Nevada's Solar Industry Declines While Nation's Booms

Unlike other parts of the country where solar financing, manufacturing and installation are booming, Nevada’s solar industry is coming to a screeching halt. Greentech Media reports that a recent decision by the Public Utility Company (PUC) to increase rates for solar customers is hurting the green energy alternative in the state. 

“The PUC order tripled the fixed charges solar customers will pay over the next four years, and reduced the credit solar customers receive for net excess generation by three-quarters,” writes Greentech Media. Since the announcement, solar companies throughout the state have said they will cease operations in Nevada and are being forced to lay off staff. 

The news out of Nevada comes as a shock for members of the solar financing community, consumers, lawmakers and solar businesses across the nation. In an industry booming and boasting overwhelmingly high employment rates across the entire U.S., the decision by the Nevada PUC to increase costs to solar customers is having devastating consequences. 

Greentech Media says, “The most controversial decision was to apply the changes retroactively to Nevada’s nearly 18,000 existing solar customers, in addition to new ones.” The changes eliminate any cost-saving alternative for solar customers and in some cases may increase monthly utility costs. 

The changes enforced by the PUC have created a monopoly on energy in the state by making solar financing obsolete and unaffordable. The New York Times notes that the majority of residential customers in the state will have no choice but to stay on traditional fossil fuel utilities. 

The New York Times cites a study published by the Edison Electric Institute that suggests the emergence and increased use of alternative means of energy by consumers will have a devastating impact on traditional utility companies. The PUC’s decision to increase rates for solar customers echoes this belief and subsequently benefits Nevada’s traditional utility companies. 

One of the most alarming side effects of the increased tariffs includes a dramatic drop in stock price for one of Nevada’s most prominent solar companies. The New York Times says since the commission announced its decision in December, the company’s stock has dropped by 30 percent.  

The PUC’s decision to make solar unaffordable for its residents—despite national success with regard to solar financing, installation and manufacturing—has solar companies worried that similar rate increases could surface in other communities and deter solar progress. Moreover, the rate increases in Nevada put the entire state in an unfavorable light with businesses and consumers for its lack of commitment to combatting climate change and offering green alternatives for energy. 

Nicole Donaldson is a renewable energy writer for Fusion 360, an SEO and content marketing agency. Information provided by Elements Capital Group. Follow on Twitter.