Nebraska Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:

Updated 2009

Nebraska has it all. What? you’ve never been to Carhenge? You just have to see it to believe it. Of course there are other sights in Nebraska too, like Chimney and Courthouse Rocks. Nebraska also has vineyards, hordes of cranes, and well.. corn. What Nebraska could really use though is some nice clean solar energy, to keep itself looking good. Here’s what the state’s lawmakers have been doing about renewable power.

STATE LEGISLATION

Nebraska really has not been too busy when it comes to considering solar power legislation. In 2006, legislators passed a tax credit for renewable power generation, but it is mainly oriented toward large producers since the credit is currently $0.001/kWh and decreases gradually to $0.0005/kWh in 2018. Well, that’s about it…

NET-METERING

As of May 2009, Nebraska finally has a standard net metering rule for all electric utilities. Yee-haw. The rules apply to solar, wind, and other renewable resources. The power produced during the month offsets your total kilowatt-hours used, so pretty standard stuff. If you generate more solar power than you need at the end of the year, the utility will have to pay you for the excess at their “avoided cost.”  In other words, you’ll get paid at wholesale prices, but at least you’ll be paid.

In case they’re worth anything in Nebraska, you’ll get to keep your SRECS, which you can read about here. Oh, yeah, and they have a very low net metering cap.  What I mean by that is that when they meet just 1% of Nebraska’s electric capacity, that means the utilities can stop their net metering policies. Anybody who gets solar after that 1% cap will not benefit from net metering, at least as it stands in September 2009.  Bummer.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

The Dollar and Energy Savings Loan program does offer Nebraska residents the possibility of taking out a low-interest (5% or less) loan to pay for renewable energy equipment. For example, you could get a loan to pay for a good portion of your solar electricity system since residential loans are capped at between $35,000 and $75,000.

You also get to keep your Solar Renewable Energy Credits (S-RECS). That might be worth something if there’s ever a market for them in Nebraska. Currently, there isn’t, but that my change if the U.S. Congress and President sign some kind of global warming legislation.

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

So you’ve made the right decision and chosen to install your own solar electricity system, despite Nebraska’s legislators being behind the times. As of September 2009:

• Putting in a typical 3kW system in Omaha would cost about $22,500.
  
• That 3kW will cover 79% of your electric bill if you’re paying an average of $50 a month  right now.
  
• There ain’t no State rebates. Please yell at your legislator.
  
• You DO get to take the Federal tax credit of $6,750 though.
  
• Net cost after the Federal Tax Credit: $15,750.
  
• Since Nebraska has a solar rating of Good, you should be able to make your system pay for itself in about 25 years.
  
• You’ll also get to save about $392 each year on your utility bills and best of all, you’ll be keeping 8,079 lbs of CO2 a year out of the atmosphere.
• You’ll need about 600 square feet of roof area required.
• $10,200 estimated property value increase!
• Assuming a 5% average increase a year in utility costs over the next 25 years, you’ll still save $18,882 estimated in utility savings over that time.

CONSENSUS

It’s about time for Nebraska to get with the program on solar energy. The state’s agricultural base needs clean power to survive. So does its wealth of cultural and natural history. Legislators have to step up to the plate or ride off into the sunset. Nebraska may have wide open spaces – let’s fill the legislative open space with solar power incentives.

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