Nebraska’s Key Solar Incentives: A Breakdown

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Nebraska, with its expansive plains and ample sunshine, is beginning to explore the potential of solar energy. While the state has historically relied on traditional energy sources, recent incentives are making solar power more attractive to homeowners and businesses. This breakdown of Nebraska’s key solar incentives provides a detailed look at the programs and policies available, including tax credits, rebates, and net metering options. Understanding these incentives can help Nebraskans reduce the costs of solar installations and enjoy the long-term benefits of renewable energy.

The Residential Clean Energy Credit

The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.

To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.

Net Metering

Nebraska offers a net metering program for residential solar system owners. Through net metering, homeowners who generate excess energy from their solar panels can receive a credit on their utility bill. This credit is applied towards the next billing period, effectively offsetting a portion of the household’s electricity costs.

Net metering in Nebraska is available for solar systems up to 25 kilowatts (kW) in capacity. It’s important to note that utility companies in the state have the authority to set their own rates for electricity. As a result, the amount of credits received through net metering can vary depending on the specific utility provider.

While the net metering program enables Nebraska residents to benefit from the excess solar energy their systems produce, the value of the credits will be influenced by the electricity rates established by their respective utility companies. Nonetheless, net metering provides an opportunity for solar system owners to reduce their overall electricity expenses by leveraging the surplus energy generated from their renewable energy installations.

Dollar and Energy Savings Loans Program

Nebraska offers the Dollar and Energy Savings Loans program, which provides fixed-rate loans to homeowners across the state for various purposes, including solar installations. This program is facilitated through participating lenders.

The loan terms under the Dollar and Energy Savings Loans program are quite attractive. The interest rates are set at 5%, 3.5%, or even lower, depending on the specific lender and loan details. Additionally, the loan repayment period can extend up to 15 years, providing homeowners with flexible repayment options.

The maximum loan amount available under this program varies based on the type of property where the solar system is being installed. For single-family homes, the loan maximum is $125,000, while for multi-family properties, the maximum loan amount can reach up to $500,000.

With its favorable interest rates, extended repayment periods, and substantial loan limits, the Dollar and Energy Savings Loans program offers Nebraska residents a viable financing solution to make solar installations more accessible and affordable, enabling them to take advantage of the long-term benefits of renewable energy while managing the upfront costs effectively.

Solar for All

• The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers. The program aims to support the development of low-income community solar projects, reduce carbon emissions, lower energy costs, and promote quality jobs, community wealth-building, energy resilience, and equitable workforce development. 
• The Nebraska Solar for All (SFA) program is poised to become the inaugural initiative guaranteeing equitable access to solar power for low-income and disadvantaged households across the state. Designed to serve the entirety of Nebraska, this program promises prompt reductions in greenhouse gas emissions, immediate cost savings for low-income households, avenues for ownership, and sets the stage for enduring market transformation in residential solar services. Nebraska SFA will prioritize rooftop and multifamily solar installations, with a specific emphasis on benefiting low-income households. Additionally, it will allocate a Tribal set-aside to be implemented collaboratively with Nebraska Tribes.

Disclaimer

The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.