NV Energy Net Metering in 2021 and Beyond
Net metering allows solar-powered homeowners to sell their excess solar production to their utility. The customers can then purchase power from the utility when their array isn’t producing.
Ideally, power taken off and put on the grid would have the same rates. However, some utility companies have determined that 1-to-1 metering ratios aren’t in their favor.
Since 2017, NV Energy has used a tiered net metering system. This system gradually reduces the rate customers can earn for their solar production.
Assembly Bill 405: Tiers and Caps
In 2015, Nevada utility regulators eliminated net metering; destroyed residential solar. Since then, the Nevada legislature has walked back from these policies, allowing energy users to access net metering through Assembly Bill 405.
AB 405 ensures renewable energy users receive reimbursement for their excess energy production through tiered utility payments. This system gradually transitions solar-generator rates from 95 percent to 75 percent of the retail rate.
What Nevada Rate Tiers Have Done for Nevadans
Since the new tiered rate structure implementation, hundreds of homeowners have added solar to their homes. These rate tiers have allowed individuals to add solar and ensure their solar savings over the next 20 years.
Additionally, Nevadans who add solar under one of these tiers receive a one-for-one credit on exported solar equivalent to the power the customer pulled from the grid during the month. This piece of Nevada’s net metering policy allows it to function as a solar backup option.
However, each year residential solar has hit the tier cap, NV Energy lowers the rate solar customers receive from their net excess solar energy. In 2020, customers hit the third tier’s capacity, making 2021 the first full year of the last net metering rate tier.
NV Energy Net Metering Rate for 2021
Nevada Energy’s net metering rate in 2021 equals 75 percent of the retail rate. Like the previous tiers, customers who sign up for net metering under tier four keep this rate for 20 years.
However, unlike the others, this tier doesn’t have a cap. Instead, Nevadans have a guaranteed rate of 75 percent unless legislative action modifies it.
The vagueness of the last net metering tier could mean the current rate continues over several years or changes in the next couple of months. The uncertainty of this tier makes adding solar, while NV Energy still offers 75 percent net metering, a smart financial decision for Nevada homeowners looking into solar.
How to Apply for Tier-4 NEM Through NV Energy
To apply for Tier-4 net metering, the homeowner or contractor first installs the solar array and has it inspected by the city or county. After this local inspection, homeowners or the contractor can apply through PowerClerk for net metering.
Once approved, NV Energy will install a bidirectional meter, and the homeowner can start using the solar array. Go Solar Group takes care of the application and inspection processes for their customers.
Nevada’s Net Metering Future
While Nevada’s net metering future isn’t certain, those who purchase solar now will have the same net excess generation rate for 20 years. Additionally, those who invest in battery backup can store all their excess generation.
Potential Net Metering Fluctuations: Solar Storage Solution
The best way to protect against potential net metering fluctuations is to add solar storage. While the market has several different options, battery backup has proven the best choice for residential solar.
Go Solar Group offers three battery backup options. These options allow our customers to customize their storage to their energy needs.
We offer portable and emergency battery backup through Goal Zero. We also carry Tesla’s home battery, a form of whole-house battery backup for those who want a greater degree of solar-generated power continuity independent of the grid. These options allow homeowners to choose whether they want to power their entire home or just the essentials.