Part 5: Net Metering vs. Time-of-Use Billing: How It Affects Your Energy Costs
- January 23, 2025
- Posted by: Matt Kreuz
- Category: News & Articles
When considering solar energy for your home, one financial advantage stands above the rest—net metering. As your trusted solar energy consultant, I want to make one thing crystal clear:
Net metering is the key to maximizing your solar savings.
Without net metering, you’re at the mercy of NV Energy’s Time-of-Use (TOU) billing, a pricing model designed to capitalize on peak demand hours. This leads to higher energy costs for homeowners like you.
How Net Metering Works
Net metering is a simple yet powerful program that allows you to earn credits for the excess electricity your solar panel system generates. Here’s how it works:
- Daytime Usage: Your solar panels produce electricity during the day to power your home. If your energy needs exceed production, you pull additional power from the grid.
- Nighttime Usage: When the sun isn’t shining, your home relies on the grid for electricity.
- Surplus Generation: When your solar panels produce more than you use, the excess is sent back to the grid, and NV Energy provides credits to offset your energy costs.
Current Nevada Net Metering Policy
Under Nevada’s current Tier 4 net metering program, homeowners receive credits for surplus electricity at 75% of the retail rate. While it’s not a full credit, it significantly reduces energy costs and provides a way to lock in predictable rates for 20 years.
However, the future of net metering is uncertain. Neighboring states like California and Arizona have already reduced or eliminated their net metering programs. If you wait too long to go solar, you could miss out on these financial benefits.
Why Act Now?
The total capacity for Tier 4 net metering in Nevada is 572.837 MW; as of May 2024, 91.5% of that capacity is already taken. Once the program reaches capacity, NV Energy may eliminate or revise net metering to less favorable terms. Acting now allows you to get grandfathered into the current program and enjoy decades of energy savings.

How Time-of-Use (TOU) Billing Works
Without net metering, NV Energy will shift you to a Time-of-Use (TOU) billing structure, which charges different rates depending on when electricity is used.
- Peak Hours (3 – 9 PM in summer): $0.50 per kWh.
- Off-Peak Hours (Late night and early morning): $0.08 – $0.09 per kWh.
- Standard Rate (Flat rate customers pay): $0.12 per kWh.
This means that activities like cooking dinner, running appliances, or cooling your home during peak hours will result in shockingly high electric bills.
Why TOU Billing Is Bad for Homeowners
- Peak rates coincide with daily home usage. Homeowners can’t avoid using power when they need it most—after work, during dinner, and while cooling their homes.
- Future energy demands from AI data centers and EV charging stations will strain the grid further, forcing NV Energy to charge even higher rates.
- California example: PG&E customers pay up to 72 cents per kWh under TOU billing, leading to monthly bills of $900 or more!
Real Stories from TOU Customers in California
If you think TOU billing won’t affect you, consider what’s already happening to homeowners in California:
- Linda Lynch (Antelope Valley): Her bill skyrocketed to $900 in one month.
- Sarah Clifford: Despite keeping her thermostat at 78°F, she was billed $1,128.
- Melissa Avalos: A retiree, saw her monthly bill jump from $86 to $400.
This isn’t speculation—it’s a preview of what’s coming to Nevada homeowners without net metering.
Net Metering vs. TOU Billing: Why Net Metering Wins
Net metering provides financial predictability and shields you from NV Energy’s future rate increases by:
- Offsetting Your Energy Use: Earn credits for excess solar power and reduce your reliance on the grid.
- Avoid TOU Billing: No penalties for using energy when you need it most.
- Locking in Long-Term Savings: Secure 20 years of affordable, predictable energy costs.
What Should You Do?
The choice is clear: Act now to protect your energy future and avoid TOU billing.
- Schedule a Solar Consultation: Let’s discuss how net metering can benefit your home.
- Lock in Your Rates: Avoid rising electricity costs with a predictable solar payment.
- Avoid Expensive TOU Billing: Take control of your energy usage without worrying about peak rates.
Why Now Is the Time to Go Solar
With net metering capacity running out and TOU billing becoming more prevalent, the longer you wait, the more you’ll pay. Installing a solar energy system in Henderson or Las Vegas today ensures:
- You’re protected from rising rates.
- You qualify for the 30% Federal Solar Tax Credit.
- You achieve true energy independence from NV Energy’s escalating costs.