Solar Incentives in Lowell, MA
Complete guide to solar tax credits, rebates, and incentive programs available to Lowell homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Lowell homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Lowell, MA.
Massachusetts State Solar Incentives for Lowell Homeowners
SMART Program (Solar Massachusetts Renewable Target)
RebateThe SMART program provides fixed incentive payments per kWh of solar production for 10 years, replacing the previous SREC-II program.
Massachusetts State Tax Credit
Tax CreditMassachusetts offers a state income tax credit for solar installations.
Sales Tax Exemption
Sales TaxSolar energy equipment is exempt from the state's 6.25% sales tax.
Property Tax Exemption
Property TaxSolar installations are exempt from local property tax increases for 20 years.
Mass Save Rebates
RebateAdditional rebates available through Mass Save for battery storage and energy efficiency paired with solar.
Net Metering in Lowell, MA
Massachusetts has strong net metering policies. Residential solar customers receive full retail rate credits for excess generation up to a system capacity of 10 kW.
Solar Renewable Energy Credits (SRECs) in Lowell
The SREC-II program has been replaced by the SMART program, which provides production-based incentives. Existing SREC-II systems continue to earn SRECs under the previous program.
Average SREC Price: $250-$350 per SREC (legacy SREC-II)
Tax Exemptions in Lowell
How to Claim Solar Incentives in Lowell
- Install your solar system: Work with a qualified Lowell solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your Massachusetts energy office or local Lowell utility to apply for available incentives.
- Set up net metering: Contact your utility in Lowell to set up net metering and start earning credits.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Lowell, MA
Lowell homeowners can take advantage of the 30% federal solar tax credit, plus 5 state-level incentive programs, net metering, and SRECs. These incentives can reduce your total solar cost by 30-50%.
The 30% federal tax credit alone can save Lowell homeowners approximately $5.7k on a typical system. Combined with Massachusetts state programs and SREC income, total savings over 25 years can reach $42k or more.
Massachusetts has strong net metering policies. Residential solar customers receive full retail rate credits for excess generation up to a system capacity of 10 kW.
To claim the 30% federal ITC, Lowell homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.
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