Nevada Solar Power Rebates, Tax Credits, and Incentives
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.
STATE LEGISLATION
Nevada’s Renewable Energy Standard
Nevada has taken a big step with the 2005 amendment to its renewable energy portfolio. By 2015, 20% of the state’s energy must come from renewable sources. Even better, 5% must be solar power! To meet that goal, power companies can apply for credits based upon the number of renewable kilowatts they generate – the largest credit is for Solar Power ($2.40/kW)! An extra little credit of $0.05 is added in for customer-generated electricity.
Nevada also now promotes green commercial construction, including developing solar power systems. If you build certified green power and other energy efficiency features into your business, you can take a property tax credit. As of 2007, the tax credit has been reduced to a maximum of 35% of your annual property tax. Why? Well, it was just too darn successful; in the first 2 years of the program, 63 million square feet of development space had applied for LEED certification (that’s the US government program for sustainable construction, and the criterion for the Nevada tax credit).
NET-METERING
Freshly amended in 2007, Nevada’s net-metering law allows for systems up to 1MW in capacity. Utilities can charge fees for systems over 100kW, but since your home system shouldn’t need that kind of capacity, no problem. 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.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
Nevada has a great incentive for installing solar electric systems at home. Both Sierra Pacific, and Nevada Power Companies (the two major investor-owned utilities in the state), have offered a $2.50/watt rebate in the past through the Solar Generations project. Next year, that goes up to $3.00/watt. Think about it – for the 3kW system described below, that’s $9,000. The credit maxes out at $15,000, which means you could build a 5kW system – plenty of clean energy for your home needs. The best news, your legislators just made this rebate program permanent (it had been scheduled to expire in 2010).
Check out the full list of rebates and incentives for solar energy in Nevada:
Production Incentive
* Portfolio Energy Credits
Property Tax Assessment
* Property Tax Abatement for Green Buildings
* Renewable Energy Producers Property Tax Abatement
Property Tax Exemption
* Renewable Energy Systems Property Tax Exemption
State Rebate Program
* SolarGenerations PV Rebate Program
EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST
Nevada has a solar rating of Great, making it a prime location for a home solar electric system. Installing a typical 3 kW system in Las Vegas would run about $45,000. By the time you take your $2.50/watt rebate, and the federal tax credit, you could get that price down to $32,875 (Just think what that rebate will be next year when the rebate jumps up to $3.00/watt – time to start planning that solar system). What? You still think that’s too rich for your blood? Assuming you use 1,300 kWh each month at a rate of $0.1056/kWh, your system would pay for itself in as little as a year (most likely around five years, but that’s a great return). For that price, you’ll get to increase the value of your home by $14,380 to $29,611, and that’s tax free! You’ll also be saving about $1,207 to $2,485 each year on your electric bill. That savings will only grow: estimates show that your conventional electricity rate will rise to $0.16/kWh over the next 25 years. Here are few more essential details:
- 500 square feet of roof area required
- $30,170 to $62,126 estimated utility savings over 25 years
- Keep nearly 245 tons of CO2 out of the atmosphere; that’s like taking 43 cars off the road or planting 783 trees!
CONSENSUS
Nevada is well on its way to building a solar power market. The legislature has worked to build in some important incentives in the form of rebates and tax credits for renewable energies. Governor Jim Gibbons also has committed to studying ways to improve the infrastructure for connecting renewable power plants to the grid. As he says, “Renewable energy development is good for Nevada and good for the nation.” So, what happens in Vegas stays in Vegas, but what happens in Nevada could help the rest of the country too. Keep up the good work; solar power’s a good bet.
Click here to have multiple solar installers bid to upgrade your Nevada home or business.
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