Nevada Solar Incentive Programs

Nevada ranks #6 in total installed capacity and has an impressive 32% of its electricity generated by solar. Almost 17% of homes have solar panels, and the state’s utility-scale solar market has been booming since 2021. As for Nevada solar incentives, there aren’t many available to Nevada homeowners, but the state did implement new net metering policies in 2017 that are more friendly to homeowners. 

However, with 250-300 sunny days per year, there is plenty of solar resource for homeowners to take advantage of. Nevada ratepayers have enjoyed the lowest percent change in electric rate in the country over the last ten years, with rates only increasing 6.19% from 2014-2024. 

Below, we’ll discuss some of the Nevada solar incentives available to homeowners. The full list of incentives for Nevada.

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. 

State Incentives & Programs

Portfolio Energy Credits

The only Nevada solar incentive available to residential systems in Nevada is a Portfolio Energy Credit (PEC) Trading program. Similar to SRECs in other states, homes with solar with submit an application to track PECs and sell them to utilities in the state to help them meet Nevada’s Renewable Portfolio Standard. The RPS in Nevada targets 50% renewable energy by 2030. 

Solar energy systems generate one PEC per kWh of energy generated. Systems installed in 2015 and before can generate 2.4 PECs per kWh. Those systems are also eligible for multipliers based on when they generate energy. The value of a PEC is market-driven rather than flat, so the value a home can receive varies.

Commercial and Utility-Scale Incentives

One of the reasons Nevada has such a booming commercial and utility-scale solar market is that many Nevada solar incentives in the state are only available to commercial and utility-scale installations. These projects can receive:

• Property Tax Exemptions
• Sales and Use Tax Abatements
• PACE Financing

Net Metering

Nevada is an interesting case study for a government reversing course in order to enact positive change in a market. In 2015, the Nevada legislature changed rules governing net energy metering policies that reduced the benefit for any power excess sent to the grid. The state’s solar installation volume dropped dramatically, and in 2017, the Public Utilities Commission of Nevada reinstated provisions to bring net metering back. 

Since then, the Nevada solar market, especially in utility-scale, has been growing substantially and shows signs of continued growth. 

The order by the Public Utilities Commission guarantees rooftop solar system owners are netted electricity monthly and credited between 75%-95% of the retail value for any power sent back out to the electric grid. 

The Future of Solar in Nevada

Nevada solar will only continue to grow due to the abundance of sunshine available to consumers. Large-scale solar installations already make up a massive percentage of Nevada’s energy mix and are helping to keep energy rates low for ratepayers. If some of the Nevada solar incentives available to commercial solar systems become available to the residential sector, we’ll likely see a boom in residential solar in Nevada.