In 2022, solar energy production in Nebraska was extremely low, accounting for only 83MW of capacity which ranked 4th lowest in the entire country. For a state with generally progressive policies in other areas, the lag in adopting renewable solar technology is surprising. This makes the decision to install solar panels in Nebraska a cautious one for most homeowners. However, for those Nebraskans focused on reducing their carbon footprint and environmental impact, the long-term savings from going solar can be worthwhile.
In this comprehensive guide, we analyze the costs, benefits, and financial incentives for installing residential solar panels across Nebraska. Whether you‘re located in Omaha, Lincoln, Grand Island or elsewhere, our goal is to provide key data and expert perspective to help you decide if solar power is right for your home.
Average Cost of Solar Panel Installation in Nebraska
First, examining the baseline costs makes it clear why many in Nebraska are hesitant about solar. The average price per watt of solar equipment in NE is $2.83 according to 2021 data. This gives the state one of the highest solar installation costs in the entire country, nearly 30% above the national median.
For a typical 6kW solar panel system, this translates into a pre-incentive price tag of approximately $16,980. That‘s over $2,800 more expensive than the average $14,000 system across the US. With below-average electricity rates in Nebraska (more details shortly), recuperating this high upfront investment through utility bill savings can be challenging.
However, for eco-conscious homeowners determined to go solar, the 30% Federal Solar Investment Tax Credit (ITC) can make a meaningful difference. The ITC essentially reduces the net cost of installed solar panels by 30%. So for our 6kW example, instead of paying $16,980 out-of-pocket, the post-ITC price would drop to $11,886. Still higher than most states, but more reasonable.
How Much Solar Generation Capacity Do You Need?
When budgeting for a solar panel system, it‘s important your array is properly sized to match your home‘s electricity consumption. As Nebraska has higher than average energy usage compared to other states, using national system size averages may underestimate your specific requirements.
Here is how to calculate the optimal solar panel system size for your Nebraska home:
- Determine your average daily electricity usage, measured in kWh. You can find this on a previous utility bill. Statewide average for Nebraska is 33.8 kWh.
- Divide your daily usage by the peak sun hours for your location in Nebraska. This metric ranges from 4.5 to 5.3 hours depending on city. See this Nebraska sun hour map.
- The result gives you the rated kW output needed from your solar array to offset your entire electrical load. If your household uses more than the state average, plan for a 7kW or larger system.
Using the 33.8 kWh statewide average numbers, a 6kW solar panel system with 4.79 peak sun hours of solar production should meet needs. But actual requirements vary.
Solar Panel Installation Cost Comparison to Neighboring States
To give more perspective on the cost landscape for going solar in Nebraska, let‘s compare to some neighboring states:
South Dakota – Similar to Nebraska, SD has higher solar equipment costs at $2.94/W and lower utility rates limiting bill savings. Payback periods very long.
Iowa – With better sun resources than Nebraska and moderately-priced power bills in Iowa, solar can pencil out better if you live east.
Missouri – Solar panel costs are below the Nebraska average at $2.63/W. And areas near Kansas City and St. Louis have short payback periods.
Kansas – Long sun hours make Kansas solar economics attractive. The state also has declining solar prices averaging near $2.50/W.
Colorado – With sun resources among the best in the country, Colorado‘s solar payback is less than 9 years for a 6kW installation. Costs also below NE.
Wyoming – Wyoming does have excellent solar production numbers benefiting efficiency. But electricity rates are extremely low widening payback periods.
As shown above, the economics around solar power can shift based on sunlight availability, utility costs, as well as upfront solar pricing differentials in each state. Homeowners near the Nebraska/Iowa border may find lower payback times than other parts of the state.
How Solar Panel Type Impacts Installation Cost
When planning for a solar array in Nebraska, you‘ll also need to decide which type of photovoltaic panel technology is appropriate:
Monocrystalline Solar Panels – These panels have solar cell efficiencies ranging from 18% to over 22%. This means they can produce more watts per square footage than other alternatives. They perform better in low light conditions. Downsides are higher cost and potentially more roof space required.
Polycrystalline Solar Panels – Instead of a uniform silicon wafer, these panels contain multiple crystals. This lowers solar cell efficiency levels to around 15% to 18%. But cost savings compared to monocrystalline can be substantial.
For many homeowners in Nebraska, polycrystalline solar panels make financial sense thanks to the state‘s generally good sun resource averaging between 4.5 to 5.5 peak daily hours depending on location. However, if you have limited roof space, the extra efficiency of monocrystalline allows for more kWs to be packed in a smaller area.
Make sure to discuss panel technology options with your installer when getting quotes. An experienced professional solar company will help identify the optimum equipment recommendations tailored for the specifics of your home.
Selecting the Best Solar Installer in Nebraska
While shopping around for solar quotes can help control costs, be very diligent when evaluating each installation company. The lowest bid may seem attractive initially, but often indicates lower-grade equipment, less qualified installers, or inadequate long-term workmanship warranties.
These corner-cutting solar contractors jeopardize your system‘s productivity down the road along with ability to realize the expected bill savings. Given most households in Nebraska keep solar arrays for 20 years or longer, a reputable installer is key even at slightly higher initial pricing.
When it comes to qualified solar providers operating locally across Nebraska, unfortunately pickings remain somewhat slim as the statewide market is less mature. The majority concentrate around the Omaha and Lincoln metros. This lack of alternative installers reduces competitive bidding pressure on pricing too.
Based on our research, here are two solar panel installer recommendations for Nebraska homeowners:
GRNE Solar – Focused on the Midwest solar market, GRNE maintains Nebraska operational facilities despite being headquartered in Chicago. The company has installed many megawatts of solar in the state while earning positive customer satisfaction ratings. GRNE utilizes high-quality equipment and provides strong 25-year workmanship warranties. Costs are reasonable compared to other Nebraska solar providers.
Everlight Solar – For a true local option, Everlight Solar consistently ranks as a premier installer across Nebraska. Their office resides in La Vista allowing for convenient in-home assessments by solar experts familiar with the area. While Everlight‘s panel technology options are limited to either Q Cells or Longi, their staff maintains top-notch NABCEP certification ensuring proper system sizing/siting. Long 25-year workmanship warranties also inspire confidence in lasting system integrity. Pricing is competitive particularly in rural regions.
Shopping quotes from one or both of these reputable solar companies is a best practice before deciding on equipment suited for your specific home.
Are Solar Panels Ultimately a Wise Investment in Nebraska?
For eco-conscious Nebraskans committed to shrinking their carbon footprint, installing solar panels can make sense despite our state‘s challenges of high equipment pricing and lower-than-average utility rates. But understanding the true bill savings potential and payback math is crucial before moving forward with such a major home improvement investment.
When sized correctly to match your household‘s kWh usage, a solar array in Nebraska can offset around 60% up to 90% of previous electricity expenses depending on extent of grid power still utilized. For our baseline 6kW system example, you can expect an annual utility bill reduction of approximately $1,431 based on meeting 75% of total energy demand through your panels.
Factoring in the 30% federal tax credit and using the $1,431 yearly savings figure, a simple payback period for recuperating your initial solar panel cost outlay via utility savings is:
Gross Cost ÷ Annual Savings = Simple Payback Period
$16,980 ÷ $1,431 = 11.9 years
So while nearly breaking even on a solar investment takes longer here than other sunnier, less expensive equipment states, you can still foresee substantial utility savings after year 12 and beyond. Over the average lifespan of 25 years for today‘s solar panels, Nebraska homeowners utilizing a 6kW system should net $11,600 to $18,800 in positive returns depending on panel efficiency degradation assumptions.
And for those Nebraska families prioritizing their eco-legacy over pure dollars and cents, each 1kW of solar power generation offsets 1.5 tons of CO2 over 30 years. Going solar lets you meaningfully reduce your household‘s carbon impact.
Utilizing Solar Tax Credits and Financial Incentives in Nebraska
For Nebraskans exploring solar power as a way to buffer themselves from rising utility costs long-term, taking advantage of financial incentives and credits helps improve the investment payback math we discussed above.
Let‘s recap the current solar subsidies and rebates available to homeowners in Nebraska:
Federal Solar Investment Tax Credit (ITC) – The most impactful program for reducing net out-of-pocket solar panel system expenditures is the 26% federal tax credit for systems installed in 2023. This drops to 22% in 2024 and beyond. There is no maximum cap on how much homeowners can claim. The credit is calculated as 26% x your gross solar installation costs.
Net Metering – Nebraska‘s net metering policy allows solar homeowners to accumulate bill credits whenever their system produces more kWh than is consumed on-site. These credits roll over month-to-month indefinitely and help further lower electric expenses during darker winter seasons when solar output dips. Net metering enables solar array owners to maximize their usage offset.
Property Tax Exemption – Solar installations in Nebraska are exempt from increased property tax valuations for the system‘s first 5 years. This avoids any near-term tax hike from going solar.
Check out our Nebraska solar incentives guide for all the details on qualifications and claiming current credits/rebates.
While upfront costs for going solar in Nebraska remain higher than most states, the long-term utility savings can still be substantial while shrinking your carbon footprint. Carefully evaluate all factors discussed in this guide before moving forward with quotes from reputable, local solar installers recommended earlier.
