National Tax Day is approaching! Don't forget to claim a 30% Solar Tax Credit for your solar system. Read about Solar Tax Credit.
If you want to go solar, try to make use of the programs the state and utilities offer. In this article, we’ll take a look at solar incentives in Nebraska that can help bring the cost of a PV installation down.
Key takeaways
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
A great way for solar owners to gain value from their systems is to enter the net metering program. If your installation generates more energy than you need, you can sell the excess into the grid and gain credits to cover your bills. This electricity is credited at the utility's avoided cost rate. Unused credits carry over to the next billing period.
In Nebraska, solar systems must be under 25kW to be eligible for net metering. If yours is bigger, you have to negotiate the terms with the electric company separately. Note that there may be fees for entering the net metering program and non-electric bills for customers. Check the rates and conditions with your electric supplier.
Residential systems that are smaller than 25kW are exempt from property and capacity taxes in Nebraska. That means solar panels raise the market value of a house, but the taxes for it don’t change. With commercial systems of 100kW capacity or more, it’s more complicated. While all solar equipment is exempted from property tax, there is a nameplate capacity tax of $3,518 per installed MW.
4%
this is how much solar panels increase the value of your house
Solar panels in Nebraska are exempt from sales and use taxes for community-based energy development projects (C-BEDs). For example, a solar system bought or rented by residents of an apartment house can be viewed as a C-BED project. In practice, it means that these projects should be cheaper to bring to life in Nebraska. To get the exemption, members of the community have to file an application to the Tax Commissioner.
If you want to increase your buying power to go solar, another Nebraska solar incentive – Dollar and Energy Saving Loans – can help you with that. The state provides loans for renewable energy projects of both residential and commercial scale. The interest rates are 5% or lower. The program involves the State Energy Office and Nebraska banks and credit unions. First, the client approaches his financial institution and then its representatives discuss the project with the Nebraska Energy Office. The loans are issued for up to 15 years. Generally, the applications are processed within 10 working days. Check the website for more information and application guide.
In Nebraska, property owners are encouraged to create solar easements that would ensure that their solar systems get enough sunlight. In practice, it means that neighbors together make sure that nothing on their lands overshadows solar installations of each other. What is more, counties and municipalities of Nebraska are free to develop their own zoning regulations and rules to ensure access to the sun. It makes sense to consult with your installer and local officials about the easements in your area beforehand.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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