Nebraska solar 101: must read before you buy solar panels

Last updated 12.01.21

Nebraska State 53 solar panels available

  • $1.77 / W Average gross price of a solar power system as of September 2023
  • 8 years Average system payback period
  • $46 617 Average savings from going solar in Nebraska
  • 6 ¢ / kWh Levelized cost of solar energy
  • 6.22 kW Recommended system size

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Solar laws, incentives and rebates in Nebraska you need to know

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 25 kW 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 25 kW 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 100 kW capacity or more, it’s more complicated. While all solar equipment is exempted from property tax, there is nameplate capacity tax of $3,518 per installed MW.

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. 

Get a permit to install your solar panels in Nebraska

The requirements for solar permits, as well asd solar laws in Nebraska vary from city to city. For example, the city of Lincoln has streamlined the process – getting a permit for a system under 25 kW takes only three days. You can examine the checklist that contains all the basic steps. Notice that you might need a stamp from a structural engineer, which raises the cost of a permit. Consult with your installer beforehand – generally, it’s up to him to obtain a permit and to make sure that it is legal to install solar panels on your house in Nebraska.

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 practise 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 the access to the sun. It makes sense to consult with your installer and local officials about the easements in your area beforehand.

Solar panels help Nebraskans survive tornadoes

Nebraska experiences 50-60 tornadoes of a different scale every year. The last strong storms hit the southwestern part of the state in the end of May: the wind has peaked at 115 mph speed, according to the National Weather Service. Solar panels are actually great at withstanding harsh weather. The average speed of a tornado is about 40-100 mph, but a standard PV module is made to endure the 140 mph winds on the front side. This is why a solar system is a great choice in Nebraska. It will survive most storms and you won’t have to buy and build a new installation after a natural disaster. When power lines are down, the grid-tie system shuts down as well, but an off-grid solar system works no matter what. 

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