NV Energy’s on-again, off-again air conditioning rebates are off at month’s end

NV Energy says it’s also ending the subsidy for its air conditioning and heating tune-up program as of October 31. (Photo: Hugh Jackson/Nevada Current)

NV Energy is ending a popular program that allows Nevadans to save on the cost of new air conditioners and heat pumps, because too many customers are taking advantage of the subsidy.

In a filing with the Public Utilities Commission last week, the utility wrote the “Residential Air Conditioning portion of the home energy saver program has experienced exceptional participation so far” this year. To stay on budget, NV Energy plans to “vary the energy efficiency measures under this program” effective August 31.

The move comes after NV Energy resurrected the program last month following what a spokeswoman called a “brief pause.” But in an about-face, the company says it’s ending the program without giving the PUC 30 days required notice before making changes to the incentives it offers customers.

The subsidy, funded by a fee paid by all NV Energy customers, provides a rebate of $340 to $2,000 on energy-efficient air conditioning and heating units, depending on the type and size.

Last month, a recorded message notified callers to NV Energy that “due to overwhelming success and participation, we have exhausted the 2024 residential program’s funding.”

Following inquiries from the Current, NV Energy spokeswoman Katie Nanini announced the utility reallocated $1.5 million to restart the rebates.

“The program briefly paused accepting new applications so that funds from within the overall budget could be reallocated from other PowerShift programs,” Nanini said via email, adding the program was no longer paused.

But the reprieve was short-lived.

“Due to a high level of participation in the air conditioning and heat pump replacement measures… the Companies are unable to provide the full 30-day notice because allowing the measures to run past August 31, 2024, will have a substantial impact on the funding available to other measures in the program,” the filing says.

NV Energy says it’s also ending the subsidy for its air conditioning and heating tune-up program as of October 31. That program provided $200 to all customers and $300 to income-qualified customers for system tune ups.

PowerShift, the utility’s campaign to assist customers enhance their energy efficiency, had a home energy budget in 2023 of $7.1 million and subsidized $300 of the cost of air conditioning tune-ups for 5,690 customers; paid rebates between $340 and $1,360 on 2,027 replaced air conditioners; subsidized heat pump tune-ups for 48 customers; and subsidized $510 to $2,000 on each of 469 replaced heat pumps. The program’s budget for 2024 is $7.845 million.

NV Energy’s three-year integrated resource plan, which has not been approved by regulators, proposes an A/C rebate budget of $10 million in 2025; $11.1 million in 2026; and $15.6 million in 2027.

NV Energy offers discounts on energy efficient appliances for all customers, free pool pump calibration for Southern Nevada customers with an energy-efficient variable-speed pool pump, and engine block heater controllers for customers in Northern Nevada.