‘First-of-its-kind’ NV Energy charge sparks outrage among Las Vegas solar owners

LAS VEGAS (KTNV) — For years, Las Vegas homeowners have turned to rooftop solar panels to slash electricity bills and gain energy independence.

Now, a new daily demand charge from NV Energy threatens those savings — leaving many questioning if their investment was worth it.

WATCH | Rooftop solar owners share concerns with Channel 13

Greg Franklin has lived in his home for 35 years and has tried everything to cut costs. He swapped every bulb for LEDs and installed double‑pane windows, yet his monthly utility bill for power still reached hundreds of dollars.

“Everything we can to get the power bill down, and it was still $285 a month,” Franklin said.

Last year, Franklin invested $24,000 in 25 rooftop solar panels, tapping Southern Nevada’s abundant sunshine to power his home. The payoff was almost immediate.

“I’ve been between $19.20 dollars every month since,” Franklin said of his NV Energy bills.

That relief may be short‑lived.

NV Energy’s new daily demand charge — which calculates a customer’s highest 15‑minute energy use each day and multiplies it by the current per‑kilowatt‑hour rate — could raise Franklin’s low energy costs.

“Now all of a sudden, my bill’s going to double. So my payoff isn’t 7 years anymore,” Franklin said.

When asked via email where the idea for a daily demand charge came from, an NV Spokesperson wrote the following:

“Implementing a demand charge helps mitigate the $100 million annual shortfall caused by customers with rooftop solar systems and will lower bills for more than 90 percent of customers who do not have rooftop solar.”

Franklin isn’t convinced.

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“You beat your head on the table going, what do I have to do to keep caught up? How are you losing $100 million a year when I’m providing my own power during the day. And I’m only using your power at night,” Franklin said.

“Over the course of the year, I looked it up this morning. I’ve given them, since I put the system up 2.2 megawatts of power more than I’ve used,” he continued.

A historic first in utility billing

While NV Energy notes that commercial customers have paid demand charges for decades, economist and rate design expert Ahmad Faruqui says this is unprecedented for residential customers.

“In my view, they have taken a huge risk here,” Faruqui said.

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Faruqui argues that residential customers lack the tools and knowledge that commercial customers like hotels and casinos use to manage demand charges.

“They have the know-how and the technologies to manage their demand. Residential customers don’t know what is in their bill. They won’t even know what to do to lower it because who’s tracking their usage in 15 minute increments?” Faruqui said.

According to Faruqui, this is a distinct program he’s not seen before.

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“It’s the first-of-its-kind because it is mandatory. It’s the first of its kind because it’s based on 15 minutes, and also because it’s being offered by an investor owned utility,” he explained.

According to Faruqui, while other utilities in the country may have similar demand charges, it’s either optional or from smaller power companies.

“It’s very rare, but when it’s there — like in Missouri and Georgia and a few other places, like Arizona actually, next door to you guys — it is optional. It’s not suddenly imposed as a straitjacket that you have to fit into,” Faruqui said.

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Hitting at a time of broader rate increases

When asked for comment about the impact on solar customers, NV Energy Spokesperson Meghin Delay wrote the following via email:

“Currently, customers who do not have private rooftop solar cover the shortfall created by those with rooftop solar systems. As mentioned, the demand charge helps mitigate the shortfall and will lower bills for more than 90 percent of customers who do not have rooftop solar.”

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For locals like Franklin, the timing of this is frustrating.

“So here we are, we’re retired, fixed income. We go ahead and we go out of pocket to put the solar up, and they decide, well, we changed our mind, we’re going to charge you more,” Franklin said.

RELATED | Las Vegas homeowner says he’s stuck paying for a solar system he can’t use

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