2022 Nevada Solar Incentives Guide (Rebates, Tax Credits & More)

In this EcoWatch guide on the solar incentives in Nevada, you’ll learn:

  • How to become eligible for the NV Energy Residential Energy Storage incentive
  • What Southwest Gas is doing to incentivize solar use in Nevada
  • How the federal ITC can help with solar system installation costs in Nevada
  • What the NV Energy Solar Thermal Heating Program is

This guide has helped thousands of homeowners save time and money when going solar by compiling all of the available incentives in the Sagebrush state. Let’s get started!

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 9/28/2022

Why You Can Trust EcoWatch

Our solar experts have sifted through hundreds of local governments’ and utility companies’ websites to find accurate information about current solar incentives in each state. We’ve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home.

How Much Can You Save With Solar Incentives in Nevada?

Jump to Section:

  1. Introduction to Nevada Solar Incentives
  2. Net Metering in Nevada
  3. Nevada Energy (NV Energy) Residential Energy Storage Incentive
  4. NV Energy Solar Thermal Heating Program
  5. Southwest Gas Corporation Smarter Greener Better Solar Water Heating Program
  6. What Do Nevadans Need to Know About the Federal Solar Tax Credit (ITC)?
  7. FAQs: Nevada Solar Incentives

Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.

When you’re ready to speak with a qualified professional, follow the links below. Each of these companies can help you identify and apply for incentives available in Nevada.

Best National Provider
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Nationwide Service

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SunPower

  • Pros icon Most efficient panels on the market
  • Pros icon National coverage
  • Pros icon Cradle to Cradle sustainability certification
  • Pros icon Great warranty coverage
  • Con icon Expensive
  • Con icon Customer service varies by local dealer

Services Offered

  • Service icon Solar Panels
  • Service icon Solar Batteries
  • Service icon EV Chargers
  • Service icon System Monitoring
Outstanding Regional Installer
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Average cost

Presence

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Regional Service

Momentum Solar

  • Pros icon Representatives are experts on local policies
  • Pros icon Great warranty coverage
  • Pros icon Concierge service ensures steady communication
  • Con icon Slightly limited service offerings

Services Offered

  • Service icon Solar Panels
  • Service icon Solar Batteries
Outstanding Regional Installer
Badge icon

Ecowatch rating

Average cost

Presence

$$$$$

Regional Service

Elevation Solar

  • Pros icon Comprehensive service offerings
  • Pros icon Outstanding customer service
  • Pros icon Offers products from leading manufacturers
  • Pros icon Full-service home energy solutions
  • Con icon Quality of installation may vary by location
  • Con icon Relatively young company

Services Offered

  • Service icon Solar Panels
  • Service icon Solar Batteries
  • Service icon Energy Efficiency Upgrades
  • Service icon Smart Home Energy Solutions

Introduction to Nevada Solar Incentives

With Nevada’s ample sunshine, the little risk for severe weather and lower cost of solar panels, it’s no surprise that Nevada is one of the top states leading the way for solar energy. According to the Solar Energy Industries Association (SEIA), Nevada currently ranks 6th in the nation for solar installations.1

Because Nevada residents realize it’s well worth going solar to reduce their electric bills, the state doesn’t offer many additional offers to incentivize homeowners to install solar photovoltaic (PV) systems. However, there are some rewards available for Nevada solar users — including the federal tax credit, net metering programs and solar rebates — that can help reduce installation costs.

Watch Below: we’ve included a TEDx video below to further provide some background into the state of solar energy in Nevada

 

What Solar Incentive Programs Are Available in Nevada?

Nevada does not offer any statewide tax credits or rebates for solar, likely because residents already see so many energy savings from going solar in the sunny Silver State. However, there are a few financial incentives for Nevada homeowners who install solar panel systems, including net metering and the federal solar tax credit.

Nevada Solar Incentive Description
Federal Solar Tax Credit (ITC) The federal solar investment tax credit, or ITC, allows homeowners to claim 30% of their solar power system costs as a credit against the federal taxes they owe. U.S. residents are eligible for the 30% tax credit through 2032. It will decrease to 26% in 2033 and 22% in 2034 before expiring in 2035.2
Net Metering Nevada has a great net metering system, awarding solar users for any additional energy they produce and send to the grid. However, the program is tiered and set to decrease over time. The state is currently in Tier 4, which means utility companies will give customers energy credits for 75% of the retail electricity rate for the excess power they provide to the electric grid.3
Nevada Energy (NV Energy) Storage Incentive Program Similar to net metering, NV customers who install a solar-integrated energy storage system, like a solar battery, are eligible for incentives if they allow NV Energy to use their storage electricity during high demand periods.4
Local Solar Rebates NV Energy and Southwest gas both offer rebate programs for customers who install solar water heaters.5, 6
Renewable Energy Systems Property Tax Exemption (commercial only) Nevada offers a property tax exemption for renewable energy systems, but unfortunately not for residential properties. Qualifying solar projects are those used for commercial, industrial and agricultural purposes.7

Net Metering in Nevada

Nevada has a great net metering system in place that allows solar customers to earn credits from their utility company for the energy their solar system produces. However, net metering works on a tiered system in Nevada, and the amount customers can be awarded is set to decrease over time.

The state is currently in Tier 4, which means that Nevadans who install solar and enroll in net metering will be able to earn energy credits for 75% of the retail electricity rate. Customers can earn these credits for 20 years after they enroll.

The good news is that Tier 4 is the final tier, so the reward rate for Nevada solar customers won’t get any lower than 75% of the retail rate, unless modified by the state government. But with the state’s Renewable Portfolio Standard (RPS) set for 50% renewable energy by 2030, it doesn’t seem likely they’ll reduce this solar incentive anytime soon.

Nevada Energy (NV Energy) Residential Energy Storage Incentive

Customers of NV Energy who install a solar-integrated energy storage system, like a solar battery, are eligible for incentives if they allow NV Energy to use their storage electricity during high demand periods. Customers who are on a Time-of-Use (TOU) rate receive a higher amount of up to $0.19 per watt-hour and customers not on a TOU rate are compensated $0.095 per watt-hour. The maximum incentive for TOU customers is $3,000 per household and for non-TOU it’s $1,500, or 50% of the equipment cost, whichever is less.

close up of dark solar panels

NV Energy Solar Thermal Heating Program

NV Energy offers flat rate incentives for customers who install eligible home solar heaters. Residential customers can earn up to $3,000 for installing a solar water heater or solar space heater.

Southwest Gas Corporation Smarter Greener Better Solar Water Heating Program

Southwest Gas Customers can earn a rebate of up to $3,000 or 30% of total system costs, on qualifying solar water heating systems. Other public utilities may offer additional rebates for energy-efficiency, including services that may be carried out by your solar electric installer. Check out DSIRE for details on programs and eligibility.

See also: See how much you can save by going solar with the EcoWatch Solar Calculator

What Do Nevadans Need to Know About the Federal Solar Tax Credit (ITC)?

Regardless of which state you live in, all homeowners in the U.S. are eligible for the solar investment tax credit, or ITC, for installing solar panels as well as solar batteries and other energy storage systems. You can claim the ITC on your federal tax returns, and it deducts 30% of the total cost of the system from the taxes you owe.

With the average cost of a solar system in Nevada at about $25,200, the federal tax credit can lead to a savings of about $7,560.

The ITC was first developed through the Energy Policy Act of 2005, under the Bush administration. Initially, it was set to last for just two years, but due to its success has continually been extended for solar panel installations. It’s important to note that, unless Congress extends the credit, it is set to phase out by the end of 2023.

To be eligible for the solar tax credit, homeowners must meet the following criteria:

  • You have installed a residential solar energy system at any point from 2006 through the end of 2022.
  • You have placed the solar energy system in a residential location. It does not have to be your primary residence.
  • You own the solar energy system, either having paid for it in cash or by taking out a solar loan. Homeowners who lease solar panels are not eligible to claim the ITC.

Read More About Going Solar

FAQs: Nevada Solar Incentives

Below are a few questions EcoWatch readers regularly send in about solar incentives and tax credit programs in Nevada. If you have any more, do not hesitate to contact us! If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.

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Karsten Neumeister

Solar Expert

Karsten is a researcher, editor, writer and energy specialist focused on environmental, social and cultural development. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.