Selling electricity back to the grid has never been as easy as it is in Nevada. Thanks to the state’s net metering program, Nevada residents with solar energy systems have the opportunity to sell any excess electricity they generate back to the grid.
In this article, we provide a comprehensive discussion of how net metering works in the state of Nevada.
How does Nevada net metering work?
Net metering in Nevada is a program offered by NV Energy, the state’s primary electric utility company. To participate in the program, customers must have a net meter installed, which measures the flow of electricity in both directions (from the grid to the customer, and from the customer to the grid).
Here’s How It Works
If you’re interested in selling electricity back to the grid, here how NV Energy calculate your net metering credits:
NV Energy calculates the credits for net metering customers every month. At the end of each billing period, the utility company will determine the customer’s net energy usage. If the customer generated more energy than they used, they will receive credits on their utility bill for the excess energy at the retail energy rate. When the customer uses more electricity than they generate, they draw from the grid and pay for that energy at the same rate.
For example, if a customer generates 100 kWh of electricity in a month but only uses 80 kWh, they will receive credits for the remaining 20 kWh at the same rate they pay for energy from the utility. These credits can be used to offset the cost of energy used from the grid in future months. However, any unused credits will expire at the end of the annual billing period and Nevada has a net metering cap.
Net Metering Laws in Nevada
Net metering laws in Nevada are established by the Public Utilities Commission of Nevada (PUCN) and are implemented by the state’s primary electric utility company, NV Energy. Effective 2017, the Nevada legislature passed Assembly Bill 405 (AB 405), which made significant changes to the net metering laws in the state. The bill established a new net metering rate for customers who adopt solar after the cap is reached. Net metering rate tiers are a key aspect of Nevada’s net metering laws. Often, customers are guaranteed these credits for 20 years. The tiers include:
- TIER 1: Customers who adopt solar before the cap is reached receive credits for excess energy at a rate of 95% of the retail rate.
- TIER 2: Customers adopting solar after the cap is reached but before a certain date receive credits for excess energy at a rate of 88% of the retail rate.
- TIER 3: Customers who adopt solar after the specified date will receive credits for excess energy at a rate of 81% of the retail rate.
- TIER 4: For customers who adopt solar after the specified date, the rate will be 75% of the retail rate.
Note that these rates are subject to change based on the decisions of the Public Utilities Commission of Nevada (PUCN) and the Nevada legislature. Also, the cap for the net metering program is dynamic and changes as more solar generation is added to the grid.
Is Solar Energy Worth It in Nevada?
Net metering is an important policy for promoting the adoption of solar energy and can help to reduce the cost of going solar. If you’re interested in learning more about net metering and how it can benefit you, please contact us today to speak with one of our Energy Consultants.
