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What solar incentives are available in Nevada?
As a homeowner in Nevada, you have access to several different tax incentives that make solar panels more affordable. Solar incentives are available at both the federal and state levels to help you save thousands on your investment in solar energy.
Solar Calculator is here to help you take the next step in your transition to renewable energy. Below, we’ll discuss some of the different ways you can make solar more affordable.
Federal solar incentives
As part of the Inflation Reduction Act of 2022, congress passed several clean energy provisions to reduce energy costs. Among those provisions was an extension and upgrade of the Federal Investment Tax Credit (ITC).
Federal Investment Tax Credit
The Federal ITC allows you to claim 30% of your total equipment and installation costs on your federal taxes. There is no minimum or maximum amount you can claim and it includes equipment, installation, permitting, and even battery storage.
The ITC will remain at 30% until December 31, 2032. After that it will be reduced to 26% until December 31, 2033, then to 22% the following year. The ITC is currently set to disappear in 2035 unless it is renewed.
Who is eligible for the Federal ITC?
Most homeowners will qualify for the Federal ITC, but not all. You must meet the following criteria to claim your 30% tax credit:
The Federal ITC will also cover the following expenses:
Homeowners save around $10,000 on average with the Federal ITC. But that number can be higher or lower depending on your total expenses.
How to claim the Federal ITC
Claiming your Federal ITC couldn’t be easier. All you have to do is fill out IRS form 5695 and submit it with your tax return. You can consult with a tax professional for more assistance.
Local solar incentives
Who’s eligible : Commercial, Industrial, Investor-Owned Utility, Municipal Utilities, Cooperative Utilities, Agricultural
How to apply : Note: S.B. 448 of 2021 extended this property tax abatement to include energy storage systems paired with eligible renewable energy systems. New or expanded businesses in Nevada may apply to the Director of the State Office of Energy for a sales and use tax abatement for qualifying renewable energy technologies. The purchaser is only required to pay sales and use taxes imposed in Nevada at the rate of 2.6%. The abatement is valid for three years beginning with the approval of the application. The abatement applies to property used to generate electricity from renewable energy resources including solar, wind, biomass*, fuel cells, geothermal or hydro. Generation facilities must have a capacity of at least 10 megawatts (MW). Facilities that use solar energy to generate at least 25,840,000 British thermal units of process heat per hour can also qualify for an abatement. There are several job creation and job quality requirements that must be met in order for a project to receive an abatement. Depending on the population of the county or city where the project will be located, the project owners must: Employ a certain number of full-time employees during construction, a percentage of whom must be Nevada residents Ensure that the hourly wage paid to the facility's employees and construction workers is a certain percentage higher than the average statewide hourly wage Make a capital investment of a specified amount in the state of Nevada Provide the construction workers with health insurance, which includes coverage for the worker's dependents AB 239 (2013) provided additional criteria for considering projects eligible. Note that this exemption does not apply to residential property, or property that is owned, operated, leased or controlled by a governmental entity. History This abatement went through significant revisions with AB 522, signed in May 2009. Notably, AB 522 raised the capacity minimum for eligible projects from 10 kilowatts (kW) to 10 MW. It also changed the abatement such that the purchaser is only required to pay sales and use taxes imposed in Nevada at the rate of 2.6 % (effective through June 30, 2011) and at the rate of 2.25 % (effective July 01, 2011 - June 30, 2049), extended it to additional technologies, and increased the qualification requirements to ensure that incentivized projects result in more high quality jobs. These changes took effect on July 1, 2009. AB 522 also created a property tax abatement for renewable energy producers. In 2013, SB 475, a broad tax extender bill, extended the 2.6% tax rate through 2015, and in 2015, SB 483 extended the 2.6% rate indefinitely. *Biomass is defined as any organic matter that is available on a renewable basis, including, without limitation, agricultural crops and agricultural wastes and residues; wood and wood wastes and residues; animal wastes; municipal wastes; and aquatic plants.
Who’s eligible : Commercial, Industrial, Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
How to apply : Note: S.B. 448 of 2021 extended this property tax abatement to include energy storage systems paired with eligible renewable energy systems. New or expanded businesses in Nevada may apply to the Director of the State Office of Energy for a property tax abatement of up to 55% for up to 20 years for real and personal property used to generate and store electricity from renewable energy resources including solar, wind, biomass*, fuel cells, geothermal or hydro. Generation facilities must have a capacity of at least 10 megawatts (MW), and must plan to be in operation for at least 10 years. Facilities that use solar energy to generate at least 25,840,000 British thermal units of process heat per hour can also qualify for an abatement. There are several job creation and job quality requirements that must be met in order for a project to receive an abatement. Depending on the population of the county or city where the project will be located, the project owners must: Employ a certain number of full-time employees during construction, a percentage of whom must be Nevada residents Ensure that the hourly wage paid to the facility's employees and construction workers is a certain percentage higher than the average statewide hourly wage Make a capital investment of a specified amount in the state of Nevada Provide the construction workers with health insurance that includes coverage for the worker's dependents Note that this exemption does not apply to residential property. A facility that is owned, operated, leased or controlled by a governmental entity is also ineligible for this abatement. History This abatement has gone through revisions since its original inception. Most significantly, AB 522, signed in May 2009, raised the capacity minimum for eligible projects from 10 kilowatts (kW) to 10 MW. It also increased the abatement from 50% for 10 years to 55% for 20 years, extended it to additional technologies, and increased the qualification requirements to ensure that incentivized projects result in more high quality jobs. These changes took effect on July 1, 2009. AB 522 also created a sales and use tax abatement for renewable energy producers. *Biomass is defined as any organic matter that is available on a renewable basis, including, without limitation, agricultural crops and agricultural wastes and residues; wood and wood wastes and residues; animal wastes; municipal wastes; and aquatic plants.
Who’s eligible : Commercial, Industrial, Agricultural
How to apply : Renewable energy systems which serve a commercial or industrial building or irrigation system are exempt from property taxes. Qualified equipment includes solar, wind, geothermal, solid waste and hydroelectric systems used to heat or cool a building, heat or cool water used by a building, or generate electricity used by the building. S.B. 426 of 2011 clarified that a system installed on one or more buildings and supplying energy to adjacent buildings or an irrigation system in an agricultural operation is eligible for the exemption. This exemption applies for all years following installation. The renewable energy property tax exemption cannot be claimed if another state tax abatement or exemption is claimed by the same building.
Who’s eligible : Commercial
How to apply : Note: The Federal Infrastructure Investment and Jobs Act (IIJA) created the National Electric Vehicle Infrastructure (NEVI) Formula Grant Program with a total budget of $5 billion. Each state was allocated a share of that total to help build out a national network of electric vehicle charging stations along designated alternative fuel corridors (AFCs). With some limited exceptions, EV charging stations funded through the NEVI program should be spaced 50 miles apart and within one mile of the Interstate exit or highway. The Nevada Department of Transportation (NDOT) is the lead agency for Nevada's NEVI Plan. Nevada's initial NEVI Plan was submitted to the federal Joint Office of Energy and Transportation in July 2022, and its 2023 Update was submitted in August 2023. Nevada's goal is for all interstates in Nevada to achieve “Fully Built-Out” status. In years 1 and 2, NDOT approved two new stations in collaboration with NV Energy’s Transportation Electrification Programs, and upgrades at three existing rural stations. In year 3, NDOT plans to make NEVI funds available to private partners through grant opportunities. Interested parties should visit NDOT's website and sign up for NDOT's NEVI Program Partnering Directory.
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Multifamily Residential, Low Income Residential
How to apply : Nevada's original net-metering law for renewable-energy systems was enacted in 1997 and amended in 2001, 2003, 2005, 2007, 2011, 2013, 2015, and 2017. Systems up to one megawatt (MW) in capacity that generate electricity using solar, wind, geothermal, biomass and certain types of hydropower are generally eligible, although systems greater than 25 kilowatts (kW) in capacity may be subject to certain costs at the utility's discretion. Systems must be designed to offset part or all of a customer-generator's electricity requirements. A system is not eligible for net metering if its generating capacity exceeds the greater of (1) the limit on demand that the class of customer of the customer-generator may place on the utility's system, or (2) 100% of the customer's annual electricity demand.
Can you claim multiple tax incentives in Nevada?
Yes. You are allowed to claim multiple solar incentives for the same installation. However, you can only claim each incentive once. For more guidance on how to claim your solar tax incentives, talk to your installer or consult with a licensed tax professional before submitting your tax forms.
Does Nevada offer tax exemptions?
Sales Tax Incentive
Category : Financial Incentive
Website : http://energy.nv.gov/Programs/Renewable_Energy_Tax_Abatements/
Applicable Sectors : Commercial, Industrial, Investor-Owned Utility, Municipal Utilities, Cooperative Utilities, Agricultural
Incentive Amount : Purchaser is only required to pay sales and use taxes imposed in Nevada at the rate of 2.6%
Implementing Sector : State
Property Tax Incentive
Category : Financial Incentive
Website : http://energy.nv.gov/Programs/Renewable_Energy_Tax_Abatements/
Applicable Sectors : Commercial, Industrial, Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount : 55% abatement for 20 years.
Implementing Sector : State
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial, Agricultural
Incentive Amount : 1
Implementing Sector : State
Category : Financial Incentive
Website : http://energy.nv.gov/Programs/Green_Building_Tax_Abatements/#:~:text=Nevada%20provides%20a%20partial%20property,meet%20certain%20green%20building%20standards.
Applicable Sectors : Commercial, Industrial, Multifamily Residential
Incentive Amount : New Buildings LEED Silver: 25% reduction of the property tax payable each year LEED Gold: 30% reduction of the property tax payable each year LEED Platinum: 35% reduction of the property tax payable each year Renovations to existing buildings used by a manufacturer LEED-EB Silver: 25% reduction of the property tax payable each year LEED-EB Gold: 30% reduction of the property tax payable each year LEED-EB Platinum: 35% reduction of the property tax payable each year
Implementing Sector : State
Grant Program
Category : Financial Incentive
Website : https://www.dot.nv.gov/mobility/alternative-fueling-infrastructure-plan
Applicable Sectors : Commercial
Incentive Amount : Varies, grants are awarded competitively
Implementing Sector : State
Net Metering
Category : Regulatory Policy
Website : http://puc.nv.gov/Renewable_Energy/Net_Metering/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Multifamily Residential, Low Income Residential
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website : https://vea.coop/applications/net-metering/
Applicable Sectors : Commercial, Industrial, Residential, Agricultural
Incentive Amount :
Implementing Sector : Utility
Energy Standards for Public Buildings
Category : Regulatory Policy
Website :
Applicable Sectors : State Government
Incentive Amount :
Implementing Sector : State
Interconnection
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government
Incentive Amount :
Implementing Sector : State
Rebate Program
Category : Financial Incentive
Website : https://www.swgas.com/en/rebates-and-promotions-search-business-nevada
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government
Incentive Amount : Whole-Home Tankless Water Heater: $225 Conveyor Oven: $750 Convection Oven: $500 Combi Oven: $1,000 Fyrer: $750 Pre-Rinse Sprayer Valve: $30 Furnace: $225 - $275 Commercial Tankless Water Heater: $1,450 Solar Water Heating: Varies by entity, see websitefor details
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.nvenergy.com/save-with-powershift
Applicable Sectors : Residential, Low Income Residential
Incentive Amount : Heating and Cooling Smart Thermostat: Free Central A/C: $340 - $3,060 Air Source Heat Pump: $510 - $3,400 Ductless Heat Pump: $1,360 - $2,720 Heat Pump Water Heater: $400 A/C Tune-Up: $200 - $300 Lighting and Controls Screw-in LED Lighting: $2.00 per light bulb OCC Sensor: $10.00/unit Smart Switch: $10.00/unit Smart Plug/Switch: $10.00/unit Engine Block Heater Controls: $150.00/unit Water and Cooling Low Flow Showerhead: $15.00/unit Water Heater Blankets: $25.00/unit Evaporative Cooler: $150/unit Weatherization Weather Stripping: $0.25/linear foot Ducting Sealing + Insulation: $400 Duct Sealing: $200 Wall Insulation: $0.25/sq. ft Attic Insulation: $0.25/sq. ft Floor Insulation: $0.25/sq. ft Energy Assessment: Free
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.swgas.com/en/rebates-and-promotions-search-residential-nevada
Applicable Sectors : Residential
Incentive Amount : Water Heating: $225 Solar Water Heating: $13 -$19/therm
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.swgas.com/en/rebate/nevada-solar-water-heating-homeowner-renter
Applicable Sectors : Commercial, Local Government, Nonprofit, Residential, State Government
Incentive Amount : Varies based on program "step" - see program website.
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.nvenergy.com/cleanenergy/renewable-energy-incentives/solar-heating
Applicable Sectors : Residential
Incentive Amount : Residential: Up to $3,000 Small Business: Up to $7,500 School: Up to $30,000 Public/Nonprofit: Up to $30,000
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.nvenergy.com/save-with-powershift/business-energy-services
Applicable Sectors : Commercial, Construction, Industrial, Local Government, Nonprofit, State Government, Federal Government, Installers/Contractors, Agricultural, Institutional
Incentive Amount : Retrofit Incentives Full list of incentives availalbe here Lighting: Varies Occupancy Sensors: $4-$30 Daylighting Sensors: $0.10/W Controlled Commercial Cooking Equipment: Varies by equipment type Ventilation Control: $300-$350/HP Vending Machine Controls: $90/unit Snack Machine Controls: $15/unit Floating Head Pressure Controls: $35/HP Freezers: $60 - $200 Refrigerators: $50 - $125 Ice Machines: $50 - $500 Transformer and UPS: Varies VSD Pool Pump: $150/HP Escalator Motor Controls: $20/HP VSD Air Compressor Replacement: $45/HP Compressed Air Engineered Nozzles: $10/unit Battery Chargers: $225/unit Demand Control Ventilation: $90/HP (parking garage), $50/1,000 sq. ft. (interior spaces) Irrigation Equipment: $2.00-$3.50/unit Air Conditioners/Heat Pumps: $8-$50/ton Programmable Thermostat: $25/unit Window Film: $0.70/sq. ft. VSD on HVAC Fans and Pumps: $50/HP Air Side Economizers: $25/ton Custom: $0.05/kWh New Construction Incentives Tier 1: $0-$100,000 = 100% Tier 2: $100,001-$500,000 = 50% Tier 3: $500,001-$1,000,000 = 20% Tier 4: $1,000,001+ = 10%
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.nvenergy.com/save-with-powershift/business-energy-services
Applicable Sectors : Commercial, Construction, Industrial, Local Government, Nonprofit, State Government, Federal Government, Installers/Contractors, Agricultural, Institutional
Incentive Amount : Retrofit Incentives Full list of incentives availalbe here Lighting: Varies Occupancy Sensors: $4-$30 Daylighting Sensors: $0.10/W Controlled Commercial Cooking Equipment: Varies by equipment type Ventilation Control: $300-$350/HP Vending Machine Controls: $90/unit Snack Machine Controls: $15/unit Floating Head Pressure Controls: $35/HP Freezers: $60 - $200 Refrigerators: $50 - $125 Ice Machines: $50 - $500 Transformer and UPS: Varies VSD Pool Pump: $150/HP Escalator Motor Controls: $20/HP VSD Air Compressor Replacement: $45/HP Compressed Air Engineered Nozzles: $10/unit Battery Chargers: $225/unit Demand Control Ventilation: $90/HP (parking garage), $50/1,000 sq. ft. (interior spaces) Irrigation Equipment: $2.00-$3.50/unit Air Conditioners/Heat Pumps: $8-$50/ton Programmable Thermostat: $25/unit Window Film: $0.70/sq. ft. VSD on HVAC Fans and Pumps: $50/HP Air Side Economizers: $25/ton Custom: $0.05/kWh New Construction Incentives Tier 1: $0-$100,000 = 100% Tier 2: $100,001-$500,000 = 50% Tier 3: $500,001-$1,000,000 = 20% Tier 4: $1,000,001+ = 10%
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.nvenergy.com/business/saveenergy/incentives/schools.cfm
Applicable Sectors : Schools
Incentive Amount : Incentives are $0.05 per first-year kWh savings for all projects and cannot exceed project costs. Pre-notification is required for all projects. Funds are available January through December or until exhausted.
Implementing Sector : Utility
PACE Financing
Category : Financial Incentive
Website : https://energy.nv.gov/Resources/Property_Assessed_Clean_Energy_(PACE)/
Applicable Sectors : Commercial, Industrial
Incentive Amount :
Implementing Sector : State
Renewables Portfolio Standard
Category : Regulatory Policy
Website : http://puc.nv.gov/Renewable_Energy/Portfolio_Standard/
Applicable Sectors : Investor-Owned Utility, Retail Supplier
Incentive Amount :
Implementing Sector : State
Energy Storage Target
Category : Regulatory Policy
Website :
Applicable Sectors : Investor-Owned Utility
Incentive Amount :
Implementing Sector : State
Solar/Wind Access Policy
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government
Incentive Amount :
Implementing Sector : State
Generation Disclosure
Category : Regulatory Policy
Website :
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount :
Implementing Sector : State
Building Energy Code
Category : Regulatory Policy
Website : http://bcap-ocean.org/state-country/nevada
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Performance-Based Incentive
Category : Financial Incentive
Website : https://www.nvtrec.com
Applicable Sectors : Commercial, Industrial, Investor-Owned Utility, Local Government, Nonprofit, Municipal Utilities, Residential, Cooperative Utilities, Schools, State Government, Federal Government, Tribal Government, Agricultural, Institutional
Incentive Amount : Varies; higher value for solar PECs than other technologies
Implementing Sector : State
Appliance/Equipment Efficiency Standards
Category : Regulatory Policy
Website : https://climateaction.nv.gov/policies/appliance-efficiency/
Applicable Sectors :
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website :
Applicable Sectors :
Incentive Amount :
Implementing Sector : State
Solar/Wind Contractor Licensing
Category : Regulatory Policy
Website : http://www.nscb.state.nv.us
Applicable Sectors : Installers/Contractors
Incentive Amount :
Implementing Sector : State
What is the best way to pay for solar?
Cash payments
Paying cash upfront is easily the simplest and most cost-effective route — if you can afford it. It lets you maximize your total savings by avoiding interest rates and other fees. You also don’t have to worry about making monthly payments. But the downside is you have to spend a lot of cash at once which isn’t an option for everyone.
Pros
Cons
Financing
Financing solar panels is probably the most common payment method. You get to own the system — as opposed to leasing — but you don’t have to spend all your cash at once. And although you do have to pay interest, you can secure a fairly low interest rate as long you have good credit.
Pros
Cons
Solar leases and PPA agreements
If purchasing solar equipment isn’t an option for you, a lease or a PPA may be worth exploring. This is where you are essentially “renting” the equipment for a fixed rate each month. And although you don’t have ownership of your system, there are other benefits such as maintenance and servicing agreements.
Pros
Cons
Going solar doesn’t have to break the bank
Going solar is becoming more affordable than ever. And thanks to a variety of solar incentives in Nevada, you can save thousands more on your investment.
Want to get an idea for what it will cost you to go solar? You can use our solar cost calculator to generate a customized estimate instantly. We take into consideration a wide range of criteria including location, electric bill, roof size, and other factors. Try it out today and start planning for your future.
