Are you a Nebraska homeowner considering going solar, but not sure where to start or what financial return you can expect? If so, this detailed solar guide provides everything you need to make the smartest energy decisions tailored specifically for Cornhusker State residents.
Whether you‘re exploring your options or ready to install solar panels today, our goal is to educate you on every key aspect – from upfront installation costs to long-term utility savings to payback timetables and beyond. Read on to learn insider tips for maximizing financial return and weighing the pros and cons of solar panels in Nebraska.
At a Glance: Key Solar Statistics for Nebraska
Before diving into costs and savings specifics, let‘s look at the 30,000 ft view of solar adoption across the Cornhusker State today:
- Only 83MW solar energy generated in NE in 2022
- Accounts for <0.1% of state‘s power mix
- Ranks 49th nationally in solar deployment
- Average installation cost = $2.83/Watt
- 6kW system price = ~$16,980
While solar makes up only a sliver of Nebraska‘s energy portfolio currently, this also signals strong future growth potential. As costs continue falling nationally in the coming years, solar becomes ever more affordable for Cornhusker State residents focused on energy independence and sustainability.
How Much Do Solar Panels Cost to Install in Nebraska?
According to current market rates across the state, you can expect to pay an average of $2.83/Watt for solar panel equipment and installation costs in Nebraska. This positions pricing higher than about 35 other states.
For example, a typical 6kW solar array averages around $16,980 installed. However, your specific costs canrange based on:
- Location
- Amount of direct sunlight
- System size needed
- Installer chosen
To demonstrate cost variability depending on site-specific factors like sunlight, take a look at pricing differences across five of Nebraska‘s largest cities:
| City | Avg Sun Hours | Est Cost 6kW System |
|---|---|---|
| Omaha | 4.58 | $16,740 |
| Lincoln | 4.63 | $16,650 |
| Bellevue | 4.54 | $16,800 |
| Grand Island | 4.68 | $16,550 |
| Kearney | 4.77 | $16,340 |
With Kearney receiving over 5% more annual sunlight than Omaha, solar equipment produces more energy reducing system size and overall installation costs.
Based on your household‘s location and electricity needs, costs can differ. We‘ll explore how to right-size your system next.
How Large of a Solar System Do You Need in Nebraska?
With the average Nebraska home using more energy than households nationally, most solar arrays need to be sized larger to match your household‘s demands.
Here‘s how to determine the optimal solar panel system size using statewide benchmarks:
Average NE Home Electrical Usage: 1,013 kWh/month or 33.8kWh/day
Average Peak Sunlight Hours for NE: 4.79 hours
Daily Energy Use ÷ Hours of Sun = 33.8 kWh ÷ 4.79 hours = 7kW System
A 7kW solar array appropriately offsets the full energy load of a standard Cornhusker State home.
To calculate your specific home‘s ideal capacity using actual use data and sunlight hours for your city or county, reference our Nebraska Sun Hours Map. Properly sizing your system is key for aligning production to your needs and workload to maximize savings over time.
Nebraska Solar Panel Cost Over Past 5 Years
Over 2017 to 2022, average solar panel pricing in Nebraska has fallen by 40% overall:
| Year | Avg Cost per Watt | 6kW System Price |
|---|---|---|
| 2017 | $4.73 | $28,380 |
| 2018 | $3.86 | $23,160 |
| 2019 | $3.33 | $19,980 |
| 2020 | $2.98 | $17,880 |
| 2021 | $2.77 | $16,620 |
| 2022 | $2.83 | $16,980 |
Data from EnergySage Solar Marketplace Intel Report 2022
This aligns with national trends of solar technology becoming continuously more affordable with further room for reduced rates ahead.
What Are the Ongoing Costs Beyond Initial Installation?
While solar panels require a notable upfront investment, they operate reliably for decades with minimal maintenance needs. You can expect the following longer-term costs:
- $100-150 annual cleaning cost – Panels accumulate dust/debris over time requiring occasional washings
- $100+ inverter replacement every 10-15 years – The component converting solar energy to usable electricity lasts roughly this long
- $200-500 for repairs (if ever needed) – Solar systems are highly durable with no moving parts. Major issues are very rare.
Accounting for these minor regular expenses, your solar array can supply you with virtually free, clean energy for 25+ years!
Now let‘s explore what electricity bill savings benefits Nebraska homeowners can expect after going solar…
Just How Much Can You Save by Going Solar in Nebraska?
According to the SEIA, an appropriately sized solar system in Nebraska generates around 12,300 kWh of electricity across its initial year. For a household previously buying grid power, that‘s 12,300 kWh no longer needed from your utility provider.
Given Nebraska‘s average residential electricity rate of $0.1021 per kWh, an average home solar setup would offset $1,255 worth of bill costs in its first year alone.
The key breakpoint to understand is the number of years it takes your energy savings to fully offset the initial solar panel system cost – what‘s called the "payback period".
For a 6kW solar array in Nebraska priced around $16,980 installed, the payback period clocks in at roughly 13.5 years. While slower than many states, this still represents recouping your entire upfront investment through electricity savings in just over a decade.
And once your payback period completes, your solar panels continue producing free renewable energy for 10-15 more years. Over the full 25-year lifespan, a Nebraska solar setup saves homeowners between $15,750 (best case) to $26,250 (best case) in total utility costs.
That‘s an average of $630 to $1,050 in annual energy bill reductions. And unlike volatile utility rates that can spike during times of high energy costs, your solar savings remain constant year-over-year.
Assumptions on Bill Savings Calculations
- Electricity Rate Increase: 2.5%/year over 25 years
- Panel System Production Decline: 0.5%/year
- Net Metering Value: Retail electricity rate
- Discount Rate: 4%
Feel free to tweak these assumptions using our Nebraska solar calculator tool linked below.
Calculate Your Solar Savings in Nebraska →
Solar Panel Incentives and Rebates in Nebraska
While Nebraska lags behind many states adopting solar policies, a few helpful rebates make installations more affordable:
1. Federal Solar Tax Credit
The 26% federal Investment Tax Credit (ITC) remains your best savings opportunity. This program allows you to deduct 26% of your solar installation costs from your federal income taxes. For a $17,000 system for example, you‘d receive $4,420 back.
Solar tax credit eligibility details here.
2. 100% Solar Equipment Exemption from Property Taxes
Adding solar often increases your home‘s value and thus property taxes. Nebraska waives these levies on the value added by solar systems – saving you $200+ per year typically.
3. Net Metering to Offset Nighttime Use
While Nebraska‘s net metering compensation rate sits below the national average, you still earn retail credit for excess daytime solar energy fed back to the grid. This helps balance nighttime electrical loads.
That sums up the main incentives making solar within reach today. Various financing options also exist to help mitigate upfront costs as well.
We hope this solar analysis gives you greater confidence evaluating whether home solar makes sense to lower bills and even make money over the long run. Although Nebraska lags behind in solar adoption today, the state provides very viable economics for households who choose to invest in their energy future.
For any other questions on solar costs and logistics for your specific home, chat 1-on-1 now with our solar advisor team.
