Nevada Solar Power Rebates, Tax Credits, and Incentives
Las Vegas at Dusk, Nevada
2012 Nevada Solar Power Update:
Nevada, land of just a little bit of everything; skiing, deserts, mountains, lakes, the annual Cowboy Poetry Gathering, and oh, yeah, Reno and Vegas. With all those lights keeping Vegas turned on, Nevada needs lots of electricity. That kind of demand calls for piles of nice, clean, renewable, solar power. Has the state legislature seen the light? Read on to see what’s shining on Nevada power.
State Legislation:
Nevada is an interesting case in incentives and standards that sound really good when you see them at first, but after taking a closer look at what the impact is for the average homeowner, nothing really sparkles.
Nevada has the most solar energy installed per capita out of any state in the country. You’d think things would look good for homeowners who are considering installing solar panels on their roofs. The answer is not necessarily.
Most of the reason Nevada is doing so well installing solar is because the majority of the incentives are geared toward industrial size installations for businesses or power companies with eyes on creating horizons of silicon in the desert.
Since we focus on residential solar here at SPR, that doesn’t bode well for the state’s legislative grade, which is very poor. Hell there’s so much sun in Nevada, yet the state residential incentives are little more than a mirage.
We calculate it takes an average sized 5kW solar system about 13 years to pay for itself in Nevada, which isn’t that bad, but really is a shame considering all the abundant sunshine the state receives. In contrast, New Jersey has plenty more clouds than sun, yet a similarly sized system there will pay for itself in only 6 years.
There are some specific things the Nevada legislature can do to cut that payback timeframe down to size. We’d like to first suggest an alteration to the state’s renewable portfolio standard.
Nevada’s Renewable Portfolio Standard:
Nevada has one of the most aggressive renewable portfolio standards (RPS) in the country with a solar carve out no less. That means the state is required to source at least 25% of it’s power from renewables by 2025. 6% of that needs to come from solar by then. If not, utilities get slapped with sizable fees.
That’s a huge reason why there’s so much solar installed in the state.
However, much of the compliance has come from huge solar businesses who have secured land lease deals in the desert to build solar power plants so the utilities can hit their numbers.
If the RPS contained a distributed generation requirement like states such as New Jersey or Colorado, the utility companies would be much more willing to offer solar power rebates to middle-class homeowners instead of millionaire land development moguls.
Nevada Power Prices:
Nevada power is a relatively cheap $0.12/kwh in Nevada. That’s a little too cheap for our liking, as there could be more done to roll in the actual costs to the environment to polluting energy sources such as coal and natural gas. Once those costs get accounted for, the average Nevada electric rate may increase to the point where solar panels on homes in the state pencil out at more parity with the electric grid.
Nevada Solar Performance Payments:
To meet their RPS goals, Nevada power companies can apply for special credits (called PCs) based upon the number of renewable kilowatts they include in their power mix – the largest credit is for Solar Power (2.4 PCs/kWh generated).
They are also willing to purchase your PCs from you, but in order to be tracked in the system and able to sell your credits, you have to have a system that is larger than 150kW. That’s an abomination, and basically makes it impossible for individual homeowners to participate in the program.
Net Metering:
A brighter spot in an otherwise dreary state solar overview for Nevada power is the amended net-metering law.
Basically, with net metering if you generate more power than you need, you’ll get a credit on your next bill. The best thing about this law is that Nevada does not limit the amount of time that you can carry a credit (some states take the credit away after a year or so).
Here’s the form to sign up for net-metering in Nevada.
Nevada Solar Power Rebates:
Nevada has a great incentive for home solar energy installations in theory, but not in practice. Sierra Pacific and Nevada Power Companies (the two major investor-owned utilities in the state), offer a $1,500/kW solar power rebate through the Solar Generations project.
However the available amount of solar rebates each year is extremely limited. The last program which expired in September 2011 alloted for only 353kW of residential solar to be installed. So, on average, about 70 lucky homeowners got the rebate. 70. That’s pathetic for a state-wide solar power rebate program.
Moreover, even if you were one of the lucky 70 homeowners who got the rebate, you have to forfeit your PCs (not that you could sell them anyway).
Property Tax Exemption:
One redeeming aspect of solar in Nevada is the presence of a property tax exemption from the increased value of your home to taxation after you install solar.
We would in addition like to see a sales tax exemption on the systems like many other states have enacted. We’ll wait and see on that.
Tax Credits:
Unfortunately, there are no state tax credits to speak of. This is an area of opportunity for the Nevada legislature to spur on the residential solar market.
Example 5kW System Investment Return:
Nevada enjoys plenty of sunshine, making it a prime location for a home solar electric system. Installing a typical 5 kW system in Las Vegas would run about $25,000. We aren’t going to include the PVGenerations solar power rebate program in our calculations, because let’s face it, you’re probably not going to get it even if you apply for it.
What you do qualify for is the 30% federal solar tax credit. That will net you $7500, nothing to sneeze at.
Also, with the abundance of sunshine, your 5kW system will generate about 7800kwh per year. That’s enough to cut $78 from your monthly power bill.
At the existing rate of electricity price increases after the federal solar tax credit, we estimate it would take 13 years for your solar panel system to pay for itself in Nevada: not that bad, not that great either.
What’s more, your home value would increase by 20 times your annual savings (about $20,000), and that’s a tax free increase!
To find out how the numbers work out for you, click here and we’ll connect you to experts we trust in Nevada to come out and calculate a realistic estimate for you based on your unique energy usage, location, shading, roof orientation, and roof type. They’ll even do it for free!
Consensus
Nevada is well on its way to building a solar power market. The trouble is they’ve focused entirely on utility scale solar installations and have left the average solar Joe and Jane homeowner in the dark.
Governor Brian Sandoval can urge the legislature to consider a state residential solar tax credit, implement a smaller scale solar distributed generation program as part of the state’s RPS, and add a solar sales tax exemption for homeowners.
Doing these things would create many more jobs in the state and go a long way toward turning the local economy around. There’s a big difference between a 13 year payback and a 7 year payback.
With all that sunshine in Nevada, it can be done. We’re waiting patiently to improve your grade.
In the meantime, we urge you to still get a personalized solar quote so you can see how the numbers pencil out for you.
I live in an area of nevada that is not serviced by any power service so i have no choise but to use solar power and do to low income i have had to come up with low cost ways of building my own solar systom and i now run my lights and heating fans off of solar power i also charge my flashlight by solar power i basically built the whole thing for 300.oo dollors including power inverter for 110 volts for my online phone witch can run 24/7 if need be but usally i shut it off at night noyhing like not getting those phone solisitors due to the high cost of gas i have had cut down on the use of my generator but do charge up my battiers and use my computer when it is running i use it maybe two hours a day i am planning on building my house starting this spring and planning on going total solar including heating and hot water i will be doing this on a very limited budget of about 200.00 dollors a mounth if you would like i will keep you posted on how i am doing so maybe you can pass this information along to others
I was wondering where you are located and how you are doing on your project…I am an electrician in the Fallon area and would like to start feeding the grid…also on a somewhat limited budget…but I do have an advantage over your average homeowner as I could install and terminate myself…I would like to hear from you…Thanks for your time Rick
I am interested in your progress and would also like to know where you are located…I am an electrician in the Fallon area and would like to start feeding the grid in the summer so I can draw it back in the winter…The plan is to use electric baseboard heaters to heat the home (currently burning wood) and save some bucks on heating costs…What size system do you currently have and how did you build it so cheaply? Rick
I am building a home completely solar(grid connection $101,000) is there any rebates etc for off grid folk?
I am distributor from Los Angeles and realized the importance of solar power in your state.
If anyone is interested in purchasing solar panels and/or solar water heaters that are very efficient and low cost please contact me @ sustainability.rocks@gmail.com
Let me know if you are interested in working together and/or networking
i have 30-40 acres near Fallon Nevada I might be willing to lease to a solar plant company in exchange for of course some $ and to eliminate my very high Sierra Pacific annual bill by receiving the power from your plant thanks
Something doesn’t add up in the 3KW example above. I think your assuming unlimited daylight. A power bill of $1600/Year = $4.38/day. For a 3KW system that’s $1.46/KW per day. At $0.1056/kWh that’s 13.8 hours of sunshine a day. You’re high by about a factor of three (neglecting the power loss in the inverters etc).
What if you have unlimited raw land and wanted to start a solar power company 60miles north of las vegas nevada. Big enough to power say 10,ooo homes,And public services
Where is there information on any Federal Government tax incentives or rebates on installing Solor power panels on home residences? Can you provide any further info on helping a home owner on a limited retirement to help with the cost of installation of solar panels on our home? Please adivse. Thank you so much for your help!
5212 Shasta Daisy St.
N. Las Vegas, NV 89031
I have a 1400 SF home in Las Vegas, what size solar system would I need to heat it and is there any govt or NV power rebates to assist in funding it?
i am forest anderson and i wrote you guys about a year ago about how i am living off grid i live just outside of a small town of crescent valley nevada i am still working on getting my living quarts togather, and still using solar power, for for most of my needs anyone out there that is already living off grid and is getting ready to build can contact me at forestanderson@gmail.com would love to swap ideas.
Is there a site to go to to determine what size system would need to be installed on a residential home in Las Vegas. Also, I’ve heard that there are newer solar panels that can capture more of the suns rays than the older panels are able, I would like info on them also. You can email me at gr8diver@hotmail.com
Intend to live in an RV and put solar on the roof. Will that qualify as a home instalation and be given the same solar tax incentives and discounts?
Jim,
In general, and I believe this is the case for Nevada and the Feds, you must be tied to the electric grid in order for you to qualify for rebates. In addition, you will need to have batteries with your system to collect energy for when you’re parked at night. Now, if your talking about a mobile/prefabricated home with solar that is stationary, then you’ve got a shot at the tax incentives and rebates. Hope that helps.
I think it is terrible that NV Power only accepts a few applicants each year. That should be against the law. Las Vegas has some of the most sunny days out of any place in the country. They should accept anyone that wants to put solar on their home.
I’m not sure this info is up-to-date. I just got a (very high) estimate for a 4000W grid-tie in Reno from Reno Sunrooms. They quoted me $56k! They told me the feds are offering a 30% rebate but that Nevada’s rebate was so low and so hard to get it was not worth trying for.
Aside from the fact the quote is way too high, what is the current rebate for the feds and for Nevada? Can they be used together?
It is difficult to get straight answers to these basic questions which could make the difference between doing it or not.
John, yeah, I would say they’re pretty high. First of all, get more than one quote. If you haven’t gone through us already, please fill out our form and one of Nevada people should get in touch with you if there’s one in your area. Second, I don’t know your roof conditions or other issues that might make the quote higher. Perhaps there’s travel time for this installer, so that may be an issue too, but that 56kw ($14/watt) seems really out of line these days, again unless you’ve got some very special circumstances.
We’ve said many times on this site that these days, you should be paying an average price of around $7 or $7.50 a watt these days, average across the nation. Some states with more competition can be lower, down to 5.50/watt. Not sure of the Nevada market and your area for competition.
As for the Nevada rebate, the program is oversubscribed right now for solar for 2009/2010. See this note from the this State rebate site. (Good info for all states)
So you can wait until early next year and see if you can’t get the 10 grand rebate. The Federal incentive is a 30% tax credit, by the way, not a rebate. That means you can use the credit towards paying your taxes. Think of it as an IRS gift card on April 15th. You can use state and federal rebates together, but there may be some tax issues you should discuss with your local tax guru about it. In general, the 30% tax credit is calculated AFTER you subtract any state rebate. Again, check with your tax guru, but that’s my understanding. Hope that helps.
If anyone need solar street lighting for there home business or HOA,we have the most advance solar street light technology in the world. Current installations at the Las Vegas Convention Center, Springs Preserve,Lake Mead and other. Please go to: www,tytre.com
Well it is now “Early” 2010 and I can’t find an application form anywhere for “getting on the list” for NV Energy’s solar rebate. Is there some “secret” location and do you have to know a politician to get on the list?
While Nevada technically offers rebates for sytems from Nevada Energy, the applications are only available periodically. Applications were accepted starting April 21, 2010 and all applications for the next 3 years were alloted by April 26. Nevada energy has not indicated if this program will continue in 2013, so if you’re not already on the list, you’re probably out of luck for a while.
Is there a more simple way of explaining what exactly is what a normal person gains, the law should state exactly how much a person gets from the utilty co. as far as any income earnings otherwise people are not going to follow through and that is exactly what NV and others want. Their not any different than oil we recieve from other countries, credits don’t earn interest as the money that utilty co. earn fron the money they get from the public. Not a fair to the American public.
Well, basically, yah. It’s not simple and it should be, and thats why people don’t do it (not because the economics are poor, they aren’t, they’re good).
As an ex employee of Reno Sunrooms (aka) Life With Solar, I can attest to the owners shady practices. Prices are always over those of competitors, and don’t get me started on the “one call close” policy. They’ll tout their Home Depot connections as proof of their merit – don’t be fooled. They don’t even have a contractors license! They sub contract (legal?) to Advanced Green Builders who are actually well licensed and capable solar installers. To find a list of capable NV installers, visit NV Energy’s Solar Generations website and look up their contractors list – plenty to choose from. Again, NEVER sign a contract without taking 48 hours to review and don’t be pressured by “incentives that are only good today!”
I contacted NVenergy about a solar installation I had ready to start. I was told that they weren’t offering rebates now or in the near future. I was then warned against building an off grid system. I was told that NVenergy would disconnect my home if I built the system. Basically, I was threatened by NVenergy so I dropped the idea.
Do not let Nevada power push you around. If you want to go off the grid, DO IT. I am a California Based Solar contractor. I went off the grid in a congested area. SCE could not anything about it. They disconnected me a year ago and I couldn’t be happier.
The NV Energy i.e. State Rebate program in Nevada is closed. In 2-1/2 hours the system outsold 3 times the rebate capacity for the rebates for the next 3-4 years!
Under current legislation and available funds, it is unlikely to see any more State Rebates in Nevada for 3-4 years.
Hopefully when the legislation and money comes around again, we will NOT allow NV Energy to distribute the rebates with the fiasco that has taken place. Many people with rebates have only now become aware of what their rebate is and how much is it worth. And the rebate program ended in May. Clearly NV Energy was getting at least one more year of utility rental payments from the local Nevada population.
Is it true NV POWER disconnects you from the grid to prevent from having to pay you for the energy you may put back onto the grid?
Nevada isn’t the only state who has exceeded their expectations on the Rebate programs. Maybe it’s time they figure out a better way to offer incentives to customers so more people can move forward.
http://www.sunriseenergynow.com
Hello everyone
I am looking at buying 30-40 Acres of land in Nevada where I am going to build my retirement house. I would appreciate any information into solar power.
Feel free to email me at generic_name_2010@yahoo.com
Thank you.
Quite a few misconceptions here.
Check http://www.dsireusa.org for info on rebates, grants and supplemental funding for off-grid and rural solar array installs.
NV Energy does not pay for any excess power you put back onto the grid. If you’re grid-tied, you will be credited, kilowatt-hour per kilowatt-hour. This means if you produce an excess of 10 kWh one month, you’ll get 10kWh credit to your bill. If your system is sized properly you won’t have a huge excess, and you’ll use those credits up in the summer.
Also, if you intend to be grid-tied, you must choose a C-2 (electrical) licensed contractor of off NV Energy’s contractor list. (Many of the contractors listed do not mention their contractor’s license designation, so you’ll need to look them up at the Southern Nevada Contractors Board.) You are allowed to choose a C-2g (solar) contractor if you wish, but a C-2 contractor is required to connect to the utility grid per program rules. As a C-2g contractor cannot subcontract a C-2 contractor, then you must hire a C-2 contractor yourself for that purpose. If a C-2g contractor does make a utility connection, your solar rebate is void, and your power will be disconnected until the issue is corrected. THIS IS A MATTER OF SAFETY FOR ELECTRICIANS, LINEMEN, AND FIREFIGHTERS.
Also be aware that, in Nevada, every worker on your roof doing anything other than securing racking and rails to the joists and trusses is required by state law to have an OSHA Photovoltaic Installer license. A contractor found to be in violation of this can be removed from the job, which will mean the consumer will be responsible for suing that contractor to get money back…which isn’t any fun.
References:
Firstly, I’m a licensed PV installer and teach PV theory year-round. I’m also a Clark County licensed journeyman electrician, and have been involved with residential and commercial solar installs. I speak from experience.
Regarding a C-2 contractor being required to connect to utility grid (see page 4): http://www.nvenergy.com/renewablesenvironment/renewablegenerations/documents/SolarGenerationsHandbook.pdf
Regarding the necessity of OSHA state installer’s license for all PV installers in Nevada: NRS 618.910 – 936
How does Nevada reimburse commercial systems for the $2.40 per kW.? Are they sold on a exchange like out East? If so where can you view the transactions
I’m a new Electrical Contractor in Nv. & I intend to build my business, do joint-venture projects with PV Installers involved in this green movement, & I’m not concerned with big power company’s trying to stop us preserving our planet, our land, our home… They serve the mighty dollar, we serve our creator, We shall prevail, & contribute to preserving our planet…
Onward Jerry,
Keep leading.
- Dan
Can you give me your phone number if you are in Las Vegas. my husband and I want to build own panels and a small pvc windmill and then have a licensed electrician plug it in for us . We do not know if we are allowed to do it ourself? Do we have to have permits if we do it ourself? etc thanks Victoria
Hi, Do you have to sign some formal type of liablity contract with Nv Energy in order to connect residential solar?
To be honset with 2 people working today how many people really use 1,300 kWh per month my average kwh per month is like 450 so for me solar energy would never be a cost saver
We have so much sun, but these scum sucking leeches dont want us to utilize it, they want their money !!!! So they jack up their prices 20% every year, and so do gas companies, and we cannot get free electricity and help the environment….. Get these idiots out of office, and lets help the people and environment.
I heard something on the Channel 8 news today (6am) about a program to be eligable for an experimental solar program and to contact Nevada Power by Sept. 28, I looked at their site and can’t locate any instructions for applying. I live in a 1435 sq. foot home, just myself and my Husband and my bill has been averaging $350 per month. Our church was awarded a program and got solar and it’s great. (and no bill)
@Sandy Blanchette
There is a “gotcha” in accepting the rebate from NV Energy Solar generations program (which is what the news was talking about). Aside from being closed again (it eneded 9/28/2011), you give up something very valuable to take the rebate.
#1 for this last application period, there were only 353 KW available for residential rebates. If you divide that by an averge system size of 5kw, it’s only 70 homes for the WHOLE state. So getting the rebate was a long shot.
#2 The rebate was only $1.70/watt this time. So a 5kw system would get $8,500. If you take the rebate, you sign over your PECS to NV Energy. The PECS on that system would make about $18,000 (at current market price of $30 each)over the 25 year life of the system. So you’d lose about $9,600.
Check DSIRE under Nevada to verify.
dsireusa.org
It makes a lot of sense to put solar in, even without the rebate. In fact, you will come out ahead if the contractor explains PECS to you and doesn’t try to get you to sign them over.
I think that Solar energy is a great option in Las Vegas. I have lived here for the past 8 years and my energy bill has been as high as $800 a month. That’s a ridiculous price for a 4 bedroom 2400sqft home. I have purchased solar panels for my pool and it has been helping a lot. I purchased my polycrystalline panels for a fair price and I hope one day to be powered by only solar energy. Besides saving money I think it’s important to be concerned about global warming. People don’t want to realize it or accept it but change needs to be done.
Maybe i missed it but will the energy companies buy the extra electricity your system makes? Thanks to whoever answers my question.
I have decided to convert my 14 foot travel trailer over to solar and wind power,
as far as getting a tax break for solar buildings i believe you have to let your county tax accer know that you use solar power in order to get the building tax exempion,
i have to use solar power with or without the tax credit
Thank you for enlightening me regarding the state of solar power development in Nevada.
I have just returned from a trip to Las Vegas and during my exploits around the area, I was taken aback by the absence of visible solar systems – clearly indicating a less than attractive residential incentive program.
I live in Ontario, which does not have nearly the solar capacity of Nevada, yet residential solar is much more evident (power generation, pool heating), do to the attractive (may too attractive) Provincial incentive program ($0.65/kwh).
Thanks again.
Hello everyone .I live here 15 years and start to get sick of NV energy and our PUC in this town.I have a Solar universe contractor here in town gave me an estimate for the solar that they will install 43 panels suntech 240kw the cost of $5.10/w $53,000.is it worth it to do it?my electric bill average about 230/m
I am considering moving to the Henderson area and if I do, installing a Solar System is high on the list of things to do. I currently have a system here in CA that generates 8500 watts peak and would want something close to this in NV. What rebates are available from the utility, State and Feds for this type of system. My current system consists of 40 Kyocera panels.
Thanks
Rancho haven 35 miles north of Reno is in a power co-op Sierra plumas electric on top of the 7000 federal credit for solar, our power company also kicks in another 6000 for residential and 12000 for commercial that was a no brainier. Yeah for coops!
I strongly see greenpower as our future survival system. I promote this effort and our mother earth thanks you.
To the author, there are no state tax credit incentives in Nevada because there is no state tax here. There is, however, a pretty stiff sales tax, so legislation in that direction would be great.
It should be mandatory for all builders to install some level of solar power on all new buildings/residences. Can you imagine what Clark County would be now if those who approved new construction plans had made some level of solar power mandatory 20 years ago?
I’m torn because I’m pretty conservative leaning on those types of regulations but damn, yes, it would be awesome.
Is it legal in Las Vegas to make and or install your own panels as long as you have an electrian do the hooking up? thanks Victoria E.
well I like that way you think but that problem is that the utility companis are welty and they control evrithing untill
a big disaster hapen then they my think about going green but I think still will be the pubic unther there shue