Nevada enjoys ample sunlight, making it one of the best states for solar investment. The state currently generates 25% of its state’s electricity from solar, next to states like California with 28%. While the prices of solar panels in the state have fallen over the years, setting up a solar system in Nevada can still take a financial toll. However, the various commercial solar incentives Nevada businesses can take advantage of can greatly subsidize how much you pay for a solar system. Here are some important commercial solar incentives, rebates, and net metering in Nevada you can take advantage of to pay for your solar.
Modified Accelerated Cost-Recovery Systems (MACRS)
MACRS is a corporate depreciation program powered by the Internal Revenue Service. This is an important tax incentive for businesses looking to go solar. The program allows solar system owners to deduct a significant portion of their solar system cost from their federal tax within a 5-year period. The 2017 Tax Cut and Jobs Act saw the MACRS bonus increased to 100% for qualified properties placed in service after September 27, 2017, and before January 1, 2023. This bonus depreciation began decreasing by 20% each year in 2023. To apply and see what’s new with the MACRS program, check out the IRS publication 946.
Business Investment Tax Credit (ITC)
The ITC is another federal tax you can enjoy alongside the MACRS. While the MACRS program allows you to recover the cost of certain tangible property like solar, the ITC offers a 30% tax deduction from your solar system cost. This program is currently available for solar systems that are placed in service in 2022 or later and begin construction before 2033. This means that in 2024, you can still take advantage of the ITC if you meet the labor requirement. You can find out about the requirements and how to apply on their official website.
Renewable Electricity Production Tax Credit (PTC)
The Production Tax Credit is another federal commercial solar incentive available to Nevada businesses looking to go solar. However, this program typically applies to larger-scale utility-scale projects rather than smaller commercial or residential installations. The PTC provides a tax credit for each kilowatt-hour (kWh) of electricity generated by qualified energy resources over a specified period, typically ten years. This credit can also result in significant tax savings for eligible projects. Due to its similarities with the ITC and MACRS programs, it is technically possible for a user to utilize all three incentives together. However, it’s important to note that there may be limitations or restrictions based on individual circumstances and the specific requirements of each program. Consulting with a top-performing solar company like Commercial-Solar will help you determine whether you can utilize all 3 programs together based on your solar needs.
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Net Metering in Nevada 2024
Net metering in Nevada
Net metering is a billing arrangement that allows solar panel owners to receive credit for the excess electricity they generate and send back to the grid. This happens when a solar system produces more electricity than is needed on-site, the surplus is fed back into the grid, spinning the meter backward and providing credits on the owner’s electricity bill. These credits can then be used to offset electricity consumption during times when the solar panels are not producing enough energy, such as at night or on cloudy days.
Since 1997, Nevada has been known to have favorable net metering policies despite being amended several times over the years. In 2024, net metering credit is paid at 75% of retail rates, significantly higher than most states offer, making this one of the most robust commercial solar incentives Nevada offers.
How to enroll in net metering in Nevada
There are several utilities in the state of Nevada, each with its enrollment policies. However, here are common requirements set by the state’s Public Utilities Commission (PUC):
- Your solar system must meet the utility’s interconnection requirements.
- Your system must meet the IEEE 1547 and UL 1741 standards.
- You utilize the help of a solar company for installation (as opposed to DIY) and according to local building codes.
- Pass city inspection and have proper solar documentation
Additional Local Commercial Solar Incentives Nevada: Incentives, Rebates, & Grants
Nevada offers relatively fewer state-wide commercial solar incentive programs than most states in the US. However, as one of the leading states in solar energy, utility companies and the state government still offer a few opportunities for solar system owners to pay for their systems. This includes energy credits, sales and use taxes and even loan programs for solar equipment. Here are some local commercial solar incentives Nevada offers below.
Nevada Portfolio Energy Credits
Solar system owners in Nevada can earn performance-based credits which can be sold to utility companies that are required by law to meet Nevada’s portfolio standard. To apply, solar system owners must contact the Nevada Public Utilities Commission (UCN) to register their system. A very simple application form is available on the PUCN website. The value of a PC is market-driven and you can find a detailed calculation process of the PEC on the PUCN website.
Note: Owners of PV systems installed through NV Energy’s Renewable Generations (rebate) Program do not retain the PCs associated with their electricity generation, and thus are not eligible to trade certificates through this program. Owners of all other net metered systems retain the PCs unless stipulated in writing with the utility.
Nevada Solar Equipment Sales, Use & Property Tax Exemption
Nevada is one of the many states that offer sales, use, and property tax exemptions for renewable energy equipment. The state law says any solar system that serves a commercial property is exempt from property taxes. Now, while some states offer a 100% tax-free purchase of solar equipment and usage, state law says that the purchasers are required to pay sales and use taxes imposed in Nevada at the rate of 2.6%. Also, the renewable energy property tax exemption cannot be claimed if the same building claims another state tax abatement or exemption. New and existing projects can apply through the office of the Director of the State Office of Energy.
USDA – Rural Energy for America Program (REAP) Grants
REAP financial incentive
The REAP financial incentive is one of the biggest commercial solar incentives Nevada businesses can take advantage of within the state. This program offers a 25% financial grant to rural businesses to fund their solar projects. This grant is typically available to agro producers and other small businesses based in rural areas across the US and is determined by the USDA. Businesses must also show sufficient revenue to cover any operations and maintenance expenses as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Application due dates are published annually in the Notice of Funding Availability on the REAP website.
Solar Potential in Nevada: Incentives and Savings
The average payback period for PV systems in Nevada is 10 years, thanks to tax breaks, net metering, and solar incentives offered in the Silver State. With the lifespan of a solar system around 25-30 years, this means solar system owners can earn from their system up to 20 years after payment. With the state looking to increase its renewable energy portfolio to 50% by 2030, you can expect more savings through newer incentives in the coming years. We’ll be sure to keep you updated on newer commercial solar incentives in Nevada.
Understanding the Electric Utility Landscape and Rates in Nevada
Nevada is the 6th highest solar energy generator in the US, with over 25% of the state’s energy coming from solar and they aren’t far behind the number one state. The state currently has over 37% of its energy coming from its renewable energy mix, set to balloon to 50% by 2030. This is required by the state’s renewable portfolio standard and this is one of the reasons why the Silver State pays 9% less than the national average for electricity. The state also has several competing utilities which also drives a more competitive market.
Impact on Solar Energy Decisions
Shifting towards sustainable energy solutions will have a financial impact on your business. However, setting up a PV system doesn’t have to break the bank with our unique Solar Investment Assurance (SIA) framework. We have revolutionized the way businesses integrate solar energy, ensuring you are leveraging this pioneering approach to harness tax benefits, boost property value, and seamlessly transition to solar power without significant upfront investment. Upon activation of your solar system, you’ll experience immediate cost savings, eliminating initial expenses and enjoying complimentary maintenance until the system pays for itself. It’s more than just adopting solar technology; it’s a strategic financial move with immediate returns.
Are Solar Panels Worth It in Nevada?
Nevada is the third sunniest state in the US, averaging 6.51-kilowatt hours per square meter per day (kWh/m2/day). This makes the Silver State a prime location for solar panels. Prices of solar panels in the state have also fallen by 47% in the last 10 years. Alongside these advantages and the various commercial solar incentives Nevada businesses can take advantage of, Nevada offers a prime location for solar panel investment in an $11 billion state industry.
Why Choose Commercial-Solar.org Solar Company in Nevada?
Commercial-solar has been providing state-of-the-art solar solutions to businesses for the past decades. We help you harness the full potential of Nevada’s solar energy without much of the financial burden that accompanies installing a solar system. Here’s why partnering with us is the ideal choice for your business:
- Effortless Transition: From initial consultation to final installation, we ensure a seamless and hassle-free process, ensuring a smooth transition to solar power.
- Maximize Arizona Incentives: With our in-depth knowledge of Arizona’s commercial solar landscape, we adeptly navigate and optimize state-specific incentives to deliver unparalleled financial benefits to your business.
- Zero Upfront Costs: Take the plunge into solar energy without any initial financial burden. Our strategic approach covers installation expenses through Arizona’s generous incentives, making solar accessible to all businesses.
- Long-Term Savings: Harness solar energy to substantially lower your electricity bills, ensuring sustainable cost savings and profitability for your business in the long run.
- No Capital Investment Required: Make the switch to solar without dipping into your capital reserves. Our tailored solutions allow you to invest in your business’s growth while we handle the solar transition.
- Covered Construction Costs: Bid farewell to the worry of construction expenses. We shoulder the financial burden, allowing you to focus on reaping the benefits of solar energy.
- Full Ownership Benefits: Enjoy complete control over your solar system with 100% ownership, freeing yourself from the constraints of traditional power purchase agreements (PPAs).
At Commercial-Solar.org, we’re committed to transforming businesses in Nevada through solar energy, offering custom solutions tailored to your project. Whether you’re a small local enterprise or a large corporation, our team of experts is here to guide you every step of the way toward a brighter, more sustainable future today.
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Las Vegas, Henderson, Reno, North Las Vegas, Sparks, Carson City, Fernley, Elko, Mesquite, Boulder City, Fallon, Winnemucca, West Wendover, Ely, Yerington, Carlin, Lovelock, Wells, Caliente 89001, 89002, 89003, 89004, 89005, 89007, 89008, 89010, 89011, 89012, 89013, 89014, 89015, 89017, 89018, 89019, 89020, 89021, 89022, 89025, 89026, 89027, 89029, 89030, 89031, 89032, 89034, 89039, 89040, 89042, 89043, 89044, 89045, 89046, 89047, 89048 |
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Commercial Solar Installation
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