Benefits of Solar Energy
Solar energy comes with multiple benefits. Here are some highlights.
- Reduced carbon footprint: Adopting solar is a surefire way to minimize your carbon footprint and home fossil fuel dependency.
- Lowered energy bills: With a solar array, you create power without paying the tacked-on costs of grid-tied power. You can eliminate your bills completely if you go off-grid. Plus, a significant number of states have adopted net metering, which permit you to earn money by selling your unused energy back to the grid.
- Better energy independence: Solar energy can keep your home running through emergencies and blackouts. You can use your solar energy anytime with optional battery backup.
What Solar Incentives Are Available to Lincoln Homeowners?
Governments and utilities often reward homeowners for adopting solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Loan Program
Website: neo.ne.govIncentive Amount:
Traditional Dollar and Energy Savings Loans:
Residential: $125,000;
Multifamily dwellings with 3 or more units: $250,000
Non-Residential: $500,000;
Home Electronics: $25,000;
Office Electronics: $50,000
Alternative Fuel Projects: $500,000
Telecommunications Projects: $250,000
Incentive Type: Sales Tax Incentive
Incentive Amount:
100% exemption
Incentive Type: Rebate Program
Website: nppd.comIncentive Amount:
Smart Thermostat: Up to $100
High Efficiency Heat Pump: $300 - $2,500
Heat Pump Water Heater: $300 - $500
Cooling System Tune-Up: $30
Attic Insulation: $0.15/sq. ft.
Incentive Type: PACE Financing
Incentive Amount:
PACE bonds are capped at $5 million unless approved by referendum.
Incentive Type: Rebate Program
Website: les.comIncentive Amount:
Varies by equipment type and efficiency rating; see program website for complete details
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Lincoln
The more informed your company research is, the better your solar panels will ultimately function. Consider each of these factors in your business search.
Licensing and Training
In Nebraska, the state's Electrical Division issues and manages licenses to solar installers, with some cities mandating supplemental licenses or endorsements to perform solar work. Solar providers can also earn certificates from trade groups and standards organizations. The top ones in the industry come from the North American Board of Certified Energy Practitioners. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Lincoln
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power and generally have the highest quality. Polycrystalline panels produce less power, but start at a more budget-friendly price point. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
You can also add electric car (EV) chargers and battery backup systems. These will increase your total installation cost, but they can boost your solar system's efficiency. Not every solar contractor includes these additional features, so look for a company that installs them if it's important for you.
A majority of Lincoln homeowners select solar systems rated for five kilowatts (kW) of electrical capacity. These systems cost about $17,900 to install, considering both materials and labor. You can find more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,088 |
| Solar Polycrystalline | $849 |
| Thin-Film | $496 |
| Solar Battery | $696 |
| Solar Home EV Charger | $2,612 |
Financing Solar Energy in Lincoln
Choosing the optimal financing option will impact your overall solar system cost and potential savings. Common payment options include power purchase agreements, leases, cash payments, and loans. Though it requires a large up-front payment, cash is the most economical choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the second most effective option. As with a car loan or mortgage, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate based only on the energy you use, like an electric bill. We usually don’t recommend these two choices because you won't own the system and cannot use solar incentives. We recommend working with an installer that offers multiple financing options. Ask each salesperson about what's available, and obtain more than one estimate for the best odds of keeping within your budget.
The table below lists the average payback periods for different capacities of solar systems in Lincoln.
The IRS allows you to claim a 26% federal solar tax credit on total system costs, so long as you purchase it before 2032. City and state governments and utilities might also offer their own incentives, rebates, and financing programs that could save you more money.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.6 years |
| 2 kW | 5.2 years |
| 5 kW | 13.0 years |
| 10 kW | 26.0 years |
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Frequently Asked Questions About Solar in Lincoln
How much money could I save by going solar in Lincoln?
How common is solar energy in Lincoln?
Should I anticipate a boost in my property value after installing solar panels?
What can I do to predict my home's solar viability?
How long will an average solar system last?
How long does it take to pay back a solar loan in Lincoln?
What is "net metering," and how does it work?
Some states or utilities oblige you to enroll in net metering when purchasing your solar system, while others give you a choice. Either way, once you sign up, you'll get a check or bill credit for your excess generation at a wholesale or retail rate.
How are a solar lease and PPA different?
You don't own the panels with either option, though you can choose to opt out of the contract for a fee.
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