NAC701B.150. Application for incentives; categories of host customers; determination of amount of incentive; payment of incentives; proposal of incentive levels; assignment of portfolio energy credits.

     1. The utility shall offer to a host customer an incentive pursuant to subsections 3 and 4. Any customer of a utility that receives retail electric service from the utility may apply for an incentive. A host customer or, pursuant to subsection 1 of NAC 701B.175, a system owner may apply for the incentive. The project site must be located in the service territory of the utility.

     2. A host customer must, based upon the nature of the host customer, be designated as one of the following categories:

     (a) Public entity;

     (b) Low-income and nonprofit;

     (c) Residential and small commercial; or

     (d) Large commercial and industrial.

Ê A host customer designated as low-income and nonprofit is not eligible to participate in the Lower Income Solar Energy Pilot Program established pursuant to NRS 704.786 with the same solar energy system that is the subject of a reservation of capacity issued pursuant to NAC 701B.155.

     3. A host customer that applies for a reservation of capacity for a solar energy system with a capacity of not more than 25 kilowatts whose application is approved is eligible to receive a one-time incentive payment. The amount of the incentive paid to a host customer for each category pursuant to this subsection must be determined during the proceeding to review the annual plan of the utility filed pursuant to NAC 701B.125.

     4. A host customer that applies for a reservation of capacity for a solar energy system with a capacity of more than 25 kilowatts but less than 500 kilowatts whose application is approved may enter into a contract with the utility to receive an incentive paid over a period of 5 years. The amount of the incentive must be based upon the metered production of the solar energy system. The incentive rate paid to a host customer must be determined during the proceeding to review the annual plan of the utility filed pursuant to NAC 701B.125.

     5. A contract to receive an incentive paid over a period of 5 years executed pursuant to subsection 4 must not be executed on or after January 1, 2021. The contract must not provide for the payment of the incentive, or any portion thereof, after December 31, 2025. The incentive must be paid on a quarterly basis and must be paid directly to the host customer or third-party assignee of the host customer. The utility shall include in its first annual plan filed after February 26, 2014, a detailed procedure and schedule for the payment of incentives.

     6. The utility shall not issue a reservation notice to a host customer if the incentive that would be paid under the notice would cause the incentive expenditure cap established pursuant to paragraph (a) of subsection 2 of NRS 701B.005 to be exceeded.

     7. A solar energy system with a capacity of more than 500 kilowatts is not eligible to receive an incentive.

     8. A utility shall, in the annual plan of the utility filed pursuant to NAC 701B.125, propose incentive levels for each category. The Commission may approve the proposed incentive levels, in whole or in part, or prescribe incentive levels other than those proposed by the utility. In approving an incentive level, the Commission will ensure that the incentive level is consistent with NRS 701B.190, subsection 1 of NRS 701B.200 and NRS 701B.220.

     9. In determining eligibility to participate in the Solar Program, each solar energy system located on the premises must be treated as a single solar energy system.

     10. Portfolio energy credits generated by a host customer participating in the Solar Program must be assigned to the utility pursuant to NRS 701B.290 and 704.775.

     (Added to NAC by Pub. Utilities Comm’n by R184-09, eff. 4-20-2010; A by R025-12, 9-14-2012; R122-13, 2-26-2014)