In 2022, Nevada had the 6th largest solar energy capacity in the United States. Their upgraded renewable standards motivate utilities and homeowners alike to make the switch. With this in mind, residents shouldn’t hesitate to consider solar panels in Nevada.
However, the upfront cost can make some people hesitate. In this article, we talk about the methods to reduce the price of an installation. Between federal incentives, state benefits, and government regulations, you can find yourself with a solar panel array in no time.
How to Save Money on Solar Panels in Nevada: Overview
Nevada is one of the leading states for solar panels; with decent equipment rates and incredible sunlight, homeowners can save $17,000 or more by making the switch. And this number increases substantially with federal and state benefits.
Right now, Nevadans are amid a solar resurgence. In 2016, a series of mandates improved state-level support across the board. With an updated set of renewable standards, residents of Silver State now have better net metering and performance programs. Let’s take a look at the available incentives in Nevada.
Solar Panels in Nevada: Federal Incentive
Even before looking at state incentives, Nevadans need to consider utilizing the federal solar tax credit. This is a nationwide program that returns 30% of all solar purchase costs, including labor, equipment, and sales tax. Those that have used this credit have saved over $4,500 immediately.
It’s important to know that you must own the solar panel system outright. Additionally, you have to live where the array is installed and it must be new equipment.
The program offers 30% until 2032 and then starts to taper off. In 2033, it drops to 26%, and 22% the next year. Unless it’s extended, the federal solar tax credit expires in 2035.
Nevada’s Solar Credits and Rebates
Want to know how people make money with solar panels in Nevada? A variety of financial incentives exist, which result in cash back into your pocket. Although the Silver State doesn’t offer credits or rebates, their net metering and performance programs ensure you see money back in the long run.
Interestingly enough, homeowners in Nevada have a better net metering program than they did in 2015. This mandate requires utilities to pay residents for excess solar energy produced by their connected systems. After the PUC amendment to the program was reversed, power companies offer credits for extra power valued at 75% of the retail rate. These credits don’t expire, meaning you’ll experience reduced energy bills for up to 25 years.
Additionally, the state utilizes a performance-based incentive that rewards produce for the power they provide. Homeowners with a solar panel system receive a portfolio energy credit (PEC) for every kilowatt hour produced. By selling these PECs to utility companies, Nevadans can earn anywhere from $300 to $1,000 a year.
Solar Panels in Nevada: Government Regulations
The updated net met metering law and the continued support for PECs come from Nevada’s strong renewable portfolio standards (RPS). In the industry, we use a state’s RPS to determine its dedication to renewable energy investment. The more aggressive an RPS, the more benefits that residents have access to.
Nevada has a goal to produce 50% of their electricity through sustainable sources. While the majority of their corresponding incentives focus on municipal projects, there are also opportunities for homeowners to participate.
Additionally, the Silver State has a solar carve-out. This means that Nevada wants to produce a specific amount of their RPS through solar energy. Nevada’s solar carve-out is only 6%, but the state already produces 24% of its energy through solar.
Should Nevadans Lease Solar?
Some states allow homeowners to lease a solar panel system, which helps those without the budget to make the switch. Generally, leasing only provides negligible savings, as the reduced price for power is countered by lease payments. However, homeowners in Nevada can still earn quite a bit, with some netting over $4,000.
It’s important to know that homeowners’ option to lease won’t qualify for solar incentives. That means you won’t save 30% with the federal solar tax credit, and you won’t own the PECs that you could otherwise sell for a profit. Still, as an affordable option, leasing a system not only cuts the cost of power but helps reduce your carbon footprint.
Solar Panels in Nevada: Incentive Summary
|Federal Tax Incentive||30% credit|
|Nevada Tax Credits / Rebates||None / none|
|Net Metering||Net metering at a 75% retail rate|
|Renewable Portfolio Standard||50% by 2030|
|Property Tax Exemption||None|
|Sales Tax Exemption||None|
|Performance Payment Program||PECs|
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