Nebraska solar incentives, tax credits and rebates
Resources to make solar panels more affordable in 2024
Before any financial incentives, a typical 8-kilowatt solar panel system costs $17,920. That price drops to $12,544 after using the full solar investment tax credit (ITC). Residents can also take advantage of a statewide sales tax exemption on solar equipment, and some municipalities have PACE financing programs for commercial solar installations. Here’s everything you need to know about how state and federal solar incentives can make installing panels more affordable.
In Nebraska, a typical residential solar panel system costs $7,840 to $22,400, depending on the size of your system and what financial incentives you qualify for.
Jump to insightThe federal solar investment tax credit (ITC) is the best financial incentive for most Nebraska homeowners to buy solar panels.
Jump to insightNebraska residents can earn credits when they send their excess solar power to the local grid.
Jump to insightResidential solar panel incentives in Nebraska
The federal solar investment tax credit (ITC) is still the biggest financial incentive for many homeowners buying solar panels. It reduces your federal tax liability by 30% of how much it costs to install solar panels. It drops to 26% in 2033 and then 22% in 2034.
Solar equipment is 100% exempt from sales and use tax in Nebraska.
The ITC is a credit, meaning it directly decreases the amount of taxes you owe. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If in the year your system becomes operational you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.
Solar for All
Nebraska was awarded $62 million to fund a Solar for All (SFA) program. SFA aims to provide equitable access to solar power. It will support both rooftop and multifamily solar installations, with a specific focus on low-income households and a tribal set-aside for collaboration with Nebraska tribes.
Additional solar incentives in Nebraska
Check the DSIRE for the most comprehensive source of information about solar incentives and policies in Nebraska.
| Incentive type | Amount | Eligible solar equipment | Applicable sectors | Administrator | |
|---|---|---|---|---|---|
| Property Tax Incentive for Renewable Energy Generation Facilities | Property tax exemption | 100% | Solar panels, solar thermal electric | Commercial, local government, state government, federal government, agricultural | Nebraska Department of Revenue |
| Sales and Use Tax incentive for Renewable Energy Property | Sales and use tax exemption | 100% | Solar panels, geothermal electric, solar thermal electric | Industrial, investor-owned utility, municipal utilities, cooperative utilities, installers/contractors | Nebraska Department of Revenue |
| Business Energy Investment Tax Credit (ITC) | Corporate tax credit | 6% - 30% | Solar panels, solar water heat, solar space heat, geothermal electric, solar thermal electric, solar thermal process heat | Commercial, industrial, investor-owned utility, cooperative utilities, agricultural | U.S. Internal Revenue Service |
What to know about net metering in Nebraska
Net metering is a system of give-and-take between you and your utility company. It lets you access power from the grid when your panels don’t generate enough electricity. Net metering also lets you earn credits for sending excess solar energy to the grid.
In Nebraska, these credits can offset the cost of electricity used at other times. As of published, current net excess generation (NEG) rates are higher in the summer (June 1 through Sept. 30) and lower in the winter (Oct. 1 through May 31).
| Summer rate | Winter rates |
|---|---|
| 8.27 cents per kilowatt-hour | 5.28 cents per kilowatt-hour |
How much are solar panels in Nebraska?
After the federal solar tax credit, solar panel costs in Nebraska typically range from $7,840 to $15,680. Leasing is often cheaper upfront, but you won’t be eligible for the federal solar tax credit and other financial incentives.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in Nebraska is 9.28 kW (kilowatts). You might need a larger or smaller system, depending on your average household energy usage.
Average solar cost by system size in Nebraska
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $11,200 | $13,440 | $15,680 | $17,920 | $20,160 | $22,400 |
| After federal tax credit | $7,840 | $9,408 | $10,976 | $12,544 | $14,112 | $15,680 |
Solar resources in Nebraska
Below are additional resources to help you go solar in Nebraska.
Find solar companies in Nebraska
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Nebraska’s top solar companies to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 | 4.4 | Yes | Cash, loan | 2013 | Learn More |
 | 2.1 | Yes | Cash and loan | 2015 | Learn more |
 | 4.7 | No | Cash, loan | 2018 | Learn more |
FAQ
Can I get free solar panels in Nebraska?
You can lease with little to no upfront costs, but it’s not totally free. Solar leases generally require a flat monthly fee.
» FREE SOLAR PANELS: Are they really free?
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest).
Commercial Property Assessed Clean Energy (C-PACE) programs are a way for commercial property owners to get funding for energy efficiency upgrades. Eligible projects vary by municipality, but Omaha, Beatrice and other cities have programs for solar panels.
Typically, there’s no upfront cost, and interest rates are typically fixed and competitive compared with other commercial financing choices. You repay the loan through a voluntary special assessment integrated into the property's yearly property tax bill.
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Nebraska?
On average, Nebraska homeowners with solar panels avoid $53,725 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills. In Nebraska, solar panels usually pay for themselves within 11.5 years.
» EXPLORE: Where your solar savings go the furthest
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels again. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
» BEST STATES FOR SOLAR: Nebraska ranked 31st in 2024
Is my HOA allowed to restrict solar panels?
A bill under consideration in the state legislature could prevent homeowners associations from banning solar panels on residents’ roofs.
What has Nebraska’s investment in solar been so far?
Total solar investments in the state amount to $279 million, according to the Solar Energy Industries Association.
Bottom line
Although there aren’t as many incentives as some other states, appealing tax breaks, low-interest loans and other initiatives make going solar worthwhile for many residents. The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, particularly in Nebraska.
Solar costs vs. savings: Nebraska and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Colorado | $18,180 | $30,300 | 9.27 kW | $3.03 | $53,986 |
| Iowa | $18,720 | $31,200 | 10.19 kW | $3.12 | $46,588 |
| Kansas | $18,720 | $31,200 | 10.31 kW | $3.12 | $60,286 |
| Missouri | $17,400 | $29,000 | 10.98 kW | $2.90 | $55,374 |
| Nebraska | $13,440 | $22,400 | 9.28 kW | $2.24 | $53,725 |
| South Dakota | $14,340 | $23,900 | 10.09 kW | $2.39 | $54,751 |
| Wyoming | $22,560 | $37,600 | 11.48 kW | $3.76 | $85,447 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, "Nebraska Programs.” Accessed March 29, 2024.
- EnergySage, "The cost of solar panels in Nebraska." Accessed March 29, 2024
- Solar Energy Industries Association, "Nebraska Solar." Accessed March 29, 2024.
- SolarReviews, "How much do solar panels cost in Nebraska, 2024?" Accessed March 29, 2024.
- Nebraska Legislature, “LB49 - Change provisions relating to solar energy and wind energy, declare certain instruments void and unenforceable, and provide for a civil cause of action.” Accessed Aug. 28, 2024.
- Nebraska Public Power District, “Net Metering.” Accessed Aug. 28, 2024.
- Nebraska Department of Environment and Energy, “Index for Nebraska’s Net Metering Reports.” Accessed Sept. 4, 2024.
