The Opinion of the RGJ Editorial Board

Nevada’s solar power situation is a mess.

It is harming the state. The solar industry, NV Energy and the Public Utility Commission need to fix it.

The issue heated up last year when it became clear that a limit would be reached on how much of the state’s peak electricity load could come from regular solar customers. This meant that rate incentives for solar homeowners would no longer apply for new rooftop solar installations.

The Legislature said the PUC should decide what happens when this eventuality came true. In December, the PUC made that decision. It revised the state’s rooftop solar program to cut payments and raise fees for new and existing solar customers.

Two solar companies — SolarCity and SunRun — subsequently announced they were leaving the state, costing hundreds of jobs. A class-action lawsuit was filed on behalf of solar homeowners. NV Energy asked the PUC to reconsider not grandfathering in existing customers. Presidential candidates and celebrities jumped into the fray.

Not coincidentally, this week a new coalition funded by major energy users filed an initiative petition to change Nevada’s constitution to break up NV Energy’s monopoly on electricity service.

The state’s solar circus has caught the attention of national media outlets. Vox published a story last month headlined, “Nevada’s bizarre decision to throttle its own solar industry, explained.” Bloomberg wrote, “Musk vs. Buffett: The Billionaire Battle to Own the Sun.”

This last one refers to the fact that a Warren Buffett company owns NV Energy while Elon Musk’s Tesla factory near Reno is building “powerwall” batteries with which homeowners can store solar energy rather than putting it back in the grid. Musk is also behind SolarCity.

None of this looks good for Nevada’s image. On one hand, the state brags about having the fastest growth in solar jobs, being among the sunniest places in the nation, and landing high-tech companies such as Apple and Tesla who picked here in part because of their focus on renewable energy. On the other, the state cannot seem to decide whether it is even worthwhile to encourage solar power.

It benefits no one to allow repeated tarnishings of the state’s reputation as solar challenges work through the courts and various regulatory processes during the coming months. If solar should work well in any state, it should work well in Nevada.

The players need to keep their eye on the target: making Nevada the state for energy innovation. This benefits NV Energy, the solar industry, the PUC and all Nevadans.

It strengthens economic development efforts to entice companies to move or expand here. It inspires startup companies seeking to create products and services for customers, including other states, who want cleaner electricity. And it makes us less dependent on the fluctuations of the world oil market.

The players need to move forward in the spirit of innovation and cooperation. We encourage the PUC, the solar lobby and NV Energy to work together for the betterment of Nevada. This matters.