Net Metering
If you install solar, wind, biomass, hydropower, methane, or geothermal generation of 25 kW or less, your Nebraska utility must connect it and offer net metering. Extra monthly generation is credited at the utility's avoided cost rate and carried forward, any leftover credit at the end of the annual period is paid out to you, and you keep your renewable energy credits. You may still pay non-energy charges such as basic service, so contact your utility (e.g., LES, NPPD, OPPD) to apply.
Customers with qualified systems of 25 kW or less using solar, wind, methane, biomass, hydropower, or geothermal can get interconnection and net metering from any Nebraska utility, and customers keep the RECs. Surplus is credited at avoided cost and paid out annually, while non-energy charges like basic service and demand charges may still apply, so set customer expectations accordingly. Utilities must offer net metering until total customer-generator capacity hits 1% of peak demand, and some, like LES, allow up to 100 kW, so confirm each utility's procedures before proposing a system.
Established by L.B. 436 in May 2009, this statewide policy requires all Nebraska electric utilities to provide interconnection and net metering for qualified facilities of 25 kW or less. The obligation lasts until aggregate customer-generator capacity equals 1% of the utility's average aggregate monthly peak demand, after which the utility may choose whether to offer more. Net excess generation is credited monthly at avoided cost, carried forward, and paid out at the end of the annualized period, and utilities may offer larger-system arrangements, as LES does up to 100 kW; it applies to residential, commercial, industrial, agricultural, government, nonprofit, and institutional customers.
Program details
- Program ID
- 3386
- Last updated
- 2/25/2026
Eligibility
- Sectors
- commercial industrial local government nonprofit residential schools state government federal government agricultural institutional
- Technologies
- geothermal electric solar photovoltaics wind (all) biomass hydroelectric wind (small) hydroelectric (small)
Program summary
In May 2009, Nebraska enacted L.B. 436, which established statewide interconnection and net metering rules for all electric utilities in Nebraska.
Eligibility and Availability
Utilities are required to provide interconnection and net metering for a customer-generator’s “qualified facility,” which generates electricity from an energy source of solar, methane, wind, biomass, hydropower, or geothermal and has a rated capacity at or below 25 kilowatts (kW). Utilities are required to offer net metering until the aggregate generating capacity of all customer-generators equals 1% of the utility's average aggregate monthly peak demand for that year. Upon reaching the 1% threshold, a utility can choose whether to offer more net metering capacity. A utility may enter into other arrangements with customers desiring to install electric generating equipment and may also provide net metering to customer-generators having renewable generation units with a rated capacity above 25 kW.
For example, Lincoln Electric Systems (LES) allows owners of qualifying facilities that have a production capacity limit of 100 kW or less to either sell the entire electrical output of qualifying facilities to LES or use the electrical output of qualifying facilities to instantaneously supply all or a portion of their own load and sell the instantaneous surplus, if any, to LES.
Customer-generators retain all renewable energy credits (RECs) associated with the electricity their system generates.
Net Excess Generation
Any net excess generation (NEG) produced by the qualifying facility during the month will be credited at the utility's avoided cost rate for that month and carried forward to the next billing period. Any credited NEG remaining at the end of an annualized period will be paid out to the customer-generator.
Consumer may be billed for the non-energy charges (including but not limited to the basic service, demand, and minimum billing charges) as set forth in the applicable standard rate schedule.
Resources
More information on utility net metering policies can be found at the following websites:
- Lincoln Electric Systems – Customer-Owned Generation
- Nebraska Public Power District - Net Metering Rider
- Omaha Public Power District – Net Metering
For utilities not listed here, please contact them directly for specific policies and procedures.
Contact & resources
- Contact email
- Larry.Pearce@nebraska.gov
Please verify current program details with the administering agency before making any financial decisions.
