In Nevada, you get some help going solar. Your system will qualify for the federal tax credit, the NV Energy Solar Generations Rebate or NV PECs.

The federal tax credit for solar will help you pay for your system. If you work and pay taxes, even if you usually get a refund, you can use this federal tax credit.

  • GET YOUR HARD-EARNED MONEY BACK! This is the largest, non-income limited tax credit you can get.
  • 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!
  • It’s not a deduction. Credits reduce how much you owe in taxes DOLLAR FOR DOLLAR, not how much money you pay taxes on. That usually means a MUCH BIGGER refund!
  • You can carry over unused credit to future tax years, so you could take a multi-year holiday from taxes.
  • If you lease the system, the federal tax credit and rebate go to the system owner – not you! Learn more about leasing here.

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 dollars. Some installers have you file for the rebate, submit the 1099 and wait for 12 weeks to get your money back. Robco Electric will reduce the cost of your system by the amount of the rebate. No waiting for a check from NV Energy and no paying taxes on that money.

If you lease the system, the federal tax credit and rebate go to the system owner – not you! Learn more about leasing here.

You may forgo the rebate and elect to keep your Portfolio Energy credits instead. 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 Net Metering. Each PEC is proof that your system created a certain quantity of renewable power that was fed back into Nevada’s energy grid. 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, which is a law that says Nevada has to get 25% of its power from Renewable Resources by 2025.

PECs are a little like a stock certificate. They can go up and down in value as demand changes. 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. Unlike RECs or SRECs (other names different states use for this same thing) Nevada PECs have little value outside of Nevada as they can only be traded via the NVTREC website. Learn more here.

Do PECs have value right now?

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 also no way to know 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.

If you take the PECs (or your contractor forces you to sign them over as one national installer does), it is a bet that they will regain value. The NV Energy rebate is GUARANTEED dollars, regardless of what happens with the RPS. Robco recommends you take the rebate at this time.

If you lease the system, the federal tax credit and rebate go to the system owner – not you! Learn more about leasing here.

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Robco’s Solar Consultants will explain the tax credit and rebate in detail when they review your solar proposal with you. Click here for a free quote.