delaware Clean Transportation Incentive Program, the Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates for the purchase or lease of a new or pre-owned EV or PHEV. The following rebate amounts are applicable for vehicles purchased or leased on or after May 1, 2024, and vary based on manufacturer suggested retail price (MSRP):

Eligible EVs and PHEVs may not have a retail price above $50,000. Eligible applicants include Delaware residents, businesses, organizations, government entities. schools, colleges, and universities. Additional terms and conditions apply. For more information, including application guidelines and participating dealerships, see the DNREC Clean Vehicle Rebate Program website.

Public, Fleet, and Workplace Electric Vehicle (EV) Charger Rebates

The Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates of up to $2,500 for single-port Level 2 EV chargers and $5,000 for dual-port Level 2 EV chargers. Eligible entities include businesses, nonprofit organizations, state and local governments, public schools, colleges and universities, and fleets. Qualifying EV chargers must be available for public, fleet, or workplace charging.

Eligible applicants may receive a maximum of 10 single-port rebates or five dual-port rebates. Rebates are available on a first-come, first-serve basis.

For more information, including application guidelines, see the DNREC EV Charging Equipment Rebates website.

Electric Vehicle (EV) Charger Rebates for Multi-Family Dwellings

The Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates to multi-family dwellings for the purchase and installation of Level 2 EV chargers.

The maximum rebate amount is $3,500 for single-port Level 2 EV chargers and $7,000 for dual-port Level 2 EV chargers. Increased rebate amounts are available for projects in underserved communities. Eligible applicants may receive a maximum of 10 single-port rebates and or five dual-port rebates.

Rebates are available per port and on a first-come, first-served basis. Additional terms and conditions apply. For more information, including underserved communities and application guidelines, see the DNREC EV Charging Equipment Rebates website.

Delaware's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Delaware Department of Transportation (DelDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Delaware’s NEVI planning process, see the DelDOT Delaware’s Vehicle Electrification Future website. To review Delaware’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Vehicle-to-Grid Energy Credit

Retail electricity customers with at least one grid-integrated electric vehicle (EV) may qualify to receive kilowatt-hour credits for energy discharged to the grid from the EV’s battery at the same rate that the customer pays to charge the battery. A grid-integrated EV is defined as a battery-powered motor vehicle that has the ability for two-way power flow between the vehicle and the electric grid as well as communications hardware and software that allow for external control of battery charging and discharging.

(Reference Delaware Code Title 26, Chapter 10, Section 1001 and 1014h)

Idle Reduction Weight Exemption

Any motor vehicle equipped with qualified idle reduction technology may exceed the state gross, axle, tandem, or bridge weight limits by up to 400 pounds to account for the weight of the technology. The additional weight may not exceed the actual weight of the idle reduction unit. To qualify for the exemption, the vehicle operator must also be able to prove the weight of the idle reduction technology and demonstrate that the technology is fully functional.

(Reference Delaware Code Title 21, Chapter 45, Section 4503f)

Alternative Fuel Tax Exemption

Taxes imposed on alternative fuels used in official vehicles for the United States government or any Delaware state government agency, including volunteer fire and rescue companies, are waived. Alternative fuel retailers must obtain a fuel supplier’s license from the Delaware Department of Transportation (DelDOT), and operators or owners of vehicles using alternative fuel must obtain either a special fuel user’s license from DelDOT or pay the special fuel tax.

(Reference Delaware Code Title 30, Chapter 51, Subchapter II)

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Rebates

The Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates for the purchase or lease of an EV or PHEV. EVs may receive a rebate of up to $2,500, and PHEVs may receive a rebate of up to $1,000. Individuals may receive a maximum of two rebates. Businesses, non-profit organizations, government entities, educational institutions, and other organizations may receive a maximum of six rebates. For more information, including program eligibility and requirements, see the DNREC Drive Electric website.

(Reference House Bill 12, 2023 and Delaware Revised Statutes 29-80.64)

Utility / Private Incentives

City of Dover - (DE) - Delaware

City of Dover - (DE) is a municipal utility that operates in Delaware. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Dover - (DE) website.

Residential Incentives

Non-Residential Incentives

City of Newark - (DE) - Delaware

City of Newark - (DE) is a municipal utility that operates in Delaware. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Newark - (DE) website.

Residential Incentives

Non-Residential Incentives

Delaware Electric Cooperative (DEC) - Delaware

Delaware Electric Cooperative (DEC) is a cooperative that operates in Delaware. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Delaware Electric Cooperative (DEC) website.

Residential Incentives

Non-Residential Incentives

Delmarva Power - Delaware

Delmarva Power is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Delmarva Power website.

Residential Incentives

Non-Residential Incentives

Municipal Services Commission of the City of New Castle - Delaware

Municipal Services Commission of the City of New Castle is a municipal utility that operates in Delaware. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Municipal Services Commission of the City of New Castle website.

Residential Incentives

Non-Residential Incentives

SchagrinGAS - Delaware

SchagrinGAS is utility that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles.

Residential Incentives

Non-Residential Incentives

Sharp Energy - Delaware

Sharp Energy is utility that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles.

Residential Incentives

Non-Residential Incentives

Town of Middletown - (DE) - Delaware

Town of Middletown - (DE) is a municipal utility that operates in Delaware. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Town of Middletown - (DE) website.

Residential Incentives

Non-Residential Incentives

Laws and Regulations

Public Utility Definition

An entity that owns, operates, controls, or manages a facility that supplies electricity to the public exclusively to charge plug-in electric vehicles is not defined as a public utility.

(Reference Delaware Public Service Commission 19-0377)

State Agency Electric Vehicle (EV) Fee Authorization

State agencies may charge a use fee for EV charging station operated on state-owned or -leased property. The fee may not exceed the combined costs of electricity used by the EV charging station and EV charging station maintenance.

(Reference Delaware Code Title 29, Chapter 80, Subchapter 2, Section 8062)

Electric School Bus Acquisition Requirement

Beginning July 1, 2025, the Delaware Department of Education (DOE) must purchase an increasing share of electric school buses with annual school bus acquisitions. Electric school bus acquisitions must increase according to the following schedule:

DOE must report on these targets annually to the Clerk of the House of Representatives, the Secretary of the Senate, the Director of the Division of Research, and the Public Archives. By January 31, 2030, DOE must submit a report detailing recommendations for future changes in the percentage targets for electric school bus purchases.

(Reference House Bill 10, 2023 and Delaware Revised Statutes 29-80.63)

Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards

All Model Year (MY) 2014 and later passenger cars and light- and medium-duty vehicles must meet California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. Certain exceptions apply, including the zero emission vehicle sales requirements.

In November 2023, Delaware partially adopted the California vehicle emissions standards and compliance requirements set forth in the California Air Resources Board Advanced Clean Cars II regulation. These new emissions standards and requirements will begin with MY 2027 and require that 82% of new passenger vehicles sold in Delaware must be ZEVs by 2032.

(Reference Delaware Administrative Code Title 7, Sections 1140-6.0)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled motor vehicle, other than a truck, with a gross vehicle weight rating of less than 2,500 pounds that is capable of operating at a speed of at least 20 miles per hour (mph) but not greater than 25 mph on a paved surface. A low-speed vehicle may not operate on roads with a posted speed limit greater than 35 mph but may cross a highway that has a posted speed limit greater than 35 mph. The vehicle must comply with safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500, and meet state insurance, titling, and registration requirements.

(Reference Delaware Code Title 21, Chapter 21, Subchapter I, Section 2113A)

Idle Reduction Requirement

On-road heavy-duty motor vehicles with a gross vehicle weight rating of greater than 8,500 pounds may not idle for more than three consecutive minutes when the vehicle is stationary. Violators are subject to penalties of up to $500 for each offense. Heavy-duty vehicles subject to this regulation include long-haul and delivery trucks as well as transit and school buses. Emergency fire, rescue, and lifesaving vehicles are exempt. Additional exemptions may also apply.

(Reference Delaware Administrative Code Title 7, Section 1145-5.0)

Electric Cooperative Investments

Unclaimed electric cooperative capital credits may be used on transportation electrification investments. Credit allocation reports are required annually by January 20.

(Reference Delaware Code Title 26, Chapter 9, Subchapter I, Section 909)

Smart Grid Infrastructure Development

All grid-integrated, plug-in electric vehicles in use by eligible customers must meet applicable safety and performance standards put forth by the National Electric Code, Institute of Electric and Electronic Engineers, UL, and the Society of Automotive Engineers to ensure that net metering customers comply with the electric supplier’s interconnection tariffs and operating guidelines.

(Reference Delaware Code Title 26, Chapter 10, Section 1014e)

Climate Action Plan

The Delaware Department of Natural Resources and Environmental Control (DNREC) released the Delaware Climate Action Plan(Plan) with strategies and actions the state can take to reduce greenhouse gas (GHG) emissions by 26% to 28% from 2005 levels by 2025. The Plan includes reducing transportation sector GHG emissions by promoting the shift to zero emission vehicles and expanding access to vehicle charging infrastructure. The Plan also recommends a goal of 17,000 electric vehicle sales per year by 2030. For more information, see the DNREC Climate Action Plan page.

Electric Vehicle (EV) Charging Station Local Permitting Policies

Municipalities with a population of more than 30,000 people must have a permitting procedure for the installation of curbside residential EV charging stations. The ordinance must

• Require EV charging station installation is completed by a licensed electrician;
• Require the written permission of the owner of the property on which the EV charging station will be installed;
• Establish reasonable restrictions on the type of EV charging stations that may be installed;
• Provide that the municipality must approve or deny a permit within 90 days of receipt of a permit application; and,
  
• Provide that an EV charging station may not affect a proposed State right-of-way or easement area without approval by the Department of Transportation.

(Reference Senate Bill 187, 2022 and Delaware Administrative Code Title 22, Chapter 1, Section 119)

Electric Vehicle (EV) Charging Station Building Standards for Residential Developments

Beginning January 1, 2024, new construction of single-family homes must include at least one EV-capable parking spot.

Beginning January 1, 2025, at least 5% of total parking spaces at newly constructed multifamily housing developments must have EV charging stations installed. In addition, at least 10% of the total parking spaces at newly constructed multifamily housing must be EV-capable.

EV-capable parking spaces have electric panel capacity and space for a branch circuit that enables the future installation of EV charging stations. Additional restrictions apply.

(Reference Senate Bill 103, 2023 and Delaware Code Title 16, Chapter 80)

Residential Electric Vehicle (EV) Charger Incentive Requirement

Delaware Sustainable Energy Utility is required to administer a program that provides financial assistance to Delaware residents for the purchase and installation of residential EV chargers. The program must offer increased rebate amounts for low-income applicants. Additional requirements apply.

(Reference House Bill 13, 2024)

State Fleet Zero Emissions Vehicle (ZEV) Acquisition Requirement

All light-duty and passenger state fleet vehicles must be ZEVs by 2040. To support the state fleet transition to ZEVs, state agencies are required to own and operate increasing volumes of ZEVs every few years, according to the following schedule:

For the purpose of this requirement, ZEVs include electric vehicles, hydrogen fuel cell electric vehicles, and plug-in hybrid electric vehicles. Exemptions apply.

(Reference House Bill 9, 2024)