Twenty years ago, only 23,000 American rooftops had solar panels. Today, more than 6 million do. Twenty years ago, you could not buy a mass-market all-electric vehicle. Today there are more than 70 models available. And, 20 years ago, researcher Geoffrey Hinton laid out a new way to build computer models to more accurately interpret data. Now, the data centers built on his theories are driving massive energy demand. 

These forces are coming together as NV Energy makes its proposal to state energy regulators to meet energy demand in the state for the next two decades. The utility must consider every cost-effective option, especially resources Nevadans have already paid to install on their own homes. Distributed energy resources such as solar energy, battery storage, electric vehicle chargers, smart thermostats and other devices are ready today to provide lower-cost, reliable energy to Nevada.

Nevada law requires NV Energy to periodically share with state regulators how it intends to meet energy demand for the state. It filed its most recent proposal, called an Integrated Resource Plan, in May. 

The utility forecasts annual electricity use over the next two decades to be 47 percent higher than what it predicted just two years ago. Projects such as data centers are driving this. In its filing, NV Energy says it received 22,000 megawatts (MW) of data center inquiries. For perspective, NV Energy's northern and southern territories reached a combined peak of roughly 8,200 megawatts in 2025.

Those 22,000 MW of data center inquiries represent more than double the amount of power the utility expects its customers to be using simultaneously during the 2027 system peak. Not all of those inquiries will become actual projects. Even so, NV Energy projects that systemwide peak demand will double by 2046, driven primarily by large new customers such as data centers.

Not every proposed project will be built. But even a fraction would significantly increase energy demand and prices if we're not thoughtful in how we meet this demand.

NV Energy's proposed plant to meet this demand includes major additions of utility-scale solar, battery storage and geothermal energy. It also wants to add roughly 1,200 MW of new gas-fired generation for periods of peak demand, plus funding for energy-efficiency programs and incentives that reduce electricity use when the grid is under the most strain. The filing does take some useful steps toward valuing distributed resources, including behind-the-meter solar and storage, but more should be done.

The Public Utilities Commission of Nevada (PUCN) will review NV Energy's proposal to determine which investments are best for customers and how much we'll pay for them. 

The PUCN should require NV Energy to treat customer-owned solar, batteries, electric vehicles and flexible appliances as resources that can compete directly with conventional infrastructure — not merely as supporting programs, limited pilots or future possibilities.

More than 140,000 Nevada homes have rooftop solar. That is a substantial power resource built one household at a time with customers' own money. When paired with batteries and managed intelligently, these systems can reduce demand during high-cost hours, support local reliability and even defer upgrades to power plants, substations and power lines.

Those benefits matter to people without solar, too. Avoiding an unnecessary, $2 billion plant or delaying a costly grid upgrade can reduce pressure on everyone's bills. A well-designed program should reward participating customers while producing measurable savings for the broader system.

Nevada should put that capability to work through a robust virtual power plant program. Virtual power plants grew out of demand-response programs, which utilities have used for decades to pay large customers to reduce electricity use when the grid is under strain. What's new is the ability to coordinate thousands of smaller resources with speed and precision. Software can link home batteries, rooftop solar, electric-vehicle chargers, thermostats, water heaters and commercial equipment so they respond as one resource. 

Solar can charge a battery earlier in the day; during the evening peak, the battery can discharge while car charging pauses and thermostats adjust slightly. Customers enroll voluntarily, retain control over their equipment and are paid for the grid services they provide. The U.S. Department of Energy estimates that virtual power plants could supply 10 percent to 20 percent of the nation's peak demand by 2030 while avoiding roughly $10 billion in annual grid costs.

That model has moved well beyond the experimental stage. Vermont's Green Mountain Power launched the country's first utility-sponsored home-battery program in 2017. By 2023, its network included roughly 4,500 batteries across more than 3,000 homes and could provide about 50 MW of power. In California, more than 100,000 households collectively delivered 535 megawatts during a two-hour test in July 2025, enough to produce a visible drop in demand on the statewide grid. Closer to Nevada, Rocky Mountain Power's Utah program had enrolled at least 4,000 batteries by 2024. Other states are following; Minnesota regulators recently approved a program that could deploy up to 200 MW of distributed batteries over two years. 

Nevada is well positioned to take the next step. The state already has more than 150,000 solar installations, and NV Energy is implementing a distributed-energy management system that will help it coordinate customer resources. The utility is also developing battery demand-response programs, managed electric-vehicle charging and tariffs that would pay customers for shifting electricity use. 

These are the components of a virtual power plant. Nevada already has the sunshine, the devices and much of the technology. It now needs an energy plan that puts them to work. 

To capitalize on the promise of virtual power plants, the commission should require NV Energy to fairly compare these customer-owned resources against the costs of building new generation and wires. That comparison should count their full value: avoided energy and capacity costs, reduced line losses, deferred transmission and distribution upgrades and local reliability benefits.

Nevada should also permit qualified providers — not only the utility — to combine customer resources under strong consumer-protection and reliability standards. Competition can improve service, expand participation and help ensure that customers share in the value created by equipment they lease or own.

Twenty years is a long time in the world of energy. Supporting customer investments in solar, batteries and other distributed technologies is the quickest and most cost-effective way to meet growing demand and position Nevada for the next 20 years.

Julia Hubbard is Nevada program director for Solar United Neighbors.