What is Net Metering?

Net metering allows customers to use energy generated by their leased or purchased solar system to offset their monthly power bill. If a customer’s solar system produces more energy in a billing period than used, the excess energy will be pushed back onto the grid and used by other electricity customers. Customers earn credits for the excess energy. The credits are recorded on customers’ electric bills. The credits will be automatically applied in the next billing period in which a customer consumes more energy than produced.

Net Metering Rates - Assembly Bill 405 (2017)

Effective June 15, 2017, Nevadans who choose to net meter will fall under a rate structure set by the Nevada Legislature in Assembly Bill 405 (AB 405).

This rate structure applies to renewable energy systems of not more than 25 kilowatts, which is typical of a rooftop solar system installed at a home or small business.

The net metering rate structure is tiered and set to decrease over time as the combined amount of applied-for and installed capacity of net metering systems hits 80 megawatt benchmarks. (See "Net Metering Rate Tiers" below for more information.)

Net metering customers will remain in the same customer class as non-net metering customers and cannot be charged any fee or charge that is different than that charged to non-net metering customers. Net metering customers will pay the same basic service charge and other fees as non-net metering customers

Net Metering Rate Tiers

• TIER 1 - 95% of the retail rate: This was the net metering rate for those who agreed to net meter on or after the effective date of June 15, 2017,until the combined amount of applied-for and installed capacity of net metering systems signed up at this tier equaled 80 megawatts. Customers who signed up to net meter under this rate will keep it for a period of 20 years at the location where the net metering system was originally installed. Tier 1 reached 80 megawatts of combined applied-for and installed capacity in August 2018. (“Retail rate” is defined as the Base Tariff General Rate (BTGR), Base Tariff Energy Rate (BTER) and Deferred Energy Accounting Adjustment (DEAA) Rate combined. For more information on the BTGR, BTER and DEAA, please review the PUCN’s Northern Nevada Electric Rates & Charges fact sheet or Southern Nevada Electric Rates & Charges fact sheet.)
• TIER 2 - 88% of the retail rate: The net metering rate decreased to 88% of the retail rate after the combined applied-for and installed capacity of net metering systems under Tier 1 reached 80 megawatts. Customers who signed up to net meter under the Tier 2 rate will keep it for a period of 20 years at the location where the net metering system was originally installed. Tier 2 opened in August 2018 and closed in June 2019.
• TIER 3 - 81% of the retail rate: The net metering rate decreased to 81% of the retail rate after the combined applied-for and installed capacity of net metering systems under Tier 3 equaled 80 megawatts. Customers who signed up to net meter under the Tier 3 rate will keep it for a period of 20 years at the location where the net metering system was originally installed. Tier 3 opened in June 2019 and closed in June 2020.
• TIER 4 - 75% of the retail rate: The net metering rate decreased to 75% of the retail rate after the combined applied-for and installed capacity of net metering systems under Tier 3 equaled 80 megawatts. Customers who sign up to net meter under this rate will keep it for a period of 20 years at the location where the net metering system was originally installed. There is no capacity limit for Tier 4. The net metering rate will remain 75% of the retail rate unless modified by legislative action.