Cost of solar panels in Nebraska (2024)

How much do solar panels cost in Nebraska?

With professional installation, a typical 8-kilowatt (kW) residential solar panel system in Nebraska costs $17,920. That price drops to $12,544 after the full federal solar investment tax credit (ITC). This doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels.

The size of your system is another big factor in your overall solar costs. The average size of solar systems in Nebraska is 9.28 kW. Depending on your household energy usage, you might need a smaller or larger system.

“Cost per watt” is similar to the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. The average solar cost per watt is $2.24 in Nebraska.

Average solar installation cost by system size in Nebraska

Are solar panels worth it in Nebraska?

Solar panels can be a worthwhile investment in Nebraska. On average, you’ll spend $7,840 to $22,400 for panels that last about 25 years. Over that same time period, you can avoid approximately $53,725 in total utility costs.

The state gets a decent amount of sunlight, particularly during summer, which is great for solar energy production. However, if you live in a shaded area — or if your energy consumption is really low — the upfront costs might not outweigh your savings over time.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Especially in more urban areas like Omaha and Lincoln, where electricity bills tend to be higher, solar panels can lead to significant long-term savings. As long as your house is a good candidate to support a solar panel installation, it’s at least worth considering.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Nebraska

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits, fees and maintenance are a small part of your overall costs.

Solar equipment

The quality and brand of your panels can significantly impact the cost per watt. High-efficiency, top-of-the-line panels will cost more upfront but may offer better performance and longevity. Besides your panels, you may also need to purchase an inverter, monitoring system or batteries. Here’s an idea of what you may pay for solar equipment:

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, lifespan, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a stand-alone system for $80 to $400.

 » MORE: How many solar panels do I need for my house?

Labor and installation costs

Installation probably isn't something you want to do yourself unless you have experience working with electricity.

Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, that’s probably not something you want to do yourself unless you have experience working with electricity.

» DIY SOLAR PANELS: Pros, cons and installation tips

Condition of your roof

Quality solar panels last 25 to 30 years. Here's the catch: Your roof needs to last just as long.  If your roof is nearing the end of its life, you may need to remove the panels to fix or replace the roof and then reinstall the panels. It's as expensive and frustrating as it sounds. Make sure your roof is in tip-top shape before installing your panels by getting an inspection beforehand.

» SHOULD YOU: Replace your roof before going solar?

Local permits and fees

Don't forget the bureaucratic side of things. You need various permits to install your solar panels legally, and these come with fees. The costs and types of permits you need can vary by location, so check with your local government to get the specifics. Professional installers usually take care of this part for you.

Other cost factors

Solar panels don't require much upkeep, but they're not entirely maintenance-free either. Over time, you may have to swap out an inverter or give the system a good cleaning. These extra expenses can accumulate over the life span of your solar setup, so keep them in mind when budgeting.

» BEST STATES FOR SOLAR: Nebraska ranked 31st in 2024

How to save money on solar panels in Nebraska

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Nebraska:

• Compare quotes: Get quotes from at least three or four solar companies in Nebraska. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Use incentives: In addition to the federal solar tax credit, Nebraska has multiple local incentives and programs. You might also be able to take advantage of manufacturer rebates on solar equipment.

» MORE: Why are solar panels so expensive?

Solar incentives, tax credits and rebates in Nebraska

The federal solar investment tax credit (ITC) is the best financial incentive for most homeowners going solar in Nebraska. It credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

The ITC drops to 26% in 2033 and then 22% in 2034.

Don’t get confused: The ITC is not a rebate or a refund. It only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place. However, any unused portion rolls over into future tax years.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. If you only owed $2,000 the year you went solar, you could claim the remaining $1,000 the next taxable year.

Additional solar incentives in Nebraska include a statewide 100% sales and use tax exemption on solar equipment, and some municipalities have PACE financing programs for commercial solar installations.

» GREENEST STATES: Nebraska ranked 27th in 2024

How can I pay for solar panels in Nebraska?

Paying for solar panels upfront will get you full ownership at a lower price, but most people don’t have that kind of money on hand. That’s when loans, leases and other agreements come into play.

• Solar loans: Solar loans allow you to finance your solar panel purchase through a lender. While you need to pay interest, you’ll typically be able to offset the interest with the savings from going solar.
• Solar leasing: Leasing solar panels is like renting from a solar provider. Leases usually have little to no upfront payments, but you won’t own the system or be eligible for the federal solar investment tax credit.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.
• PACE financing: Commercial Property Assessed Clean Energy (C-PACE) programs are a way for commercial property owners to obtain funding for energy efficiency upgrades. Eligible projects vary by municipality, but The City of Omaha. The City of Beatrice and others have programs for solar panels.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Nebraska

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Nebraska.

Bottom line

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Nebraska and other states. Going solar is a big decision, and the cost can vary depending on many factors. From the size of your solar system to the quality of your panels, the price tag isn't one-size-fits-all.

Solar costs vs. savings: Nebraska and nearby states