Nebraska Solar Incentive Programs

12 yr
Avg. payback
$950/yr
Avg. annual savings
None
State tax credit
avoided cost
Net metering rate
Federal tax credit update: The 30% residential solar tax credit (Section 25D) ended for systems whose installation was completed after December 31, 2025, under Public Law 119-21. Systems whose installation was completed in 2025 can still claim it on a 2025 return. New 2026 installations do not qualify for homeowners who buy. What changed
Nebraska's statewide law only requires avoided-cost compensation (~2 to 4¢/kWh). LES (Lincoln) voluntarily exceeds this with full or half-retail export rates plus a one-time cash payment.

The Nebraska Net Metering Law

LB 436, codified at Neb. Rev. Stat. § 70-2001 et seq., sets the floor for all Nebraska utilities.

LB 436 Requirements

Who Must Comply All local distribution utilities in Nebraska
System Size Cap 25 kW (mandatory); utilities may offer more voluntarily
Export Compensation Avoided cost of electric supply, not retail
Unused Credits Roll forward monthly; paid out at the end of each annual period and on service termination
Program Cap 1% of utility's average monthly peak demand
Metering Cost Bidirectional meter provided at no extra charge

Source: Neb. Legislature LB 436 (Tier 1)

Utility-by-Utility Breakdown

Nebraska is a public power state. Your utility isn't Edison or Xcel, it's a publicly owned district, city system, or co-op. Each sets its own solar rates above the LB 436 floor.

Lincoln Electric System (LES)
City of Lincoln and surrounding area
Residential rate (summer) 7.82¢/kWh
Residential rate (winter) 5.60¢/kWh
Tier 1 export rate 100% of residential rate
Tier 2 export rate (active) 50% of residential rate
Tier 2 summer effective rate ~3.91¢/kWh
Capacity payment $375/kWDC (south) · $475/kWDC (west/track)
Rate lock 10 years at interconnection
System cap 25 kWAC
Tier 2 program total cap 10 MW

Lincoln is Nebraska's solar standout. LES goes well beyond state law: a 7 kW south-facing system earns ~$2,625 upfront (capacity payment) before generating a single kWh. Tier 1 closed December 31, 2017, so new systems receive the Tier 2 rate (50% of the residential energy charge).

Source: les.com/rates/residential-rates (Tier 1)

Omaha Public Power District (OPPD)
Omaha metro and surrounding counties
Residential rate (summer) 11.937¢/kWh
Residential rate (non-summer) 9.503¢/kWh
Monthly service charge $30.00
Export compensation Avoided cost (Rate 483), well below retail
Self-consumption value Full retail saved (up to 11.937¢/kWh summer)
Capacity payment None
Active facilities (Dec 2025) 1,875 systems · 13,948 kW total
System cap 25 kW (standard LB 436)

OPPD pays avoided cost for exports, roughly 2 to 5¢/kWh vs. up to 11.9¢/kWh retail you save. Right-size your system to maximize self-consumption and minimize exports for best ROI.

Sources: OPPD Rate Manual PDF, OPPD NM Annual Report (both Tier 1)

NPPD · Rural Co-ops · Municipal Utilities
Rest of Nebraska (wholesale/retail patchwork)
Net metering availability Varies, LB 436 applies to distribution utilities
Export compensation Avoided cost (LB 436 minimum)
Capacity payments / rebates Rarely available
Black Hills Energy (NE) Standard NM per LB 436; confirm local tariff

If you're outside Lincoln or Omaha, call your co-op or municipality directly. LB 436 requires them to offer NM at avoided cost, but program specifics (size caps, credit rollover windows) vary. Some co-ops buy from NPPD wholesale and set their own retail net metering tariffs.

Source: Neb. Rev. Stat. § 70-2001 et seq. (LB 436, Tier 1)

OPPD Customers: Size for Self-Consumption

At OPPD, every kWh you generate and use yourself saves you up to 11.937¢ (the retail rate you don't pay). Every kWh you export earns only avoided cost, maybe 2 to 5¢. A system sized to cover 90 to 95% of your load with minimal exports gives you far better economics than one that pushes excess to the grid. Battery storage pairs well here: charge during peak solar hours, draw at night rather than exporting.

State Incentives, No State Programs

Nebraska has no state solar income tax credit or sales tax exemption for residential systems. Property tax treatment of residential customer-generator systems is unclear in state guidance; check with your county assessor.

Incentive Status Notes
State income tax credit None Nebraska offers no residential solar credit
Property tax exemption None statewide Solar adds to assessed value; LB 62 (grant proposal, 2024 special session) did not advance to law
Sales tax exemption None Nebraska's 5.5% sales tax applies to solar equipment and installation
Federal ITC (Section 25D) Expired Expired December 31, 2025 for residential systems
LES Capacity Payment Active (Lincoln only) $375 to $475/kWDC one-time payment at interconnection
Nebraska Energy DEAL Loans Active Department of Water, Energy, and Environment low-interest financing up to $125,000; rates of 5%, 3.5% or less

Sample Savings Math

7 kW system in Lincoln (LES Tier 2) vs. Omaha (OPPD). Annual production estimate: ~9,100 kWh.

Lincoln (LES), 7 kW System

Up-front capacity payment (south-facing)$2,625
Annual production (est.)9,100 kWh
Self-consumed (est. 70%)6,370 kWh × 7.15¢ avg = $455
Exported (est. 30% × Tier 2)2,730 kWh × 3.71¢ avg = $101
Year 1 total benefit$2,625 + $556 = $3,181
System cost (~$20,000 before 5.5% sales tax)$21,100
Estimated simple payback~10 to 12 years

Estimates only. Actual results depend on usage profile, orientation, shading, and LES tier availability.

Omaha (OPPD), 7 kW System

Up-front rebate/capacity payment$0
Annual production (est.)9,100 kWh
Self-consumed (est. 70%)6,370 kWh × 10.72¢ avg = $683
Exported (est. 30% × avoided cost ~3.5¢)2,730 kWh × 3.5¢ = $96
Annual total benefit$779
System cost (~$20,000 before 5.5% sales tax)$21,100
Estimated simple payback~15 to 18 years

Estimates only. OPPD avoided cost rate not publicly stated; ~3.5¢ used as representative estimate.

Next Steps for Nebraska Homeowners

1. Confirm Your Utility

Action Required

Your utility is the single biggest factor in Nebraska solar economics. Confirm whether you're served by LES, OPPD, a rural co-op, or another municipal system before any quotes. Look at your bill or call 811.

2. Ask About Tier Availability (LES)

Lincoln Customers

LES Tier 1 (full retail export rate) closed December 31, 2017. Tier 2 is active through 10 MW total. Ask LES which tier you'll enter and request the capacity payment calculation before signing an installer contract.

3. Size for Self-Consumption

All Nebraska Customers

Even LES Tier 2 pays only ~50% of retail for exports. Size your system to cover 90 to 100% of your annual consumption, then minimize exports. Consider battery storage if you have a strong summer rate differential.

Nebraska Energy Office DEAL Program

The Nebraska Energy Office's Dollar and Energy Saving Loans program offers below-market financing for solar installations. Loans typically up to $125,000 at competitive interest rates. Contact the Nebraska Department of Water, Energy, and Environment at (402) 471-2186 or visit dwee.nebraska.gov to check current availability and interest rates before taking a contractor-arranged loan at potentially higher rates.

Get quotes from Nebraska solar installers

Local installers know the Nebraska incentive landscape. Compare quotes and see exactly what you'd save with a system sized for your home.

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Incentives and rates change often and depend on your utility, location and tax situation. Confirm the details that apply to you with your utility and a licensed tax professional before you sign a contract.