Rooftop Solar Consumer Protection Guide A Customer’s Rights in Nevada

Rooftop Solar Consumer Protection Guide A Customer’s Rights in Nevada

BEWARE OF FALSE CLAIMS

Many rooftop solar contractors are honest and fair. However, there are still some false claims to watch out for.

False Claim #1: You can get free solar energy at no cost to you.
The Truth: Solar energy is rarely free. An honest company will be upfront about all costs you pay over time.

False Claim #2: You will never pay an electricity bill ever again.
The Truth: Electric bill savings from rooftop solar are not guaranteed. In most cases, rooftop solar can drive savings but will not eliminate your utility bill. Your savings will vary based on your utility’s net metering rate, minimum bill charges, daily and seasonal weather conditions, electricity usage, panel performance, and terms of a solar loan, lease, or power purchase agreement (PPA). Net Metering is a utility incentive that allows consumers in some areas to receive a credit on their electricity bill by returning any extra solar electricity they generate back to the grid. Some utilities do not compensate for excess solar electricity generated beyond a home’s consumption, or compensate excess electricity at a lower rate. Learn about NV Energy’s net metering rate: https://www.nvenergy.com/account-services/energy-pricing-plans/net-metering.

If you think you have been a victim of solar fraud, you may file a complaint against a contractor with the Nevada State Contractors Board (http://www.nvcontractorsboard.com/complaint_forms.html or [email protected]). 

Key Questions to Ask Before Signing a Contract

  • What is the contractor’s license for all individuals (including subcontractors) who will be involved in the installation of the project?
    • A licensed contractor is required to install or repair rooftop solar systems. Verify a contractor’s license at nscb.nv.gov. The State of Nevada also requires each installer to have a Nevada OSHA PV license.
  • What is the total cost of the rooftop solar system?
    • If you are considering a solar loan, lease, or PPA, also ask: is there a down payment? How much will I pay per month today and for the life of the contract? Are there price escalations over time?
  • What assumptions do you use to calculate my energy bill savings? Do you assume the utility’s current net metering rate? What electricity price escalation do you assume? What are the federal or state tax incentives that are included in calculating the amount of monthly payments due under the contract?
  • Will you take care of the necessary applications for permits with local government and net metering interconnection with my utility?
  • If I sell my home, what are my options and what do I need to do? Where in the contract is this addressed?
  • Is there an insurance policy that comes with the solar system? What is the warranty on the system?
  • What is the estimated timeline for the installation of the solar panel system?
  • What is the estimated production of the solar panel system in the first year of operation
  • Review other questions and key considerations from the PUCN at https://bit.ly/4au8JCI

Your Rights in Nevada

In addition to including standard contract provisions (https://bit.ly/43VNAyB), solar contractors in Nevada must:

  • Make an audio recording within 48 hours after contract execution to confirm the purchaser/lessee’s identity, communicate the contents of the contract cover page, and confirms the consumer’s understanding.
  • Provide at least a 10-year warranty for panel parts and labor and at least a 7-year warranty for system inverters
  • Adhere to down payment or deposit limits ($1,000 or 10% of the aggregate contract value, whichever is lower).

Residents are entitled to:

  • Contact the Public Utilities Commission or an attorney to clarify any of the provisions of the contract
  • Request contract documents in the same language as verbal negotiations if a language other than English
  • Rescind a contract (including over email) within 3 days of signing and void an existing contract if it does not comply with state law.

Other Tips

  • Get bids from at least 3 different solar providers.
  • Verify information from the solar provider with third-party resources, such as using NREL’s PVWatts Calculator to estimate generation from the proposed solar system: https://pvwatts.nrel.gov/.
  • Consider energy efficiency measures first. Energy efficiency measures can bring down the cost of rooftop solar. Information on available incentives: https://nevadacef.org/available-resources.
  • Make sure your roof has sufficient sunlight for rooftop solar. And if you plan to replace your roof soon, you should do so before installing a rooftop solar system.
  • Don’t let anyone pressure you into getting solar or signing a contract that you don’t understand.
  • You will not be able to use your rooftop solar system during a grid outage unless you also have battery storage that can disconnect from the power grid.
  • The federal government offers a 30% tax credit for individuals installing solar systems on their homes (under tax code Section 25D). After installing a resident-owned rooftop solar system, the resident can file for a credit on their tax bill in the subsequent tax filing season. The credit would equal 30% of the qualifying solar system costs. You must have sufficient tax liability to offset by the dollar value of the credit. If you don’t have enough tax liability to use the full tax credit in the installation year, the credit can be carried forward to future years. Consult a tax professional for additional information.
  • The Nevada Clean Energy Fund (NCEF) is gearing up to launch new solar incentives for low-income households later this year. Sign up to learn more here: https://bit.ly/47Hc6UC.
  • If you had a bad experience with a contractor, we want to know about it! Email us at [email protected].

Comparison of Financing Options

Pros Cons
Purchase with Cash or Loan
  • Typically yields a greater return on investment. 
  • If you use a loan, little or no upfront costs. 
  • May increase value of home. 
  • You can directly receive federal tax credits and other available incentives.
  • You are typically responsible for repairs and maintenance. This may involve contacting different manufacturers, who could go out of business during the 10- to 20-year component lifecycles. 
  • Some solar loans place a lien on your property. In those cases, if you do not make your payments, this could result in foreclosure or make it more difficult to sell your home or refinance your mortgage.
Lease or Power Purchase Agreement
  • Little or no upfront costs. 
  • Solar provider is responsible for all monitoring, maintenance, and repairs. 
  • Minimum energy production is often guaranteed (depends on contract). 
  • Selling your home may be more complicated than with a purchased system. Options typically are: the new owner must agree to take on the lease/agreement, you continue making payments, or you buy out the lease/agreement, which could be thousands of dollars. 
  • Solar provider could go out of business during the contract period.
  • You are unable to directly benefit from the 30% tax credit even if you have enough taxable income.

NCEF does not provide tax or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax or legal advice. You should consult your own tax and legal advisors before engaging in any transaction.