The solar tax credit will help you pay for your system. If you work and pay taxes, even if you usually get a refund, you can use this credit.
- GET YOUR HARD-EARNED MONEY BACK! This is the largest, non-income limited tax credit you can get.
- It’s not a deduction. Credits reduce how much you owe in taxes DOLLAR FOR DOLLAR. That means a MUCH BIGGER refund!
- It is 30% of the cost of your system. On a $20,000 system that means $6,000 of your hard earned dollar go right back into YOUR POCKET!
- You can carry over unused credit to future tax years, so you could take a multi-year holiday from taxes.
All of us pay a little bit into this fund each month on our power bills. When you get solar, you’ll receive an upfront cash incentive of up to 20 cents a watt. How much it is depends on how big your system is and how much power it makes. It can be from a few hundred dollars to a few thousand. Robco Electric will reduce the cost of your system by the amount of the rebate. No waiting for a check from NV Energy.
For info on PECs, please see the next section.
What is a PEC?
PECs are Portfolio Energy Credits. When you go solar, you can elect to get PECs or to get an upfront rebate from NV Energy. It’s an either/or choice. You cannot change your mind once your system is approved for install. Each PEC is proof that your system created a certain quantity of renewable power. PECs are a little like a stock certificates. They can go up and down in value as demand changes. Nevada uses PECs as a way to track how much renewable energy is being generated in the state to comply with the Renewable Portfolio Standard. The RPS is a law that says Nevada has to get 25% of its power from Renewable Resources by 2025. NV Energy was allowed to use PECs purchased from customers as one way to meet the RPS. They could also count all solar kilowatt hours fed back into the grid under Net Metering, build renewable power plants of their own, buy renewable power on long term contracts or use energy efficiency programs to reduce overall use in order to comply with the RPS. Nevada PECs have no value outside of Nevada as they can only be traded via the NVTREC website. Learn more here.
In early 2015, NV Energy met and surpassed the RPS goal. They stopped purchasing PECs from customers. Since NV Energy was the ONLY customer for PECs, they currently have no value. If the higher RPS (Question 6 on the November 2018 ballot) passes, PECs may have value again. However, in the 2016 Compliance Report on the RPS, NV Energy showed a SURPLUS of 4,271,814,000 kilowatt hours towards the RPS, it may be quite some time until they need to purchase PECs again – even if the higher RPS passses. There is no way to tell if new energy suppliers under Question 3 would be required to meet the RPS at this time, so again no guarantee they would buy PECs either.
You can still elect to get PECs and bet that they will have value again, however the NV Energy rebate is GUARANTEED dollars, regardless of what happens with the RPS.