Rebates and incentives, Nebraska
No state tax credit, and the limited sales tax exemption ended in July 2026. See what retail-rate net metering and the 6-year property tax exemption are actually worth.
How it works
Step 1
This keeps you eligible for both the property tax exemption and the standard net metering mandate. Larger systems require negotiated utility terms instead.
Step 2
South-facing systems installed by a Solar Trade Ally Network participant may qualify for a one-time payment. Confirm eligibility with your installer if you're an LES customer, and use the rebate application cost benefit calculator to see if pursuing it is worth the time.
Step 3
With the sales tax exemption gone and no state credit, your federal status matters even more. Check the federal ITC calculator for your exact 2026 position.
Nebraska's Renewable Energy Tax Credit, under Neb. Rev. Stat. Section 77-27,235, is generation-based rather than a typical residential purchase credit: it pays a fraction of a cent per kilowatt-hour actually produced by "a producer" of electricity, structured for larger generation facilities, and it's capped at a total of $50,000 in credits statewide across every taxpayer and every year combined, a pool that has little practical room left for a new residential applicant. For all intents and purposes, a homeowner installing rooftop solar shouldn't count on a state income tax credit. Separately, per the Nebraska Legislature's own committee statement on LB 1109, that 2026 bill repealed several sales and use tax exemptions, including the one that had applied only to materials used in qualifying community-based energy development projects, not typical residential rooftop installations, effective at the start of the state's 2026-27 fiscal year. Practically speaking, this doesn't change much for most homeowners, since standard residential purchases weren't broadly exempt to begin with, but it does close off one edge case some guides still describe as available; that same bill also sunset the renewable energy credit described above going forward and made it non-refundable. Check the federal ITC calculator for your actual 2026 status.
Nebraska law requires net metering for eligible systems up to 25 kW, and during the year, exported energy is credited at the full retail rate to offset your future consumption, similar to a rolling monthly bank. At an annual true-up, though, any remaining net excess generation you haven't used gets compensated at the utility's lower avoided-cost rate rather than carried forward indefinitely. This two-stage structure rewards sizing your system to closely match your actual usage rather than maximizing production for export, since the leftover portion pays considerably less. Compare against the Iowa incentive estimator for a neighboring state's structure.
Under Nebraska Revised Statute 77-202.12, the added assessed value from a residential solar system is excluded from property tax for the first six full tax years after installation, after which the added value is phased in and assessed normally. This exemption doesn't typically require the kind of application process some other states demand, making it one of the more straightforward benefits available to Nebraska homeowners, though the six-year window is notably shorter than the permanent or 20-year exemptions some other states offer and is separate from the net metering credits discussed above. Commercial systems are treated differently and may face a separate nameplate capacity tax on equipment. Compare against the Kansas incentive estimator for a different regional structure.
Lincoln Electric System customers whose systems are installed by a participant in its Solar Trade Ally Network may qualify for a one-time capacity payment, historically around $375 to $475 per kilowatt depending on orientation and tracking. OPPD and NPPD have supported community solar and efficiency programs at various points, though residential PV rebates specifically aren't guaranteed year to year. Check current program status directly with whichever utility serves you, since availability shifts.
If you borrow for the rest of the system, the combined loan and rebate timing tool takes your rebate total and works out the monthly payment on the balance.
Questions
Not in a form a typical homeowner can use. Nebraska's Renewable Energy Tax Credit under Neb. Rev. Stat. Section 77-27,235 pays a fraction of a cent per kilowatt-hour actually produced by a generation facility, and it's capped at $50,000 in credits total statewide across all taxpayers and years, leaving little practical room for a new applicant. LB 1109, passed in 2026, also sunset this credit and made it non-refundable going forward. Most of the financial case for solar in Nebraska rests on the federal credit, net metering, and low-interest financing programs instead.
No, not anymore. Nebraska's limited sales tax exemption, which had applied only to materials used in qualifying community-based energy development projects rather than typical residential installations, was repealed by LB 1109, effective at the start of the state's 2026-27 fiscal year. Standard residential solar purchases were not broadly exempt from Nebraska sales tax even before that change.
Nebraska law requires net metering for eligible systems up to 25 kW, crediting exported energy at the full retail rate throughout the year to offset your future consumption. At an annual true-up, any remaining net excess generation you haven't used is compensated at the utility's lower avoided-cost rate rather than carried forward indefinitely, so oversizing well beyond your household's needs tends to produce diminishing returns.
Yes, but only for a limited window. Under Nebraska Revised Statute 77-202.12, the added assessed value from a residential solar system is excluded from property tax for the first six full tax years after installation. After that six-year window, the added value is phased in and assessed normally. Commercial systems have a different property tax treatment and may be subject to a separate nameplate capacity tax instead.