Solar in Nebraska: Public Power, No Net Metering Mandate, and What That Means

Nebraska is unique in American electricity. It is the only state in the country where 100% of the electricity is provided by public power — there are no private, investor-owned utilities. Every electric customer in Nebraska is served by a public power district, municipal utility, or cooperative. That single fact shapes everything about solar economics here.

Public power means lower rates. It also means no state regulatory commission mandating net metering, no renewable portfolio standards forcing utilities to buy your solar, and no competitive pressure from shareholders to adopt distributed generation. Nebraska's solar market is small, and the policy environment explains why.

Here is what Nebraska homeowners need to know in 2026.

The Good News

Abundant Sunshine

Nebraska gets 4.6-5.3 peak sun hours per day — solidly above the national average, especially in the western part of the state. North Platte, Scottsbluff, and the Panhandle region rival Colorado for solar irradiance. Even Omaha and Lincoln get 4.6-4.9 peak sun hours. The solar resource is genuinely good here.

Some Utilities Offer Favorable Programs

While there is no statewide net metering mandate, several of Nebraska's larger public power districts have adopted voluntary solar programs. Omaha Public Power District (OPPD) and Lincoln Electric System (LES) both offer net metering or solar buyback programs for residential customers.

OPPD, serving the Omaha metro area (roughly 400,000 customers), has offered net metering with monthly credits at the retail rate. LES has a similar program. These are voluntary — the utility can change terms — but they make solar viable for a significant portion of the state's population.

If you are in OPPD or LES territory, the economics are noticeably better than in smaller rural districts.

Low Installation Costs

Nebraska's cost of living translates to competitive installation pricing. Expect $2.70-$3.00 per watt, which is at or slightly below the national average. On a 7.5 kW system, that is $20,250-$22,500 before any incentives.

Property Tax Exemption

Nebraska provides a property tax exemption for renewable energy systems. Solar panels will not increase your property tax assessment, which matters in a state with above-average property tax rates (typically 1.5-1.8% of assessed value).

The Challenges

No State Solar Incentives

Nebraska offers no state solar tax credit, no rebate program, and no SREC market. Combined with the expired federal ITC, the incentive picture is essentially empty. You are paying the full cost of the system and relying entirely on electricity savings for your return.

No Mandatory Net Metering

This is the critical issue. Because Nebraska's utilities are all publicly owned, they are not subject to the same net metering mandates that apply to investor-owned utilities in most other states. Each utility sets its own policy. Some offer full retail net metering. Some offer reduced-rate credits. Some offer nothing.

If your utility does not offer net metering or offers it at a low rate, your solar economics depend entirely on self-consumption — using the electricity as your panels produce it. Any excess you send to the grid may earn you pennies or nothing at all.

Before you get a single quote, call your utility and ask exactly what they offer for residential solar customers. This is step one in Nebraska and it is non-negotiable.

Low Electricity Rates

Nebraska's public power model delivers some of the lowest electricity rates in the nation — averaging $0.10-$0.12/kWh. OPPD customers pay around $0.11/kWh. This is great for your monthly bill and terrible for solar payback. Each kWh your panels produce is simply worth less here than in high-rate states.

The Nebraska Solar Math (2026)

Typical 7.5 kW system (OPPD territory with net metering):

• Installed cost: $21,375 ($2.85/watt)
• Federal ITC: $0 (expired)
• State credits: $0
• Utility rebate: $0 (check current OPPD offerings)
• Net cost: ~$21,375

Annual production: ~10,200 kWh

Average OPPD rate: $0.11/kWh

Annual savings: $1,020-$1,120 (with retail net metering)

Payback period: 19-21 years

25-year savings: $8,000-$16,000 (depending on rate increases)

Without net metering (70% self-consumption):

• Self-consumed: 7,140 kWh x $0.11 = $785
• Exported: 3,060 kWh x $0.03 = $92
• Total year 1 savings: $877
• Payback period: 24+ years

That second scenario — without good net metering — is where Nebraska solar struggles. The payback exceeds the typical warranty period. This is why your utility's net metering policy is absolutely the first thing to check.

Once you have confirmed your utility's policy, comparing quotes from multiple installers will help you find the best price in Nebraska's smaller market.

When Solar Makes Sense

Install if:

• You are in OPPD or LES territory with confirmed net metering at retail rate
• Your monthly bill is above $120
• You plan to stay in your home 15+ years
• You value energy independence and want to hedge against future rate increases
• You have excellent south-facing roof exposure in a sunnier part of the state

Wait or skip if:

• Your utility has no net metering and no solar buyback program
• Your electricity rate is below $0.10/kWh
• You plan to move within 8-10 years
• Your roof faces east/west or has significant shading
• You are expecting a fast payback — Nebraska cannot deliver that in the current environment

Key Takeaways

• Nebraska is 100% public power — no investor-owned utilities, no mandatory net metering
• Call your utility first to confirm their solar policy before getting quotes
• OPPD and LES offer the best utility solar programs in the state
• No state incentives exist — no tax credit, no rebate, no SRECs
• Low rates ($0.10-$0.12/kWh) make payback inherently long: 19-21 years with good net metering
• Without net metering, payback can exceed 24 years — which makes solar hard to justify financially
• Western Nebraska has the best solar resource but often the smallest utilities with the weakest solar policies
• Nebraska solar is a very long-term investment that works best for homeowners with good utility programs who plan to stay put indefinitely

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