If you're going solar in Las Vegas, Henderson, or anywhere else in NV Energy's service territory, you need to understand net metering — it's the mechanism that determines what happens to the electricity your solar panels produce when you can't use it all in real time.
What Is Net Metering?
Net metering is a billing arrangement where your utility measures the difference between the electricity you draw from the grid and the electricity you push back to it. When your solar panels are producing more than your home is using — typically midday on sunny days — the surplus flows to the grid and NV Energy credits your account. When your panels aren't producing enough (evenings, cloudy days, peak demand periods), you draw from the grid and use those credits to offset the cost.
The "net" in net metering refers to that difference — you're billed for net consumption, not gross consumption.
Nevada's Net Metering Rate: 75% of Retail
Here's the important detail most homeowners don't hear upfront: Nevada's net metering program credits your exported power at 75% of the retail rate, not the full retail rate.
In practice, that means:
- If NV Energy charges you $0.125/kWh to buy electricity
- Your excess solar exports are credited at approximately $0.094/kWh
- That's a 25% haircut on the value of power you send to the grid
This is different from some other states that offer full retail-rate net metering. The 75% rate was established by the Nevada Public Utilities Commission following a contentious policy battle in 2016. It's the law for new solar customers in Nevada today.
What this means practically: Right-sizing your system is important. A system that produces exactly what your home uses over the course of a year is more valuable than an oversized system that exports a lot of excess at a discounted rate.
How NV Energy Net Metering Credits Work
Your solar production and grid consumption are tracked on the same meter. Here's how the billing cycle works:
- Monthly billing: Each month, NV Energy calculates your net usage. If you consumed more than you produced, you pay the difference. If you produced more than you consumed, you receive a credit on your account.
- Credit rollover: Excess credits roll forward from month to month. They don't expire on a monthly basis — they accumulate in your account.
- Annual true-up: Each year, NV Energy does a reconciliation. Any excess credits in your account at the end of the 12-month period are paid out to you at a lower rate (the "excess generation" rate, which is lower than the 75% net metering rate). This is why it's better to size your system to roughly match your annual consumption rather than dramatically exceed it.
- Tiered rates: NV Energy uses a tiered rate structure. The net metering credit rate varies slightly depending on which rate tier applies to the excess generation. Your solar advisor can walk you through the specific numbers for your usage level.
System Size Requirements
To qualify for NV Energy's net metering program, your system must:
- Be 25 kW or smaller (covers all standard residential installations)
- Be installed by a licensed Nevada contractor
- Pass NV Energy's interconnection application process
Virtually all residential solar systems qualify. The 25 kW cap only becomes relevant for very large homes or small commercial properties.
The Interconnection Process
Before your solar panels can connect to the grid and begin receiving net metering credits, your installer must complete NV Energy's interconnection application. The timeline typically runs 2 to 6 weeks after installation is complete. During that window, your system is fully installed but not yet feeding excess power to the grid.
Your installer handles the application — this is not something you do yourself. A good installer will have established relationships with NV Energy's interconnection team and manage the timeline efficiently.
Solar-Only vs. Battery + Solar in Nevada
Nevada's net metering program makes solar-only systems viable in ways that California's NEM 3.0 does not. Because Nevada still credits exports at 75% of retail (not the 6–8 cents/kWh California uses), the economics of a solar-only system in Las Vegas are strong.
Battery storage is still worth considering if you want backup power during outages or if you have significant evening usage. But unlike California homeowners, Nevada solar owners aren't financially penalized for exporting — they're just not maximally rewarded for it.
What To Do With This Information
The key takeaway for Las Vegas solar buyers is: don't size your system to maximize exports, size it to minimize your net annual bill. A system that covers 95–100% of your annual consumption at the 75% net metering rate is more valuable than one that overproduces by 30% and sends the excess to NV Energy at a discount.
When reviewing proposals, ask your solar advisor to show you the projected annual net metering credit vs. grid consumption balance. If they're recommending an oversized system without a clear reason, push back.
Have questions about how net metering would work for your specific home? Book a free consultation — I'll run the actual numbers based on your NV Energy bill.