The Nevada net-metering controversy refers to a December 2015 decision by the Public Utilities Commission of Nevada (PUCN) that slashed rooftop-solar buyback rates from retail to wholesale and tripled fixed charges for solar customers over four years. The rooftop solar industry collapsed almost overnight — SolarCity, Sunrun and others pulled out and hundreds of jobs were cut. A 2017 law, AB 405, reversed most of it and restored tiered net metering, which is what Nevada uses today.
2015: the decision that broke the industry
Before 2016, Nevada solar customers were credited at the full retail rate for excess power they sent to the grid. On December 22, 2015, the PUCN approved new rules that cut that credit to the much lower wholesale rate and steadily raised fixed monthly charges on solar accounts. Critically, the change applied retroactively to existing customers who had already bought systems based on the old math. The net metering in Nevada record documents the fallout in detail.
The fallout
Within weeks, major installers including SolarCity, Sunrun and Vivint Solar halted Nevada operations, citing the ruling for layoffs that ran into the hundreds. The retroactive nature of the decision triggered a national backlash and became a cautionary example cited in net-metering fights across the U.S. After sustained public pressure, regulators later agreed to grandfather pre-existing solar customers back onto their original rates.
2017: AB 405 restores net metering
The Nevada Legislature passed Assembly Bill 405, effective June 15, 2017, re-establishing net metering on a declining tiered structure rather than a single rate:
- Tier 1 — 95% of the retail rate (first 80 MW of statewide capacity)
- Tiers 2–4 — stepping down to 75% of retail as each 80 MW block filled
Whatever tier you enroll in is locked for 20 years at the installed location. New Las Vegas customers today interconnect at the current tier (75% of retail) under Rule 15.
Where it stands in 2026
Net metering in Nevada is stable but not static. Rates and structures remain subject to PUCN review, and utility filings continue to propose changes such as demand charges. The practical takeaway for homeowners is unchanged from the 2015 lesson: the value of locking in today's 20-year rate rises as retail electricity prices climb — and with data-center demand driving record load growth, those prices are climbing fast.