Page 62 - Special Awards Issue 2016 Green Builder Magazine

CODE WATCH

The Latest Rules, Regulations and Codes Impacting Sustainable Construction

Forecast for Nevada Solar Market:
Not So Sunny

Three solar providers flee the Silver State after Nevada imposes a new solar tariff and

restructures its net metering rules and rates.

BY MIKE COLLIGNON

MIDWAY THROUGH 2015, Nevada governor Brian CREDIT: TERRY HASSAN
Sandoval approved SB 374, after an almost unanimous
passage by the state legislature. (Between the Senate
and Assembly, it received one “No” vote.) This law
weakens the stringency of the building envelope. SB

374 calls for a change in ACH50 levels; specifically, it restricts the

airtightness requirements in residential construction to a range of

4 to 7 ACH50. It also enacts some measures that would limit the

flexibility of local jurisdictions by prohibiting a jurisdiction from Backpedaling. The Nevada State Legislature was nearly unanimous
iinn rite ss pi da es ns ati ga el co ofnSsBtr3u7c4t,iownhaicnhdwpelaackeesnas airtightness requirements
setting an ACH50 requirement more stringent than the state level. tariff on net metering
Additionally, SB 374 places a tariff on customer-generators of solar customers with solar installations.

power, once an overall cap of 235 megawatts is met. This cap was
a result of a compromise between the utilities and The Alliance for THE FALL-OUT
Solar Choice, a solar industry trade group. Even though this deal was Just two months after the passage of SB 374, the 235-MW cap was

struck, the solar industry still voiced concerns that the cap would be reached, with immediate effects. Solar provider Vivint immediately

reached as soon as the new year. This would result in higher costs/ pulled out of the state; in December, SolarCity announced it was

fees for producers of solar power. ceasing all sales and installations in Nevada, and that it was closing

Net Metering Rate Change Forecast – Southern Nevada Residential Customers a new training facility that had just opened a

month before. In a press release, the company

Basic Service Charge Volumetric Charge Excess Energy Credit announced it “has been forced to eliminate
more than 550 jobs in the state.”

Prior Rate $12.75 $0.11289 In early January, Sunrun announced

January 1, 2016 $17.90 $0.11067 $0.09199 that it has ceased all operations in Nevada
market—a decision that will result in the loss

January 1, 2017 $23.05 $0.10845 $0.07429 of “hundreds of jobs.”
Meanwhile, utility customers with
January 1, 2018 $28.21 $0.10623 $0.05747
residential rooftop arrays are already being

January 1, 2019 $33.36 $0.10418 $0.04157 affected. The monthly service charge for
single-family net metering customers went

January 1, 2020 $38.51 $0.10179 $0.02649 up $5.15 for customers in southern Nevada

Compromised ROI. Residential customers with grid-tied solar arrays will see their utility and $5.84 for customers in northern Nevada.
bills go up every year for five years. Ratepayers in northern Nevada follow a slightly The service charge will be increased every
different schedule. year for five years (see chart). The other

60 GREEN BUILDER Special Awards Issue 2016 www.greenbuildermedia.com