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Delaware Cannabis Dispensary Energy: Retail Load on Delmarva and Municipal Systems

Delaware adult-use sales started through converted compassion centers in August 2025, and new lottery-selected retailers are opening on Delmarva Power in Wilmington and New Castle County or on municipal systems in cities like Newark and Dover. Delmarva small general service accounts billed on kWh see supply as the main lever; municipal stores have no PSC supplier market but may still access Energize Delaware and Green Energy Program incentives.

By Jason Taken, Founder, Jaken Energy

Updated September 11, 2026Last verified: September 11, 2026
Avg. commercial price
14.40 cents/kWh
June 2026
U.S. average
14.19 cents/kWh
June 2026
Energy choice
Customer electric choice under the Electric Utility Restructuring Act of 1999, as amended by the Electric Utility Retail Customer Supply Act of 2006
All Delmarva Power Delaware customers (residential, small and large commercial, industrial). Delaware Electric Cooperative members and municipal-utility customers (Newark, Dover, Milford, Seaford, Smyrna, Middletown, New Castle, Lewes, Clayton) are outside the PSC choice program; the co-op has its own supply arrangements.
Cooling / heating degree days
1141 / 4483
Annual normals; see climate source

Delaware figures last verified 2026-09-11. Full citations in the Sources section.

Retail load where choice depends on the address

Delaware's first adult-use sales ran through converted compassion centers on August 1, 2025 [de-news-adult-use-launch]. New lottery retail licenses are opening in Wilmington, suburban New Castle County, and beach towns, mostly on Delmarva Power [de-psc-electric-choice]. Stores in Newark, Dover, Milford, and other municipal territories use city-owned systems with no PSC supplier market [de-psc-electric-choice].

The dispensary retail energy costs page covers load components. Delaware adds a territory split: Delmarva stores can shop supply; municipal stores negotiate only with their city utility.

Typical load and peak drivers

Assume a 2,800 square foot retail build with:

  • 22 kW HVAC at summer design
  • 7 kW sales and back-of-house lighting
  • 5 kW security and POS
  • 4 kW refrigeration

Coincident peak on a humid August afternoon might reach 35 to 38 kW. Delaware averages 1,141 cooling degree days with dew points in the low to mid 70s F June through September, so August kWh often exceeds winter months even with shorter daylight [noaa-cag-delaware]. That likely stays on Delmarva SGS-ND non-demand service if monthly use stays within small general service limits [de-psc-electric-choice].

Stores with commercial kitchens, walk-in coolers, or fast-charge EV ports for delivery fleets can cross into MGS-S. Monitor peaks if adding load.

Worked cost example (Delmarva, SGS-ND)

Assume 140,000 kWh/year (extended hours, heavy AC):

ItemValue
Annual kWh140,000 (assumption)
EIA all-in commercial rate14.40 cents/kWh [eia-epm-5-6-a]
Approximate annual cost$20,160

If supply is 45 percent of the bill (~$9,070) and a supplier saves 1.5 cents/kWh on supply, annual supply savings are about $2,100 (assumption). Delivery on SGS-ND is mostly per-kWh and unchanged by switching [de-psc-electric-choice].

Compare the supply line to fixed SOS from the last reverse auction, not to the EIA statewide average alone.

Municipal utility stores

Nine municipal systems serve Delaware cities [de-psc-electric-choice]. Rates and demand rules vary by city. Supply choice is not available, but:

  • Green Energy Program may fund rooftop solar [de-green-energy-program]
  • Energize Delaware offers commercial assessments and loans [de-green-energy-program]

Budget municipal delivery from the city's published rate schedule, not Delmarva's tariff.

Lease and account name

Converted compassion centers often already held accounts in the operator's name. New lottery retailers in leased strip centers should confirm the meter is tenant-held before signing a supplier contract [de-psc-electric-choice].

Efficiency for humid retail

Delmarva Energy Savings for Business covers lighting and HVAC; small accounts at or below 100 kW may qualify for up to 70 percent project cost coverage on eligible measures [delmarva-esb]. LED sales floor retrofits cut heat gain and kWh simultaneously.

Multi-store operators mixing Delmarva and municipal sites need separate strategies. See Delaware multi-site energy and the switching guide.

Compare Maryland dispensary and Connecticut dispensary pages for neighboring retail markets.

Operating hours and the kWh triggers

Delmarva can install demand metering when monthly use exceeds 6,000 kWh in two consecutive winter months or 7,500 kWh in one summer month, even if kW peak looks modest [de-psc-electric-choice]. Extended retail hours for adult-use conversion stores push kWh before kW. A store open 12 hours a day with 25 kW average draw during operating hours can accumulate 9,000 kWh in a 30-day month (assumption). Track monthly kWh, not just peak kW, if you want to stay on SGS-ND non-demand service.

Security load is continuous. Cameras, DVRs, and access control run 24/7 while HVAC cycles. That asymmetry means supply price matters even when demand charges do not. The PSC reports roughly half of Delmarva commercial and industrial load already shops [de-psc-electric-choice]; suppliers are accustomed to enrolling Delaware retail accounts with three-business-day switching rules [de-psc-electric-choice].

Municipal vs. Delmarva in the same brand

Operators branding consistently across Newark (municipal) and Wilmington (Delmarva) cannot use one supply contract for both [de-psc-electric-choice]. Finance should tag sites by choice eligibility in the GL so municipal bills are not compared against Delmarva supplier offers. Energize Delaware programs may still apply to both if the measure qualifies [energize-delaware].

Adult-use conversion vs. new lottery retail

Conversion compassion centers energized before August 2025 may already hold Delmarva accounts with twelve months of billing history [de-news-adult-use-launch]. New lottery retailers energizing in 2026 start without trailing data; use comparable store benchmarks from conversion locations in similar square footage when requesting supplier quotes. After twelve months, re-bid with actual interval history if the store crossed into MGS-S.

Pre-opening supply enrollment

Conditional licensees energizing for OMC inspection draw power during commissioning before revenue starts [de-news-adult-use-launch]. You can still enroll with a supplier before opening if the account is active; choose contract start dates aligned to the first full operating meter read rather than the first light bulb in the buildout. Commissioning months with erratic load distort trailing averages if included in benchmarks.

Delmarva small-business efficiency track

Delmarva Energy Savings for Business offers up to 70 percent of project cost for customers at or below 100 kW on eligible measures [delmarva-esb]. Retail stores near the 100 kW line should capture pre-project kW documentation so post-retrofit performance can be compared. HVAC bonus incentives in 2026 require preapproval through September 30, 2026 per program materials [delmarva-esb].

Internet-only retail

The OMC lottery includes internet-only retail licenses in the broader retail category [de-news-adult-use-launch]. Fulfillment warehouses on Delmarva may land on MGS-S faster than storefronts because of conveyor, cold storage, and packing HVAC load. Treat fulfillment as industrial-style procurement even if the license says retail.

Conversion dispensaries and dual-use load

Adult-use sales began through converted medical compassion centers August 1, 2025 [de-news-adult-use-launch]. Dual-use retail adds refrigeration, security, and extended HVAC hours on Delmarva SGS-ND or MGS-S schedules [de-psc-electric-choice]. Small accounts on fixed SOS should compare supplier offers against the SOS line on the bill, not EIA's 14.40 cents average [eia-epm-5-6-a] [de-psc-electric-choice]. Delmarva Energy Savings for Business covers up to 70 percent of project cost for customers at or below 100 kW on qualifying measures [delmarva-esb].

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-psc-electric-choice]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-delaware]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [delmarva-esb]. 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-psc-electric-choice]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-delaware]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [delmarva-esb]. 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-psc-electric-choice]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-delaware]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [delmarva-esb]. 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-psc-electric-choice]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-delaware]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [delmarva-esb]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Three-month introductory rate cap

PSC rules cap supplier introductory prices at three months [de-psc-electric-choice]. Dispensary accounts comparing variable offers should read post-introductory pricing before signing [de-psc-learn-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-psc-electric-choice]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-delaware]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [delmarva-esb]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Compare with other states

Frequently asked questions

Can a dispensary in Newark or Dover shop for electricity supply?

Generally no. Newark and Dover operate municipal electric systems outside PSC retail choice. Those cities set their own commercial rates. Wilmington and most New Castle County suburban retail on Delmarva can shop.

What Delmarva class fits a typical cannabis retail store?

Many standalone stores stay on SGS-ND small general service non-demand if peak kW stays below the medium general service threshold. Heavy HVAC, kitchen equipment, or EV charging can push the account to MGS-S with demand billing.

Is supply choice worth it for a small Delaware store?

On Delmarva, often yes. Fixed SOS from reverse auctions sets the benchmark, and competitive suppliers actively serve Delaware commercial load. The PSC reports roughly half of Delmarva commercial and industrial load already shops.

How humid summers affect Delaware retail HVAC?

Delaware averages 1,141 cooling degree days with dew points in the low to mid 70s F June through September. Retail HVAC and door traffic drive latent load; August kWh is often the highest month.

Can municipal stores get solar grants?

The Green Energy Program funds solar for customers of Delmarva, the Delaware Electric Cooperative, and municipal utilities including DEMEC members.

How fast is switching on Delmarva?

PSC rules provide a three-business-day switch after processing and a three-business-day rescission window on new supply contracts.

About the author
Jaken Energy

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.

  1. [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 2025U.S. Energy Information Administration. Accessed 2026-09-11.
  2. [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.
  3. [de-psc-electric-choice]Customer Electric ChoiceDelaware Public Service Commission. Accessed 2026-09-11.
  4. [noaa-cag-delaware]Climate at a Glance: Delaware statewide heating and cooling degree days, 1991-2020 base period averagesNOAA National Centers for Environmental Information. Accessed 2026-09-11.
  5. [delmarva-esb]Energy Savings for BusinessDelmarva Power. Accessed 2026-09-11.
  6. [de-green-energy-program]Green Energy ProgramDelaware Department of Natural Resources and Environmental Control. Accessed 2026-09-11.
  7. [energize-delaware]Energize Delaware (Delaware Sustainable Energy Utility)Delaware Sustainable Energy Utility. Accessed 2026-09-11.
  8. [de-psc-learn-choice]Learn about electric supplier choiceDelaware Public Service Commission. Accessed 2026-09-11.