2022 Nebraska Solar Tax Credits, Rebates & Other Incentives
Here’s a quick look at the solar incentives in Nebraska:
- Federal Tax Credit (ITC)
- Net Metering
- PACE Financing
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Our solar experts have sifted through hundreds of local governments’ and utility companies’ websites to find accurate information about current solar incentives in each state. We’ve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home.
How Much Can You Save With Solar Incentives in Nebraska?
In this article, we’ll discuss the solar incentives and rebates available to Nebraska homeowners. When you’re ready to speak with a qualified professional, follow the links below. Each of these companies can help you identify and apply for incentives available in Nebraska.
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GenPro Energy Solutions
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Everlight Solar
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System Monitoring
Nebraska homeowners are paying less for solar conversions now than they ever have before, but the average cost of a system is still about $30,000, which sometimes turns homeowners away from converting to this renewable energy source.
However, there are some solar incentives provided to Nebraskans from the federal and state governments to entice homeowners to make the switch to clean energy. Below, we’ll be discussing all of the rebates, tax incentives and other benefits you can enjoy when you install solar panels on your Nebraska home.
Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.
Current Solar Rebates, Tax Credits and Incentive Programs in Nebraska
First, we’ll provide a quick view of the most beneficial solar incentives in Nebraska via the table below. This includes a brief description of how each incentive can benefit you, and we’ll give additional information further in the article.
| Nebraska Solar Incentive | Description |
| Federal Solar Tax Credit (ITC) | The federal solar tax credit is the most significant solar incentive in Nebraska, where solar is still growing in popularity and prevalence. This credit gets applied to your federal income tax liability the year you convert to solar, and the credit amount is equal to 26% of your total solar energy system cost.1 This rate is set to drop in 2023 to 22%, and the credit will be eliminated for residential solar by 2024. |
| Property-Assessed Clean Energy Financing (PACE) | The PACE program affords unique solar financing options to homeowners and business owners looking to convert to solar. The loans cover all upfront costs for eligible parties and are repaid over time with relatively little interest.2 PACE loans are attached to the property rather than the individual, so the value of the home is often used as collateral rather than an individual’s credit score. |
| Net Metering | Net metering is a billing policy that lets you pull energy from the grid when your panels underproduce and offset the costs of that energy by sending power to the grid when your panels overproduce.3 Ultimately, this policy helps reduce or eliminate electricity bills once solar is installed in your home. We’ll discuss the specifics of Nebraska’s net metering policy below. |
| Sales and Use Tax Exemption for Community Renewable Energy Projects | Nebraska incentivizes community-based solar projects by waiving sales tax on related solar equipment. This policy helps reduce the cost of community solar and other energy-efficiency initiatives, including geothermal and biomass projects.4 This affects homeowners who can enjoy pass-through savings when committing to community solar. |
| Property Tax Exemption for Renewable Energy Generation Facilities | Nebraska provides a property tax exemption to prevent your taxes from increasing as a result of going solar, but only in some cases. This incentive only applies to systems greater than 100 kilowatts, which is far larger than any single home would have installed.5 Instead, this helps avoid your property taxes from going up if you opt into a community solar project. |
Nebraska Solar Incentives
According to the Solar Energy Industries Association (SEIA), Nebraska ranks 46th in the nation for solar energy adoption and incentivization.6 As you might have guessed based on the ranking, there are relatively few solar incentives available in the state. We’ll discuss the statewide benefits of going solar below.
Property-Assessed Clean Energy (PACE) Financing
PACE financing consists of super affordable solar loans that make solar energy accessible to nearly every homeowner and commercial property owner in the State of Nebraska. The loans have a remarkably low interest rate and are typically available with a no-money-down option to lower the barrier of entry into a home solar system.
The loans also use the home’s value as collateral, so a credit check is often not required. Some lenders could opt out of providing a PACE loan, given the risk incurred, but they are still widely available throughout Nebraska.
Nebraska Solar Sales Tax & Property Tax Exemption
Nebraska has a Sales and Use Tax Exemption for Community Renewable Energy Projects, which waives sales tax on community energy projects, including community solar. While this doesn’t benefit homeowners directly, it does allow for pass-through savings on solar equipment if you opt in to a community solar project.
Nebraska also has a Property Tax Exemption for Renewable Energy Generation Facilities. In many other states, the solar property tax exemption prevents your property taxes from increasing as a result of installing rooftop solar panels. Nebraska’s exemption only applies to systems over 100 kilowatts, which virtually no single home could support — not to mention that the average cost of such a system in NE would be around $283,000. As such, if you install a home solar system, it will cause your home value to increase, which will also cause a bump in your property taxes.
However, this property tax exemption does prevent your taxes from spiking if you opt into qualifying community solar projects. With connection to community solar, you could enjoy a boosted home value without having to pay more in property tax. This is especially useful if you live in a higher-tax area like Omaha.
Net Metering in Nebraska
Net metering is a policy that is largely beneficial for solar customers opting into interconnection, which is standard practice for residential solar systems. When your panels don’t produce enough energy to cover what you’re using — which is common at night or when it’s cloudy — your home will pull power from the grid to make up the difference. When your panels generate more than you need, the system routes the excess to the grid. Net metering determines how you get compensated for the energy you send to the grid.
Nebraska mandates net metering for public power providers, so you’ll be able to take advantage of this benefit. However, compensation standards aren’t set, so most electric utilities pay for your excess energy using an avoided cost method. This means the energy you produce is effectively worth less than what you pull from the grid.
The net metering program isn’t as beneficial as one that mandates full retail rates, but it can still help you eliminate your electric bills. In addition to the energy savings, you could get paid for any additional energy you produce if your credits roll over throughout the year.
Local Incentives
Given that solar energy is still getting its foothold in Nebraska, there are few local incentives provided for homeowners.
However, you can check with your local utility provider or on the DSIRE database for information on energy efficiency upgrades.7 Some electric companies offer modest rebates for upgrades like LED lighting, heat pumps, new windows, new insulation, electric vehicle chargers and more.
Federal Solar Tax Credit
Finally, the federal solar investment tax credit (ITC) is, by far, the most beneficial solar incentive available in Nebraska. This renewable energy tax credit is offered to all U.S. taxpayers from the federal government, and it amounts to a massive 26% of your total solar panel system cost. In Nebraska, where the average system totals $29,715, most homeowners will enjoy a credit of approximately $7,726, bringing the effective total down to $21,989. This credit is applied to your federal income tax liability for the year in which your solar company installs and commissions your solar PV system.
Homeowners looking to maximize their ITC should plan to install their photovoltaic system in 2022, as the credit will drop to 22% in 2023. In 2024, the credit will no longer be available for residential solar systems, although commercial solar customers can still take a 10% federal tax credit.
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FAQ: Nebraska Solar Incentives
The EcoWatch team is thrilled to get questions from Nebraska homeowners about solar incentives because it shows an interest in clean energy from one of the least solar-friendly states. Below are some of the questions we see most often.
Nebraska does not have a state tax credit for solar conversions. However, the federal solar tax credit is available for all Nebraska homeowners. The ITC is a significant tax incentive that totals $7,726 for the average homeowner installing solar in Nebraska in 2022.
Yes, there are some solar incentives available to Nebraskans in 2022. Most important is the federal tax credit, which has open eligibility and provides an average credit worth 26% of your total renewable energy system cost.
Nebraska homeowners can also enjoy a net metering policy that helps them reduce or eliminate their energy bills. Customers who opt into community energy programs can also enjoy some savings up front thanks to the sales tax exemption on community energy projects, as well as a property tax exemption for opting in to specific community solar programs.
Unfortunately, there are no rebate programs available in Nebraska for solar power systems. However, some local utility companies provide small rebates for energy-efficiency upgrades that your solar installer might be able to tackle while they install your panels. You can check the DSIRE database or contact your utility provider for more information.
In most cases, yes. Solar panels boost your home value, and, since your property taxes are based on your property’s assessed value, solar installations will typically cause your property taxes to increase. Many states have a property tax exemption to stop this from occurring, but Nebraska does not.
However, there is a property tax exemption available in NE for systems over 100 kilowatts.
