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State solar incentives

Solar incentives in Nebraska for home and business

Edited by: Andrei Gorichenskii

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

  • Nebraska provides several clean energy financing options to take down the price of your solar panel system and return the money you’ve paid for it. 
  • Nebraska residents can claim a 30% federal tax credit on the total cost of their solar system installation.
  • Net metering is available for systems under 25kW, with excess energy credited at the utility's avoided cost rate. Check if unused credits roll over next year. Systems over 25kW require negotiated terms with the utility.
  • Residential systems under 25kW are exempt from property and capacity taxes. Commercial systems have a property tax exemption on equipment but are subject to a nameplate capacity tax.
  • Community-based energy development projects (C-BEDs) are exempt from sales and use taxes.
  • State-provided loans for residential and commercial renewable energy projects, with interest rates of 5% or lower.
  • Property owners are encouraged to create solar easements to protect sunlight access. Local zoning regulations may also address solar access.

Save 30% of your PV system cost with Federal Solar Tax Credit

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.

Join net metering program and gain credits to cover your bills

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 are exempt from property taxes

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 are cheaper for community projects

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.

Increase your buying power with Dollar and Energy Savings Loans

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.

Solar easements help to ensure your access to the sun

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.

Incentive/
Program
Description
Benefits
Eligibility/
Requirements
Notes
Federal ITC (30%)
30% tax credit on the total cost of solar system installation.
Reduces overall system cost, accelerates payback period.
Must own the system, meet IRS guidelines.
Applies to installation, equipment, and other associated costs.
Net Metering in NE
Allows homeowners to sell excess solar energy back to the grid for credits.
Reduces or eliminates electricity bills.
Systems under 25kW. Terms negotiated for larger systems.
Credits at avoided cost rate, roll over. Potential program fees.
Property Tax Exemption
Exemption on residential systems under 25kW; partial exemption for commercial.
No increase in property taxes (residential).
No increase in property taxes (residential).
Commercial: equipment exempt, nameplate capacity tax applies.
Sales & Use Tax (C-BEDs)
Exemption for Community-Based Energy Development Projects.
Reduces upfront costs for community projects.
C-BED project designation; application to Tax Commissioner.
Example: apartment building solar.
Dollar & Energy Savings Loans
State-provided loans for renewable energy projects.
Provides accessible financing.
Residential and commercial projects.
Interest rates 5% or lower; up to 15-year terms.
Solar Easements
Legal agreements to protect access to sunlight.
Ensures optimal solar panel performance.
Negotiated between property owners. Local zoning may also apply.
Property owner encouraged to create these easements.


What are solar incentives, and why do they exist?
These questions are pretty simple to answer. Solar incentives exist to accelerate the widespread adoption of solar energy generation. On average, these programs work as tax breaks, rebates, and other financial aids designed to make the initial investment in solar systems more affordable. The fundamental purpose is to shift our energy consumption away from fossil fuels, reducing greenhouse gas emissions and environmental damage.

Governments and policymakers implement these incentives because they recognize that market forces alone are insufficient to drive the necessary transition to renewable energy. Solar, while increasingly cost-effective, still faces an upfront cost barrier that many individuals and businesses cannot easily overcome. Incentives bridge this gap, making solar a financially viable option.

Beyond environmental benefits, these programs also bolster economic growth and energy security. The solar industry creates jobs and stimulates local economies, while diversifying energy sources reduces dependence on volatile global fossil fuel markets. Essentially, solar incentives are a strategic investment in a sustainable future, promoting both ecological and economic well-being by making clean energy a practical reality for a broader population.

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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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