Nevada law has included net metering provisions for more than 20 years. Net metering is an arrangement that allows energy generated by a customer’s leased or purchased solar system to offset monthly power bills. It also permits excess energy supplied to the grid to earn credits, which are then automatically applied to future billing periods in which more energy is consumed than produced.

Historically, net metering was a one-for-one transaction in Nevada. For every kWh supplied to the grid, a credit was given to the customer for one kWh in the future. The scheme changed in 2015 when the Nevada Public Utilities Commission (PUC) created a laddered approach that ratcheted down the value of customer-generated energy over a period of years to about 2¢/kWh, which was much less than the retail rate of about 11¢/kWh. The change effectively stopped all construction on new residential rooftop solar systems.

Through Assembly Bill 405 (AB 405), the Nevada Legislature modified the net metering rate structure effective June 15, 2017.…

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