Net Metering

Program Overview

Implementing Sector State
Category Regulatory Policy
State Nevada
Incentive Type Net Metering
Web Site http://puc.nv.gov/Renewable_Energy/Net_Metering/
Eligible Renewable/Other Technologies Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Wind (Small), Hydroelectric (Small)
Applicable Sectors Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Multifamily Residential, Low Income Residential
Applicable Utilities Investor-owned utilities
System Capacity Limit The lesser of 1 MW or 100% of the customer's annual requirements for electricity
Net Excess Generation Systems up to 25 kW: monthly net excess generation credited at a rate equal to 75% of retail rate
Systems larger than 25 kW and up to 1 MW: Monthly netting at the retail rate. Any credits that exceed the customer's monthly bill will be carried over to the next billing period indefinitely.
Ownership of Renewable Energy Credits Customer owns RECs (unless utility subsidizes system)
Meter Aggregation Not addressed for most technologies.
Meter aggregation allowed for hydro installations across contiguous properties owned by the customer generator.
Meter aggregation allowed for very specific wind projects.

Summary

Nevada’s approach to encouraging renewable energy through net metering has evolved significantly since the original law was enacted in 1997. This law, designed to foster the adoption of renewable energy systems by allowing customers to offset their electricity needs, has undergone numerous amendments to adapt to the changing landscape of energy and technology. The eligibility for this incentive extends to systems with a capacity of up to one megawatt (MW) that generate electricity from a variety of renewable sources, including solar, wind, geothermal, biomass, and certain types of hydropower.

Despite this broad eligibility, there are specific considerations for larger systems. Those with a capacity greater than 25 kilowatts (kW) may incur additional costs at the discretion of the utility company, highlighting a balance between promoting renewable energy and managing the impacts on utility operations. The design of eligible systems must aim to meet part or all of the electricity requirements of the customer-generator, ensuring that the incentive supports those genuinely contributing to renewable energy production.

A crucial aspect of Nevada’s net metering policy is the eligibility criteria related to a system’s generating capacity. A system must not exceed the greater of two limits: the maximum demand that the customer’s class can place on the utility’s system or 100% of the customer’s annual electricity demand. This provision ensures that net metering remains focused on offsetting personal electricity needs rather than exceeding them, which could lead to unintended strains on the utility system or financial imbalances.

Through these detailed amendments and considerations, Nevada’s net metering law reflects an ongoing commitment to renewable energy adoption while balancing the interests of individual customers, utility companies, and the broader energy grid. This evolving legal framework has played a significant role in Nevada’s renewable energy landscape, promoting sustainable practices among residents and businesses alike.

Authorities

Name: NRS 704.766 et seq.
Date Enacted: 7/1/1997
Expiration Date: None
Name: NAC 704.881 et seq.
Date Enacted: 2004
Effective Date: 2004
Name: Public Utilities Commission Final Order
Date Enacted: 09/01/2017

Contact

Organization:
Public Utilities Commission of Nevada

 

Phone:
(775) 684-6101

 

Organization:
Public Utilities Commission of Nevada
Address:
9075 W. Diablo Drive, Suite 250
Las Vegas, NV 89148
Phone:
(702) 486-7210