⚠️ 2026 update on the federal tax credit
The 30% federal residential solar tax credit (Section 25D) expired on December 31, 2025 for systems you buy with cash or a loan. Cost and savings figures on this page that assume that credit may be out of date. Two things still apply: Nevada's sales-tax and property-tax exemptions and NV Energy net metering, and systems on a lease or PPA may still qualify for a federal incentive through the end of 2027. For numbers that reflect today's incentives, book a free review and talk to a tax professional about your situation.
Nevada is still one of the better states in the country for solar — but the incentive picture changed in 2026. Between two Nevada-specific tax exemptions, NV Energy's net metering program, and a new state incentive introduced in late 2025, there's real money on the table for homeowners who go solar this year. The big shift: the 30% federal credit is gone for systems you buy. Here's a complete breakdown.
1. Federal Investment Tax Credit (ITC) — Expired December 31, 2025
The federal solar tax credit — officially the Investment Tax Credit — was the biggest financial incentive for solar homeowners for years. Under the One Big Beautiful Bill Act, it expired December 31, 2025 for systems a homeowner buys, whether with cash or a loan. If you purchase your system in 2026, there's no 30% federal credit anymore.
What's left:
- The credit is gone for owned (purchased) residential systems as of 2026
- Lease and PPA (third-party-owned) systems can still capture a federal incentive through the end of 2027 — but that credit flows to the system owner, not to you
- For a system you own, your savings now come from Nevada's exemptions and net metering, covered below
If you bought and installed your system on or before December 31, 2025, you can still claim the 30% credit on that tax year's return. For everyone buying now, treat the federal credit as closed and build your math around the Nevada incentives instead.
2. Nevada Property Tax Exemption
Nevada law (NRS 361.079) exempts the value of a solar energy system from property tax assessment. That means:
- Your solar installation increases your home's market value (studies show 3–4% increases)
- But your assessed value for property tax purposes does NOT increase because of solar
- No paperwork required — the exemption is automatic
For a Las Vegas home where solar adds $15,000–$25,000 in market value, this exemption saves homeowners $150–$250 per year in property taxes they'd otherwise owe — indefinitely, for as long as the system is on the home.
3. Nevada Sales Tax Exemption
Solar energy systems in Nevada are exempt from the state sales and use tax under NRS 374.357. Nevada's combined state and county sales tax rate ranges from 6.85% to 8.375% depending on your county. Clark County (Las Vegas/Henderson) is at 8.375%.
On a $18,000 solar system, that exemption saves $1,508 in sales tax that you simply don't pay. The exemption applies automatically at the point of sale — your installer doesn't charge you sales tax on the equipment. Unlike some other states where you need to file for a rebate or exemption certificate, Nevada's solar sales tax exemption is applied by the installer as a matter of law.
4. NV Energy Net Metering
Technically not a tax incentive, but it has real cash value: NV Energy's net metering program credits your account at 75% of the retail rate for every kilowatt-hour your solar panels produce beyond what your home uses in real time. At current NV Energy rates of ~$0.125/kWh, that's a credit of ~$0.094/kWh. Over a year, a properly sized system can generate $600–$1,200 in net metering credits that offset your utility bills.
See our full NV Energy Net Metering explainer for details on how the billing cycle works.
5. New Nevada State Solar Incentive Program (Late 2025)
In late 2025, Nevada introduced an additional state-level solar incentive program targeting low-to-moderate income homeowners. The program provides direct rebates of $500–$2,500 depending on household income and system size. Eligibility details and the application process are still being finalized. This is worth asking about if your household income is below 200% of the area median income for Clark County — ask Daniel directly for the most current eligibility and application information.
How Incentives Stack
| Incentive | Value |
|---|---|
| System cost (6.5 kW), sticker | $18,525 |
| Nevada sales tax exemption | −$1,552 |
| Cash cost (federal credit no longer available) | $18,525 |
| Annual property tax savings | ~$200/yr |
| Annual NV Energy savings | ~$1,800–$2,400/yr |
Over a 25-year system life, the total value of those savings exceeds $51,000 for most Las Vegas homeowners.
Important: The Federal Credit No Longer Applies to Purchases
For years the ITC was the headline number on every solar quote. As of 2026 it's gone for systems you buy, so don't let anyone fold a 30% federal credit into your purchase math — that money isn't there anymore. If a lease or PPA is on the table, the system owner may still claim a federal incentive through 2027, which can shape the lease pricing they offer you. Talk to a tax professional about your specific situation.
Bottom Line
Even without the federal credit, Nevada's property and sales tax exemptions plus NV Energy net metering keep the state a strong place to go solar. With NV Energy rates up about 9.5% in the past year to roughly 17.45¢/kWh, the real win is locking in your own generation cost as a hedge against rising rates — not chasing a credit that's expired.
Want to see exactly what your incentives are worth based on your specific situation? Book a free consultation and I'll run the full analysis for you.