The complete list of Nevada solar incentives and tax credits for 2023, plus how to take advantage.
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Nevada is the third sunniest state in the U.S. and is a fantastic place to go solar. Residents can take advantage of the recently increased and extended federal solar investment tax credit and access rebates and net metering. Homeowners who go solar could even earn additional income from selling renewable energy certificates in the Silver State.
No wonder Nevada ranks 6th in the U.S. for installed solar capacity. The state has enough panels to power nearly 750,000 homes, according to the Solar Energy Industries Association (SEIA). In the first quarter of 2022, Nevada produced nearly 20% of its electricity from solar!
Nevada State Solar Incentives
|Solar rebates in Nevada||NV Energy offers a solar storage rebate of up to $3,000 and local utilities offer rebates for solar water heating systems|
|SRECs / PECs in Nevada||Nevada has an ambitious renewable portfolio standard and a solar carve-out. Homeowners installing a solar array can make additional annual income from selling their portfolio energy credits (PECs) in the state|
|State sales tax exemption||There is no state sales tax exemption for solar in Nevada|
|State property tax exemption||There’s no residential property tax exemption for solar in Nevada, but the state does offer some exemptions for commercial, industrial, and agricultural installations|
|Net metering||Net metering is mandated by law in Nevada and customers are compensated at 75% of retail rate|
Solar rebates in Nevada
As part of its strategy to have more of the state powered by renewables, the Nevada Legislature has created several programs offering rebates to homeowners who install solar or wind energy systems. The Public Utilities Commission of Nevada (PUCN) oversees these programs and each year utilities get approval of program plans from the PUCN.
In years gone by, NV Energy offered rebates for residential rooftop solar. Now, Nevada’s NV Energy Residential Energy Storage Incentives are for customers installing battery storage systems. Rebates are available up to $3,000. The highest rate of return is for time-of-use rate customers, set at $0.19 per watt-hour and capped at $3,000 per premise, or 50% of the equipment cost, whichever is less. For non-TOU customers, the rate is $0.095 per watt-hour, capped at $1,500 per premise, or 50% of the cost.
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NV Energy also offers a rebate program for solar water heating, up to $3,000 per residential installation.
Southwest Gas also offers a solar water heating rebate, providing up to 30% or $3,000 of installation costs for residential customers using an approved installer. Schools, small businesses, non-profits, and other entities can access higher rebates up to $30,000.
Under the Nevada Legislature’s rules, customers who receive incentive payments for solar energy systems typically assign ownership of any portfolio energy credits (PECs) generated by the system to the utility offering the rebate.
SRECs / PECs in Nevada
Nevada adopted Renewable Portfolio Standard (RPS), NRS 704.7801, in 1997 and has modified it many times since. The RPS sets percentages of electricity sales the utilities must produce or procure each year from renewables.
In 2019, the Nevada Legislature passed Senate Bill 358 which increased the percentages in the RPS as follows:
- 29% in 2022 and 2023
- 34% in 2024 through 2026
- 42% in 2027 through 2029
- 50% in 2030 and each year thereafter.
There is also a solar carve-out, which has helped to propel utility-scale and residential solar in the state. For years 2016 to 2025, solar must account for 6% or more of the annual requirement in the state.
In Nevada, solar renewable energy certificates (SRECs) are known as portfolio energy credits (PECs). Homeowners can sell their PECs to utilities annually to help the utilities meet their RPS requirements. The PUCN administers the PEC Trading Program
To help propel the adoption of solar even further, the regulations outline a compliance multiplier. This means that instead of just counting for one PEC, each 1 kWh produced by a customer-sited solar array installed before 2015 counted for 2.4 PECs.
To participate in the PEC Trading Program, homeowners need to register their systems with the PUCN. You can do this by filling out the PUCN’s PEC Application for Residential & Small Business Producers (PDF) and then mailing it to the PUCN or uploading it at the PEC’s website.
State property tax exemptions in Nevada
Nevada doesn’t offer a sales or property tax exemption for residential solar. However, it does offer tax exemptions for large-scale commercial, industrial, and agricultural renewable energy systems.
Net metering in Nevada
Nevada mandates net metering and has a tiered system where compensation decreases over time. Currently on the final tier, Tier 4, the system requires utilities to offer customers energy credits for 75% of the retail rate for excess power provided to the grid.
With an RPS set for 50% renewable energy by 2030, the net metering law seems likely to stick around for a while. Customers who sign up to net meter under Tier 4 will keep the rate for 20 years at the same location (meaning if you move your panels, you will have to reapply for net metering at your new home).
Tier 4 net metering compensation will stay in place until it is changed by legislative action, meaning anyone going solar in Nevada can benefit from net metering.
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Net metering laws in Nevada also prevent utilities from charging solar customers any fee or charge that they don’t charge non-solar customers.
Valley Electric Association and NV Energy are the two main utilities and both offer fairly straightforward connection for net metering.
Final thoughts on state solar incentives in Nevada
In addition to some excellent solar storage rebates in Nevada, customers in the Silver State can sign up for net metering and can sell their renewable energy credits (AKA PECs in Nevada) to utilities.
So, while there’s no state sales or property tax exemptions here, the bountiful sunshine and relatively low cost of installation make going solar in Nevada a bright idea!