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Nebraska Solar Incentives: Tax Credits & Rebates Guide

Written by Luke Daugherty/

Edited by Hannah Whatley

Last updated 08/09/2023

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Key Points

  • Investing in solar energy in Nebraska can bring you major energy savings in the long run.
  • Residents can take advantage of the 30% federal tax credit and several Nebraska solar incentives to reduce the total costs of installation.
  • SaveOnEnergy can connect you with top-tier Nebraska solar companies to get your project started.

Ready to go solar? Call 866-420-6556.to be connected with a solar expert today!

Solar power in Nebraska

Solar power in Nebraska makes up a small portion of the state’s energy needs. Nebraskans have installed about 84 megawatts (MW) worth of equipment for generating solar energy, enough to power just over 10,000 homes. Nebraska generates enough solar power to account for 0.3% of its energy needs, but it’s expected to expand its capacity more than tenfold in the next five years.

The Cornhusker State’s continued investment in expanding its solar energy production makes now a great time for homeowners to consider solar panels in Nebraska. Although your initial investment might be on the higher side, you can end up saving thousands in the long run. Read on to learn everything you need to know about Nebraska solar power.

Get your free solar savings estimate

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Nebraska solar panel cost

The most common way to measure solar panel cost in Nebraska is in dollars per watt. The national average cost of a solar panel home installation is $3.67 per watt. The average residential 8.6 kW solar system, therefore, costs $31,558 total before any tax credits or solar incentives. This cost can vary considerably due to factors like your location, energy needs, system size, and choice of installer.

System sizeTotal costNumber of
solar panels*
United States 8.6 kW$31,55822–29

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does Nebraska solar save you money?

The average cost of solar panels previously noted doesn’t take into account the federal tax credits and Nebraska solar incentives you can use to offset those costs. After you receive the 30% federal tax credit, you can recover over $9,400 on the cost of a typical 8.6 kW system, bringing your total net cost down to about $22,000. You may be able to save more with state-level solar incentives.

The average Nebraska resident spends $119.39 on their monthly electricity bill. If your solar array is large enough to cover all your energy needs, you could save $1,432 per year, on average. At that rate, you’d recoup the cost of solar panels in Nebraska in just over 15 years. Any money you save after that — considering solar panels last 25 years or more — is cash back in your pocket.

As you consider your costs and potential return on investment, it may help to compare different system sizes and what they might cost.

System sizeTotal costNumber of solar panels*
4 kW$14,68010–13
6 kW$22,02015–20
8 kW$29,36020–27
10 kW$36,70025–33
12 kW$44,04030–40

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Nebraska solar panel incentives or rebates

Because the U.S. is working to reduce its dependence on fossil fuels, there are numerous federal and state solar incentives to help make solar more affordable. Currently, all U.S. taxpayers who install solar panels on their homes can claim the Residential Clean Energy Credit, formerly known as the Investment Tax Credit (ITC). Eligible participants can claim up to 30% of the total system cost on their federal taxes for systems installed between 2022 and 2032. It will drop to 26% in 2033 and 22% in 2034 before expiring in 2035.

There are also some Nebraska solar incentives that can help offset the cost of your solar installation.

Energy Saving LoansThe Nebraska Department of Environment and Energy partners with lenders throughout the state to offer low-interest loans of 3% to 5% over up to 10 years for installing renewable energy systems.
Net Metering ProgramsNebraska utilities offer net metering, which allows solar customers to sell unused energy back to the grid. However, it varies depending on the utility company you use.
Residential Clean Energy CreditThe solar tax credit provides a 30% tax credit off the total cost of system installation. Learn how to apply for the solar tax credit.

Solar incentives in Omaha

Residents in Omaha may be eligible for Nebraska Dollar and Energy Saving Loans, which provide low-interest loans for solar installations.

  • Loan rates range from 3% to 5% over 1–10 years.
  • To apply, you’ll need to collect itemized bids from eligible contractors, print this application, fill it out, and take it to a local participating lender.

Solar incentives in Lincoln

Lincoln Electric System (LES) customers may have access to one-time payments based on the capacity and direction of their solar arrays. LES will also purchase excess energy back at 50% of the residential energy rate. To be eligible, participants must:

  • Work with a contractor listed in LES’s Solar Trade Ally Network.
  • Participate in review meetings for energy rates and interconnection processes.
  • Sign the program’s guidelines and acknowledgments each year.
  • Submit a “Customer-Owned Solar Buyer’s Checklist” with your application.

Why choose Nebraska solar power?

Installing solar panels on your Nebraska home has numerous benefits, including reduced energy bills, independence from the electrical grid, and a smaller carbon footprint.

Lower energy costs

Investing in solar panels in Nebraska can reduce your energy costs. Once your solar panels are up and running, they can power your home’s energy needs during the day. Thanks to net metering, you can sell the excess energy you don’t need back to the grid, which helps offset your energy costs. Once you’ve paid off your solar panels, you’ll effectively be receiving free energy for the remaining lifespan of your solar system.

Establish energy independence

Using solar power can also strengthen your energy independence. Generating your own energy can help prevent power disruption during periods of high demand or outages. For extra security, consider installing a battery with your solar panels. Solar batteries can store solar power during the day for use after the sun sets. A solar system with a battery will allow you to be even less reliant on the electricity grid.

Go green

A third benefit to investing in solar panels in Nebraska is that you’ll be contributing to the growth of green energy, or renewable sources of energy that don’t emit CO2 into the atmosphere. Making your home more environmentally friendly isn’t just an ethical decision — it also has financial benefits. The resale value of homes with solar panels typically increases by around $15,000.

Should I buy or lease my solar panels?

You’ll save more money in the long run if you buy your solar panels outright rather than leasing them. After you’ve paid off the cost of your solar panel installation, you still own the solar panels that generate your home’s energy. By contrast, if you lease solar panels, you only benefit from the energy they produce for as long as you make the monthly lease payment. Once the lease agreement ends, you don’t have any ownership stake in the solar panels.

If you can’t afford to purchase a solar panel system outright or through financing, leasing may be a good option. If you’re considering leasing, investigate the options for community solar programs in Nebraska. A community solar installation is shared by a group of people in a neighborhood or community to meet their energy needs. Community solar projects are also helpful for people living in homes that aren’t suitable for solar panel installations, such as apartments or houses with unsuitable roofs.

Refer to the table below for a quick comparison of all your options for financing solar energy in Nebraska.

Payment methodBenefitsDrawbacks
Cash purchaseLargest long-term savings, full ownership, solar incentives, electricity savingsHigh upfront cost
Solar loanSystem ownership, solar incentives, electricity savingsInterest fees reduce your long-term return
Solar leaseAvoids upfront costs, little maintenance, electricity savingsIneligible for incentives, no ownership, rates may increase
Power purchase agreementAvoids upfront costs, little maintenance, electricity savingsIneligible for incentives, no ownership, rates may increase
Community solarNo upfront costs, power home with clean energy, electricity savingsNo ownership, not eligible for incentives

Nebraska solar panel companies

Several solar companies operate in Nebraska, with the sector employing approximately 1,668 people in the state. According to the SEIA, there are four solar panel manufacturers and 12 solar installation companies in Nebraska. This selection of solar power installers gives you several choices when it comes time to find an installer.

You can use the solar energy resources provided by SaveOnEnergy to research each company and find the one that meets your needs. Fill out our solar estimator to get started, or discuss your options with one of our energy experts at the number on your screen.

Solar installerYear foundedFinancing optionsWarranty terms
ADT Solar Company Logo2011Cash purchase or solar loan25-year manufacturer warranty and production guarantee
Sunpower solar company logo1985Cash purchase, solar loan, or lease25-year full system warranty

What to look for in a solar contractor

Before you choose a solar installer for your Nebraska solar panels, it’s important to research your options carefully. Look for solar companies with industry certification from organizations such as the North American Board of Certified Energy Practitioners (NABCEP). Ensure they have a strong history of customer service and offer top-rated solar equipment with good warranty coverage.

Beware of free solar panels in Nebraska scam

Although you can reduce the cost of solar panels in Nebraska with various solar incentives, you’ll still likely have to spend thousands upfront to install a solar array. Despite some offers for “free solar panels in Nebraska,” you can’t avoid some of these costs. If you encounter such an offer, it’s likely a scam to be avoided. Nonetheless, it’s important to remember that investing in Nebraska solar panels can save you much more  in the long run.

Important solar installation factors to consider

You should consider several factors before you proceed with a solar panel installation. They include:

  • Whether your home is suitable for solar panels: Panels will work best on a south-facing rooftop in good condition. Rooftops with an angle between 15 and 40 degrees also usually generate the most solar power.
  • How much sun your home receives: It’s important that trees or other objects don’t obstruct direct sunlight from reaching your roof. Your panels will generate more electricity if they are not in a shaded area.
  • Whether there are additional local installation costs and approvals: You may need a permit or approval from a homeowners association or local authority. Your installation company may be able to help you work through potential regulations.

Solar power FAQs

  • Nationwide, installing solar panels on your home comes at an average cost of $3.67 per watt. The average standard solar installation price is $31,558. You can offset some of this cost with the federal tax credit and use Nebraska’s net metering policy to make back the rest of the installation cost over several years.

  • Investing in solar panels in Nebraska brings many benefits. The state’s net metering program means that once you’ve recovered the cost of installing solar panels, you’ll effectively have free renewable energy for the remainder of your panels’ lifespan. Some electricity providers also offer rebates to customers with solar panels. In addition, installing solar panels can boost the value of your home and help protect the environment.

  • Your overall savings will depend on your energy usage patterns and the total amount of energy you require. Solar power is available during the day, so your biggest savings will come during daylight hours. If you use most of your energy after the sun goes down, your energy savings may be lower. The average Nebraska homeowner recoups the cost of solar panel installation in about 15 years if they buy an average-sized solar system at the national average price.

  • Nebraska has several solar panel installers. You should research each company, and read consumer reviews before choosing an installer. Remember to carefully study an installation agreement with a company before signing the document to ensure you understand the terms and conditions.

  • Solar power helps the environment because it does not emit carbon dioxide, a greenhouse gas that contributes to the climate crisis. The growth of solar power and other renewable energy sources can help reduce CO2 levels and prevent climate change. Other popular types of renewable energy include wind power, hydroelectric, and geothermal energy.

Solar energy by state

Is solar right for your home?
Get an estimate of solar cost and savings at your home.