On average, Nevadans enjoy 254 days of sun out of a 365 calendar year. The benefits of going solar include not only the ability to harness all that solar power to generate and store clean, more affordable energy, but most importantly you can protect yourself from the rising rates of electricity here in Las Vegas if you jump on board before the incentives end.
Electricity is a commodity which is sold by the kilowatt hour. Currently, Nevada Energy is charging Las Vegas residents $11.83 c/kWH, which is 2.7% greater than the average for Nevada and 2.27% greater than the national average.
The good news is, you can get rid of those astronomically high summer electric bills we face out here in the desert and dodge the 4.5% inflation rate on electricity by installing solar panels on your home. If your home qualifies, you can bring that 11.83 c/kWH down to $3.5-4.5 c/kWH depending on which solar company you go with.
Federal ITC solar tax credit 26%
Currently, in the state of Nevada as a homeowner you can get solar panels installed with no money down if your home qualifies. The federal ITC solar credit, is a tax credit that covers 26% of the total system cost and essentially fronts what would have previously been your down payment.
With the ITC tax credit there is no cost for installation upfront. While this federal incentive is still alive, you have the ability to bill swap from NVE to a solar payment for a fourth of the cost of the rate that NVE is currently charging homeowners with no out-of-pocket costs.
What switching to a solar payment should do is eliminate your electric bill with Nevada Energy altogether and save you from compound inflation affecting your electric bill as NVE electricity rates continue to rise.
The current federal ITC tax credit is set at 26%, but is set to drop to 22% for 2023, then 0% in 2024 for residential solar projects in Nevada.
AB 405 & Net Metering
After utility regulators eliminated the net metering policy in 2015, AB 405 was reinstated in 2017 due to public outcry. This bill legally awards homeowners the right to produce, consume, and store excess power produced by a rooftop solar system and get paid for the excess power production via a renewable energy credit system with NVE. The Assembly Bill ensures Nevadans get paid for any excess energy produced by their solar system that is monitored and protected through net metering.
Before the bill was passed, homeowners associations (HOAs), had the power to limit homeowners’ ability to install solar panels. AB 405 also removed this power from HOAs so you can now go green and save money with legal protection under the bill
Net Metering availability for residential solar systems is built on a Tier system. We are currently in Tier 4. While there is no set capacity for Tier 4, what we know historically from the past five years is that the utility regulators, aka NVE, are not fond of residential solar because ultimately it’s a huge loss in profit.
The net metering rate structure is tiered and set to decrease over time as the combined amount of applied-for and installed capacity of net metering systems hits 80 megawatt benchmarks.
To date, the Tier 4 capacity has surpassed over 162 Mega Watts and every new permit applied for net metering has to be approved by the NVE since they supply the meter. While there is no current legislation on the docket to close the final Tier for net metering, we are keeping a close watch and suspect that changes will be made in 2022.