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The Solar Energy Industries Association (SEIA) ranks Nevada’s solar market as the sixth-largest in the country, with enough solar power installed to power over a million homes. Nevada’s solar incentives, abundant sunshine and increasing energy costs create an ideal opportunity to go solar.
We at the MarketWatch Guides team have researched the best solar companies in Nevada, including the cost of installing solar power in the state. Read on to learn more about how available incentives can help lower the cost of installing solar panels.
Federal Solar Tax Credit
The solar Investment Tax Credit (ITC) is a nationwide solar incentive recently extended through 2034 by the Inflation Reduction Act. Under the program, renewable energy systems are eligible for a federal tax credit equivalent to 30% of solar project costs, including solar panels and batteries. Nevada residents can use the credit to lower their federal income tax burden for the year they install solar panels. If your tax burden is too low to claim the entire solar tax credit, you can roll over the unused balance for up to five years.
Based on our research of state cost data, the average cost of solar panels in Nevada is $2.51 per watt of installed capacity. Based on this figure, you can expect to pay $15,060 for a 6 kilowatt (kW) solar system. In this case, you could claim $4,518 with the federal tax credit, dropping your total system cost to $10,542.
We suggest contacting a qualified tax professional to ensure your tax credit is properly filed. You must fill out Form 5695 and add your solar tax credit information to Schedule 3 and Form 1040.
Nevada State Solar Incentives
Nevada has enacted laws that favor home solar systems, but no local government agencies currently offer financial incentives. However, thanks to the state’s abundant sunshine, installing solar can still be cost-effective without major incentives.
Nevada has a 100% property tax exemption for renewable energy systems used in commercial, industrial and agricultural applications. The state also offers a 55% property tax abatement for utility-scale solar farms with at least 10 megawatts (MW) of capacity. However, these benefits are not available for residential solar customers.
Nevada Solar and Wind Easement Laws
Incentive value: Guarantees access to solar and wind power
Frequency: Ongoing
The state of Nevada has laws that guarantee access to solar energy. This means nobody can restrict a person’s usage of photovoltaic (PV) panels, including homeowner associations. Local laws override any contract, ordinance or legal document with unreasonable restrictions for renewable energy sources. These laws protect solar panel systems from any restrictions that would decrease system performance by more than 10%.
NV Energy: Energy Storage Incentive Program
Incentive value: $95–$190 per kilowatt-hour (kWh) of battery storage capacity
Frequency: One-time
NV Energy is the largest utility company in Nevada with more than 1.5 million customers. The company manages several programs that offer incentives for energy efficiency upgrades in homes and businesses. The Energy Storage Incentive Program offers rebates for battery systems coupled with solar panels. The incentive rate depends on your electric tariff:
- Customer with time-of-use (TOU) tariffs: $190 per kWh of storage capacity
- Customer with non-TOU tariffs: $95 per kWh of storage capacity
The NV Energy incentive is available for solar battery systems with a rated power output between 4 kW and 100 kW. The company calculates incentive amounts by your battery’s storage capacity (in kilowatt-hours) and determines eligibility based on its power output (in kilowatts). The rebate is limited to 50% of project costs up to $3,000 for TOU tariff customers and up to $1,500 for other customers.
Check the official NV Energy website for program updates.
Nevada Net Metering Explained
Nevada has a favorable net metering policy compared to some other states. If you own a solar power system sized at 25 kW or less, you get a monthly credit for excess energy production at 75% of retail rates. However, you can’t accumulate net metering credits that exceed 100% of your annual consumption. In other words, a solar panel system that overproduces energy would not yield extra benefits.
Nevada has modified its net metering laws multiple times. Before 2015, Nevadans were compensated for excess solar generation at 100% retail price. The state drastically reduced net metering compensation in 2016 but restored it to more favorable levels in 2017.
The Public Utilities Commission of Nevada (PUCN) provides additional information about local net metering policies on its website.
How To Enroll in Net Metering
Net metering programs vary by utility company, but there are three common requirements you can expect in all cases:
- Your solar system must meet the utility company’s interconnection requirements.
- Your system must meet the IEEE 1547 and UL 1741 standards.
- You must have your system installed professionally (as opposed to DIY) and according to local building codes.
NV Energy has the largest net metering program in Nevada. To participate in the NV Energy program, your solar energy system must pass an inspection from city or county building authorities. You can submit your solar project documents and application through the PowerClerk platform. After your home solar system is approved, NV Energy will install a bidirectional power meter and switch you to a net metering tariff.
Solar customers in Nevada can also find net metering programs from smaller utility companies, such as the Valley Electric Association.
Estimated Solar Savings in Nevada
Nevada sees plenty of sunny days per year, and the highest solar radiation rates are in southern locations like Las Vegas. If you install a 6 kW rooftop solar system in Nevada, you can expect to generate more than 10,000 kWh a year.
To estimate annual power bill savings, you can use the average residential tariff reported by the U.S. Energy Information Administration for Nevada in June 2023 — 17.43 cents/kWh.
Assume you use 5,000 kWh of electricity in a year and export 5,000 kWh to the grid. By using solar power, you save the full value of the 5,000 kWh consumed, which equals $872. And thanks to net metering, you save 75% of the value of the 5,000 kWh sent to the grid, which equals $654. Adding both values, you could see $1,526 in annual savings.
After subtracting the 30% federal tax credit, the net cost of a 6 kW solar system in Nevada is around $10,542. Considering you save $1,526 per year in electric bills, you could see a payback period of 6.9 years. Plus, the best solar panels have a 25- to 40-year product warranty, which is much longer than the expected payback period in Nevada.
Are Solar Panels Worth It in Nevada?
Going solar can be a lucrative investment for Nevada residents, considering the state’s abundance of sunshine and rising electricity prices. Between May 2022 and May 2023, residential electric tariffs increased by nearly 30% in the Silver State — from 13.56 to 17.43 cents per kWh. Based on energy savings alone, installing solar can be worth it in Nevada.
Nevada also offers a favorable net metering policy — but remember that you don’t get credit for excess solar generation above your total annual consumption. The best solar companies can determine your home’s ideal solar system size based on local sunshine conditions and your typical energy bills.
Frequently Asked Questions About Nevada Solar Incentives
Besides the federal solar tax credit, Nevada has no state tax incentives or solar rebate programs for homeowners. However, the state has a favorable net metering policy and solar and wind easement laws that protect access to renewables. NV Energy and some smaller utility companies also offer incentives for energy efficiency upgrades but not solar panel systems. Plus, NV Energy has an energy storage incentive program for solar batteries.
The Database of State Incentives for Renewables and Efficiency (DSIRE) has a detailed list of energy incentives and policies in Nevada.
Nevada does not have a state tax credit for solar panel installations. However, residents can take advantage of the federal tax credit equivalent to 30% of solar equipment and installation costs. The benefit is available for primary and secondary residences occupied by the solar system owner, but not for rental homes and other investment properties.
Nevada does not have any official programs that offer solar panels for free. There are three ways to finance solar panels for $0 down, but you will still pay for the system over time:
- Solar loan: You purchase your solar system with loaned capital and pay it off over a set period of time.
- Solar lease: You pay a predetermined monthly fee for using a solar panel system, which remains under the provider’s ownership.
- Power purchase agreement (PPA): You pay for the electricity generated by solar panels, which remain under the provider’s ownership. Solar companies set the PPA price lower than local electricity prices, so you can save money from the first month.
When using a solar loan, you own the PV system outright and can claim incentives such as the federal tax credit. When signing a solar PPA or lease, the company providing the PV system remains the owner and receives the incentives.
Nevada has a Renewable Portfolio Standard (RPS) that mandates a minimum clean energy percentage for investor-owned utilities and retail electricity suppliers. The latest amendment to the RPS was introduced in 2019, establishing a renewable energy target of 50% by 2030.
Nevada’s net metering policies have also been subject to multiple policy changes in the past. The latest change was introduced in 2017, offering compensation for excess solar energy at 75% of retail rates.
Methodology: Our System for Ranking the Best Solar Companies
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