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Expert insights on estate planning, asset protection, tax law, tax preparation, tax planning, bookkeeping, accounting practices, wealth management, and legal matters for businesses and individuals.
Expert insights on estate planning, asset protection, tax law, tax preparation, tax planning, bookkeeping, accounting practices, wealth management, and legal matters for businesses and individuals.
Want to go solar but worried about the cost?
Nevada's actually the perfect place to make that happen.
With over 300 sunny days a year and some serious federal tax credits still available, you can slash your installation costs by thousands.
But here's the thing—there's a deadline you need to know about, and it's coming fast.
Let me break down exactly what's available, what you actually need to do, and why timing matters more than ever.

Listen, this is the big one.
The federal solar investment tax credit (ITC) lets you knock 30% straight off your solar system costs.
We're talking real money here.
If your system costs $11,155 (the average for a decent 5 kW residential setup in Nevada), you're looking at $3,347 in tax savings.
That brings your actual cost down to $7,808.
But—and this is massive—this credit dies December 31, 2025.
Not phases out.
Not gradually gets smaller.
Dies.
On July 4, 2025, the "One Big Beautiful Bill Act" was signed into law, eliminating the residential solar tax credit nearly a decade before anyone expected.
If your system isn't fully installed and operational by the end of the year, you don't get it.
Period.
The 30% applies to pretty much everything in your solar package:
• Solar panels themselves
• Inverters and electrical equipment
• Racking and mounting hardware
• Wiring and connections
• Labor costs for installation
• Permitting fees
• Sales tax on all materials and labor
You'll need to file IRS Form 5695 when you submit your federal tax return.
Here's the process:
Step 1: Calculate your total system cost from your solar contract
Step 2: Multiply by 0.30 to get 30%
Step 3: Enter that number on Form 5695, Part I, line 1
Step 4: Use the credit limit worksheet to check against your federal tax liability
Step 5: Transfer your credit to Schedule 3 of your Form 1040
Step 6: Attach everything to your tax return and submit
One important note: you need actual federal tax liability to use this credit.
If you don't owe taxes that year, you can roll the unused portion forward to future years (though tax professionals are uncertain whether Form 5695 will even exist after 2025).
Definitely chat with a tax professional about your specific situation.
Here's a catch—you have to own your solar system to claim this credit.
If you sign a solar lease or a PPA (power purchase agreement), the solar company owns the system, and they get the credit (not you).
Sometimes they pass savings along as lower rates, but you won't directly see that $3,000+ credit.
Cash purchase or solar loan? You're golden.
Lease or PPA? You miss out on this benefit entirely.
Nevada doesn't offer any state solar tax credits or rebates.
Zero.
No state incentive.
No local property tax exemptions.
No sales tax breaks for going solar.
That's just the reality.
The federal 30% credit is really your primary financial driver for installing solar this year.
Everything else Nevada offers sits in a different category.
Okay, so the federal credit is the headline, but net metering is actually what makes solar work long-term in Nevada.
Think of net metering as a give-and-take with your utility.
When your panels produce more power than you use (usually midday), that excess electricity flows back to the grid and earns you credits.
When the sun sets and you need grid power, those credits offset what you owe.
It's genuinely elegant if your utility does it right.
NV Energy is the biggest utility in Nevada, and they run the most common net metering program.
Here's what you get:
• Credit rate: 75% of the retail electricity rate
• System size: Up to 25 kW (basically all residential systems)
• How credits work: They roll over month-to-month indefinitely
• Billing: True-up happens monthly, so you don't lose seasonal benefit
Nevada's average retail electricity rate is around 15 cents per kilowatt-hour (kWh).
Under Tier 4, you get credited at 11.25 cents per kWh for excess power.
Not a 1-to-1 rate, but pretty solid.
Those credits never expire—they just keep rolling forward until you use them.
OPD5 covers a smaller service area but offers net metering too.
Their details:
• Systems up to 10 kW qualify
• Credits at wholesale rates (roughly 50% of retail, but it varies)
• Monthly rollovers but credits expire at calendar year-end
The wholesale rate is their actual cost to buy power from suppliers—usually much lower than retail.
The exact percentage changes, so you'd want to ask them directly.
VEA is the outlier.
They don't offer net metering at all—they offer net billing instead.
It sounds similar but works differently:
• Your excess power gets converted to dollars immediately rather than sitting as credits
• You get credited at 75% of retail (same as NV Energy Tier 4)
• This instant conversion means you lose the time-shifted benefit (you don't get to "bank" summer credits for winter use the same way)
• Credits roll month-to-month until a true-up date in September
If you're with VEA, net billing still works, but pairing your system with a solar battery becomes a smarter financial move.
That battery can store daytime power and use it at night, squeezing more value from your panels when net billing rates are less favorable.
Solar batteries aren't essential in Nevada (thanks to good net metering on most utilities), but they make sense in certain situations.
NV Energy used to offer a solid battery incentive program.
As of June 2023, they closed it to new applications.
So that option's off the table.
However, any standalone solar battery qualifies for the same 30% federal tax credit as your panels.
• Minimum capacity: 3 kWh
• Maximum output capacity: 100 kW (way more than any homeowner needs)
• Must be paired with solar panels
• Must be installed by December 31, 2025 to claim the federal credit
If you're with Valley Electric (VEA) on net billing rather than true net metering, a battery can genuinely improve your economics.
It stores excess daytime power so you're not forced to immediately convert it to dollars at the lower net billing rate.
With NV Energy, batteries are more of a backup power / energy independence play than a pure financial one.
Nevada Solar for All was a $156 million federal program designed to help lower-income households go solar.
As of 2025, funding is frozen due to federal policy changes.
The program's future is unclear, so don't plan on it right now.
Similarly, RETA (Renewable Energy Tax Abatement) offers huge incentives for commercial and large-scale solar projects—up to 100% sales tax exemption for 3 years and 55% property tax reduction for 20 years.
But that's commercial-focused, not residential.
Let's do actual math with a real Nevada household.
Say you install a 5 kW system (pretty standard for a home):
Installed cost: $11,155
30% federal credit: -$3,347
Your net cost: $7,808
Electricity savings (NV Energy, Tier 4):
Payback period: ~7-8 years
25-year lifetime value: Roughly $51,500 in electricity savings (at today's rates, accounting for inflation)
That's the game-changer.
Yes, you pay for the system upfront.
Yes, you need roof access and decent sun exposure.
But over 25 years, the economics are genuinely compelling—especially with the federal credit reducing your initial outlay.
The federal solar tax credit expiration is real, and it changes the entire financial picture starting 2026.
Without it:
Plus, solar installers are slammed right now.
A typical solar project takes 3-6 months from initial consultation to flipped-on system (permitting, inspections, equipment sourcing, installation).
If you're serious about capturing that 30% credit, you need to start the process now, not in December.
No.
The solar company owns the system, so they claim the credit.
You might get lower lease payments reflecting their tax benefit, but you don't directly receive the $3,300 credit.
You can carry the unused portion forward to the next year.
Keep rolling it forward year-to-year until you've used it all.
(Though the form might disappear after 2025, so consult a tax pro.)
No.
Net metering works the same whether you have full southern exposure or partial shade.
The utility doesn't care about your roof orientation—they just credit you for whatever excess power you send back.
Net metering credits are tied to your meter location, not you personally.
If you move and the home has solar, the next owner inherits the credits and the ongoing net metering relationship.
Credits carry forward indefinitely on most Nevada utilities.
Nope.
Nevada offers neither.
Just the federal 30% and whatever net metering or net billing your utility provides.
In Nevada, batteries are more valuable if you're on VEA (net billing) than NV Energy (net metering).
If you have net metering and grid-connected backup works for you, the battery's primary benefit is energy independence during outages, not pure financial return.
If you're on net billing or want solar-only backup power, a battery is smarter financially.
Nevada's solar incentive landscape for 2025 is basically this:
One massive federal credit (30%) expiring December 31.
No state-level incentives.
Solid utility-level net metering on most of the state.
The federal credit is your primary financial trigger.
It's genuinely worth $3,000+ for most installations.
It goes away on January 1, 2026.
Everything else—net metering, the solar itself, the long-term electricity savings—is excellent, but secondary to that deadline.
If you've been sitting on the fence about solar, the financial case for going forward this year is as strong as it's ever going to be.
After December 31, the math gets a lot less compelling unless utility rates spike or battery costs crater.
Start talking to installers now.
Get quotes locked in.
Ask them about their installation timeline.
Nevada's got the sun, the rates are climbing, and the federal credit is the best deal you're going to see.
The clock's ticking.
• How to compare solar quotes and find the right installer for your Nevada home
• The difference between net metering and net billing: Which one saves you more money
• Solar battery storage: Whether it actually makes financial sense in 2025
• Tax planning around the federal solar credit: How to maximize your specific tax situation
• Nevada solar system maintenance: Keeping your panels efficient in desert climates
• Solar financing options: Cash vs. loans vs. leases (and why ownership matters for tax credits)
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