Prices for solar panels have dropped significantly in recent years, making them an option to save on your power bills in the Cornhusker State.
Nebraska currently ranks 47th for total installed solar capacity, but financial incentives and falling solar panel costs mean you can save significantly by switching to solar at your own home.
Renewable energy in Nebraska provides about three tenths of the state's total electricity generation, but most of that comes from wind farms. At the utility scale, solar power is gaining popularity -- solar generation has more than doubled since 2018. An 81-megawatt solar project is expected to be finished by the end of 2023.
You don't have to wait for the solar industry to expand in Nebraska to take advantage of the sun for yourself. With the cost of residential solar decreasing by over 50% in the last 10 years and an increase in government incentives, now is a great time to consider investing in solar energy.
Investing in a solar system that covers your home's energy needs could save you thousands on electricity after your solar system's payback period and contribute to increasing the solar capacity in Nebraska.
The exact cost of a solar system for your home depends on the number of solar panels, roof maintenance and additional equipment like solar batteries. According to data from consulting firm Wood Mackenzie, the average system size needed in the US is 8 kilowatts, with the average system costing about $2.99 per watt.
The solar system size your home needs may depend on whether or not you are buying a solar system to cover your entire home's energy needs. The total price included in the table is before any tax credits or other solar incentives.
System size | Price per watt | Total cost | |
Nationwide | 8 kW | $2.99 | $23,920 |
Payment options for solar panels in Nebraska include cash purchase, solar leases or loans and power purchase agreements. Joining a community solar program is another option where residents receive power from nearby solar panels and pay a monthly subscription fee.
Each option has its pros and cons:
Cash: Paying for your solar panels with cash is the best way to avoid financing costs, interest and fees, but it requires having tens of thousands of dollars ready to go. Planning for the future? Consider putting money away in a high-yield savings account.
Solar loan: Your installer will likely have a financing option available to you. This is often a partnership with a financial institution, and comes with set terms, interest rates and payments.
Other loans: You don't have to go with a loan offered by your installer. You can also use a home equity loan, home equity line of credit or personal loan to finance your panels. These all have their pros and cons -- home equity loans, for example, are secured by your home, like a mortgage -- and you should consider your options before making a decision.
Lease or power purchase agreement: These two choices are similar in that you won't own the solar panels and won't get the tax credit -- the solar company will. In a lease, you'll pay a monthly fee to a solar company, while in a power purchase agreement you'll buy the electricity the panels generate from the company. These options won't save you as much over the long run, but they cost less in the short run.
Even though the cost of residential solar has decreased over the last decade, the upfront cost of solar is still substantial. Solar tax credits, net metering programs and other incentives are available to make solar panels in Nebraska more affordable. The biggest help in going solar is the federal residential clean energy credit, which covers 30% of the cost of your solar panel system.
Here are a few incentives you should know.
Program | Description |
---|---|
Residential clean energy credit | Receive a 30% federal tax credit on your next return. Applies to solar systems installed from the beginning of 2022 through 2032. In 2033, the credit will decrease to 26%, then 22% in 2034. Unless renewed, the credit will expire in 2035. |
Net metering | A program to sell excess solar energy to your utility company and receive credits on your next electricity bill. Check with your local utility company for specific rates and other details. |
Property tax exemption | Only for community solar projects |
Sales and use tax exemption | Community renewable energy projects, like community solar, are exempt from sales tax. |
There are many options for solar companies in Nebraska. The following five include top national solar companies and local options. We recommend receiving quotes from multiple companies to ensure you find the best fit for your energy and budget needs.
Operating throughout Nebraska and 23 other US states, ADT Solar installs a variety of solar panels and name-brand batteries like the Tesla Powerwall. To ensure you get the best price for your solar panel system, ADT Solar has a price match guarantee. If you find a cheaper quote within 30 days of signing an agreement, ADT will honor the quoted price and give you an additional $150. Along with a 25-year manufacturer warranty, ADT Solar adds a 25-year production guarantee for their products. Solar system purchase options only include a cash purchase or solar loan.
Since 2005, Dixon Power Systems has provided solar and wind energy products in Nebraska. The company installs products from name brands like LG, SolarEdge and Enphase. Most products are equipped with a 25-year manufacturer warranty.
Headquartered in Wisconsin, Everlight Solar operates in eight US states. Everlight offers two main plans, including a solar loan plan with a monthly payment or a solar purchase plan to pay upfront. Both include a 10-year quality of work warranty. The company is certified to install products from top companies like Tesla, Generac and Sonnen.
Nebraska is one of the 13 states in which GRNE Solar operates. GRNE Solar performs three types of residential solar installations, including rooftop, ballasted arrays and ground-mounted solar panels. Ballasted solar is a good option for those who do not want to penetrate their roof or ground. GRNE uses products from brands such as SolarEdge, REC and SunModo. The company also installs solar batteries for backup storage and for residents who want an off-grid solar system.
In the solar business since 1985, SunPower is a nationwide company providing solar products and services. SunPower manufactures some of its own products, including Maxeon solar panels and SunVault solar batteries. The company offers a 25-year complete system warranty guaranteeing power output and coverage for defective materials.
Think about the following five things when considering powering your home with solar energy:
Nebraska residents can apply for the residential clean energy credit for a 30% tax credit on their next return. This federal tax credit is the most substantial available incentive in Nebraska. The state also offers a net metering program to receive credits towards your next electricity bill in return for excess energy generated by your solar system. Some residents may also qualify for sales and property tax exemptions.
Yes. Solar energy is good for the environment because it doesn't emit greenhouse gasses, which cause climate change and harm air quality and the environment. Reducing the use of fossil fuels, including coal and gas, can help reduce your home's carbon footprint.
The best solar company for you depends on your needs and interests. We recommend receiving quotes from multiple companies to choose the best for your budget and energy needs.