Tracking system: Western Renewable Energy Generation Information System (WREGIS)
Net metering and interconnection regulations were passed in 2009 in Nebraska. The state does not have a renewable portfolio standard. The state also does not have a policy on community solar, although utilities have initiated community solar projects in the state. State incentives include low interest loans for project development, sales, use, and property tax exemptions, and production based tax credits.
Nebraska adopted net-metering and interconnection regulations in 2009 with Legislative Bill (L.B.) 436. Net metering is applicable to qualified facilities generating electricity from renewable sources with a rated capacity at or below 25 kW. The net excess generation compensation is credited to customers on a monthly rolling basis and any remaining compensation is annually paid to the customers. The compensation varies amongst different utilities but is a minimum of the avoided cost of electricity.
System size limit: 25 kW
Aggregate cap: 1% of utility's average monthly peak demand
Credit: Net excess generation is credited at avoided-cost rate.
RECs: Customers retain ownership of renewable energy certificates (RECs).
Meter aggregation: Not allowed
Costs sustained by the local distribution utility for equipment or services required for interconnection are funded by customer-generators, however a bidirectional meter should be provided to a customer free of charge by the utility. A customer facility must meet all applicable safety, performance, interconnection and reliability standards established by the National Electric Code, the National Electric Safety Code, and the Institute of Electrical and Electronics Engineers.
System size limit: 25 kW
Liability insurance: Additional liability insurance is not required for systems that meet all safety and interconnection standards.
External disconnect switch: The qualified facility must be capable of automatically isolating itself from the electrical grid.
Third Party Ownership
The status of third party solar power purchase agreements is unclear in Nebraska.
There is no current policy on community solar in Nebraska. However, the state does offer an incentive program for community renewable energy projects (see table below). Among utilities operating in the state, Lincoln Electric System has a 5 MW community solar project, and the Nebraska Public Power District initiatied a community solar pilot program called Sunwise, with enrollment starting in October 2016.
State Incentive Programs
|Dollar and Energy Savings Loans||Nebraska Energy Office||It provides low interest (up to 5%) loans for renewable energy and energy efficiency projects over 3-15 years. The cap on the loan amount depends on type of customer and technology used. The maximum loan amount for solar, wind, and fuel cell technologies has been increased to $500,000 per project starting August 2016.|
|Sales Tax Incentive||Nebraska Department of Revenue||Customers are reimbursed sales and use taxes (not municipality taxes) on renewable systems with a minimum investment of $20,000,000.|
|Sales and Use Tax Exemption for Community Renewable Energy Projects||Nebraska Department of Revenue||This provides 100% tax exemption on the sales and use tax imposed on the sale, lease, or rental of personal property for use in a community-based energy development (C-BED) project. (A C-BED project is defined as a new energy generation project using wind, solar, biomass, or landfill gas as the fuel source that has at least 25% of the gross power purchase agreement payments flowing to the qualified owner or owners or as payments to the local community and has a resolution of support adopted by the county board of each county in which the C-BED project is located or by the tribal council for a C-BED project located within the boundaries of an Indian reservation.)|
|Renewable Energy Tax Credit (Personal and Corporate)||Nebraska Department of Revenue||Nebraska offers a production-based tax credit to renewable generators in the residential,
commercial, industrial, and agricultural sectors placed into service on or after July
14, 2006 for up to 10 years after the facility is established. The tax credit amount
depends on the amount of electricity produced and is $0.0005 per kWh for electricity
generated on or after January 1, 2013. This credit can be used to reduce the producer's
Nebraska income tax liability or to obtain a refund of state sales and use taxes paid
by the producer. The budget for this incentive is limited to $50,000.
Nebraska is not accepting applications for the program as of July 2016.
|Property Tax Exemption for Renewable Energy Generation Facilities||Nebraska Department of Revenue||In May 2015, L.B. 424 was enacted which added solar energy to the mix of renewable technologies applicable for this tax exemption. This provides 100% tax exemption for systems ≥100 kW from the property tax levied on depreciable tangible personal property.|
Utility Incentive Programs
Lincoln Electric System makes a one-time capacity payment to the owner of the renewable generation based on the contribution of peak reduction by the renewable resource.
|Lincoln Electric System - Renewable Energy Rebate||Rebate of $375/kW-DC of solar nameplate capacity for southern-facing fixed systems
Rebate of $475/kW-DC of nameplate capacity for western-facing fixed solar systems
Rebate of $475/kW-DC of nameplate capacity for single or dual tracking solar
|Maximum system size: 100 kW|
The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.
Net metering and interconnection
Programs and Incentives
- Nebraska Energy Office: Dollar and Energy Savings Loans
- Nebraska Legislature: Sales Tax Incentive, Nebraska Revised Statute 77-5725
- Nebraska Legislature: Sales and Use Tax Exemption for Community Renewable Energy Projects, L.B. 412
- Nebraska Legislature: Property Tax Exemption for Renewable Energy Generation Facilities, L.B. 424
- Lincoln Electric System: Solar and Customer-Owned Generation
- Nebraska Department of Revenue: Older Nebraska Tax Incentive Programs