Federal solar tax credit
The federal Residential Clean Energy Credit previously covered 30% of the cost of qualifying home solar installations. However, the credit is not available for expenditures made after Dec. 31, 2025.
For tax purposes, a solar expense is generally considered made when installation is completed. That means a system completed in 2026 does not qualify, even if you signed a contract or made payments in 2025.
Solar financing options
Although the federal residential solar tax credit has expired, some homeowners may still be able to finance solar through an FHA-insured mortgage.
The FHA Energy Efficient Mortgage program allows eligible homebuyers and homeowners to include the cost of qualifying, cost-effective energy improvements in an FHA purchase or refinance loan. Availability and project requirements vary, so ask an FHA-approved lender whether your proposed solar installation qualifies.
Fannie Mae also offers green financing that can cover solar improvements, but these programs are primarily intended for owners of qualifying multifamily properties rather than individual single-family homeowners.
Dollar & Energy Saving Loans
The Nebraska Department of Water, Energy and Environment offers low-interest financing for solar panels and other qualifying energy improvements through participating Nebraska lenders.
Owners of one- and two-family homes may finance up to $125,000 for photovoltaic systems, with repayment terms of up to 10 years. The program generally advertises simple interest rates of 5%, 3.5% or less, although your final rate, fees and eligibility depend on the lender and project. Eligible Omaha Public Power District (OPPD) customers may qualify for rates of 3% or less.
You must apply through a participating lender and receive approval before purchasing equipment, signing an installation contract or beginning work.
Don't get confused
The separate 1.5% Nebraska Public Power District (NPPD) loan program currently applies to qualifying heat pumps, not residential solar installations.
Nebraska solar sales tax exemption
Nebraska does not currently offer a statewide sales tax exemption for typical residential solar installations.
The state previously exempted materials used in qualifying community-based energy development, or C-BED, projects. Even before it was repealed, this program generally did not apply to an individual homeowner installing rooftop panels. Nebraska eliminated the C-BED exemption effective July 1, 2026.
Solar for All
Nebraska’s Solar for All program is not currently available. The Center for Rural Affairs was awarded a $62.4 million federal grant in 2024 to support rooftop, multifamily and community solar for lower-income households, but the Environmental Protection Agency terminated the grant on Aug. 7, 2025. Work on the program remains paused.
Financing and net metering are the main ways to reduce solar costs in Nebraska.
The Center for Rural Affairs continues to offer separate personal solar loans of $5,000 to $250,000 for qualifying Nebraska projects, including residential systems of up to 99 kW. These are loans rather than rebates or grants.
What to know about net metering in Nebraska
Nebraska requires electric utilities to offer net metering for eligible residential renewable energy systems with a capacity of up to 25 kW. A utility may voluntarily allow larger systems, but state law does not require it.
During each billing period, the electricity your panels generate offsets the electricity you use at the utility’s retail rate. If your system produces more than you consume, the remaining electricity is credited at the utility’s avoided-cost rate — generally a lower, wholesale-level rate.
There is no single statewide summer or winter compensation rate. Each Nebraska utility calculates its own avoided cost, so the amount you receive depends on where you live and may change over time. Unused monetary credits carry forward, and any remaining balance is paid out at the end of the utility’s annual billing period.
How much are solar panels in Nebraska?
Solar panel costs in Nebraska typically range from $21,207 to $42,414. System size greatly affects how much you pay overall.
The typical system size for solar systems in Nebraska is 8.9 kW. 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 | |
|---|---|---|---|---|---|---|
| Statewide | $21,207 | $25,449 | $29,690 | $33,932 | $38,173 | $42,414 |
| Omaha | $19,688 | $23,625 | $27,562 | $31,500 | $35,438 | $39,375 |
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 installation | Payment options | Year founded | |
|---|---|---|---|---|---|
 ION Solar | Learn More | 3.9 |  | Cash, loan | 2013 |
 Tesla Energy | Learn More | 2.1 | | Cash, loan and lease | 2015 |
 ShopSolar | Learn More | 4.4 |  | Cash, loan | 2018 |
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).
Are there any commercial incentives in Nebraska?
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.
Typically, there’s no upfront cost, and interest rates are normally 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 $52,449 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 11.6 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.
Is my HOA allowed to restrict solar panels?
Nebraska lawmakers have twice tried to pass a law barring HOAs from restricting solar panels — LB49 in 2024 and its successor, LB137, in 2026 — but both were indefinitely postponed, so no statewide protection against HOA solar restrictions is in effect as of 2026.
What has Nebraska’s investment in solar been so far?
Total solar investments in the state amount to $346 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 | $16,729 | $27,882 | 4.9 kW | $2.79 | $31,582 |
| Iowa | $19,735 | $32,892 | 8.7 kW | $3.29 | $19,413 |
| Kansas | $16,369 | $27,282 | 8.9 kW | $2.73 | $18,439 |
| Missouri | $15,220 | $25,366 | 10.9 kW | $2.54 | $29,087 |
| Nebraska | $25,449 | $42,414 | 8.9 kW | $2.92 | $52,449 |
| South Dakota | $24,641 | $41,069 | 8 kW | $4.11 | $8,381 |
| Wyoming | $19,942 | $33,238 | 6.9 kW | $3.27 | $46,147 |
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 July 24, 2026.
- Nebraska Public Power District, “Net metering.” Accessed July 24, 2026.
- Omaha Public Power District, “Net metering with OPPD.” Accessed July 24, 2026.
- Solar Energy Industries Association, “Nebraska Solar.” Accessed July 24, 2026.
- 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 July 24, 2026.
- Nebraska Department of Revenue, “2026 Nebraska Legislative Changes.” Accessed July 24, 2026.
- Nebraska Public Power District, “Net Metering Service Rider Rate Schedule.” Accessed July 24, 2026.
- Nebraska Department of Water, Energy, and Environment, “Dollar & Energy Saving Loans.” Accessed July 24, 2026.
