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Is Solar Worth It in Nebraska in 2026?

Complete analysis of solar costs, incentives, net metering, and payback for Nebraska homeowners — without the federal ITC.

Cost Per Watt

$2.80

installed

Electricity Rate

$0.155

per kWh

Payback (No ITC)

14.6 yr

current reality

Payback (With 30% ITC)

10.2 yr

hypothetical

25-Year ROI

71%

return on investment

Incentive Breakdown — Nebraska

Available incentives for a typical 7kW residential solar system in Nebraska

Federal ITC (25D)

Expired

The federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.

State Tax Credit

None

Nebraska does not offer a state tax credit for solar installations.

SREC Market

Not Available

Nebraska does not have a traditional SREC market.

Property Tax Exemption

No statewide property tax exemption for solar

Sales Tax Exemption

No statewide sales tax exemption for solar

Key Incentives: No major state-level incentives currently available.

Solar Math — With vs Without Federal ITC

Cost breakdown for a typical 7kW residential system in Nebraska

2026 Reality (No Federal ITC)

System Size
7 kW
Cost per Watt
$2.80/W
Gross Cost
$19,600
Federal ITC
$0
Net Cost
$19,600
Annual Savings
$1,342/yr
Payback Period
14.6 years

Hypothetical (With 30% ITC)

System Size
7 kW
Cost per Watt
$2.80/W
Gross Cost
$19,600
Federal ITC (30%)
-$5,880
Net Cost
$13,720
Annual Savings
$1,342/yr
Payback Period
10.2 years

Impact: Without the federal ITC, Nebraska homeowners face a 4.4-year longer payback period — paying $5,880 more out of pocket.

Net Metering Policy — Nebraska

How Nebraska compensates your excess solar production

NEM 1.0 Full Retail Net Metering

Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.

Nebraska offers net metering at full retail rate for systems up to 25 kW, primarily for public power districts.

Cost Per Watt Benchmark — Nebraska

Nebraska Average

$2.80/W

National Average

$3.05/W

Typical 7kW System

$19,600

$2.00/W $3.50/W $5.00/W

Nebraska's average installed cost is below the national average of $3.05/W

Breakeven Timeline

Without the federal ITC, a typical 7kW system in Nebraska breaks even in 14.6 years. With the former 30% ITC, payback would drop to 10.2 years.

Without Federal ITC

14.6

years to break even

With Former 30% ITC

10.2

years to break even

Production Details

Peak Sun Hours4.4 hrs/day
Production1237 kWh/kW/yr
Annual Production$8,656 kWh
Annual Savings$1,342

Ready to Go Solar in Nebraska?

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