Nevada Solar Power Rebates, Tax Credits, and Incentives

Nevada State Picture

 

Solar Legislator Score:  Nevada Solar Power Rebates, Tax Credits, and Incentives Nevada Solar Power Rebates, Tax Credits, and Incentives Nevada Solar Power Rebates, Tax Credits, and Incentives 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 unless you intend to operate a giant space laser, 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 home solar energy installations. Sierra Pacific and Nevada Power Companies (the two major investor-owned utilities in the state), offer a $2.30/watt rebate through the Solar Generations project. Think about it – for the 3kW system described below, that’s $7,900. The credit maxes out at $11,500 for homeowners, businesses $69,000. This means you maximize the incentive at about 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 Exclusion Info

* 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 enjoys plenty of sunshine, making it a prime location for a home solar electric system. Installing a typical 3 kW system in Las Vegas would run about $26,000. By the time you take your $2.30/watt rebate ($6,900), and the federal tax credit ($2,000), you could get that price down to $17,100.

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 will save you about $1,600 a year in electricity! That savings will only grow: estimates show your conventional electricity rate will rise 6% year over year. What’s more, your home value would increase by 20 times your annual savings ($32,000), and that’s tax free!

Here are few more essential details of that sample 3kW installation:

* 500 square feet of roof area required

* $40,000 estimated utility savings over 25 years (the estimated life of the system)

* Keeps nearly 245 tons of CO2 out of the atmosphere; that’s like taking 43 cars off the road or planting 783 trees!

To find out how the numbers work out for you, click here and we’ll connect you to experts we trust in Nevada to come out and calculate a realistic estimate for you based on your unique energy usage, location, shading, roof orientation, and roof type. They’ll even do it for free!

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.

Read the 17 brilliant comments below or add yours!

Forest Anderson Identicon Icon Forest Anderson
Comment on December 28th, 2007.

I live in an area of nevada that is not serviced by any power service so i have no choise but to use solar power and do to low income i have had to come up with low cost ways of building my own solar systom and i now run my lights and heating fans off of solar power i also charge my flashlight by solar power i basically built the whole thing for 300.oo dollors including power inverter for 110 volts for my online phone witch can run 24/7 if need be but usally i shut it off at night noyhing like not getting those phone solisitors due to the high cost of gas i have had cut down on the use of my generator but do charge up my battiers and use my computer when it is running i use it maybe two hours a day i am planning on building my house starting this spring and planning on going total solar including heating and hot water i will be doing this on a very limited budget of about 200.00 dollors a mounth if you would like i will keep you posted on how i am doing so maybe you can pass this information along to others

Rick Gee Identicon Icon Rick Gee
Comment on February 16th, 2008.

I was wondering where you are located and how you are doing on your project…I am an electrician in the Fallon area and would like to start feeding the grid…also on a somewhat limited budget…but I do have an advantage over your average homeowner as I could install and terminate myself…I would like to hear from you…Thanks for your time Rick

Rick Gee Identicon Icon Rick Gee
Comment on February 16th, 2008.

I am interested in your progress and would also like to know where you are located…I am an electrician in the Fallon area and would like to start feeding the grid in the summer so I can draw it back in the winter…The plan is to use electric baseboard heaters to heat the home (currently burning wood) and save some bucks on heating costs…What size system do you currently have and how did you build it so cheaply? Rick

Mike Identicon Icon Mike
Comment on March 21st, 2008.

I am building a home completely solar(grid connection $101,000) is there any rebates etc for off grid folk?

Mauro Identicon Icon Mauro
Comment on September 4th, 2008.

I am distributor from Los Angeles and realized the importance of solar power in your state.

If anyone is interested in purchasing solar panels and/or solar water heaters that are very efficient and low cost please contact me @ sustainability.rocks@gmail.com

Let me know if you are interested in working together and/or networking

janet Identicon Icon janet
Comment on September 8th, 2008.

i have 30-40 acres near Fallon Nevada I might be willing to lease to a solar plant company in exchange for of course some $ and to eliminate my very high Sierra Pacific annual bill by receiving the power from your plant thanks

Bill Identicon Icon Bill
Comment on October 27th, 2008.

Something doesn’t add up in the 3KW example above. I think your assuming unlimited daylight. A power bill of $1600/Year = $4.38/day. For a 3KW system that’s $1.46/KW per day. At $0.1056/kWh that’s 13.8 hours of sunshine a day. You’re high by about a factor of three (neglecting the power loss in the inverters etc).

Ryan McMonigle Identicon Icon Ryan McMonigle
Comment on November 9th, 2008.

What if you have unlimited raw land and wanted to start a solar power company 60miles north of las vegas nevada. Big enough to power say 10,ooo homes,And public services

William Bolz Identicon Icon William Bolz
Comment on December 11th, 2008.

Where is there information on any Federal Government tax incentives or rebates on installing Solor power panels on home residences? Can you provide any further info on helping a home owner on a limited retirement to help with the cost of installation of solar panels on our home? Please adivse. Thank you so much for your help!

William Bolz Identicon Icon William Bolz
Comment on January 15th, 2009.

5212 Shasta Daisy St.
N. Las Vegas, NV 89031

William Bolz Identicon Icon William Bolz
Comment on January 15th, 2009.

I have a 1400 SF home in Las Vegas, what size solar system would I need to heat it and is there any govt or NV power rebates to assist in funding it?

forest anderson Identicon Icon forest anderson
Comment on January 26th, 2009.

i am forest anderson and i wrote you guys about a year ago about how i am living off grid i live just outside of a small town of crescent valley nevada i am still working on getting my living quarts togather, and still using solar power, for for most of my needs anyone out there that is already living off grid and is getting ready to build can contact me at forestanderson@gmail.com would love to swap ideas.

Gary Mackelprang Identicon Icon Gary Mackelprang
Comment on March 24th, 2009.

Is there a site to go to to determine what size system would need to be installed on a residential home in Las Vegas. Also, I’ve heard that there are newer solar panels that can capture more of the suns rays than the older panels are able, I would like info on them also. You can email me at gr8diver@hotmail.com

Jim Evans Identicon Icon Jim Evans
Comment on August 2nd, 2009.

Intend to live in an RV and put solar on the roof. Will that qualify as a home instalation and be given the same solar tax incentives and discounts?

Comment on August 2nd, 2009.

I think it is terrible that NV Power only accepts a few applicants each year. That should be against the law. Las Vegas has some of the most sunny days out of any place in the country. They should accept anyone that wants to put solar on their home.

Comment on August 6th, 2009.

Jim,

In general, and I believe this is the case for Nevada and the Feds, you must be tied to the electric grid in order for you to qualify for rebates. In addition, you will need to have batteries with your system to collect energy for when you’re parked at night. Now, if your talking about a mobile/prefabricated home with solar that is stationary, then you’ve got a shot at the tax incentives and rebates. Hope that helps.

John Identicon Icon John
Comment on September 17th, 2009.

I’m not sure this info is up-to-date. I just got a (very high) estimate for a 4000W grid-tie in Reno from Reno Sunrooms. They quoted me $56k! They told me the feds are offering a 30% rebate but that Nevada’s rebate was so low and so hard to get it was not worth trying for.

Aside from the fact the quote is way too high, what is the current rebate for the feds and for Nevada? Can they be used together?

It is difficult to get straight answers to these basic questions which could make the difference between doing it or not.

Comment on September 17th, 2009.

John, yeah, I would say they’re pretty high. First of all, get more than one quote. If you haven’t gone through us already, please fill out our form and one of Nevada people should get in touch with you if there’s one in your area. Second, I don’t know your roof conditions or other issues that might make the quote higher. Perhaps there’s travel time for this installer, so that may be an issue too, but that 56kw ($14/watt) seems really out of line these days, again unless you’ve got some very special circumstances.

We’ve said many times on this site that these days, you should be paying an average price of around $7 or $7.50 a watt these days, average across the nation. Some states with more competition can be lower, down to 5.50/watt. Not sure of the Nevada market and your area for competition.

As for the Nevada rebate, the program is oversubscribed right now for solar for 2009/2010. See this note from the this State rebate site. (Good info for all states)

Note: In January 2008, the Public Utilities Commission of Nevada (PUCN) issued ruling R175-07, which established rebate levels for the RenewableGenerations program through 2013, and added incentives for small wind and hydroelectric systems. The 2009-2010 application period for solar rebates ended on October 31, 2008. The 2010-2011 application period will commence in early 2010. NV Energy is still accepting applications for the 2009-2010 application period for wind and small hydro systems. Funds are limited and applications will be reviewed in the order they are received. To be eligible, wind systems need to be operational as of September 4, 2008 or later.

So you can wait until early next year and see if you can’t get the 10 grand rebate. The Federal incentive is a 30% tax credit, by the way, not a rebate. That means you can use the credit towards paying your taxes. Think of it as an IRS gift card on April 15th. You can use state and federal rebates together, but there may be some tax issues you should discuss with your local tax guru about it. In general, the 30% tax credit is calculated AFTER you subtract any state rebate. Again, check with your tax guru, but that’s my understanding. Hope that helps.

Roger Identicon Icon Roger
Comment on January 3rd, 2010.

Well it is now “Early” 2010 and I can’t find an application form anywhere for “getting on the list” for NV Energy’s solar rebate. Is there some “secret” location and do you have to know a politician to get on the list?

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