Is Solar Worth It in Nevada?

6 factors to consider before getting solar panels in Nevada

We’ve talked to hundreds of people who have already gone solar in Nevada. It’s generally worth it if you like the idea of lowering your monthly utility bills, helping the environment and gaining more energy independence. But it doesn’t work out for everyone. Here’s what to consider before making the switch. 

1. Solar panel installation costs

2. Your energy consumption

3. How you pay

4. Nevada solar incentives

5. How long you stay in your house

6. The solar company you hire

1. Solar panel installation costs: $10,000 to $30,000

Average solar panel costs in Nevada are relatively low compared with other states. A typical residential solar panel installation costs $16,848 in Nevada.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Nevada, the average cost per watt is only $2.34.

Average solar panel cost by system size in Nevada

2. Your current energy consumption

A typical Nevada household needs a system with a capacity of 7.2 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

Look at your latest utility bills to see how much electricity your house needs each month. Then, you can calculate your potential savings and payback period. In Nevada, solar panels usually pay for themselves within 12.24 years.

3. How you pay

If you can afford it, buying your solar energy system outright typically provides the highest return on investment. Of course, paying cash is not always an option. That’s when loans, leases and other agreements come into play.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreements can also let you install solar panels without the upfront costs. You sign a long-term contract with a solar services provider to purchase the electricity generated by the panels at a predetermined rate. The provider owns and maintains the panels throughout the agreement, while you benefit from lower monthly energy bills. PPA contracts typically range from 10 to 25 years.

4. Nevada solar incentives

The 30% federal residential solar tax credit has expired. Nevada homeowners with eligible solar systems may be able to earn and sell portfolio energy credits (PECs), which can provide a little extra value over time. However, you have to register to participate, and not every system qualifies.

What to know about net metering in Nevada

Net metering lets Nevada homeowners earn bill credits for extra solar power sent to the grid.

For most new residential systems of 25 kW or less, excess electricity is credited at 75% of the applicable retail electricity rate. How those credits are calculated depends partly on where you live. Southern Nevada generally uses monthly netting, while new Northern Nevada customers use 15-minute netting.

5. How long you plan to stay in your house

Buying solar equipment is expensive, especially if you need a battery for storage. In Nevada, it takes approximately 12.24 years to recover this upfront investment through savings on your electricity bills.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. However, the actual value solar adds depends on the home, market and system.

Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years. But you'd miss out on that $36,225 in utility costs savings.

If you plan to sell your home soon, you may not have enough time to recoup your investment through electricity savings. In that case, consider whether another project with a better return on investment, like remodeling the bathroom or kitchen, makes more sense.

6. The solar company you hire

People have mixed experiences with solar companies. In the best-case scenario, it’s easy and you’re happy with the system’s performance. In the worst-case scenario, you end up paying thousands for midtier solar equipment from a company with poor customer service and no follow-up or support.

One of the most common complaints we hear about solar companies is related to pushy sales reps who make promises that can’t be delivered.

That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Is my house a good candidate for solar panels?

In Nevada and elsewhere, going solar ends up being worth it for many homeowners as long as their home is a good candidate to support a solar panel installation. Here’s what to think about before you commit:

• How old are your appliances? The first thing is to make sure your electrical loads are as small as can be. For instance, if you have an older refrigerator or air conditioning unit, it’s smart to upgrade those before investing in solar panels.
• How much sunlight do you get? Solar panels need regular exposure to sunlight to produce the most energy possible. On average, Nevada gets 6 to 7.5 peak sun hours each day, but lots of shading — like trees or tall buildings above your roof — could make them less efficient.
• What is the size and angle of your roof? Nevada (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will go up by 30% to 40% because you’ll need more panels.
• What is the condition of your roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels again.

» COMPARE: Best roofing companies

Pros and cons of solar panels in Nevada

Nevada is a pro-solar state in terms of both regulations and economics. The sunny climate maximizes the amount of power produced by solar panels, but you can expect some seasonal fluctuation in how much energy your panels produce.

Benefits of solar panels in Nevada

Solar power is a renewable energy source that does not produce greenhouse gas emissions or other pollutants. Solar panels require little maintenance and can increase the property value of homes.

• Cheaper energy bills: The average homeowner in Nevada uses a lot of power, which adds up to a lot of savings when you switch to solar. With electric rates throughout Nevada increasing, especially in the Las Vegas area, going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower).

• Higher home resale value: Installing solar panels can significantly increase a home's value. According to a study by Zillow, homes with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets seeing higher boosts.

• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.

• Pro-solar policies: Nevada has had net metering as far back as 1997. The state boosts rooftop solar in other ways, too. Consumer protection officials in Nevada are taking steps to protect customers who purchase residential rooftop solar systems against unscrupulous sales pitches.

Drawbacks of solar panels in Nevada

The main drawback of solar energy is the high upfront cost of purchasing and installing the panels and equipment. Without a battery, you’ll typically rely on grid electricity when your panels aren’t producing.

• Solar panels are expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage.

• Energy production varies: Solar panels are dependent on weather conditions and available sunlight, meaning their performance can fluctuate with cloud cover or shading from trees and buildings. Seasonality also affects how much energy they can produce.

• Problems with pigeons: Multiple Nevada residents tell us about pigeons nesting in their solar panel array. This problem can be solved by putting up barriers, which adds to the overall costs — as much as $1,500, according to Rick in Henderson.

• Some solar companies are sketchy: Like in any booming industry, some salespeople want to make a quick buck and might say anything to close a sale. It’s important to read your contract carefully, especially if you finance or lease a system. Unfortunately, if you’re not dealing with a reputable company, you might not get the deal you expect.

» MORE: Solar energy pros and cons

Find solar companies in Nevada

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for the top solar companies in Nevada to learn more.

FAQ

Bottom line: Is going solar in Nevada worth it for you?

For some, it’s worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone. A typical residential solar panel installation costs $7,809 to $23,414, depending on the size of your system and what financial incentives you qualify for. Over 25 years, Nevada homeowners with solar panels can avoid about $36,225 in total utility power costs.

If you can, it’s often financially strategic to pay for the whole thing upfront. You own the system from day one and receive the benefits of available tax credits, and you don’t have to pay interest on a loan.

» EXPLORE: Solar energy statistics