Nevada may be famous for Las Vegas, but it’s fast becoming a hotspot for solar energy. With its sunny skies and substantial investments in renewable energy, the state ranks sixth in the nation for solar installations, according to the Solar Energy Industries Association (SEIA). More than $13 billion has been invested in solar projects statewide.
Unlike other solar-friendly states, Nevada offers fewer incentives for homeowners who want to go solar. But don’t worry—there are still ways to make the switch more affordable. From federal tax credits to utility rebates, you can take advantage of several options to offset your upfront costs. This guide covers the available solar incentives in Nevada and includes suggestions for the best solar companies in Nevada.
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What Are the Available Nevada Solar Tax Credits and Rebates?
Nevada plans to commit 50% of its energy production to renewable energy by 2030. The government has introduced several incentive programs to encourage homeowners to convert to clean energy and meet this goal. Although the incentives are limited, residents have several options to reduce their solar panel costs. Below is an overview of the available Nevada solar incentives.
Nevada Energy Storage Incentive Program
Nevada offers a solar energy storage incentive to encourage its customers to pair a solar battery with their solar power systems. Solar batteries store excess energy your solar panel system generates for later use. This program, offered by Nevada Energy (NV Energy), provides savings for time-of-use (TOU) and non-TOU customers. With TOU plans, customers receive varying electricity rates based on peak and off-peak time frames. For example, limiting energy use during off-peak time results in a lower electricity rate and reduced energy bills.
The NV Energy incentive program allows customers to sell their stored energy to their utility company during peak hours. TOU customers receive 19 cents per watt-hour with a $3,000 payment cap. Non-TOU customers have a rate of .095 cents per watt-hour with a $1,500 cap. Customers must have or plan to have a renewable energy system installed. You must also have an energy storage system with a capacity between 4 and 100 kilowatts (kW).
Customers interested in a TOU plan can enter into a 12-month trial period. NV Energy states that if the TOU plan ends up costing you more, you’ll be refunded the difference and moved back to the standard rate.
More resources: Check the Nevada Energy website to learn more about the storage incentive program and application process.
Net Metering
Net metering is another incentive program that pays customers for excess solar electricity. Instead of storing the extra energy, customers sell it back to the grid for credits on their future electric bills. The Public Utilities Commission of Nevada (PUCN) mandates that all state utility companies offer net metering. This includes NV Energy and Valley Electric Association.
Nevada currently uses a tiered net metering program established by the Nevada legislature in 2017. Each tier offers different rates per kW-hour that gradually decrease once the cap is reached. Homeowners are paid a percentage of their electricity’s retail rate, depending on the tier level. Each tier closes once it reaches 80 megawatts. Customers are guaranteed the tiered rate for 20 years as long as they remain in the home where the net metering system was installed.
Here’s a breakdown of each tier level:
- Tier 1: Customers receive 95% of the retail rate. Tier 1 opened in June 2017 and met its cap in August 2018.
- Tier 2: This level opened in August 2018 and offered 88% of the retail rate. Tier 2 closed in June 2019.
- Tier 3: Tier 3 opened in June 2019 and provided 81% of the retail rate. It closed in June 2020.
- Tier 4: This final tier remains open for customer signups. The current payout is 75% of the retail rate. While the 20-year agreement still applies for this tier, there is no signup cap. The rate will remain at 75% unless legislation changes.
While the 75% payout rate remains the same for each company, individual retail rates may vary.
More resources: Visit the PUCN website for the complete net metering policy. Customers should check with their utility company for net metering signup details.
How Much Is the Federal Solar Tax Credit Worth?
The federal solar tax credit is one of the most significant incentives available for residents interested in reducing their energy bills with rooftop solar panel systems. Also known as the Residential Clean Energy (RCE) Credit, it provides a 30% credit of the total system costs for purchases made between 2022 and 2032 that you can apply toward your tax bill.
The credit drops to 26% in 2033 and 22% in 2034 before expiring in 2035 unless Congress renews the program. You must install a new solar array, either rooftop or ground-mount, to qualify. Systems must be installed in the same tax year you claim the credit for, so the amount depends on the total cost, including equipment, labor, permits, and other fees.
If you want to take advantage of this credit, you must own your system rather than lease it or enter into a power purchase agreement (PPA). You can buy a system outright or obtain financing with a solar loan and still qualify to offset some of the costs.
The Cost of Going Solar in Nevada
The cost of installing solar panels in Nevada varies based on system size, equipment quality, and installation complexity. While upfront costs can be significant, solar incentives and financing options make the transition more accessible. On average, homeowners can expect to pay about $10,788 for a 5-kilowatt solar panel system in Nevada, according to EnergySage, but long-term energy savings often outweigh the initial investment.
Your choice of solar financing methods plays a big role in determining your long-term costs and savings, too. Here’s a breakdown of the most common options:
- Cash purchase: Paying upfront eliminates interest fees and maximizes savings over time.
- Solar loans: Financing through a lender allows you to spread payments over time while still benefiting from ownership incentives like tax credits.
- Solar leases: You pay a fixed monthly fee to use the solar system, but the provider retains ownership, making you ineligible for tax credits.
- Power purchase agreements (PPAs): Instead of paying for the system, you pay a provider for the electricity it generates at a lower rate than traditional utility costs.
Does Nevada Have Solar Access Rights?
Homeowners associations (HOAs) can restrict residents from installing solar panel systems in some areas. However, Nevada stripped HOAs of this power with Assembly Bill No. 405 in 2017. This state law protects Nevada residents’ rights to install solar panels and generate clean energy. No HOAs or legal contracts can remove these rights at any time.
Residents can also establish solar easements with their neighbors to ensure their panels function as effectively as possible. A solar easement means you voluntarily agree with your neighbors to restrict the installation of tall obstructions that might block direct sunlight to your panels.
The Process of Going Solar in Nevada
Before exploring Nevada’s solar incentives and financing options, it’s important to understand the solar installation process. Here’s a step-by-step breakdown of what to expect:
- Consultation: Start by consulting multiple solar companies to evaluate your home’s solar potential. Installers use satellite tools to assess your roof’s exposure and estimate system size before conducting an in-person site visit. This process typically takes a few days.
- System design: After the site assessment, your installer will design a solar system tailored to your roof space, energy consumption, and budget. You’ll receive design proposals outlining panel placement, inverter options, and potential battery storage solutions. This stage usually takes one to two weeks, including finalizing details with your installer.
- Permitting and approvals: Your installer will handle permitting requirements, which may include local building codes, HOA regulations, and utility interconnection agreements. Nevada’s permitting process can take one to two months, depending on the municipality and utility provider.
- Installation: Once permits are approved, the installation process begins. Most residential solar installations are completed in a single day, typically within one to three months from your initial consultation.
- Final Inspection and activation: After installation, your solar provider will conduct a final inspection and guide you through system operation, such as active solar monitoring with a smartphone app. If net metering applies, your utility company will approve the interconnection, allowing your system to send excess energy to the grid for credits on your electric bill. If you install solar batteries, your installer will explain how they work during outages and use off-grid energy.
Our Conclusion
The Nevada government seems determined to expand its clean energy use, but its statewide solar incentives are lacking. Nevada residents have a few options to help offset their solar installation costs and benefit from the state’s plentiful sunny days. Residents can use the federal tax credit to further reduce costs.
While searching for the best solar companies across the country, we recommend requesting quotes from at least three solar installers. Most companies offer free quotes that include details on your panels, system, estimated costs, and warranty coverage.
Below is a list of some top solar providers in Nevada:
- Blue Raven: This company offers high quality solar panels and up to 18 months of free solar power.
- Momentum Solar: This solar installer provides a streamlined installation experience, making it easier for new customers to move to solar energy.
- Elevation: Elevation offers a “whole-home” experience, including solar system installation, efficiency audits, and repairs to help lower your energy use.
FAQ About Solar Tax Incentives in Nevada
Does Nevada offer solar incentives?
Yes, Nevada offers a few solar incentives, including buyback programs for excess solar energy. Nevada residents can also apply for the federal tax credit for additional savings.
Does Nevada exempt property tax for residential solar customers?
No, Nevada doesn’t exempt property tax for residential solar installations. Only commercial customers benefit from the property tax exemption. Since solar panels increase property value, homeowners’ property taxes will increase after installation.
What is Nevada’s Renewable Portfolio Standard?
Nevada’s current Renewable Portfolio Standard (RPS) outlines its commitment to increase its renewable energy usage to 50% by 2030. The Nevada government detailed incremental increases based on the following schedule:
- 22% by 2020
- 24% by 2021
- 29% in 2022–2023
- 34% in 2024–2026
- 42% in 2027–2029
The government is committed to maintaining 50% usage once Nevada reaches that goal in 2030.
Are solar panels exempt from sales tax in Nevada?
No, solar panels are not exempt from sales tax in Nevada. Any solar system will include applicable sales tax in the installation price.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.