Delaware Cannabis Energy: Electricity Choice, Rates, and Delmarva Power for Licensed Operators
Delaware opened adult-use cannabis sales on August 1, 2025 and has allowed full retail electric choice on Delmarva Power since 1999. Every Delmarva customer from residential through large industrial may buy generation from a PSC-certified supplier while Delmarva continues to deliver and bill for distribution. The catch is geographic: retail choice applies only on Delmarva's wires, while rural greenhouse country on the Delaware Electric Cooperative and nine municipal systems has no PSC supplier market, and Delmarva's 2026 base-rate case is moving delivery charges for demand-billed commercial classes.
Figures from the Delaware data file, last verified 2026-09-11. Sources listed at the bottom of this page.
How the Delaware cannabis market is structured
Delaware legalized adult-use cannabis under the Delaware Marijuana Control Act (HB 1 and HB 2 of 2023), codified at 4 Del. C. Chapter 13 [de-omc-adult]. Adult-use retail sales began August 1, 2025 through existing medical compassion centers that obtained conversion licenses [de-news-adult-use-launch]. The medical program under 16 Del. C. Chapter 49A continues under the Office of the Marijuana Commissioner [de-omc-adult].
The OMC received 1,269 paid applications in 2024 and awarded 125 licenses by public lottery on December 19, 2024 [de-news-adult-use-launch]. Lottery winners hold conditional licenses that convert to active licenses after site control, buildout, and OMC inspection [de-omc-adult]. As of early 2026 most new cultivation load is still coming online; the operating base remains compassion-center growers plus a small number of new facilities [de-news-adult-use-launch].
Two features matter for energy buying:
- Conversion before construction. Sales launched through converted medical centers before most lottery-selected facilities existed [de-news-adult-use-launch]. Utility service applications for new grows are filing now for 2026 and 2027 openings.
- Utility territory determines choice. PSC retail choice applies only to Delmarva Power [de-psc-electric-choice]. Rural Kent and Sussex farmland where greenhouse cultivation is likeliest often sits on the Delaware Electric Cooperative, which is outside PSC choice.
How electricity choice works in Delaware
Delaware restructured under the Electric Utility Restructuring Act of 1999, amended by the Electric Utility Retail Customer Supply Act of 2006 [de-psc-electric-choice]. The Delaware Public Service Commission certifies competitive electric suppliers under 26 Del. Admin. Code 3001 [de-psc-electric-choice].
All Delmarva Power Delaware customers may buy generation from a certified supplier [de-psc-electric-choice]. Delmarva continues to deliver power and bill for distribution. Customers who do not shop receive Standard Offer Service at prices set through PSC-supervised competitive procurements [de-psc-electric-choice].
Delaware Electric Cooperative members and municipal utility customers in Newark, Dover, Milford, Seaford, Smyrna, Middletown, New Castle, Lewes, and Clayton are outside PSC retail choice [de-psc-electric-choice]. Confirm which utility owns the wires at the site before leasing or buying property.
Small and medium commercial SOS is fixed-price full-requirements supply from reverse auctions. Larger non-residential customers default to Hourly Priced Service with PJM hourly energy, capacity, and ancillary pass-through [de-psc-electric-choice]. The PSC reports roughly half of commercial and industrial load in Delmarva's Delaware territory already shops [de-psc-electric-choice].
Supplier rules include a three-business-day switch, three-business-day rescission on new contracts, monthly limits on variable-rate changes, and a three-month cap on introductory prices [de-psc-electric-choice]. The PSC's learn-about-choice page summarizes consumer protections in plain language [de-psc-learn-choice].
Delaware is entirely inside PJM [de-psc-electric-choice]. Supplier contracts pass through the customer's PJM capacity obligation and network transmission charges [de-psc-electric-choice].
What commercial power costs in Delaware vs. the U.S.
| Sector | Delaware, June 2026 | U.S. average, June 2026 |
|---|---|---|
| Commercial | 14.40 cents/kWh | 14.19 cents/kWh |
| Industrial | 12.24 cents/kWh | not shown in state file |
Source: EIA Electric Power Monthly, Table 5.6.A [eia-epm-5-6-a].
Delaware commercial power runs about 1.5 percent above the national average. The industrial average sits 2.16 cents below commercial, reflecting larger accounts with better load factors and demand-billed delivery classes.
| State | Avg. commercial price | Cannabis market | Energy choice |
|---|---|---|---|
| California | 27.33 cents/kWh | Adult-use + medical | Commercial-only choice |
| Massachusetts | 24.52 cents/kWh | Adult-use + medical | Full commercial choice |
| New York | 23.56 cents/kWh | Adult-use + medical | Full commercial choice |
| Washington, D.C. | 23.38 cents/kWh | Medical only | Full commercial choice |
| Rhode Island | 22.70 cents/kWh | Adult-use + medical | Full commercial choice |
| Maine | 22.24 cents/kWh | Adult-use + medical | Full commercial choice |
| New Hampshire | 21.22 cents/kWh | Medical only | Full commercial choice |
| Connecticut | 19.62 cents/kWh | Adult-use + medical | Full commercial choice |
| New Jersey | 18.47 cents/kWh | Adult-use + medical | Full commercial choice |
| Maryland | 16.84 cents/kWh | Adult-use + medical | Full commercial choice |
| Michigan | 16.63 cents/kWh | Adult-use + medical | Capped commercial choice |
| Illinois | 14.53 cents/kWh | Adult-use + medical | Full commercial choice |
| Delaware | 14.40 cents/kWh | Adult-use + medical | Full commercial choice |
| Ohio | 13.77 cents/kWh | Adult-use + medical | Full commercial choice |
| Pennsylvania | 13.33 cents/kWh | Medical only | Full commercial choice |
| Nevada | 9.83 cents/kWh | Adult-use + medical | Commercial-only choice |
| Texas | 8.66 cents/kWh | Low-THC medical only | Full commercial choice |
Delmarva Power and the exceptions
| Provider | Territory | PSC retail choice? | Notes |
|---|---|---|---|
| Delmarva Power | Wilmington, New Castle County, eastern Kent and Sussex, beaches | Yes | Only IOU with full choice; PJM [de-psc-electric-choice] |
| Delaware Electric Cooperative | Rural Kent and Sussex | No | Member co-op; wholesale through Old Dominion [de-psc-electric-choice] |
| Municipal systems (9 cities) | Newark, Dover, Milford, etc. | No | Each sets commercial rates; many supplied through DEMEC [de-psc-electric-choice] |
Non-residential Delmarva schedules include SGS-ND (small general service, non-demand), MGS-S (medium general service, demand-billed), LGS-S (large general service), and GS-P (primary voltage), with per-kW distribution demand on MGS-S, LGS-S, and GS-P [de-psc-electric-choice].
Delmarva's 2026 Delaware electric base-rate case (PSC Docket 25-1555) proposed an average 21.7 percent base-rate increase with larger increases on MGS-S, LGS-S, and GS-P classes [de-psc-rate-case-25-1555]. Delivery is what no supplier contract can hedge.
What the climate does to a grow's bill here
Delaware runs humid subtropical with 4,483 heating degree days and 1,141 cooling degree days, the highest cooling load among Mid-Atlantic choice states in this site's coverage [noaa-cag-delaware]. Summer dew points in the low to mid 70s F are common June through September, and Sussex County's coastal plain stays humid into October [noaa-cag-delaware]. Sealed grow rooms are cooling- and dehumidification-dominated for more of the year than in Pennsylvania or New Jersey.
The cultivation page works through peak demand in that climate.
Incentives worth knowing
- Delmarva Power Energy Savings for Business. Prescriptive and custom incentives for lighting, HVAC, refrigeration, and commercial kitchen equipment, with a small-business track covering up to 70 percent of project cost for customers at or below 100 kW [delmarva-esb].
- Energize Delaware. RGGI-funded assessments, grants, rebates, loans, and solar programs for commercial facilities and farms including greenhouses [energize-delaware].
- Delaware Green Energy Program. Utility-funded grants for solar PV, geothermal, and other renewables for Delmarva, co-op, and municipal customers [de-green-energy-program].
Confirm Delmarva-territory eligibility on incentive pages organized by state [delmarva-esb].
Delaware quirks that change the advice
Site utility before license type. A cultivation license on co-op territory cannot shop PSC suppliers regardless of load size [de-psc-electric-choice].
Hourly default for large accounts. Large non-residential Delmarva customers on Hourly Priced Service face PJM market volatility unless they sign with a supplier [de-psc-electric-choice].
Delivery rate case in progress. Docket 25-1555 proposed material increases on demand-billed commercial classes [de-psc-rate-case-25-1555]. Budget delivery separately from supply savings.
New load still energizing. Most lottery-selected facilities are not operating yet [de-news-adult-use-launch]. Buildout is when service size and rate class get set.
Co-op greenhouse country and supplier limits
Delaware Electric Cooperative serves most rural Kent and Sussex farmland where greenhouse cultivation is likeliest [de-psc-electric-choice]. Co-op members cannot shop PSC suppliers but may access Energize Delaware Solar Energy for Agriculture [energize-delaware]. Delmarva's 2026 base-rate case proposed larger increases on MGS-S, LGS-S, and GS-P than on small commercial classes [de-psc-rate-case-25-1555]. Budget delivery separately from supply savings on every Delmarva account [de-psc-rate-case-25-1555].
Lottery conversion timeline and load forecasts
The OMC awarded 125 licenses by lottery December 19, 2024 [de-news-adult-use-launch]. Conditional licensees convert after site control, buildout, and inspection [de-omc-adult]. Finance should model energization quarters separately from conversion sales launched August 1, 2025 through medical centers [de-news-adult-use-launch]. Supplier contracts can run 24 months; align start dates with expected witness test, not license award date [de-psc-electric-choice].
Quarterly bill review cadence
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [de-news-adult-use-launch]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [de-omc-adult]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [de-psc-electric-choice]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [de-psc-learn-choice]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].
Documentation for audits and lenders
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [de-news-adult-use-launch]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [de-omc-adult]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [de-psc-electric-choice]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [de-psc-learn-choice]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].
Board reporting on utility COGS
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [de-news-adult-use-launch]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [de-omc-adult]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [de-psc-electric-choice]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [de-psc-learn-choice]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].
Tariff verification before budgeting
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [de-news-adult-use-launch]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [de-omc-adult]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [de-psc-electric-choice]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [de-psc-learn-choice]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].
Where to go next on this site
- Facility guides: cultivation, extraction and manufacturing, dispensary retail, multi-site operators.
- Procedure: how to switch electricity suppliers in Delaware.
- Numbers: Delaware commercial electricity rates.
- Background: what energy deregulation is and how demand charges work.
Delaware law and tariffs change on PSC dockets. Confirm current rules with the PSC or your advisor before signing a contract.
Delaware guides by facility type
- Delaware Cannabis Cultivation Facility Energy: Greenhouse and Indoor Loads on Delmarva Power
What a Delaware grow pays for power on Delmarva: 1,141 cooling degree days, MGS-S and LGS-S demand classes, co-op territory limits, and a worked example.
- Delaware Cannabis Manufacturing Energy: Batch Processing Loads and Delmarva Demand Classes
Delaware cannabis manufacturing electricity on Delmarva: batch loads, MGS-S demand classes, Hourly Priced Service defaults, and peak scheduling.
- Delaware Cannabis Dispensary Energy: Retail Load on Delmarva and Municipal Systems
How Delaware cannabis retailers are billed: SGS-ND small commercial on Delmarva, municipal utility exceptions, supply choice on fixed SOS, and retail peak load.
- Delaware Multi-Site Cannabis Operator Energy: Delmarva vs. Co-op vs. Municipal Portfolios
Delaware MSO energy strategy across Delmarva, municipal utilities, and the Electric Cooperative: where choice applies and how to calendar renewals.
- How to Switch Electricity Suppliers in Delaware: A Step-by-Step Guide for Cannabis Businesses
How a Delmarva Power Delaware account enrolls with a PSC-certified supplier: SOS benchmark, three-day switch, rescission rules, and billing options.
- Delaware Commercial Electricity Rates for Cannabis Facilities: Delmarva Classes and SOS Benchmarks
Delaware commercial rates at 14.40 cents/kWh vs. the U.S. average: Delmarva MGS-S and LGS-S classes, SOS benchmarks, and Docket 25-1555 context.
Where we work: 16 states plus Washington, D.C.
Every jurisdiction below has a licensed cannabis market and lets commercial customers choose their electricity supplier.
Frequently asked questions
Can every Delaware cannabis business choose its electricity supplier?
Only if the facility is a Delmarva Power customer. The Delaware Public Service Commission's retail choice program covers all Delmarva Power customers in Delaware. Delaware Electric Cooperative members and customers of nine municipal systems (Newark, Dover, Milford, and others) are outside PSC choice jurisdiction.
When did adult-use cannabis sales start in Delaware?
August 1, 2025, initially through medical compassion centers that obtained conversion licenses. The Office of the Marijuana Commissioner awarded 125 licenses by public lottery on December 19, 2024, and those conditional licensees are still converting to active status as facilities are built.
Is Delaware electricity expensive for cannabis operators?
Commercial power is near the national average. EIA's June 2026 figure for Delaware commercial customers is 14.40 cents per kWh against a U.S. average of 14.19 cents. Industrial customers averaged 12.24 cents. Delivery charges on demand-billed classes are in flux due to Delmarva's 2026 base-rate case.
What is Standard Offer Service on Delmarva?
SOS is Delmarva's default supply for customers who do not shop. Small and medium commercial SOS is fixed-price full-requirements supply from PSC-supervised reverse auctions. Larger non-residential customers default to Hourly Priced Service, which passes through PJM hourly energy, capacity, and ancillary costs.
Does the PSC regulate supplier switching timing?
Yes. PSC supplier rules provide a three-business-day switch and a three-business-day rescission window on new supply contracts, limit variable-rate changes to monthly, and cap introductory prices at three months.
Are there Delaware incentives for grow facilities?
Delmarva Power's Energy Savings for Business program offers prescriptive and custom incentives. Energize Delaware provides commercial and agricultural programs including greenhouse operations. The Green Energy Program funds solar and geothermal grants for customers of Delmarva, the co-op, and municipal utilities.
Related reading
- Delaware Cannabis Cultivation Facility Energy: Greenhouse and Indoor Loads on Delmarva Power
What a Delaware grow pays for power on Delmarva: 1,141 cooling degree days, MGS-S and LGS-S demand classes, co-op territory limits, and a worked example.
- Delaware Cannabis Manufacturing Energy: Batch Processing Loads and Delmarva Demand Classes
Delaware cannabis manufacturing electricity on Delmarva: batch loads, MGS-S demand classes, Hourly Priced Service defaults, and peak scheduling.
- Delaware Cannabis Dispensary Energy: Retail Load on Delmarva and Municipal Systems
How Delaware cannabis retailers are billed: SGS-ND small commercial on Delmarva, municipal utility exceptions, supply choice on fixed SOS, and retail peak load.
- Delaware Multi-Site Cannabis Operator Energy: Delmarva vs. Co-op vs. Municipal Portfolios
Delaware MSO energy strategy across Delmarva, municipal utilities, and the Electric Cooperative: where choice applies and how to calendar renewals.
- How to Switch Electricity Suppliers in Delaware: A Step-by-Step Guide for Cannabis Businesses
How a Delmarva Power Delaware account enrolls with a PSC-certified supplier: SOS benchmark, three-day switch, rescission rules, and billing options.
- Delaware Commercial Electricity Rates for Cannabis Facilities: Delmarva Classes and SOS Benchmarks
Delaware commercial rates at 14.40 cents/kWh vs. the U.S. average: Delmarva MGS-S and LGS-S classes, SOS benchmarks, and Docket 25-1555 context.
- What Is Energy Deregulation? How Electricity Choice Works for Commercial Customers
How deregulation splits supply from delivery, who gets to choose a supplier, what the utility still does, and where cannabis businesses can shop in 17 markets.
- Demand Charges Explained for Cannabis Cultivators
What a demand charge is, how utilities measure peak kW in 15- or 30-minute windows, why grow rooms get hit hard, how ratchets work, and a worked example.
- Maryland Cannabis Cultivation Facility Energy: Lighting, Dehumidification, and BGE Demand Classes
What a Maryland indoor grow pays for power: lighting and latent cooling in a 1,140 CDD climate, BGE and Pepco demand schedules, and a worked cost example.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.
- [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025 — U.S. Energy Information Administration. Accessed 2026-09-11.
- [de-news-adult-use-launch]Delaware Launches Legal Adult-Use Cannabis Sales Today (August 1, 2025) — State of Delaware News / Office of the Marijuana Commissioner. Accessed 2026-09-11.
- [de-omc-adult]Adult-Use Marijuana — Delaware Office of the Marijuana Commissioner. Accessed 2026-09-11.
- [de-psc-electric-choice]Customer Electric Choice — Delaware Public Service Commission. Accessed 2026-09-11.
- [de-psc-learn-choice]Learn about electric supplier choice — Delaware Public Service Commission. Accessed 2026-09-11.
- [noaa-cag-delaware]Climate at a Glance: Delaware statewide heating and cooling degree days, 1991-2020 base period averages — NOAA National Centers for Environmental Information. Accessed 2026-09-11.
- [delmarva-esb]Energy Savings for Business — Delmarva Power. Accessed 2026-09-11.
- [energize-delaware]Energize Delaware (Delaware Sustainable Energy Utility) — Delaware Sustainable Energy Utility. Accessed 2026-09-11.
- [de-green-energy-program]Green Energy Program — Delaware Department of Natural Resources and Environmental Control. Accessed 2026-09-11.
- [de-psc-rate-case-25-1555]PSC Docket No. 25-1555: Delmarva Power Electric Rate Case Opening Order and Public Notice — Delaware Public Service Commission. Accessed 2026-09-11.