February 9, 2016 | By RGR Marketing Blog

Nevada’s Recent Solar News Could Be Just the Beginning

In what some industry professionals are calling a bait and switch by the State of Nevada, Nevada’s only power company has been awarded the ability to charge higher fees to solar power users. The decision came down from the Nevada governor’s office in December of last year.

No longer would those who had installed solar panels during the height of regulatory friendliness enjoy the fruits of their investment. NV Energy would now be allowed to charge them higher rates and fees, and pay back less money to them for the power they contribute to the grid.

A new monthly fee, which will increase from twelve to forty dollars over the next five years, will generally wipe out the monthly savings that solar users had counted on when they’d installed the costly systems. Additionally, the state’s only power company will not be required to reimburse solar power customers for the power they generate during peak hours at the full commercial rate, while being allowed to charge them full price for the electricity they pull from the grid during poor conditions and at night.

Is This the Beginning of a Nationwide Trend?

The recent changes by the state government of Nevada may mark the beginning of a national trend that big utility companies have been arguing for and hoping would get underway for years.

The argument from utility companies hoping to eliminate the financial incentive to switch to solar power is that solar customers aren’t covering their part of the cost to build and maintain the infrastructure of the grid. While other states may have allowed utilities to strip some of the savings available to new solar customers in years past, Nevada’s decision marks the first time that a state has stripped incentives retroactively.

Nevada lawmakers and NV Energy have defended the decision, claiming that the new rates and fees result in no additional profit for the power company.

The Solar Industry Responds

Soon after the decision was announced in Nevada, the solar industry in that state pulled up their proverbial stakes and moved on. With the state and local utilities undermining Federal incentives for homeowners and small business owners to invest in solar, many are expecting both residential and commercial solar installations in the state to come to a halt.

Many of the state's largest solar installers have also announced layoffs and their plans to leave the state altogether. Consumers are, needless to say, feeling like they made a poor decision investing in solar and that the state, which provided large incentives to homeowners and business owners alike, pulled what is comparable to a bait-and-switch, ultimately benefiting utility companies and not their customers.

Consumers and Investors Caught in the Middle

Despite strong and obvious reasons why Nevada should be leading the country in solar installation and solar production, this latest news marks the state’s de facto withdrawal from a clean energy future.

With so many citizens caught in the middle having either invested in their own systems as consumers or in local solar power businesses as investors, it seems difficult to justify the actions the state government is taking in favor of a utility company.

[Photo via: Ecowatch]

Contact Us

Get started with free* leads.
Call us at 310-540-8900
Don’t take our word for it—find out for yourself how good our leads are and what a difference working with us can make.
Call us at 310-540-8900 or fill out the form below and we’ll tell you how you can get high quality leads for free*.
I authorize ReallyGreatRate, Inc. to communicate with me via email.
* Get up to 10% free leads on your first order!

Let's talk

Start making more money today

Mortgage

Solar

Home Improvement

  • I authorize ReallyGreatRate, Inc. to communicate with me via email.