Nevada is one of the sunniest states in the US, ranking third after Arizona and New Mexico. But that is only one of the reasons why Nevada is one of the best places to invest in solar power. Along with various solar incentives and money-saving initiatives, many homeowners in Nevada are going solar to be electrically independent and environmentally friendly.
This article will answer the question: “Is solar worth it in Nevada?” It will also give you some general guidelines on solar energy systems and what you can expect from their pricing in this state.
The Average Cost of Solar in Nevada
The average solar panel in Nevada costs $2.16 to $2.92 per watt. Furthermore, the average solar system runs on 5 kilowatts (kW), making the average cost of a solar system $10,795 to $14,605. For 6-kW residential solar system installations, you can expect an overall price of $15,960.
Keep in mind that these numbers indicate the total cost without any solar incentives or rebates. If we were to count in the Federal Solar Tax Credit, which adds up to 26%, the total price would be significantly reduced. For instance, the final price of a 6-kW solar system would amount to just $11,810, reducing the total cost by more than $4,000.
One of the main reasons why homeowners choose this greener alternative is because it will potentially save them a lot of money in the future. The average household energy consumption in Nevada is around 920 kWh (kilowatt-hours) per month, or 11040 kWh per year. This means that the average residential electricity bill is about $111 a month in Nevada. Hence, in one year, the citizens of Nevada spend a total of $1,332 on electricity, which is 3.74% higher than the national average.
If homeowners were to switch to solar power, they would be able to save $29,099 to $39,369 in the next twenty years, generating an electricity bill offset of 78%-105%. This is otherwise known as the “solar payback” period, which accounts for the time necessary to “break even” with the electricity bills. According to the same statistics, it would take you between 7.5 to 10 years to reach this point.
The Average Cost of Solar Panels per Watt Usage
The total you’ll pay for solar system installation depends on the average energy consumption of your home. Here’s a list of the average cost of solar panels per system size in Nevada. Please note that these statistics may be subject to change by the time you read this.
- 3 kW – $7,620
- 4 kW – $10,160
- 5 kW – $12,700
- 6 kW – $15,960
- 7 kW – $17,780
- 8 kW – $20,320
- 9 kW – $22,860
- 10 kW – $25,400
These numbers may not be 100% accurate, as there are many factors that can influence the total price of solar panel installation. Also, the Federal Solar Tax Credit (ITC) and other local solar incentives aren’t included, which would reduce the total cost significantly.
For instance, after claiming the 26% solar tax credit, a 5-kW solar system would be $9,398, while a 10kW solar system would cost $18,796. As you can see, the ITC would easily reduce the overall amount by a few thousand dollars.
Solar Incentives in Nevada
As mentioned before, there are several solar incentives and rebates on both state and local levels. These sorts of programs can help you handle your solar system investment and they’ll also reduce your solar payback period.
The most reliable solar incentive program is the Federal Solar Tax Credit (ITC), which reduces the overall cost of solar panel installation by 26%. What’s more, you’ll be able to take advantage of this federal incentive until the end of 2022. After which it will be reduced to a 22% deduction.
ITC is a great solution for those who want to install solar panels at their residence, but not for those who want to lease them. If you were to apply for the 26% tax credit, it would save you thousands of dollars.
There are other incentives for going solar that Nevada has to offer, but they depend on your current location and the utility company you choose. One of them is Nevada net metering, which basically gives solar homeowners the option to receive extra credit for the electricity that their solar panels generate.
A lot of local solar installation companies offer some sort of incentive as well, so you can save even more money. NV Energy and Valley Electric Association offer such programs, giving you credit for your solar energy. Your utility company can even give you credit for the power your solar panels generate that isn’t being used.
Factors That Affect Solar Cost in Nevada
As previously indicated, there are many factors that can affect the overall price of solar panel installations in Nevada. The main aspects of solar investments are your current location and the average energy consumption level of your residence. The size of your residence matters as well. The general rule of thumb is that the more power you need, the more solar panels you’ll have to install to cover your energy requirements.
One of the factors that you can’t influence is the sunlight exposure levels and the average cost of electricity on a monthly and yearly basis. Since Nevada citizens spend 3.74% more money on utility and electricity bills than those in the majority of other states, the overall cost of the solar system installation is likely to be higher as well.
Other factors that can make an impact on the solar system price include the necessary equipment, installation fees, permits, and even the materials you use for the solar panels.
Even though solar panel installations are a significant investment in your home, remember that it will pay off in the long run. In fact, the more money you spend on a solar system, the more money will come back to you via electricity savings. In any case, you don’t have to pay for the entire solar panel installation at once. Instead, you can negotiate with your power utility company to settle for a solar loan or a solar lease.
Is Solar Worth It in Nevada?
Considering that installing solar panels is quite an investment, it may make people wonder – is solar worth it in Nevada?
Nevada is ranked number six in the “Top Ten Solar States,” based on a Solar Market Insight Report. With 3,904 megawatts, the equivalent number of homes powered by solar energy in Nevada equals 672,707. Not only that, but after Arizona and New Mexico, Nevada is the third sunniest state in the US, with 310 sunny days per year.
Another reason why solar power installations are a good investment in Nevada is the decreasing price, especially in the past couple of years. Since the solar installation price used to be three times higher 10 years ago, now is the best time to take advantage of solar power. Nevada’s sun capacity, the decreasing rates of solar installations, and the 26% tax credit deduction make Nevada one of the best places for solar power investments.
Furthermore, by investing in high-quality solar panels, you’ll be able to use them for the next 25 years. Plus, there’s all the money you’ll save by not having to pay the electricity bill anymore. Most importantly, going solar will help you reduce your carbon footprint and make your home eco-friendly.
Going Solar in Nevada
As more and more homeowners switch to solar energy, it makes people wonder: “Is going solar worth it in Nevada?” Taking into consideration that Nevada is one of the sunniest states in the US, it’s definitely worth investing in solar energy there. In fact, now is the best time to do so.