Shares of Tesla Inc (NASDAQ:TSLA) and SunPower Corporation (NASDAQ:SPWR) rose on Tuesday following reports that Nevada is approving a bill that would reboot the state’s rooftop solar market. This is a good news for Tesla which is betting on residential solar projects.
The Nevada State Legislature has passed a bill, AB 405, to restore net metering for residential solar projects in the state. Tesla’s stock traded up 1.59%, while shares of SunPower surged 1.36% on Tuesday.
Net metering allows rooftop owners to get a credit for the excess energy they return to the grid.
The new bill is designed to reinstate net metering with a new system that uses a tiered approach for calculating the export rate of electricity based on the overall penetration of rooftop solar installations throughout the state. It would restore net metering rates starting at 95% of the full retail rate for excess electricity produced by solar rooftop customers.
The addition of a net metering solution is considered a victory for rooftop solar businesses, Sunworks, which provides solar power solutions, said in a statement.
Following the implementation of new policy changes in 2015, net metering programs were ended in Nevada and resulted in heavy job losses in the solar industry, the company said, adding that the new bill will protect rooftop owners from inaccurate public utility rates, minimum warranty requirements, and other contractual disclosure terms.
In addition to AB 405, state lawmakers also passed two other measures. SB 392 is designed to establish a statewide community solar program, while AB 206 would raise the state’s renewable portfolio standard and require power companies to produce at least 40% of their electricity with renewables by 2030.
Solar Industry Applauds Nevada Lawmakers for Passing Bills
The Solar Energy Industries Association (SEIA) welcomed the passage of solar energy bills by lawmakers in Nevada.
“Nevada has been a clean energy leader since it adopted one of the first state Renewable Portfolio Standards 20 years ago. Since then, solar has soared as prices have made the technology broadly affordable to Nevada’s businesses and families, and the jobs have followed,” SEIA said in a statement.
“We applaud the Legislature for recognizing that it’s time again to raise the bar, and we urge Governor Sandoval to sign these measures into law and stand with Nevadans who have said loud and clear they want cleaner electricity choices,” the organization said.
Gov. Sandoval to Sign AB 405 into Law
On Monday, Nevada Gov. Brian Sandoval said that he will pass the AB 405 bill to restore net metering for residential solar projects, Las Vegas Review-Journal reported.
“I will soon be signing a bill with regard to net metering,” Gov. Sandoval said. “Nevada has always been a place, and will continue to be a place, that leads the country with regard to our renewable resources.”
Tesla Praises Passage of Net Metering Bill
Tesla Inc (NASDAQ:TSLA) said that the bill will bring back solar energy to Nevada and enable the industry to innovate and grow sustainably, the Review-Journal reported.
The new legislation to restore net metering will also create thousands of jobs and bring millions of dollars in economic benefits to the state, Tesla said.
“Tesla will begin selling rooftop solar and residential storage products in Nevada, and we look forward to bringing even more jobs to the state in the years ahead to help provide residents with affordable rooftop solar and energy storage choices,” the electric carmaker and energy giant said in the statement.
Meanwhile, shares of Tesla Inc (NASDAQ:TSLA) have been performing well so far this year, surging more than 65% year-to-date.
SunPower Corporation (NASDAQ:SPWR) is a $1.16-billion market cap company that designs and manufactures crystalline silicon photovoltaic cells, roof tiles and solar panels. Shares of the company are up more than 24% so far this year.