NV Energy customers speak out against new solar rate increases

According to a statement from Solar United Neighbors, more than 40 NV Energy customers packed the Clark County Government Center yesterday evening to voice their opposition to the monopoly utility’s proposed rate increases and changes to net metering policies during the Public Utility Commission of Nevada General Rate Consumer Session.

The proposed changes would significantly impact rooftop solar customers across Southern Nevada.

NV Energy’s proposal for Southern Nevada includes three major changes that solar advocates say will increase bills for existing solar customers and make the technology less financially accessible for future adopters: fundamentally altering how excess solar energy is calculated – shifting from monthly to 15-minute intervals, introducing a new demand charge based on customers’ peak usage, and implementing overall rate increases.

“What we’re seeing from NV Energy is a direct attack on Nevada families who invested in solar for energy independence and to save money on their bills,” said Julia Hubbard, Nevada Program Director for Solar United Neighbors. Hubbard has been organizing community education workshops on the proposed changes. “These rate changes will punish people who are helping reduce strain on the grid and make solar financially out of reach for working families who want to lower their energy costs.”

NV Energy’s proposal for Southern Nevada customers includes three significant changes to billing and rate structures.

The first is a shift to 15-minute net metering calculation, representing a dramatic change from the current monthly system. Today, if solar panels produce more energy than customers use during the day, they can bank that extra energy as a credit and use it to offset electricity use at night when the sun isn’t shining. Under the proposed system, customers would only receive credit for energy fed back to the grid during the exact 15-minute period it’s generated. So, if panels are producing extra power at 1 p.m., but customers use more electricity at 7 p.m., they would not receive credit for that earlier production under the new structure.

The second major change introduces a daily demand charge that would bill customers based on their highest usage during any 15-minute period in a billing cycle, regardless of their overall monthly consumption. This means that if customers do laundry, cook dinner, and run the dishwasher all while their air conditioning is running, that short window of higher usage will reflect the rate. Even customers who conserve energy throughout the day could see their bills increase based on that single moment of peak usage. The monthly demand charge would include each day’s highest usage over an hour multiplied by $.19 kWh.

The third component is a request to increase the amount NV Energy can recover from customers by $215.7 million. This would result in a rate increase that would raise the cost of electricity for all customers. While NV Energy has indicated that customers may see lower bills initially due to seasonal usage patterns and declining fuel costs, the rate increase would remain permanent even when fuel costs rise or seasonal usage increases.

Nevada resident and solar owner Richa Pandhi submitted written comments expressing her concerns about the rate structure changes.

“I learned about the rate increases that PUCN is contemplating, and it sank my heart,” Pandhi wrote. “The new ways of calculating do not make sense to me. Even if I use a minimal amount in a day, the new cost will be calculated based on my highest usage. Not only will this raise my monthly payments, but now I don’t even know how to reduce or monitor my use. I will have to audit NV Energy’s bill every month to understand my usage and identify or resolve issues. I will spend more time out of my everyday schedule trying to make sense of these changes.”

Consumer advocates argue that the combination of 15-minute net metering changes, demand charges, and rate increases would significantly extend the payback period for solar installations, making the technology less attractive to potential customers and slowing Nevada’s solar adoption.

The demand charge is particularly concerning to solar advocates because it penalizes customers for normal household usage patterns, even when their solar panels are producing clean energy.

Another public hearing is scheduled for Monday, June 30 at the Washoe County Administration Complex, where Northern Nevada customers will have the opportunity to voice their concerns about NV Energy’s proposal to change from monthly to 15-minute netting.

About Solar United Neighbors
Solar United Neighbors is a nonprofit organization that works in Nevada and nationwide to represent the needs and interests of solar owners and supporters. Solar United Neighbors holds events and education programs to help people become informed solar consumers, maximize the value of their solar investment, and advocate for fair solar policies.