Should You Add Solar Panels To Your Home?

Thinking about adding solar to your home?

There are several reasons you may consider solar. Whether it's green energy, control the power on your home, or wanting to save money.

If you are looking at solar to save money... before you sign that solar contract, we recommend you complete an analysis based upon the data the solar company is providing. They typically make some assumptions, such as an annual appreciation of power for NV Energy. We are all experiencing a significant jump this year on our NV Energy rates, about a 30% increase in the last five years.

Historically, this has not been the case. An S&P Global report showed that between 2009 and 2018, Nevada’s electricity prices fell 14%. That's more than any other state. So why is Nevada’s power making such big swings? 

Most of NV Energy's customers received a letter in February explaining why. Most of our power comes from natural gas, not the solar panels we see south of our city. The price of natural gas has jumped significantly at the end of 2021 / into 2022 causing our electricity rates to follow suit. In order to determine what the next 20 to 25 years will look like for NV Energy's rates (the length of time for a typical solar contract), you have to look at what's going to happen with natural gas prices.

If I sell you home five years from now and you have a solar lease with a rate above NV Energy's rate per kW, then this will negatively impact the resale value. I love excel spreadsheets, so I have put together a solar analysis that I can share with you to help you evaluate this decision to add solar to your home. For every analysis, there are assumptions made. The solar company's presentation assumes NV Energy rates will rise annually at a certain percentage usually greater than the 2.9% or 3% annual rate increase built into their contract. 

If you would like this analysis spreadsheet, you can email us at team@grahamteamnv.com.