Does Nevada Have Community Solar Laws?

Nevada’s path toward community solar has been shaped by both failed attempts and successful legislation. In 2017, state lawmakers passed Senate Bill 392 (SB 392), which would have created a broad, open framework for third-party community solar programs. However, Governor Brian Sandoval vetoed SB 392, arguing that it lacked proper consumer protections and could raise costs for non-participating ratepayers. This veto left Nevada without a true enabling law at the time.

Two years later, in 2019, the legislature passed Assembly Bill 465 (AB 465), which became the state’s operative policy. AB 465 directed the Public Utilities Commission of Nevada (PUCN) to establish the Expanded Solar Access Program (ESAP), a utility-managed structure that provides pathways for households and businesses to access shared renewable energy. Unlike SB 392, AB 465 placed responsibility primarily on NV Energy, the state’s largest utility, to develop and manage programs.

The PUCN finalized ESAP regulations in late 2021, formally authorizing community-based solar resources (CBSRs). These are modified forms of community solar projects designed to be utility-controlled but available to customers who cannot install rooftop systems. While not as open to independent developers as in states like Minnesota or Colorado, ESAP ensures that Nevadans have at least one standardized, regulated way to participate in shared solar generation.

AB 465 also requires that ESAP capacity be divided into specific customer categories, including low-income households, nonprofit organizations, and general residential customers, ensuring more equitable access to renewable power. This makes Nevada one of the few western states to embed low-income access directly into law.

What is Community Solar?

Community solar is a renewable energy model that lets multiple customers subscribe to the output of a single solar installation. Rather than installing panels on your own home, you subscribe to a community solar project and receive credits on your electricity bill that correspond to your share of the system’s production.

In Nevada, this is particularly relevant. Many residents live in apartments in Las Vegas or Reno, or in rental housing without the option to install rooftop residential solar. Others may own homes but face challenges such as older roofs, heavy shading, or limited financial resources. For these households, Nevada community solar provides access to clean energy through subscription models managed by NV Energy under the ESAP program.

The advantages are significant. Customers don’t need to invest thousands of dollars upfront, nor do they need to worry about maintenance or roof suitability. Instead, the utility or project operator handles installation and operations, while subscribers simply enjoy bill credits.

When compared to rooftop systems, community solar energy provides flexibility. Customers can choose subscription sizes tailored to their needs, transfer subscriptions if they move within the service territory, and participate in solar farms built in the best-suited locations with maximum sunlight exposure. This ensures broader participation and better economies of scale than many distributed rooftop systems could achieve.

Why Community Solar?

The benefits of community solar in Nevada extend well beyond individual bill savings. The model also plays an important role in meeting state energy policy goals and addressing broader social needs.

For households, community solar provides access to renewable energy at lower costs. While rooftop systems can deliver strong long-term savings, they require significant upfront investment or financing. Subscriptions, on the other hand, are low-barrier and easy to cancel or adjust. For renters in Nevada’s fast-growing cities, community solar may be the only viable way to participate in the clean energy economy.

For businesses, subscribing to community solar farms allows companies to stabilize electricity costs and market their green credentials to environmentally conscious consumers. In the tourism-driven economy of Las Vegas, renewable energy participation is also a reputational advantage for hotels, resorts, and event venues.

At the community level, shared solar projects create construction and maintenance jobs, bring new tax revenues to rural counties, and provide income streams to landowners who lease sites for solar development. As Nevada phases out coal and reduces reliance on natural gas, expanding community solar helps diversify the state’s generation mix while cutting greenhouse gas emissions.

One of the most notable features of Nevada’s ESAP is its equity requirement. By reserving capacity for low-income households, the law ensures that the clean energy transition benefits not just wealthy homeowners but also disadvantaged families. This is critical in a state where energy bills spike during extreme summer heat and where vulnerable populations are disproportionately affected by high utility costs.

Are there Community Solar Projects in Nevada?

Yes. Nevada has several community solar projects that are either active or in development, primarily through NV Energy’s ESAP framework and smaller cooperative-led initiatives.

The most prominent is NV Energy’s Expanded Solar Access Program (ESAP), which includes a portfolio of community-based solar resources (CBSRs). These projects are utility-owned and located in both northern and southern Nevada. Customers subscribe to a portion of these facilities and receive monthly bill credits based on production. This initiative guarantees savings for income-qualified customers by ensuring that subscription costs are always lower than the value of bill credits.

Smaller electric cooperatives in rural areas, such as those serving parts of Elko and White Pine counties, have also piloted shared-solar projects for their members. These programs typically allow customers to lease or buy panels in a solar farm, with credits applied monthly to their bills.

Some municipal and tribal governments in Nevada are exploring community-scale solar as part of local sustainability strategies. Tribal projects, in particular, are important because they provide energy sovereignty and economic development opportunities for communities historically underserved by traditional energy infrastructure.

Because most of the state’s programs are administered by NV Energy, eligibility is generally limited to customers in its service territory. Interested residents sign up through NV Energy’s enrollment process, select a subscription size, and begin receiving credits once the system is online. Demand has been strong, and some projects have filled capacity quickly, leading to waitlists for new subscribers.

How Does Community Solar Work in Nevada?

The mechanics of Nevada community solar align with national models but include state-specific structures under AB 465 and PUCN regulation.

First, a utility or cooperative develops a solar farm in a location with strong sunlight and good grid access. Once operational, the farm delivers electricity into the local distribution grid. Customers then subscribe to shares of the facility’s output. Their share is tracked monthly, and credits are applied to their utility bills to offset consumption charges.

Unlike rooftop residential solar, which directly offsets household usage, community solar works at the system level. Subscribers’ homes still draw from the grid, but their bills are reduced by credits tied to their share of the solar farm’s production.

Nevada’s ESAP includes categories to ensure diverse participation. Some capacity is set aside for low-income households, some for nonprofits and disadvantaged businesses, and some for general residential or commercial subscribers. This structured allocation is designed to balance equity with broader program access.

The economics of community solar projects are supported by federal incentives like the Investment Tax Credit (ITC), which covers 30% of installation costs. Additional federal “bonus credits” apply when projects are located in low-income or energy communities, which are common in Nevada. These savings reduce project costs and make subscription rates more affordable.

To illustrate the mechanics, here’s a comparison of how programs may be structured in Nevada:

This structure ensures that Nevada community solar is inclusive and scalable, serving urban renters, rural families, and disadvantaged households alike.

How Much Does Community Solar Cost in Nevada?

The community solar cost in Nevada depends on program design but is structured to provide savings over standard utility rates.

In NV Energy’s ESAP, customers typically pay a subscription fee tied to capacity (kW) or monthly energy blocks (kWh). For example, a household might subscribe to 2 kW of capacity for around $30–$40 per month. In return, they receive credits that reflect the actual output of that share, often exceeding the subscription fee.

Credits vary with seasonal solar production. In summer, when Nevada’s desert sun delivers peak generation, credits are higher, producing greater net savings. In winter, credits are smaller but still designed to offset subscription costs. Over the course of a year, subscribers generally see 5–15% savings on their total electricity bills.

Cooperative programs sometimes use a one-time buy-in model. Members pay a few hundred dollars upfront to “purchase” the output of one or more panels for 20–25 years. Monthly bill credits are then applied automatically. This structure is especially popular with long-term rural residents who prefer upfront investment to recurring fees.

The low-income tiers under AB 465 guarantee net benefits. Income-qualified customers pay lower subscription rates and are assured that credits will always exceed costs. For households struggling with high summer cooling bills, this stability is a significant relief.

Here’s an illustrative cost-benefit scenario:

While the exact numbers vary by program and season, this example shows how Nevada community solar provides predictable, scalable savings without upfront capital.

For customers, the value isn’t just in the dollar savings but also in the stability. Subscriptions lock in access to solar production, which protects households from volatility in natural gas prices, a major driver of utility rates in Nevada.