The cost of qualifying A/C units varies based on size and on the contractor, who must be approved by NV Energy to participate. (Photo: Hugh Jackson/Nevada Current)
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When Reno resident Ky Plaskon’s air conditioning unit stopped working as a record-setting heat wave gripped both ends of Nevada this week, he inquired about a subsidized replacement through NV Energy’s PowerShift program. Funded by ratepayers, the program offers customers a rebate of $340 to $2,000 on energy-efficient units, depending on the type and size.
Plaskon learned the program was out of money and had been put on hold.
“NV Energy told me demand was way beyond what they expected,” he said, adding that the program’s pause “in the heat of summer is at the worst time for people who struggle more than I do.”
On Tuesday, 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. “The program is no longer paused, and all eligible residential customers are able to access Home Energy Saver incentives for air conditioning through the end of this summer.”
On Wednesday, a recorded message still notified callers to NV Energy that “due to overwhelming success and participation, we have exhausted the 2024 residential program’s funding.”
An NV Energy employee who assists applicants and took the Current’s call also said the rebate program was on pause and had been since June 11.
In 2023, PowerShift, with a budget of $7.1 million, 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 proposes an A/C rebate budget of $10 million in 2025; $11.1 million in 2026; and $15.6 million in 2027.
“The Residential Air Conditioning offering provides a solution for residential customers to replace old, inefficient air conditioning systems with higher efficiency equipment,” says NV Energy’s website. “The program pays incentives and provides other types of support directly to qualifying distributors. The incentives are passed through the contractors to the customers and are shown as a discount on the final customer invoice.”
The program is available to ratepayers in NV Energy’s service territory who:
- purchase a unit with a minimum Season Energy Efficiency Ratio (SEER) of 15.2 SEER2;
- have a residential single-family or multifamily home with four units or less per foundation;
- are not receiving incentives on the equipment from other NV Energy efficiency programs.
The cost of qualifying AC units varies based on size and on the contractor, who must be approved by NV Energy to participate.
A contractor in Reno who asked not to be identified out of fear of retaliation, says some NV Energy-approved companies charge more than those that do not participate in the program.
“Just make sure you’re not paying more, even with the incentive,” she said.
Jose Vasquez of Zen-Air in Las Vegas says cost disparities are likely attributed to the size of the contractor.
“At the big companies that do a lot of advertising, a SEER 15.2 runs between $15,000 and $18,000,” Vasquez says. “When you talk to smaller companies, it’s a different price.”
Larger units can run up to $25,000, including warranty, according to Vasquez.
Plaskon, who sought out the replacement rebate, says he’s no longer in the market for a new unit. With the advice of friends on social media, he was able to repair his existing A/C with a $7 part.
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