Description

The Sustainable Energy Utility (SEU) was created in June, 2007 with the purpose of serving as the “one-stop-shop” for sustainable energy services in Delaware. The mission of the SEU is to allow all energy end-users in the State, regardless of market segment, fuel use, or utility service, to have access to incentives for renewable and efficient energy technologies. The SEU’s structure and programs are still in development.

When launched, the SEU will manage programs targeting energy efficiency, low income energy use, customer-sited renewable energy, alternative fuel vehicles and clean transportation, and green building. The SEU’s programmatic targets include:
– a 30% reduction in annual energy usage for program participants by 2015, with 1/3 of the participants drawn from the residential sector
– The creation of a Solar Lifeline for low-income residents under which each low-income household will be entitled to 200 kilowatt-hours of low-cost solar electricity generated within the state and not to exceed 5 cents by 2015
– Weatherization of 800 low-income households per year outside of the Weatherization Assistance Program

Targets for green building, clean vehicles, and customer-sited renewable energy will be determined at a later date. The customer-sited renewable rebates will target solar electric, solar thermal, geothermal, and small wind systems. Rebate levels will be based on national best practices, but they cannot exceed 50% of the incremental cost of the system and they must decline over time.

The SEU will manage the Green Energy Fund in cooperation with the Delaware Energy Office. To generate additional revenue, the SEU is empowered to charge a fee for aggregating renewable energy credits and selling them on behalf of customer generators. The SEU can also enter into shared savings arrangements for its energy efficiency programs and can also issue special purpose bonds between 2007 and 2015 which are capped at $30 million.

In addition to establishing the SEU, Senate Substitute 1 for Senate Bill 18 of 2007 also details the structure of the SEU and requires that the state contract with a third-party manager for the SEU’s administration and finances.

The SEU is currently under development.