The government of Reno, Nevada is installing 1.3 megawatts of solar power - and, thanks to rebates, subsidies and a long-term energy-procurement deal, it's doing so for free.

The city's utility, NV Energy, is providing some incentive payments; the federal government is providing even more. And Reno will pay over many years for the energy its new solar arrays produce, bringing its net out-of-pocket cost to zero.

Reno's 1.3 megawatts of solar are made possible by a law enacted last year, Assembly Bill 186. The legislation allows third-party companies to own solar facilities and lease them - or sell their power - to businesses or government institutions. The new law could make solar power even more common in Nevada.

Already, Reno is benefiting - and going solar will look even smarter as the cost of grid-sourced energy rises. The price of the solar energy that Reno is contracting to buy today will remain steady, helping the city save an estimated $2.5 million over the next 20 years.

Reno's projects "are a great example of the potential for solar in Nevada," Scott Gerz, director of business development at solar project management firm CleanPath Renewables, said.