Nevada: Commercial Solar Financing + Government Incentives 0

Investing in commercial solar energy can be a game-changer for businesses in Nevada, offering significant cost savings, energy independence, and environmental benefits. However, understanding the various financing options and government incentives available can be complex. Whether you’re a small business owner looking to reduce utility bills or a large corporation aiming to enhance sustainability, understanding the financial landscape is crucial for making informed decisions.

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This article covers the best commercial solar financing options in Nevada, providing insights into Power Purchase Agreements (PPAs), solar leases, loans, and other innovative financing solutions. We’ll also explore the key government incentives that can help offset installation costs and accelerate your return on investment. From tax credits and property tax exemptions to specific state programs, we’ll outline how these incentives work and how they can benefit your business.

Main Commercial Solar Financing Options in Nevada

Each of these financing options provides unique advantages depending on the specific needs and capabilities of the business. Choosing the right financing solution in Nevada can help commercial and industrial entities significantly reduce energy costs, benefit from tax incentives, and contribute to environmental sustainability.

Solar Power Purchase Agreement (PPA)

A Solar PPA is a financial arrangement where a third-party developer installs, owns, and maintains solar panels on a commercial property, and the property owner agrees to purchase the generated electricity at a predetermined rate. This rate is typically lower than the market rate from local utilities, and the agreement spans a fixed period, usually 15-25 years.

Types of C&I Projects a Solar PPA Is Good For

Solar PPAs are particularly effective for large-scale commercial operations such as manufacturing plants, data centers, or large office buildings that consume significant amounts of electricity and wish to reduce their energy costs without a significant initial capital expenditure.

Solar Lease

In a solar lease, a business agrees to pay a fixed monthly fee to lease solar panels from a third-party provider. This arrangement includes installation, maintenance, and repairs, which are handled by the provider, not the business. The lease terms generally range from 10 to 20 years.

Types of C&I Projects a Solar Lease Is Good For

Solar leases are ideal for medium-sized commercial entities like shopping malls, supermarkets, or medium-sized enterprises that prefer not to allocate upfront capital for solar installations but want to enjoy the benefits of solar energy.

Solar Loan

A solar loan enables commercial entities to finance the purchase and installation of a solar system through various lending options. The business owns the system outright and benefits from all associated tax credits and incentives.

Types of C&I Projects a Solar Loan Is Good For

Solar loans are suited for businesses that have the financial stability to handle periodic loan payments and are interested in long-term savings and benefits from owning a solar system. This includes schools, hospitals, or small to medium-sized enterprises with adequate credit ratings.

Commercial Property Assessed Clean Energy (C-PACE)

C-PACE is a financing method that allows commercial property owners to finance improvements that enhance energy efficiency, water conservation, or renewable energy through a property tax assessment that is repaid over time.

Types of C&I Projects a C-PACE Is Good For

C-PACE financing is particularly beneficial for projects involving extensive renovations or retrofits where the upfront cost can be prohibitive. It’s well-suited for hotels, office buildings, and other commercial properties looking to significantly reduce energy costs and increase property value through sustainable upgrades.

Energy Service Agreements (ESAs)

An Energy Service Agreement is an agreement where a service provider designs, installs, maintains, and operates energy infrastructure on a customer’s property at no upfront cost. Instead, the customer pays for the energy service provided, typically at a rate lower than the utility price.

Types of C&I Projects an ESA Is Good For

ESAs are ideal for energy-intensive industries such as chemical plants, paper mills, or any large facility with high and consistent energy consumption looking to reduce energy costs without capital expenditure, while also not having to manage the energy systems themselves.

Companies That Provide Commercial Solar Financing in Nevada

These companies offer various financing options, such as loans and leases, to help commercial property owners in Nevada invest in solar energy projects and achieve significant cost savings.

Nevada Solar Group

They offer a variety of commercial financing options for solar panel installations, including Power Purchase Agreements (PPAs), solar leases, and solar loans. These options are designed to provide businesses with flexible and affordable ways to invest in solar energy, ensuring both immediate savings and long-term financial benefits.

CleanCapital

CleanCapital provides commercial solar financing for businesses looking to invest in clean energy projects. Their services include project acquisition, financing, and asset management to streamline the transition to renewable energy and maximize financial returns.

Sunwest Bank (US-Wide)

Sunwest Bank provides comprehensive financing options for commercial solar projects, including loans, leases, and Power Purchase Agreements (PPAs), available for commercial buildings across the United States.

Greentech Renewables (US-Wide)

Greentech Renewables offers reliable funding solutions for commercial solar projects nationwide. They manage the acquisition of necessary products and materials, oversee the procurement and maintenance of loans, and coordinate with lending partners to facilitate financing.

Sustainable Capital Finance (Multiple States)

Sustainable Capital Finance specializes in offering Power Purchase Agreements (PPAs) and takeout financing for commercial and non-profit solar projects of 100 kW or larger. Their clientele includes municipalities, tribal communities, non-profits, religious institutions, and educational facilities, demonstrating their broad service reach.

SunRenu (Multiple States)

SunRenu delivers funding solutions for commercial solar projects across the country. They handle the acquisition of products and materials, manage loan procurement and maintenance, and ensure effective coordination with lending partners to support solar initiatives.

Free Commercial Solar Financing Nevada

Get a Free Commercial Solar System by Becoming a Solar PPA Partner

UVcell Solar offers an exceptional opportunity for Nevada commercial property owners to get free solar panels, inverters, and battery energy storage systems by becoming a Solar Power Purchase Agreement (PPA) partner. Our network of project funders is actively looking for spaces to host their solar systems, providing a unique chance for property owners to benefit from solar energy without the upfront costs.

How It Works

By partnering with UVcell Solar, your property can host a solar system installed and maintained by our network of funders. In return, you secure lower electricity rates for the next 20 years, offering substantial savings and predictable energy costs.

Solar Equipment Provided

  • Tariff-Free, High Quality Tier 1 Solar Panels: Our partnerships ensure the installation of top-tier, tariff-free solar panels, guaranteeing high performance and reliability.
  • Advanced Inverter: State-of-the-art inverters that efficiently convert solar energy into usable electricity, maximizing the system’s output.
  • Battery Energy Storage System: To enhance energy independence and resilience, our PPA includes a battery energy storage system. This allows for energy storage during peak production times, providing backup power and ensuring a continuous energy supply.

Benefits of Becoming a Solar PPA Partner

  • No Upfront Costs: Get a complete solar energy system installed on your property without any initial investment.
  • Lower Electricity Rates: Secure reduced electricity rates for 20 years, leading to significant cost savings.
  • Enhanced Energy Security: Benefit from a battery storage system that provides backup power and ensures a steady energy supply.
  • Sustainable and Green: Promote the adoption of renewable energy, supporting long-term sustainability and environmental goals.

See if You Qualify

Contact us today to check if you’re eligible to become a Solar PPA partner. 

Does Nevada Have Any Commercial Solar Incentives?

Renewable Energy Tax Abatements

The Renewable Energy Tax Abatement program, managed by the Governor’s Office of Energy since July 2009, offers tax reductions to encourage the development of renewable energy projects. 

Here’s a breakdown of how it works and what “abatement” means:

What is a Tax Abatement?

A tax abatement is a reduction or elimination of taxes granted by the government to encourage specific activities, such as renewable energy projects. In this context, it means that businesses investing in renewable energy facilities can receive reductions on their sales, use, and property taxes.

How the Program Works

  1. Application Review: Businesses apply for tax abatements through the Governor’s Office of Energy.
  2. Public Hearings: The office conducts public hearings to evaluate the eligibility of these applications.
  3. Compliance Audits: Once abatements are granted, the office performs annual audits to ensure compliance with program requirements.

Example of Leveraging the Program

Let’s say a company wants to build a large-scale solar power plant in Nevada. 

Here’s how they can benefit from the tax abatement program:

  1. Application: The company submits an application to the Governor’s Office of Energy for a tax abatement.
  2. Approval: After review and public hearings, the application is approved.
  3. Tax Savings: The company receives a reduction in sales and use taxes on the materials purchased for building the plant. Additionally, they get a reduction in property taxes on the land where the solar panels are installed.
  4. Compliance: The company must comply with annual audits to maintain these tax benefits.

Program Impact and Benefits

Since the regulations were adopted in 2010, Nevada has approved 54 tax abatement applications. These include projects involving solar photovoltaic (PV), solar thermal, biomass, geothermal, and wind energy across the state.

Benefits

  • Cost Reduction: By lowering tax expenses, businesses can reduce the overall cost of their renewable energy projects.
  • Encouragement: This program encourages more businesses to invest in renewable energy, supporting Nevada’s clean energy goals.

By participating in the Renewable Energy Tax Abatement program, businesses can significantly lower their tax burden, making renewable energy projects more financially viable and contributing to the state’s sustainability efforts.

Nevada’s Renewable Energy Tax Incentives

Nevada offers significant tax incentives to encourage the adoption of renewable energy systems for commercial, industrial, and agricultural applications. 

Here are two major incentives available:

  1. 100% Property Tax Exemption for Renewable Energy Systems

This incentive provides a full exemption from property taxes for renewable energy systems used in commercial, industrial, and agricultural applications. This exemption helps businesses lower their operational costs by eliminating the property tax on the value added by the renewable energy installations.

Eligibility: Any commercial, industrial, or agricultural property that installs a renewable energy system such as solar, wind, or geothermal can apply for this exemption.

Benefits: By taking advantage of this exemption, businesses can significantly reduce the overall cost of their renewable energy projects, making them more financially viable and attractive.

  1. 55% Property Tax Abatement for Utility-Scale Solar Farms

This incentive offers a 55% abatement on property taxes for utility-scale solar farms with a capacity of at least 10 megawatts (MW). This abatement is available for up to 20 years, providing long-term financial benefits to large-scale solar projects.

Eligibility: Utility-scale solar projects with a minimum capacity of 10 MW are eligible for this abatement. The abatement applies to both real and personal property used in the generation of solar power.

Benefits: This abatement reduces the property tax burden, helping to offset the significant upfront investment required for large solar projects and making them more economically feasible.

These incentives are designed to support the growth of renewable energy in Nevada, making it more accessible and cost-effective for businesses to invest in sustainable energy solutions. By leveraging these tax benefits, businesses can lower their operational costs, contribute to environmental sustainability, and support the state’s renewable energy goal.

Does Nevada Buy Back Solar Power?

Net Metering in Nevada

Yes, Nevada does buy back solar power through a net metering program. Net metering allows solar energy system owners to receive credits for the excess electricity they generate and send back to the grid. This program helps offset the cost of electricity consumed from the grid, making solar energy investments more attractive. By participating in Nevada’s net metering program, commercial property owners can take advantage of solar energy, reduce operating costs, and contribute to a sustainable future. 

To get detailed information about Nevada’s net metering program and specific requirements for commercial property owners, visit NV Energy’s Net Metering Program

How Net Metering Works

When a solar energy system produces more electricity than the property consumes, the surplus is sent back to the grid. The utility company then credits the property owner’s account for this excess energy, which can be used to offset future electricity bills. The credits are typically calculated at a retail rate, making it a financially beneficial arrangement for solar energy system owners.

Eligibility for Commercial Property Owners

Commercial property owners in Nevada can qualify for net metering and benefit from the buy-back program. This applies to various commercial entities, including businesses, schools, non-profits, and industrial facilities. To qualify, the solar energy system must be installed and interconnected according to the state’s regulations and utility company requirements.

Key Benefits for Commercial Property Owners

  • Cost Savings: By sending excess solar energy back to the grid and receiving credits, commercial property owners can significantly reduce their electricity bills.
  • Increased ROI: Net metering improves the return on investment for solar energy systems by ensuring that all generated energy is utilized or credited.
  • Environmental Impact: Participating in net metering supports Nevada’s renewable energy goals and helps reduce carbon emissions.

Steps to Qualify

  1. Install a Solar Energy System: Work with a reputable solar provider to design and install a system that meets your energy needs and complies with Nevada’s regulations.
  2. Interconnection Agreement: Apply for and obtain an interconnection agreement with your utility company, such as NV Energy.
  3. System Approval: Ensure your system is inspected and approved by the utility company to begin the net metering process.

Top Commercial Property Assessed Clean Energy (C-PACE) Providers in Nevada

These providers offer a range of financing options designed to support commercial property owners in implementing energy efficiency and renewable energy projects across Nevada. Each provider has specific terms and qualifications, so it’s advisable to contact them directly to find the best fit for your project’s needs.

  1. Bayview PACE: Provides financing for energy efficiency and renewable energy projects.
  2. Nuveen Green Capital: Specializes in large-scale renewable energy projects.
  3. Petros PACE Finance, LLC: Offers significant financing amounts for various C-PACE projects.
  4. Counterpointe Sustainable Real Estate LLC: Focuses on energy efficiency and sustainable real estate projects.
  5. Dividend Bank: Provides C-PACE financing with competitive terms.
  6. Forbright Bank: Supports renewable energy and energy efficiency upgrades.
  7. GreenRock Healthcare Capital, LLC: Offers financing tailored for the healthcare sector.
  8. IKAV PACE LLC: Provides financing solutions for large-scale energy projects.
  9. Liberty Energy Partners: Focuses on financing renewable energy and energy efficiency projects.
  10. PACE Equity Finance, LLC: Known for its comprehensive financing options for energy upgrades.

Best Commercial Solar Financing Nevada

Choosing the right commercial solar financing option in Nevada involves considering several factors tailored to your specific project needs. By understanding these different financing options and their key considerations, businesses in Nevada can make informed decisions about which solution best fits their financial situation and energy goals.

Here are the key options and considerations to help guide your decision:

Considerations for Solar Power Purchase Agreements (PPAs) 

PPAs involve a third-party developer who installs, owns, and maintains the solar system on your property. You agree to purchase the generated electricity at a predetermined rate, usually lower than utility rates.

  • Upfront Costs: Typically, there are no upfront costs, making it ideal for businesses without the capital to invest initially. This allows businesses to benefit from solar energy without the need for significant initial expenditures.
  • Long-term Savings: Evaluate the long-term savings based on the agreed rate and contract length. Since the electricity rate is often lower than traditional utility rates, businesses can achieve substantial savings over the duration of the agreement.
  • Maintenance and Ownership: Maintenance is handled by the provider, but you don’t own the system. The third-party developer is responsible for all operational aspects, including repairs and system upgrades, ensuring that the system performs efficiently without adding to your operational workload.
  • Contract Terms: PPA contracts typically span 15-25 years. It’s important to review the length and terms of the contract to ensure they align with your business’s long-term plans. Understand the conditions for contract renewal, termination, and any buyout options that may be available at the end of the term.
  • Energy Cost Stability: PPAs offer predictable energy costs over the life of the contract, protecting businesses from fluctuating utility rates. This stability can help with long-term financial planning and budgeting.

Considerations for Solar Leases

With solar leases, you pay a fixed monthly fee to lease the solar panels from a third-party provider. The lease typically covers installation, maintenance, and repairs.

  • Upfront Costs: Leases often require little to no upfront costs, making solar energy accessible for businesses without significant capital investment.
  • Fixed Payments: Predictable monthly payments can help with budgeting. This is ideal for businesses that prefer stable, manageable costs over time.
  • Ownership at Lease End: Determine if you have the option to purchase the system at the end of the lease term. Some leases offer a buyout option, allowing businesses to eventually own the system.
  • Maintenance: Maintenance responsibilities are usually covered by the lease provider. This includes repairs and any necessary upgrades, ensuring the system remains efficient and reliable without additional costs to the lessee.
  • Contract Terms: Lease terms typically range from 10 to 20 years. It’s important to review the length of the contract and any clauses related to termination or renewal to ensure they fit your business’s long-term plans.

Considerations for Solar Loans

Solar loans allow businesses to finance the purchase and installation of a solar energy system, enabling them to own the system outright and benefit from all associated tax credits and incentives.

  • Low Upfront Costs: Solar loans usually require a down payment, but many offer low or zero down payment options, making it accessible for businesses with limited upfront capital.
  • Tax Incentives: Owning the system allows businesses to take advantage of federal tax credits, such as the Investment Tax Credit (ITC), and benefit from accelerated depreciation.
  • Maintenance and Ownership: As the owner, the business is responsible for maintenance and repairs, but this also means full control over the system and the ability to benefit from long-term savings.

Considerations for Commercial Property Assessed Clean Energy (C-PACE)

C-PACE financing allows property owners to finance energy efficiency, renewable energy, and water conservation improvements through a property tax assessment.

  • Upfront Costs: C-PACE can cover up to 100% of project costs, including hard and soft costs, often requiring no money down. This makes it ideal for comprehensive energy upgrades.
  • Repayment Structure: Payments are made through a special property tax assessment, which can be spread over a long term (up to 30 years), matching the useful life of the improvements. This assessment is tied to the property, not the owner, and can be transferred if the property is sold.
  • Approval Process: Requires coordination with local governments and mortgage holders, and the project must meet specific energy savings criteria to qualify.

Considerations for Energy Service Agreements (ESAs)

An Energy Service Agreement involves a service provider who designs, installs, maintains, and operates energy infrastructure on the customer’s property with no upfront cost. The customer pays for the energy services provided.

  • Upfront Costs: Typically, there are no upfront costs for the customer, as the service provider handles all expenses related to the installation and maintenance of the energy system.
  • Service Payments: Payments are based on the energy services provided, often at a rate lower than traditional utility prices. This can result in immediate energy cost savings.
  • Maintenance and Management: The service provider is responsible for all maintenance and operational aspects of the system, ensuring reliable performance without adding to the customer’s workload.
  • Contract Terms: ESAs typically involve long-term contracts, so it’s essential to evaluate the duration and terms to ensure they align with the business’s long-term goals and energy needs.

Conclusion

Nevada offers a wealth of commercial solar financing options and government incentives that can significantly reduce the financial burden of transitioning to solar energy. From Power Purchase Agreements (PPAs) and solar leases to specialized loans and innovative solutions like C-PACE, businesses have multiple pathways to finance their solar projects. Additionally, leveraging government incentives such as tax credits, property tax exemptions, and state-specific programs can further enhance the economic viability of these investments, providing both immediate and long-term financial benefits.

Choosing the right combination of financing and incentives is crucial for maximizing returns and achieving sustainability goals. By carefully evaluating each option and considering factors such as upfront costs, long-term savings, ownership, and maintenance responsibilities, businesses can make informed decisions that align with their financial and operational objectives. As Nevada continues to promote renewable energy adoption, these financial tools and incentives will play a key role in helping businesses contribute to a greener, more sustainable future. 

Melissa brings over 20 years of communications and marketing experience, consistently delivering impactful contributions that strengthen organizational relationships, optimize operational efficiency, and increase sales. With a deep-rooted interest in environmental solutions, she loves applying her skills to increase the adoption of solar technology globally.
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