Are you a Nevada homeowner interested in going solar but worried about the upfront costs? You‘re not alone. While installing a solar energy system requires an initial investment, there are many ways to save and make going solar more affordable than ever in 2022.
In this guide, we‘ll break down all the money-saving solar incentives, tips, and strategies you need to know as a Nevada resident. With its abundant sunshine and supportive policies, Nevada is one of the best places in the U.S. for homeowners to make the switch to clean, renewable energy.
By going solar in Nevada, you can dramatically reduce or even eliminate your electric bills, increase your property value, and contribute to a more sustainable future. The average Nevada homeowner can save $17,000 or more over 25 years by installing solar panels.
So let‘s dive in and explore all the ways you can save money when going solar in Nevada this year!
Take Advantage of the 26% Federal Solar Tax Credit
The single biggest solar incentive currently available is the federal solar investment tax credit (ITC). This allows you to deduct 26% of your solar installation costs, including equipment and labor, from your federal taxes. There‘s no cap on the size of the system that qualifies.
For example, if your solar panel system costs $20,000, you‘d be able to claim a $5,200 credit when you file your federal tax return. The ITC was recently extended by Congress and will remain at 26% through 2022. It is scheduled to drop to 22% in 2024 and expire in 2024 unless renewed.
To be eligible, you must own your solar energy system, either purchased with cash or through financing. Leased systems do not qualify. You must also have sufficient tax liability to claim the full credit in one year. However, you can roll over any remaining credits to future years.
According to EnergySage, the 26% federal ITC reduces the average cost of a solar panel system in Nevada from $2.64 per watt to $1.96 per watt. This equates to over $5,000 in savings on the typical 6 kW home solar installation in the state.
Net Metering Ensures You Get Credited for Excess Solar Energy
Nevada has one of the most favorable net metering policies in the country for solar homeowners. All utility companies are required to offer net metering to their customers.
Here‘s how it works: When your solar panels produce more energy than your home needs, the excess power is sent to the utility grid. The utility company then credits you for that energy at near the full retail rate you normally pay for electricity.
Those credits roll over and are applied to your future electric bills. Currently, Nevada solar homeowners are credited at 75% of the retail electricity rate. While that‘s slightly lower than the previous policy of being credited at 100% of the retail rate, it‘s still much higher than many other states that have reduced or eliminated net metering.
Nevada‘s net metering policy helps you maximize your solar savings and significantly shorten your payback period. It‘s a key reason why the state ranks 6th in the country for solar energy capacity.
Get Tax Breaks through Nevada‘s Renewable Energy Tax Abatement
Nevada offers property tax and sales tax breaks for solar energy systems through its Renewable Energy Tax Abatement (RETA) program. This can further reduce the cost of going solar and increase your long-term savings.
With RETA, you are exempt from paying any sales tax on your solar equipment and installation costs. For a $20,000 system, that‘s an immediate savings of over $1,600 based on Nevada‘s sales tax rate of 8.1%.
RETA also makes you exempt from any additional property taxes associated with the increased home value from your solar installation. On average, solar panels increase a Nevada home‘s value by 4.1%, according to Zillow. For a $300,000 home, that‘s a premium of $12,300. At Nevada‘s effective property tax rate of 0.57%, that would normally result in paying an extra $72 per year in property taxes.
But with the RETA exemption, you don‘t pay any extra property taxes on that solar-related home value increase. Those savings add up over the 25+ year lifespan of your system while still getting the benefit of a higher resale value.
Compare Multiple Quotes to Get the Best Deal
One of the most effective ways to save money on going solar is simply to compare multiple offers from different installation companies. Get quotes from at least 3-5 local solar installers to find the best overall value.
When comparing quotes, don‘t just look at the total cost. Also consider:
- Cost per watt
- Quality of the equipment (panels and inverters)
- Warranty coverage and length
- Financing options and terms
- Years in business and customer reviews
Getting multiple competitive bids ensures you‘re getting a fair price and not overpaying for your solar installation. A difference of just 10 cents per watt can add up to $600 in savings on a 6 kW system.
Most reputable solar installers offer free quotes. You can use online solar marketplaces like EnergySage to easily get and compare quotes from pre-screened installers in your area.
Right-Size Your System
Another way to save money when going solar is to be strategic about the size of your system. Don‘t fall into the trap of getting sold more solar panels than you actually need.
Your solar installer should provide an analysis of your past energy usage and help determine how much of your electric needs you want to offset with solar. Generally, most homeowners aim to offset at least 80-100% of their usage to maximize savings.
Overestimating and getting an oversized system results in higher costs. At the same time, underestimating and installing too few panels means your savings won‘t be as high. That‘s why you want a system that‘s tailored to your specific needs.
Keep in mind, your energy usage may change over time as your family size or habits change. Most solar panels last 30 years or more, so consider your future anticipated usage too. A knowledgeable solar installer can help with "right-sizing" your system for both your current and future needs.
Go Solar Sooner Rather Than Later
If you‘ve been considering solar panels for your Nevada home, sooner is better than later to make the switch. That‘s because many of the best solar incentives are time-sensitive and will be decreasing in the coming years.
As mentioned, the 26% federal tax credit is only available through the end of 2022. It drops to 22% in 2024 and is scheduled to go away completely in 2024 unless extended by Congress.
Similarly, net metering policies are always evolving and there‘s no guarantee Nevada will continue to offer such favorable rates. In the past, utilities have tried to reduce compensation for solar customers.
Utility electricity rates also tend to rise over time. So the sooner you install solar panels, the more you can save by avoiding those rising costs. According to the U.S. Energy Information Administration, residential electricity prices in Nevada have increased by about 21% over the past 10 years.
In addition, solar panel costs are at an all-time low but may not stay that way forever due to supply chain issues and rising raw material costs. Getting your system installed in 2022 can help you lock in the best deal.
Consider Low-Interest Financing
While paying for solar panels in cash offers the highest savings and shortest payback period, that‘s not feasible for all homeowners. Luckily, there are many low-interest solar financing options to help make your installation more affordable.
Many solar installers partner with lenders to offer solar loans at rates significantly lower than standard personal loans or credit cards. Some offer promotional rates as low as 0-2% APR for the first 12-18 months.
Because you‘re using the solar panels and energy savings to pay back the loan over time, your monthly payments may not be much higher than your current electric bill, or even less. Plus, you still get to take advantage of incentives like the federal tax credit to reduce your overall costs.
Some popular solar loan options include:
- Solar-specific loans from specialty lenders like Mosaic or Sunlight Financial
- Home equity loans or lines of credit
- FHA Title 1 home improvement loans
- Personal loans from a bank or credit union
Be sure to consider the total cost over the life of the loan, including interest and fees. Also pay attention to whether the interest rate is fixed or variable. Fixed rates offer peace of mind while variable rates may be lower to start but increase over time.
Another option is solar leasing or PPAs, where a company installs panels on your roof for little to no money down and then sells you the electricity they produce at a fixed rate lower than the utility‘s. However, you don‘t own the panels and won‘t qualify for as many incentives and savings as with purchasing.
The Bottom Line: Going Solar Pays Off in Nevada
There‘s never been a better time to go solar in Nevada. Between plentiful sunshine, lower panel costs, and generous state and federal incentives, most homeowners can expect to save tens of thousands of dollars over the life of their system.
To recap, here are the key ways to save money when going solar in Nevada in 2022:
- Claim the 26% federal tax credit
- Participate in net metering to maximize energy savings
- Take advantage of Nevada‘s sales and property tax exemptions
- Compare quotes to ensure you‘re getting the best deal
- Right-size your system for your needs
- Act before incentives decrease or expire
- Utilize low-interest solar financing
With these strategies, you can make your solar installation as affordable as possible while still reaping all the benefits of generating your own clean energy. Most Nevadans find their investment pays for itself in 10 years or less—and continues to provide free electricity for decades to come.
So what are you waiting for? See how much you can save by going solar in Nevada today!
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