Solar power in Nebraska is used for only a very small percentage of the state's electricity, although it is rapidly becoming competitive with grid electricity, due to the decrease in cost and the eight-year[when?] extension to the 30% tax credit, which can be used to install systems of any size. In 2015, the state ranked 47th among the 50 U.S. states with 1.1 MW of installed capacity. Solar power and wind power are easily able to provide all of Nebraska's energy need, although they would require either transmission lines to provide power when neither is available or storage. Estimates show that Nebraska could generate 3,832,600 GWh/year from wind, and 34.1% of demand from rooftop solar panels, using 8,200 MW of solar panels. Large-area solar farms would generate many times demand.
Nebraska's large solar installations include a 3.9 MW system in Lexington. A group of arrays totaling 108.9 kW was installed at Creighton University. The second largest is the 45 kW array at the Norfolk Operations Center of Nebraska Public Power District. A 3.6 MW community solar plant at Lincoln is expected to be finished in 2016.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.