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Incentives/Policies for Renewables & Efficiency

Printable Version
Net Metering   

Last DSIRE Review: 10/02/2014
Program Overview:
State: Nevada
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric, Small Hydroelectric
Applicable Sectors: Commercial, Industrial, Residential
Applicable Utilities:Investor-owned utilities
System Capacity Limit:The lesser of 1 MW or 100% of the customer's annual requirements for electricity
Aggregate Capacity Limit:Statewide cap of 3% of total peak capacity of all utilities in the state
Net Excess Generation:Credited to customer's next bill at retail rate; carries over indefinitely
REC Ownership: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. See below.
Web Site:
Authority 1:
Date Enacted:
Expiration Date:
NRS 704.766 et seq.
Authority 2:
Date Enacted:
Date Effective:
NAC 704.881 et seq.
Authority 3:
Date Enacted:
Date Effective:
AB 428

Note: Assembly Bill 428, enacted in June 2013, required the Public Utilities Commission of Nevada (PUCN) to open an investigation to evaluate the costs and benefits of net energy metering, and then recommend a methodology for allocating such costs and benefits appropriately. The PUCN opened Docket 13-07010 for this process and commissioned a study by E3, which is available in that docket and on the PUCN’s website.  On September 26, 2014, the PUCN submitted its net metering report to the Legislature, in which it recommended the Legislature modify the existing net metering statutes to provide the PUCN more flexibility to address net metering issues in general rate cases. The PUCN has also opened an investigation in Docket 14-06009 on whether to create separate customer classes for net metering customers.

Nevada's original net-metering law for renewable-energy systems was enacted in 1997 and amended in 2001, 2003, 2005, 2007, 2011, and 2013. Systems up to one megawatt (MW) in capacity that generate electricity using solar, wind, geothermal, biomass and certain types of hydropower are generally eligible, although systems greater than 25 kilowatts (kW) in capacity may be subject to certain costs at the utility's discretion. Systems must be designed to offset part or all of a customer-generator's electricity requirements. A system is not eligible for net metering if its generating capacity exceeds the greater of (1) the limit on demand that the class of customer of the customer-generator may place on the utility's system, or (2) 100% of the customer's annual electricity demand.  Each investor-owned utility operating in Nevada must offer net metering until the aggregate capacity of all net-metered systems in the state equals 3% of the peak capacity of all utilities operating in the state.

For net-metered systems up to 25 kW, utilities must offer the customer-generator a meter capable of registering the flow of electricity in two directions. The utility may not charge these customer-generators any fee that would increase their minimum monthly charges to an amount greater than that of other customers in the same rate class.

For net-metered systems greater than 25 kW, the utility may require a customer-generator to install -- at its own cost -- a meter capable of measuring generation output and customer load. In addition, a utility may require a customer-generator to pay for any upgrades to the utility's system, excluding standby charges, that are required to make the customer's system compatible with the utility's system.

Net Excess Generation
For all net-metered systems, customer net excess generation (NEG) is carried over to the following month as a kilowatt-hour credit indefinitely. If the cost of purchasing and installing a net-metered system is paid for in whole or in part by a utility, then the electricity generated by the system will be considered to be generated by the utility or acquired from a renewable-energy system for the purpose of complying with the state's renewable portfolio standard (RPS). On the other hand, if the cost of purchasing and installing the system was paid for entirely by a customer, the PUCN will issue to the customer portfolio energy credits (PECs).

If a customer is billed for electricity under a time-of-use schedule, any customer NEG during a given month will be carried forward to the same time-of-use period as the time-of-use period in which it was generated, unless the subsequent billing period lacks a corresponding time-of-use period. If there is no corresponding time-of-use period, then the NEG carried forward must be apportioned evenly among the available time-of-use periods. Excess generation fed to the grid is considered electricity generated or acquired by the utility to comply with Nevada's energy portfolio standard.

Meter Aggregation
Assembly Bill 359 allows owners of hydropower facilities with a generating capacity up to 1 MW to offset electricity consumed on multiple contiguous properties owned by the customer generator. Assembly Bill 359 also allows for meter aggregation in the case of a wind energy device installed during 2012 on property owned or leased by an institution of higher learning and used for research and workforce training. 


  Darci Dalessio
Public Utilities Commission of Nevada
PEC Administrator
Carson City, NV 89701
Phone 2: (775) 684-6171
Web Site:
  Mark Harris
Public Utilities Commission of Nevada
Engineering Division
1150 E. William Street
Carson City, NV 89701
Phone: (775) 684-6165
Fax: (775) 684-6120
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.