Net Metering Tier 2 is filling up fast!
NV Energy offers Net metering on a Tiered system. Right now, the state is in Tier 2 at 88% of retail value buyback. When you go solar, at the end of each month, NV Energy will compare what you used with what you sent back. What you send back wipes out what you used at 100%. Any extra (Excess Energy) is credited on your bill on the KWHA line. This is where it’s banked for later use. For each kilowatt of excess energy you send back during the month, you’ll receive a credit on your bill for 88% of the retail value.
On the bill above, the customer banked 325 kwh for use later. Those kwh were worth $32.90 in credit.
NV Energy Net Metering Tier Update:
Tier 2 net metering is more than 75% full as of 5/8/2019. See the live tracker at: http://puc.nv.gov/Renewable_Energy/Net_Metering/.
A lot of folks ask us if the difference in buyback between Tier 1 and Tier 2 is really that big of a deal? It sounds big … 95% versus 88% …. but is it? To find it out, let’s do a little math. Don’t look at the percentages. Look at the actual difference in value per year.
The average annual kwh total sold back for most residential solar systems is about 5,000 kilowatt hours.
Remember that what you send back wipes out what you use at 100% so you are only receiving buyback on the excess power you send back each month (KWHA on your bill).
NV Energy currently charges .111/kwh.
95% of .111 = .10545 x 1,000 kwh = $105.45 in buy back credits
88% of .111 = .09768 x 1,0000 kwh = $97.68 in buy back credits
The difference between Tier 1 and Tier 2 is $7.77 on each 1,000 kilowatt hours. So for 5,000 kwh, it’s only $38.85.
That’s one dinner out or one movie night. Not a whole lot of money.
As we just mentioned, the Tier is filling up quickly. It will likely be full by early summer. When we drop to Tier 3 at 81%, the math really doesn’t change much.
81% of .111 = .08991 x 1,0000 kwh = $89.91 in buy back credits
The difference between Tier 1 and Tier 3 is $15.54 on each 1,000 kilowatt hours or $77.70 on 5,000 kwh.
BOTTOM LINE: The differences in buyback percentages between the Tiers is NOT a good reason to delay going solar… especially with the 30% tax credit going down at the end of this year.