As renewable solar energy starts to make its way into our everyday lives, I am frequently asked by consumers what rebates and solar incentives in Las Vegas are available to help offset the initial cost of “Going Green.” There are hundreds of programs around the United States that can help lower the cost, but few are available here in Southern Nevada. Here in Las Vegas, there are four main solar incentives that can reduce the cost of solar for consumers. The four incentives are: 30% Federal Tax Credit, Portfolio Energy Credits (PEC’s), Property Tax Abatement, and the NV Energy Solar Generations Program. Let’s tackle these incentives one at a time.
30% Solar Federal Tax Credit
A federal tax credit of 30% is available for tax payers who install a solar PV system on their home. The credit is available until the end of 2016. This credit is filed for the following year after the system has been put into service. This is a dollar for dollar tax credit, not a deduction of taxable income. This amounts to a huge potential savings on the cost of a solar system, frequently in the realm of thousands of dollars. Please contact your tax advisor to make sure that you can utilize the credit. If you cannot utilize all the credit in one year, the remaining balance will carry forward year after year until you have utilized the full credit. Everybody’s tax situation is different, so talk with your accountant to be sure. All the information on this tax credit can be found on IRS form 5695. You can find form 5695 by clicking below:
Portfolio Energy Credits (PEC’s)
Portfolio Energy Credits or PEC’s are a second form of potential income from a solar system in Nevada. These credits are better known as Renewable Energy Certificate (REC’s) outside of the state of Nevada. These credits are generated every time power is created (or offset) from a renewable source. These credits are issued by the Public Utility Commission of Nevada. They will issue one credit for every kWhr of electricity your solar system produces. There is an extra multiplier specifically for PV solar systems. You will receive a multiplier of 2.4 for Solar PV PEC’s. What does this mean in terms of actual value of these PEC’s? Every year for the last couple of years, NV Energy has offered to buy PEC’s off of customers here in Nevada. They have been offering to buy them at 2.5 cents per PEC. That works out to around 6 cents per kWhr that your system produces.
For example, if your Vegas solar system produces 10,000 kWhr in a year, you would receive 10,000 PEC’s. Since the power was produced from a PV solar system, you would receive the 2.4 multiplier. That would work out to 24,000 PEC’s in a year. NV Energy has been offering 2.5 cents per PEC. If you have 24,000 PEC’s worth 2.5 cents each that would total $600 per year in extra value.
If NV Energy does not purchase PEC’s in the future, there are opportunities to sell these credits outside of the state. These credits can be sold in Colorado, Kansas, Missouri, North Carolina, California (with restrictions) and Oregon (with restrictions).
The Public Utility Commission of Nevada controls all PEC’s administered within the state. If you would like more information, feel free to contact Mark Harris with the PUC at email@example.com.
Property Tax Abatement
Adding a solar system that offsets a portion (if not all) of your electric bill will add value to your house. How much value? That depends on who you talk to, but everybody agrees that it will add some sort of value to your property. Typically speaking, adding any value to your property would increase your property taxes. With a solar system, the state of Nevada has put into place a property Tax Abatement. This means that even though the value of your property has increased because of your solar system, your property taxes will not increase. The information covering all of this solar tax credit can be found in Nevada Senate Bill 426 or you can go to the link below:
NV Energy Solar Generations Program
The NV Energy Solar Generations program is available to any customer served by NV Energy. NV Energy has a certain amount of money available every year to give out for solar rebates in Las Vegas. The program is typically open for about 3 weeks a year. During those 3 weeks, NV Energy accepts applications for the rebate. Once they have accepted all the applications, they hold a “lottery” to determine who is awarded a rebate. Basically, they draw names out of a hat until all the Las Vegas rebate funds are used up for that year. Historically speaking, there is about a 25% chance of receiving a rebate. The current rebate level for 2013 is $1.25 per AC Watt. If you install a 5 kW AC system, you rebate from NV Energy would be $6,250. This is a great program for those who are lucky enough to win the “lottery”. If you are awarded a solar rebate from NV Energy, you assign your PEC’s over to NV Energy for the life of the system. You can find more information about their rebate program at:
These solar incentives Las Vegas stimuli are available to help reduce the financial costs of installing a solar system here. In some cases, they can reduce the cost by over 50%. For the first time in history, solar is financially a great investment. Over the 25 year life of a system, your average return on investment will be in between 10-15%. Plus, there is always the added benefit of helping the environment by relying on clean green energy.
If you need more information or have any questions about the available incentives and solar credits in Las Vegas, then feel free to call or email us at Robco Electric, a leader in Green Source Energy. We are a solar contractor based right here in Las Vegas. We can be reached at (702) 614-4900 or send an email to firstname.lastname@example.org.