Even on a good day when utility executives are in a chipper mood, they will probably still describe SolarCity (NASDAQ: SCTY ) as a “nuisance”. The company is the most visible representation of the distributed solar movement, and for many utilities it is a disruption of the business model they have become accustomed to over many years. Several utilities have taken up opposition to distributed solar, but one of Warren Buffets recent acquisitions, NV Energy, is welcoming SolarCity in to Nevada with open arms — but not for the reason you may think. Let’s take a look at what this Berkshire Hathaway (NYSE: BRK-A ) (NYSE: BRK-B ) subsidiary is doing to go against the grain and explore why this may be happening.
Netting the needed regulation
One rule that has allowed distributed solar to take off in certain parts of the country have been net metering laws. The most basic description of these laws is that they require electricity meters to run in both directions so that customers can sell any excess power production back to the grid. The details on these rules vary, and currently there are 14 states where rules are most favorable to net metering.
One of the reasons that it has not taken off in Nevada is because there are certain restrictions on net metering that don’t make it as attractive for small-scale installations like those found on residential buildings.