Is Solar Worth It in Nebraska in 2026?
Nebraska isn't the first state that comes to mind for solar, but the sun numbers hold up better than the reputation suggests. At 41.2°N, Omaha-area systems produce around 1,377 kWh per installed kilowatt per year — less than Florida or Arizona, but respectable for a northern-tier state. The bigger swing factor here isn't sun. It's two things nearly unique to Nebraska: cheap electricity and 100 percent public power.
Nebraska residential electricity runs about 12.3¢/kWh (2025 preliminary EIA data) — among the lower rates in the country, even after climbing 73 percent since 2005. Cheap power means every kWh your panels make is worth less, which stretches payback. And because Nebraska has no investor-owned utilities — only municipals, public power districts, and co-ops — net metering, rebates, and even leasing work differently here than in most states. Add the federal credit's repeal for 2026, and solar can still work on the right roof and utility, but the math needs your actual bill and your utility's actual rules, not a national average.
Nebraska Electricity Prices
Solar is a bet against future electricity prices, so it's worth knowing where Nebraska's have been. Here's the trend from federal EIA data.
Full Nebraska electricity price data (1990–2025)
| Year | Nebraska (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 6.2 | 7.8 |
| 1991 | 6.1 | 8.0 |
| 1992 | 6.3 | 8.2 |
| 1993 | 6.3 | 8.3 |
| 1994 | 6.3 | 8.4 |
| 1995 | 6.4 | 8.4 |
| 1996 | 6.3 | 8.4 |
| 1997 | 6.4 | 8.4 |
| 1998 | 6.5 | 8.3 |
| 1999 | 6.5 | 8.2 |
| 2000 | 6.5 | 8.2 |
| 2001 | 6.5 | 8.6 |
| 2002 | 6.7 | 8.4 |
| 2003 | 6.9 | 8.7 |
| 2004 | 7.0 | 9.0 |
| 2005 | 7.1 | 9.5 |
| 2006 | 7.4 | 10.4 |
| 2007 | 7.6 | 10.7 |
| 2008 | 7.9 | 11.3 |
| 2009 | 8.5 | 11.5 |
| 2010 | 8.9 | 11.5 |
| 2011 | 9.3 | 11.7 |
| 2012 | 10.0 | 11.9 |
| 2013 | 10.3 | 12.1 |
| 2014 | 10.4 | 12.5 |
| 2015 | 10.6 | 12.7 |
| 2016 | 10.8 | 12.6 |
| 2017 | 11.0 | 12.9 |
| 2018 | 10.7 | 12.9 |
| 2019 | 10.8 | 13.0 |
| 2020 | 10.8 | 13.2 |
| 2021 | 10.8 | 13.7 |
| 2022 | 10.8 | 15.0 |
| 2023 | 11.2 | 16.0 |
| 2024 | 11.5 | 16.5 |
| 2025 * | 12.3 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Nebraska residential rates have risen about 73 percent since 2005, landing around 12.3¢/kWh in 2025 — with the last decade's pace running roughly 1.5 percent a year, slower than the national trend. That's the honest tension here: cheaper power is good for your bill, but it's exactly what makes payback longer than in a high-rate state like California. If Nebraska rates keep climbing even modestly, solar still locks in a hedge — it just won't look as dramatic on a spreadsheet as it does in a 20¢ state.
The Nebraska Sun, Month by Month
At 41.2°N, Nebraska's sun angle swings hard between seasons — high and long in summer, low and short in December. That swing matters more here than in the Sun Belt, because winter output drops further below the summer peak.
Nebraska monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 94 |
| Feb | 99 |
| Mar | 123 |
| Apr | 121 |
| May | 129 |
| Jun | 127 |
| Jul | 136 |
| Aug | 130 |
| Sep | 121 |
| Oct | 116 |
| Nov | 100 |
| Dec | 81 |
| Year | 1377 |
Source: NREL PVWatts typical-year estimate (Omaha), per installed kW at latitude tilt.
Production of about 1,377 kWh per installed kW per year (Omaha) reflects that swing — strong late-spring and summer months, a real dip from November through January. Nebraska also averages roughly 223 sunny days a year, closer to the national middle than either coast. If your utility trues up net metering annually rather than monthly (common here — see below), a strong summer can bank credit you draw down over a weak winter, so ask how often your account settles.
What Solar Costs in Nebraska in 2026
Nebraska solar tends to price above the national median. EnergySage, the most-cited aggregator using verified installer quotes, puts the 2026 statewide average around $3.90–$3.95 per watt, though other estimates run as low as $2.60–$3.20/W depending on installer and market. The spread is real: a smaller, less mature installer base and historically cheap electricity — which meant less urgency to shop hard — both keep prices firmer here than elsewhere.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $16,250 to $19,750 | ~6,900 kWh/yr (~$71/mo at 12.3¢) | Smaller home, lower usage |
| 8 kW | $26,000 to $31,600 | ~11,000 kWh/yr (~$113/mo) | Average Nebraska home |
| 12 kW | $39,000 to $47,400 | ~16,500 kWh/yr (~$169/mo) | Large home, well pump, or electric heat |
With the federal credit gone, these are close to out-of-pocket numbers, not post-credit net costs. Get at least three quotes and compare price per watt directly — Nebraska's estimate spread is wide enough that shopping around matters more here than in a tighter, more competitive market.
Estimate Your Nebraska Payback
The calculator below is set to Nebraska's average rate and Omaha-area production. Enter your monthly bill for an estimated system size, payback period, and 25-year savings. Nebraska's rate growth has averaged roughly 1.5 percent a year over the last decade — a reasonable starting inflation value, though you can drag it to stress-test the estimate.
Nebraska Solar Incentives in 2026
Start with what's gone, then what's actually here.
- Gone — the 30 percent federal credit: The 25D Residential Clean Energy Credit was repealed by the One Big Beautiful Bill Act (P.L. 119-21) for installations completed after December 31, 2025. If a Nebraska installer's quote still nets out 30 percent, that number is wrong for a 2026 install you own.
- No state income tax credit, no state rebate: DSIRE lists no dedicated Nebraska cash incentive for residential solar — no state-level credit to fall back on the way a handful of other states offer.
- No sales tax exemption: Nebraska has no blanket sales tax exemption for a homeowner buying solar equipment. The refund mechanism in state law (Neb. Rev. Stat. §77-27,235) is structured around systems that generate electricity for sale, not rooftop solar for self-consumption — plan to pay standard state and local sales tax.
- Property tax — a narrower protection, not an exemption: Under Neb. Rev. Stat. §77-202, systems 25 kW or smaller (essentially every home array) are excluded from having the equipment separately assessed as added real property value. Installing solar shouldn't raise your county assessment, but confirm with your county assessor, since it's administered locally.
- Watch, don't rely on — Solar for All: Nebraska received a $62 million federal EPA "Solar for All" award for low- and moderate-income rooftop and multifamily solar. Reporting in 2025–2026 indicates parts of it were scrapped after federal funding was terminated. Treat it as unreliable, not a program you can count on.
- Ask your specific utility: Some utilities, like Lincoln Electric System, have historically offered small capacity-based rebates for qualifying PV. These are utility-specific and not guaranteed year to year — confirm directly with LES, OPPD, NPPD, or your co-op.
Net Metering Under Nebraska's Customer-Generator Law
Nebraska has statewide net metering under Neb. Rev. Stat. §§ 70-2001 to 70-2005 (enacted as LB 436, 2009), but it's not full-retail, buy-all/sell-all net metering. It's a hybrid, and the distinction changes your real payback:
- Within the billing period, power your panels send to the grid that offsets your own consumption is credited at the full retail rate, kWh for kWh.
- Net Excess Generation — anything left over — is paid at the utility's avoided-cost rate, typically well below retail (often 3–5¢/kWh against a roughly 11–12¢ retail rate), trued up periodically, commonly annually.
Eligibility is capped at 25 kW per system, which comfortably covers a normal home install. The bigger catch is on the utility side: each of Nebraska's roughly 150 municipal utilities, public power districts, and co-ops can accept net metering customers only up to 1 percent of its prior-year peak demand. Several rural co-ops, and reportedly parts of OPPD and NPPD territory, have already hit or are near that cap and closed enrollment or started a queue. Bills to raise the cap to 3 percent (LB506, LB573, 2021) stalled in committee and were never enacted — as of mid-2026, the 1 percent cap and avoided-cost NEG rate remain current law.
Why Nebraska's Public-Power Structure Matters to You
Nebraska is the only U.S. state with 100 percent public power — zero investor-owned utilities. Every customer is served by one of roughly 121 municipal utilities, about 30 public power districts (NPPD, OPPD, LES among them), or around 10 rural cooperatives, a structure dating to the 1930s–40s buyout of private utilities. Two consequences follow for a homeowner shopping solar.
First, net metering terms, avoided-cost rates, and whether enrollment is even open can differ from one utility to the next, even under the same state statute. "Nebraska law" is not the same thing as "your utility's tariff" — check NPPD's, OPPD's, or LES's Net Metering Rider specifically, or your co-op's equivalent.
Second, because public power entities are tax-exempt, non-profit, or cooperative bodies, they can't use the federal tax credit themselves. That's part of why third-party-owned solar — leases and PPAs — has historically been less common here than in investor-owned-utility states. Most Nebraska residential solar is customer-owned via cash or loan, which means the loss of the 25D 30 percent credit lands harder here than where a lease workaround is more available.
How to Go Solar in Nebraska
- Pull your last 12 power bills for a true average monthly cost — bills here can swing with electric heat or a well pump.
- Call your utility (NPPD, OPPD, LES, or your co-op) and ask if net metering is open, what the offset and avoided-cost rates are, and how often it trues up.
- Confirm your roof faces south, east, or west with minimal shading, and has 10 to 15 years of life left.
- Get at least three quotes and compare price per watt — Nebraska's pricing spread is wider than most states.
- Ask your county assessor how solar is treated for property tax, and ask your insurer how panels affect your policy.
- If a lease or PPA is pitched, remember the third-party owner claims the federal credit, not you — compare it hard against a cash or loan purchase.
For the fundamentals of how solar works, sizing, and buying versus leasing, see our main solar panels guide. If your roof needs attention first, our roofing guide covers what to check. And since a new system touches your home's wiring, our electrical guide is worth a look too.
Sources
Figures are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 preliminary). Production: NREL PVWatts. Net metering law: DSIRE — Nebraska, Neb. Rev. Stat. §70-2005, Nebraska Power Review Board. Utility tariffs: NPPD, OPPD, LES. Property tax: Neb. Rev. Stat. §77-202. Sales tax: Nebraska Department of Revenue. Cost: EnergySage Nebraska. Reviewed every six months.