Solar Incentives in Nebraska
Nebraska homeowners installing solar in 2026 have access to four active programs. Under Nebraska's net metering law (Neb. Rev. Stat. §§ 70-2001 to 70-2005, enacted as LB 436 in 2009), every local distribution utility in the state — Nebraska operates entirely on public power — must offer net metering to customer-generators with qualified renewable facilities rated at 25 kW or less. Generation is credited at the applicable retail rate up to the customer's consumption in a billing period; net excess generation is credited at a separate rate. Because each local distribution utility sets its own rates and export terms, the specific credit values vary by utility. For qualifying solar installations with a nameplate capacity of 100 kW or more placed in service on or after January 1, 2016, Nebraska also provides a full exemption from the depreciable tangible personal property tax. Additionally, the Nebraska Department of Water, Energy, and Environment administers Dollar and Energy Saving Loans at simple interest rates of 5%, 3.5%, or less — with 1.5% loans available to NPPD customers for photovoltaic projects — through participating lenders statewide. Finally, Nebraska's Property Assessed Clean Energy Act allows municipalities to establish clean energy assessment districts, offering financing repaid through a property assessment; terms are set locally.
The federal residential Clean Energy Credit under Internal Revenue Code § 25D — commonly called the 30% solar tax credit — expired for systems placed in service after December 31, 2025 (OBBBA, Pub. L. 119-21). A homeowner whose system is installed and placed in service in 2026 does not qualify for that credit. The absence of this incentive meaningfully extends payback periods compared to installations completed before the expiration.
Nebraska's residential electricity rate averaged approximately 13.10 cents per kilowatt-hour as of March 2026, up about 1.39 cents year-on-year. At that rate, the value of self-consumed solar generation and net metering credits accumulates more slowly than in higher-rate states, which is a relevant factor when estimating payback. Prospective installers should model payback using current utility-specific net metering terms and the loan programs described above, without assuming any federal tax credit.
Figures here are verified as of June 2026 against official sources; programs and rates change every legislative session and rate case, and the Nebraska Power Review Board, Nebraska Department of Revenue, and Nebraska Department of Water, Energy, and Environment are the authoritative sources for current program details.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Nebraska
Net Metering (Neb. Rev. Stat. §§ 70-2001 to 70-2005)
Nebraska's 2009 net metering law (LB 436) requires every local distribution utility in the state — Nebraska is an all-public-power state — to offer net metering to customer-generators with qualified renewable facilities, including solar, of 25 kW rated capacity or less. Generation is credited at the applicable retail rate up to the customer's consumption in the billing period, and net excess generation is compensated as a monetary credit at the utility's avoided cost of electric supply, carried forward month to month and paid out with the final bill of each annualized period. Utilities must provide a bidirectional meter and may not charge customer-generators any additional standby, capacity, demand, or interconnection fee beyond the minimum monthly fee charged to others in the same rate class. A utility is no longer required to add new customer-generators once aggregate net-metered capacity reaches 1% of its average aggregate customer monthly peak demand forecast for the calendar year.
| Amount | Retail-rate credit for generation up to the customer's billing-period consumption; net excess generation credited at the utility's avoided cost; 25 kW facility cap; 1% of average monthly peak demand aggregate cap per utility; free bidirectional meter. |
|---|---|
| Who qualifies | End-use customers of any Nebraska local distribution utility with an on-premises facility of 25 kW or less using solar, wind, methane, biomass, hydropower, or geothermal, interconnected in parallel and intended to offset the customer's own electricity requirements. |
| Administered by | Each local distribution utility (public power districts, municipal utilities, cooperatives); annual reporting to the Nebraska Power Review Board |
Source: Neb. Rev. Stat. §§ 70-2001 to 70-2005 (LB 436, 2009); see § 70-2002 (definitions, 25 kW cap, credit rates) and § 70-2003 (utility obligations, 1% aggregate cap) Official source →
Property Tax Exemption for Renewable Energy Generation Facilities (Nameplate Capacity Tax)
Nebraska exempts from the personal property tax any depreciable tangible personal property used directly in generating electricity from solar, biomass, or landfill gas if the property was installed on or after January 1, 2016 and the facility has a nameplate capacity of 100 kW or more (wind property is exempt without those limits); the exemption expressly covers solar panels, trackers, racks, inverters, wiring, and similar components. In place of property tax, the facility owner pays an annual nameplate capacity tax of $3,518 per megawatt AC, but customer-generators as defined in the net metering law (systems of 25 kW or less) are exempt from the nameplate capacity tax entirely. The statute also provides that the presence of a renewable generation facility may not be a factor in assessing the value of the underlying or adjacent real property. This structure mainly benefits commercial and utility-scale solar; small residential systems below 100 kW are not covered by the § 77-202(9) personal-property exemption.
| Amount | 100% exemption from depreciable tangible personal property tax for qualifying facilities (solar: installed on/after Jan 1, 2016 and ≥100 kW); replaced by a nameplate capacity tax of $3,518 per MW; net-metered customer-generators (≤25 kW) pay no nameplate capacity tax. |
|---|---|
| Who qualifies | Owners of facilities generating electricity from wind, or from solar, biomass, or landfill gas at ≥100 kW nameplate capacity installed on or after January 1, 2016; nameplate-tax exemption for government/public-power-owned facilities and for net-metering customer-generators. |
| Administered by | Nebraska Department of Revenue |
Source: Neb. Rev. Stat. § 77-202(9) (personal property exemption); Neb. Rev. Stat. §§ 77-6201 to 77-6204 (nameplate capacity tax; § 77-6203(2)(b) customer-generator exemption) Official source →
Dollar and Energy Saving Loans
The Nebraska Department of Water, Energy, and Environment (DWEE), in partnership with lending institutions across the state, offers low-interest Dollar and Energy Saving Loans for energy improvements, with wind, photovoltaic, and fuel cell projects listed among the pre-qualified loan categories. Simple interest rates are 5%, 3.5%, or less (final APR may vary by lender and loan fees), and NPPD customers may qualify for 1.5% loans where participating lenders offer that rate. Loans for home and building improvements run up to 15 years, with a borrower maximum of $125,000 for one- and two-family dwellings (including rural properties); qualifying projects exceeding the maximums can be considered case by case with an additional 0.5% funding fee.
| Amount | Interest rates of 5%, 3.5%, or less; 1.5% loans available to NPPD customers for wind/photovoltaic/fuel cell projects at participating lenders; up to $125,000 for one- and two-family dwellings; terms up to 15 years (5 years for appliances). |
|---|---|
| Who qualifies | Nebraska borrowers financing qualifying energy improvement projects, including solar PV, through participating Nebraska lending institutions; borrowers must meet the lender's credit requirements. |
| Administered by | Nebraska Department of Water, Energy, and Environment (Planning & Aid Division), with participating Nebraska lenders |
Source: Program page, Nebraska DWEE 'Dollar & Energy Saving Loans' Official source →
Property Assessed Clean Energy (PACE) — local option
Nebraska's Property Assessed Clean Energy Act authorizes municipalities to create clean energy assessment districts and finance renewable energy systems, energy efficiency improvements, and grid resiliency improvements on private property, repaid through an assessment on the property. The Legislature's stated purpose is to overcome upfront-cost barriers for property owners by providing this alternative financing method. Availability and program terms depend on whether the local municipality has created a district, so homeowners and businesses must check with their city.
| Amount | Financing terms set locally by each municipality's clean energy assessment district; no statewide amounts. |
|---|---|
| Who qualifies | Owners of property within a Nebraska municipality that has created a clean energy assessment district; renewable energy systems are an eligible improvement category under the Act. |
| Administered by | Individual Nebraska municipalities (state enabling statute) |
Source: Property Assessed Clean Energy Act, Neb. Rev. Stat. §§ 13-3201 et seq. Official source →
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Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.