2022 Nevada Solar Tax Credits, Rebates & Other Incentives

Here’s a quick look at the solar incentives in Nevada:

  • Federal Solar Tax Credit (ITC)
  • Nevada Energy Storage Incentive Program
  • Net Metering
  • Additional City & Utility Rebates
Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/18/2022

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?

In this article, we’ll discuss the solar incentives and rebates available to Nevada homeowners. 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.

Jump to Section:

  1. Solar Rebates, Tax Credits and Incentive Programs in Nevada
  2. Net Metering in Nevada
  3. Federal Solar Tax Credit
  4. FAQ: Nevada Solar Incentives

 

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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. 

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.

Current Solar Rebates, Tax Credits and Incentive Programs in Nevada

 

Nevada Solar Incentive Description
Federal Solar Tax Credit (ITC) The federal solar investment tax credit, or ITC, allows homeowners to claim 26% of their solar power system costs as a credit against the federal taxes they owe. The federal tax credit is set to reduce to 22% in 2023 and will be eliminated for residential systems in 2024 unless it is extended by Congress.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

Nevada Solar Incentives

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.

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.8 

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.9

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.10 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.

Local Incentives

Depending on your utility provider, you may be eligible for additional solar incentives in Nevada. Here’s a look at some available programs:

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.11

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.12

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.13

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.

Federal Solar Tax Credit

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 26% 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 $6,552.

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.

Related Topics

FAQ: Nevada Solar Incentives

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.