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

Medium- and Heavy-Duty Emissions Reductions Funding

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

Alternative Fuel Vehicle (AFV) Rebates

As part of the Delaware Clean Transportation Incentive Program, the Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates for new or leased AFVs. The following rebate amounts are applicable for vehicles purchased or leased between January 1, 2020, and June 30, 2021:

Qualifying VehiclesRebate Amount
All-electric vehicle (including vehicles with gasoline range extenders)$2,500
Plug-in hybrid electric vehicle$1,000
Dedicated propane or natural gas vehicle (NGV)$1,500
Bi-fuel propane or NGV$1,350
Dedicated heavy-duty NGV$20,000

Eligible applicants include Delaware residents, businesses, organizations, and government entities. Rebates are limited to six vehicles per fleet. Additional terms and conditions apply. For more information, including application guidelines and participating dealers, see the DNREC Clean Fuel and Transportation Initiatives website.

Electric Vehicle Supply Equipment (EVSE) Rebates

As part of the Delaware Clean Transportation Incentive Program, Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates for new Level 2 EVSE purchased for use at public, workplace, commercial, and multi-unit dwelling (MUD) locations. Installation, labor, and other costs are not eligible.

Rebates are offered in the following amounts:

Rebate Amount (Maximum: $3,500 single port/$7,000 dual port)Limit per Location
CommercialGovernment and NonprofitCommercialGovernment and Nonprofit
Public Access75%90%6 charging ports6 charging ports
Workplace75%90%6 charging ports6 charging ports
Fleet75%90%6 charging ports10 charging ports
MUD90%90%10 charging ports10 charging ports

Rebates are available on a first-come, first-served basis for multi-unit dwellings, businesses, organizations, non-profits, government entities, schools, colleges, and universities. Additional terms and conditions apply. For more information, including application guidelines, see the DNREC Electric Vehicle Charging Equipment Rebates website.

Heavy-Duty Natural Gas Vehicle (NGV) Rebates

As part of the Delaware Clean Fuel and Transportation Incentive Program, the Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates of up to $20,000 for new or leased Class 7 or Class 8 dedicated NGVs. Eligible applicants include individuals, businesses, non-profits, or governmental entities located in Delaware or who have an in-state affiliate. Applicants must submit proof of order and proof of payment to receive the rebate; a copy of the lease agreement is required for leased vehicles. Fleets are limited to five rebates per funding cycle. All vehicles purchased through this rebate program must be titled and registered in the state. DNREC will accept applications through December 31, 2020, or until funding is exhausted, on a first-come, first-served basis. Additional terms and conditions apply. For more information, including application instructions and eligibility requirements, see the Delaware Heavy-Duty Vehicle Rebate Program 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 1014g)

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)

Utility/Private Incentives

Plug-In Electric Vehicle (PEV) Charging Rate – Delmarva Power

Delmarva Power offers a time-of-use rate option to residential customers that own PEVs. For more information, see the Delmarva Energy PEV Programs website.

Electric Vehicle Supply Equipment (EVSE) Incentive - Delaware Electric Cooperative (DEC)

DEC offers a one-time $200 billing credit and an additional $5 monthly billing credit to customers if they do not charge their plug-in electric vehicles during Beat the Peak alerts. To qualify for the Beat the Peak incentives, residents must have qualified WiFi connected residential EVSE and enroll in the Beat the Peak program. For more information, see the Beat the Peak website.

Propane Infrastructure and Fuel Incentives - Sharp Energy

Sharp Energy provides fueling equipment at a reduced cost to fleets that convert to propane vehicles. For more information about this program, see the Sharp Energy Autogas website.

Propane Infrastructure and Fuel Incentives - SchagrinGAS

SchagrinGAS provides propane tanks, pumps, and meters at no cost to customers on a case-by-case basis. SchagrinGAS offers a discount on propane to fleets that use the fuel to operate their vehicles.

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)

Connected and Autonomous Vehicles (CAVs) Advisory Council

The Delaware Department of Transportation established an Advisory Council to evaluate the impact of CAVs on public safety, cyber security, legal issues, privacy, and the design and construction of the transportation network. The Advisory Council reviews state motor vehicle laws and makes recommendations for tools and strategies that can be used to prepare Delaware's transportation network for CAVs. The Advisory Council prepared a report of its activities and recommendations for the governor and General Assembly in September 2018, see the Advisory Council’s CAV Report. (Reference Executive Order 14, 2017)

Regional Transportation and Climate Initiative (TCI)

Delaware, District of Columbia (D.C.), Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Virginia signed a Declaration of Intent to create the TCI, a regional initiative to improve transportation, develop a clean energy economy, and reduce carbon emissions and air pollutants from the transportation sector. The signatory states and D.C. agree to explore and develop policies and programs that result in greater energy efficiency of regional transportation systems and reduce emissions. Additionally, states support the deployment of clean vehicles and fueling infrastructure, such as electric vehicle supply equipment, to maximize the economic opportunities and emissions reductions. For more information, see the TCI website.

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. (Reference Delaware Administrative Code Title 7, Section 1140)

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. More vehicle exemptions may also apply. (Reference Delaware Administrative Code Title 7, Section 1145)

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)